[Title 49 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 1996 Edition]
[From the U.S. Government Printing Office]


          49



          Transportation



[[Page 1]]

          PARTS 1000 TO 1199

          Revised as of October 1, 1996
          CONTAINING
          A CODIFICATION OF DOCUMENTS
          OF GENERAL APPLICABILITY
          AND FUTURE EFFECT

          AS OF OCTOBER 1, 1996
          With Ancillaries
          Published by
          the Office of the Federal Register
          National Archives and Records
          Administration

          as a Special Edition of
          the Federal Register



[[Page ii]]

                                      




                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 1996



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



[[Page iii]]




                            Table of Contents


                                                                    Page
  Explanation.................................................       v
  Title 49:
      Subtitle B--Other Regulations Relating to 
                                                                                Transportation--Continued:


            Chapter X--Surface Transportation Board, 
          Department of Transportation                               5
  Finding Aids:
    Table of CFR Titles and Chapters..........................     449
    Alphabetical List of Agencies Appearing in the CFR........     465
    Redesignation Table.......................................     475
    List of CFR Sections Affected.............................     477

[[Page iv]]



      



                                                                                                                
                                  ----------------------------------------------------------                    
                                   Cite this Code:  CFR                                                         
                                                                                                                
                                   To cite the regulations in this volume use title, part                       
                                    and section number. Thus, 49 CFR 1000.1 refers to title                     
                                    49, part 1000, section 1.                                                   
                                                                                                                
                                  ----------------------------------------------------------                    
                                                                                                                


[[Page v]]

                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, October 1, 1996), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
exercised by the user in determining the actual effective date. In 
instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
the period beginning January 1, 1986, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I), and Acts Requiring Publication 
in the Federal Register (Table II). A list of CFR titles, chapters, and 
parts and an alphabetical list of agencies publishing in the CFR are 
also included in this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408.
SALES
    The Government Printing Office (GPO) processes all sales and 
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Customer Service call 202-512-1803.

                              Richard L. Claypoole,
                                    Director,
                          Office of the Federal Register.

October 1, 1996.



[[Page vii]]



                               THIS TITLE

    Title 49--Transportation is composed of seven volumes. The parts in 
these volumes are arranged in the following order: Parts 1-99, parts 
100-185, parts 186-199, parts 200-399, parts 400-999, parts 1000-1199, 
part 1200 to End. The first volume (parts 1-99) contains current 
regulations issued under subtitle A--Office of the Secretary of 
Transportation; the second volume (parts 100-185) and the third volume 
(parts 186-199) contain the current regulations issued under chapter I--
Research and Special Programs Administration (DOT); the fourth volume 
(parts 200-399) contains the current regulations issued under chapter 
II--Federal Railroad Administration (DOT), and chapter III--Federal 
Highway Administration (DOT); the fifth volume (parts 400-999) contains 
the current regulations issued under chapter IV--Coast Guard (DOT), 
chapter V--National Highway Traffic Safety Administration (DOT), chapter 
VI--Federal Transit Administration (DOT), chapter VII--National Railroad 
Passenger Corporation (AMTRAK), and chapter VIII--National 
Transportation Safety Board; the sixth volume (parts 1000-1199) and the 
seventh volume (part 1200 to End) both contain current regulations 
issued under chapter X--Surface Transportation Board, Department of 
Transportation. The contents of these volumes represent all current 
regulations codified under this title of the CFR as of October 1, 1996.

    In the volume containing parts 100-185, see Sec. 172.101 for the 
Hazardous Materials Table, and Sec. 172.102 for the Optional Hazardous 
Materials Table. An Identification Number Cross Reference Index to 
Proper Shipping Names in Secs. 172.101 and 172.102 appears at the 
beginning of part 172. The Federal Motor Vehicle Safety Standards appear 
in part 571.

    Redesignation tables for chapter X--Surface Transportation Board, 
Department of Transportation appear in the Finding Aids section of the 
sixth and seventh volumes.

    For this volume Brian Swidal was the Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

[[Page viii]]




[[Page 1]]



                        TITLE 49--TRANSPORTATION




                 (This book contains parts 1000 to 1199)

  --------------------------------------------------------------------

                                                                    Part
SUBTITLE B--
  Other 
  Regulations
   Relating 
  to 
  Transportat
  ion--
  Continued:


chapter x--Surface Transportation Board, Department of 
  Transportation............................................           5

[[Page 3]]

   Subtitle B--Other Regulations Relating to Transportation--Continued

[[Page 5]]



  CHAPTER X--SURFACE TRANSPORTATION BOARD, DEPARTMENT OF TRANSPORTATION




  --------------------------------------------------------------------

               Subchapter A--General Rules and Regulations

                   PARTS 1000-1019--GENERAL PROVISIONS
Part                                                                Page
1000            The Commission..............................          11
1001            Inspection of records.......................          13
1002            Fees........................................          16
1003            Forms.......................................          23
1004            Interpretations and routing regulations.....          23
1005            Principles and practices for the 
                    investigation and voluntary disposition 
                    of loss and damage claims and processing 
                    salvage.................................          26
1007            Records containing information about 
                    individuals.............................          29
1008            Procedures governing the processing, 
                    investigation, and disposition of 
                    overcharge, duplicate payment, or 
                    overcollection claims...................          36
1011            Commission organization; delegations of 
                    authority...............................          38
1012            Meetings of the Commission..................          47
1013            Guidelines for the proper use of voting 
                    trusts..................................          51
1014            Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by the Interstate 
                    Commerce Commission.....................          52
1016            Special procedures governing the recovery of 
                    expenses by parties to Commission 
                    adjudicatory proceedings................          58
1017            Debt collection--collection by offset from 
                    indebted government and former 
                    government employees....................          64
1018            Debt collection.............................          70
1019            Regulations governing conduct of Interstate 
                    Commerce Commission employees...........          81
                      PARTS 1021-1029--ENFORCEMENT

1021            Administrative collection of enforcement 
                    claims..................................          82
1022            Cooperative agreements with States..........          83

[[Page 6]]

1023            Standards for registration with States......          84
  PARTS 1030-1039--CARRIERS SUBJECT TO PART I, INTERSTATE COMMERCE ACT

1030            Filing of contracts by common carriers......          89
1033            Car service.................................          89
1034            Routing of traffic..........................          91
1035            Bills of lading.............................          92
1037            Rules for the handling of bulk grain and 
                    grain products in interstate commerce, 
                    and the filing, investigation, and 
                    disposition of claims for loss and 
                    damage incident thereto, which supersede 
                    the rules prescribed in Ex Parte No. 
                    263, loss and damage claims, 340 I.C.C. 
                    515 (37 FR 20943).......................          97
1039             Exemptions.................................          99
            PARTS 1040-1069--MOTOR CARRIERS--BROKERS--GENERAL

1043            Surety bonds and policies of insurance......         104
1044            Designation of process agent................         113
1045            Brokers of property.........................         114
1047            Exemptions..................................         115
1048            Commercial zones............................         120
1049            Terminal areas..............................         128
1051            Receipts and bills..........................         129
1052            Handling of c.o.d. shipments................         130
1054            Incidental charter rights...................         131
1055            Discrimination in operations of interstate 
                    motor common carriers of passengers.....         131
1056            Transportation of household goods in 
                    interstate or foreign commerce..........         133
1057            Lease and interchange of vehicles...........         144
1058            Identification of vehicles..................         151
1061            Limitation of smoking on interstate 
                    passenger carrier vehicles..............         152
1063            Adequacy of intercity motor common carrier 
                    passenger service.......................         152
1064            Notice of and procedures for baggage excess 
                    value declaration.......................         155
1067            Fitness procedures..........................         156
                PARTS 1070-1079--WATER CARRIERS--GENERAL

1070            Harbors.....................................         157

[[Page 7]]

1071            Exemption of water carrier operations.......         159
              PARTS 1080-1089--FREIGHT FORWARDERS--GENERAL

1081            Bills of lading.............................         160
1084            Surety bonds and policies of insurance......         160
               PARTS 1090-1099--INTERMODAL TRANSPORTATION

1090            Practices of carriers involved in the 
                    intermodal movement of containerized 
                    freight.................................         162
1091            Alaskan motor-ocean-motor (AMOM) substituted 
                    service.................................         163

                     Subchapter B--Rules of Practice

             PARTS 1100-1129--RULES OF GENERAL APPLICABILITY

1100            General provisions..........................         165
1101            Definitions and construction................         165
1102            Communications..............................         166
1103            Practitioners...............................         167
1104            Filing with the commission-copies-
                    verification-service-pleadings, 
                    generally...............................         177
1105            Procedures for implementation of 
                    Environmental Laws......................         180
1106-1108  
  [Reserved]
1109            Use of alternative dispute resolution in 
                    Commission proceedings and those in 
                    which the Commission is a party.........         191
1110            Procedures governing informal rulemaking 
                    proceedings.............................         191
1111            Complaint and investigation procedures......         193
1112            Modified procedures.........................         195
1113            Oral hearing................................         196
1114            Evidence; discovery.........................         203
1115            Appellate procedures........................         212
1116            Oral argument before the Commission.........         215
1117            Petitions (for relief) not otherwise covered         215
1118            Procedures in informal proceedings before 
                    employee boards.........................         215
1119            Compliance with Commission decisions........         216
1120            Use of 1977-1978 study of motor carrier 
                    platform handling factors...............         216
1121            Rail exemption procedures...................         217

[[Page 8]]

1122-1129  
  [Reserved]
                    PARTS 1130-1149--RATE PROCEDURES

1130            Informal complaints.........................         218
1131            Formal rate complaints, rail intrastate 
                    petitions and investigations............         221
1132            Protests against tariffs; procedures in 
                    certain suspension and long and short 
                    haul restriction matters................         224
1133            Recovery of damages.........................         227
1135            Railroad cost recovery procedures...........         229
1136            Rail passenger carrier commutation or 
                    suburban fare increases.................         230
1137            Procedures relating to Railroad 
                    Revitalization and Regulatory Reform Act 
                    of 1976.................................         230
1139            Procedures in motor carrier revenue 
                    proceedings.............................         233
1141            Procedures to calculate interest rates......         256
1142            Special rules for filing and handling 
                    complaints against bus rates and fares 
                    under the zone of rate freedom (49 
                    U.S.C. 10708(d)(4), 10708(d)(5), 
                    10708(e), section 11 of the Bus 
                    Regulatory Reform Act of 1982)..........         257
1143            Preemption of State jurisdiction; passenger 
                    rates...................................         258
1144            Intramodal rail competition.................         259
1146-1149  
  [Reserved]
                  PARTS 1150-1174--LICENSING PROCEDURES

               PARTS 1150-1159--RAIL LICENSING PROCEDURES

1150            Certificate to construct, acquire, or 
                    operate railroad lines..................         262
1151            Feeder railroad development program.........         273
1152            Abandonment and discontinuance of rail lines 
                    and rail transportation under 49 U.S.C. 
                    10903...................................         277
1155            Standards for determining rail service 
                    continuation subsidies..................         336
1156            Submission of cost data to justify 
                    reimbursement for directed service......         369
1157            Standards for determining commuter rail 
                    service continuation subsidies..........         382
1158-1159  
  [Reserved]
              PARTS 1160-1174--NONRAIL LICENSING PROCEDURES

1160            Rules governing applications for operating 
                    authority...............................         403
1166            Extension of operations by water common 
                    carrier.................................         407

[[Page 9]]

1167            Compensated intercorporate hauling..........         407
1170            Employee protection for motor passenger 
                    carriers................................         408
1171            Applications for certificates of 
                    registration by foreign motor carriers 
                    and foreign motor private carriers under 
                    49 U.S.C. 10530.........................         409
1172-1174  
  [Reserved]
1176      [Reserved]
                   PARTS 1177-1199--FINANCE PROCEDURES

     PARTS 1177-1179--SECURITIES, SECURITY INTERESTS, AND FINANCIAL 
                               STRUCTURES

1177            Recordation of documents....................         412
1178-1179  
  [Reserved]
               PARTS 1180-1189--COMBINATIONS AND OWNERSHIP

1180            Railroad acquisition, control, merger, 
                    consolidation project, trackage rights, 
                    and lease procedures....................         415
1181            Transfers of operating rights under 49 
                    U.S.C. 10926............................         431
1182            Purchase, merger, and control of motor 
                    passenger carriers and water carriers...         433
1184            Motor carrier pooling operations............         437
1185            Interlocking officers.......................         438
1186            Exemption of certain transactions under 49 
                    U.S.C. 11343............................         441
1187            Temporary authority in motor and water 
                    carrier finance proceedings.............         443
1188            Gross operating revenues of carriers 
                    involved in finance proceedings.........         444
1189-1199  
  [Reserved]

[[Page 11]]



               SUBCHAPTER A--GENERAL RULES AND REGULATIONS





PARTS 1000-1019--GENERAL PROVISIONS--Table of Contents






PART 1000--THE COMMISSION--Table of Contents




                           Subpart A--General

Sec.
1000.1  Description of official seal.
1000.5  Credentials required by special agents, accountants, and 
          examiners.
1000.10  Availability of statements of policy, interpretations, and 
          other matters not required to be published in the Federal 
          Register.



                           Subpart A--General

    Authority: 49 U.S.C. 10303, 10321, 11144 and 11145.

    Source: 32 FR 20004, Dec. 20, 1967, unless otherwise noted.



Sec. 1000.1   Description of official seal.

    (a) Description. A constellation of 13 stars above an American bald 
eagle with wings displayed and inverted holding in his dexter talon an 
olive branch and in his sinister a bundle of seven arrows, in his beak a 
scroll inscribed ``E Pluribus Unum,'' bearing a shield paleways of 13 
pieces argent and gules, a chief azure; all within an encircling 
inscription ``Interstate Commerce Commission, 1887,'' and a decorative 
outer border.
[GRAPHIC] [TIFF OMITTED] TC03MR91.044

    (b) Colors. When illustrated in color, the background is National 
Flag blue, the eagle and olive branch proper, and the arrows, stars, 
scroll and encircling inscription white. The motto is of the same blue 
as the background, and the blue of the shield is a medium shade. The 
outer border of the seal and the edge of the shield are gold color.



Sec. 1000.5   Credentials required by special agents, accountants, and examiners.

    (a) Carrier records and property subject to inspection and 
examination.
    (1) Persons appointed as special agents, accountants, and examiners 
of the Commission are authorized to enter upon, to inspect and examine 
any and all lands, buildings, and equipment of carriers and other 
persons subject to the Interstate Commerce Act and related Acts, and to 
inspect and copy any and all accounts, books, records, memoranda, 
correspondence, and other documents of carriers, and other persons 
subject to the Act.
    (2) Inspection or copying authority with respect to persons who 
furnish railroad cars or protective service against heat or cold to or 
on behalf of a carrier or an express company, shall be limited to 
accounts, books, records, memoranda, correspondence, and other documents 
which pertain or relate to cars or protective service.
    (3) Carriers and other persons subject to the Act shall submit their 
accounts, books, records, memoranda, correspondence, and other documents 
for inspection and copying, and such carriers and other persons shall 
submit their lands, buildings, and equipment for examination and 
inspection, to any special agent, accountant, or examiner of the 
Commission upon demand and the display of a Commission credential 
identifying him as a special agent, accountant, or examiner.
    (b) Definition of other persons subject to the Act. The term other 
persons subject to the Act, as used in this section, includes:
    (1) Brokers subject to part II of the Interstate Commerce Act, 
freight forwarders subject to part IV of the Act,

[[Page 12]]

lessors of carrier operating rights, receivers, trustees, 
administrators, executors, and other persons having custody, possession, 
or control of barrier operations or the business of other persons 
subject to the Act;
    (2) Persons who furnish railroad cars or protective service against 
heat or cold to or on behalf of railroads or express companies (but only 
with respect to records pertaining to the cards or protective services 
to be furnished);
    (3) Associations of carriers or brokers subject to the Act which 
perform any service or engage in any activities in connection with any 
traffic, transportation, or facilities subject to the Act;
    (4) And, to the extent specified in orders of the Commission issued 
under section 5 of the Act, persons controlling two or more carriers.
    (c) Definition of special agents, accountants, and examiners. The 
duties of the following described employees or positions, and such other 
employees of the Commission as the Chairman shall specify in writing, 
include those of special agent, accountant or examiner, and they are 
hereby authorized to inspect and copy records and to inspect and examine 
lands, buildings, and equipment in the same manner and to the same 
extent as special agents, accountants, and examiners:

Chairman
Vice Chairman
Commissioners
Bureau and Office Heads and Directors; Associate, Assistant and Deputy 
    Heads and Directors; Assistants to Heads and Directors; Chiefs and 
    Assistant Chiefs of Sections; and Branch Chiefs of all Headquarters 
    Bureaus, Offices and Sections
Public Information Officer and Assistant
Chairpersons of Employee Boards
Regional Directors
Assistant and Associate Regional Directors
Regional Counsel
Assistant Regional Counsel
Branch Chiefs, Field Offices
Trial Attorneys
Transportation Assistants and Consumer Specialists
Transportation Industry Analysts
Railroad Car Service Agents
District Supervisors
Auditors and Financial Analysts
Economists
Investigators
Administrative Law Judges

    (d) Facsimile of the Commission's credentials:
    [GRAPHIC] [TIFF OMITTED] TC03MR91.045
    
[38 FR 7229, Mar. 19, 1973, as amended at 45 FR 80292, Dec. 4, 1980; 46 
FR 30502, June 9, 1981]



Sec. 1000.10   Availability of statements of policy, interpretations, and other matters not required to be published in the Federal Register.

    (a) The Interstate Commerce Commission, in performing its duties 
under the Interstate Commerce Act, frequently formulates and adopts 
statements of general policy, or interpretations of general 
applicability, and other matters not required to be published in the 
Federal Register in rendering decisions in proceedings involving the 
operating rights, financial structures, or rates and practices of 
brokers, electric railways, express companies, freight forwarders, motor 
carriers, pipelines, private car companies, rail carriers, and water 
carriers. Because such statements of policy and interpretations of 
general applicability are scattered throughout more than 320,000 pages 
in over 400 volumes of Commission reports and because such policies and 
interpretations must be revised or repealed from time to time as 
required by changing technology and economic conditions, it is not 
feasible, and is wholly impractical, to state them separately and 
publish them in the Federal Register. Further, to be fully understood, 
such statements of general policy or interpretations of general 
applicability must be read in context in the Commission's reports where 
they are explained, revised, or repealed in relation to the factual 
situations to which they are applicable.

[[Page 13]]

Notice is hereby given that those portions of the printed reports of 
decisions of the Interstate Commerce Commission which contain statements 
of general policy or interpretations of general applicability are 
digested, arranged topically, and indexed both in the multivolume set 
``Interstate Commerce Acts Annotated'' (supplemented monthly by the 
``Advance Bulletin of Interstate Commerce Acts Annotated'') and in the 
index-digests in the backs of bound volumes of Interstate Commerce 
Commission reports. The multivolume set, ``Interstate Commerce Acts 
Annotated'' and the three series of Interstate Commerce Commission 
reports (i.e., I.C.C., M.C.C. and Val. Rep.) are published and sold by 
the Government Printing Office, and are sent free to Depository 
Libraries (44 U.S.C. 82), which include all State libraries, two 
libraries in each congressional district, the libraries of land grant 
colleges, and other libraries. Copies are also available for public 
examination in the Interstate Commerce Commission Library in Washington, 
DC. The indexes in these publications are maintained in compliance with 
the provision in 5 United States Code 552(a)(2). The ``Advance Bulletin 
of Interstate Commerce Acts Annotated'' and recent reports, which have 
not yet been included in published indexes, are available upon request 
from the Office of the Secretary, Interstate Commerce Commission.
    (b) Because of the large volume of reports, it is the policy of the 
Commission to print for publication in bound volumes only reports of 
those cases decided by the entire Commission or by a division thereof 
and more significant reports of employee boards. With few exceptions, 
reports and orders of employee boards are duplicated (``no print reports 
and orders'') and distributed to the parties and made available to the 
press. From time to time ``no print reports and orders'' are cited as 
precedents in other cases. Therefore, notice is hereby given that 
duplicated ``no print reports and orders'', are indexed by docket number 
and title, and filed by subject matter and are available for public 
inspection in the Section of Reference Services of the Commission in 
Washington, DC. These indexes and files are maintained in compliance 
with the provision in 5 United States Code 552(a)(2). Persons outside 
Washington, DC, can obtain information about, or copies of, such 
duplicated reports by writing to the Secretary of the Commission.



PART 1001--INSPECTION OF RECORDS--Table of Contents




Sec.
1001.1  Records available at the Commission's Washington office.
1001.2  Records available at the Commission's regional and detached 
          offices.
1001.3  Records available at the Federal Maritime Commission.
1001.4  Certified copies of records, etc.
1001.5  Requests to inspect other records not considered public under 5 
          U.S.C. 552.
1001.6  Predisclosure notification procedures for confidential 
          commercial information.

    Authority: 5 U.S.C. 552 and 49 U.S.C. 10301 and 10321.



Sec. 1001.1  Records available at the Commission's Washington office.

    The following specific files and records in the custody of the 
Secretary are available to the public under 49 U.S.C 10303 and may be 
inspected at the Commission's Washington office upon reasonable request 
during business hours between 8:30 a.m. and 5:00 p.m., Monday through 
Friday.
    (a) Copies of tariffs (except those specified in Sec. 1001.3), rate 
schedules, quotations or tenders under 49 U.S.C. 10721(b)(2); 
classifications, powers of attorney, concurrences, and contracts filed 
with the Commission pursuant to 49 U.S.C. 10762, 10764, 10765, 10766, 
10721.
    (b) Annual and other periodic reports filed with the Commission 
pursuant to 49 U.S.C. 11145.
    (c) Annual and other periodic reports, maps, profiles, and other 
data filed with the Commission pursuant to 49 U.S.C. 10783.
    (d) All docket files, including pleadings, depositions, exhibits, 
transcripts of testimony, recommended and proposed reports, exceptions, 
briefs, and reports and decisions of the Commission in any proceeding 
and carrier operating authorities granted in such proceedings. This does 
not apply to matters arising under 49 U.S.C 10928,

[[Page 14]]

Temporary Authority for Motor and Water Carriers, which are filed in a 
Regional Office until a petition for reconsideration is ripe for 
decision.
    (e) File and index of instruments or documents recorded pursuant to 
49 U.S.C 11303.
    (f) ICC Manual--Administration.

(5 U.S.C. 553; 49 U.S.C. 10301, 10303)

[46 FR 54948, Nov. 5, 1981, as amended at 57 FR 24381, June 9, 1992]



Sec. 1001.2  Records available at the Commission's regional and detached offices.

    Copies of certain rate schedules, tariffs, reports and operating 
authorities filed by and applicable to motor and water carriers and 
household goods freight forwarders, and docket files in matters arising 
under 49 U.S.C. 10928 are available for inspection at field offices 
whose locations are set forth in the appendix in this part. These 
records are available upon reasonable request during its regular 
business hours, Monday through Friday. Records not available at the 
field offices may be obtained and inspected in accordance with the 
provisions of Sec. 1001.1.

[45 FR 3583, Jan. 18, 1980, as amended at 51 FR 44297, Dec. 9, 1986]



Sec. 1001.3  Records available at the Federal Maritime Commission.

    Copies of international joint ocean-motor through-rate tariffs filed 
with the Commission will not be retained past the expiration of the 
notice period. These tariffs are also filed with the Federal Maritime 
Commission (FMC) and are available to the public at the FMC's 
Washington, DC office for inspection, in either paper or microfiche 
form, during its regular business hours.

[57 FR 24381, June 9, 1992]



Sec. 1001.4   Certified copies of records, etc.

    Copies of and extracts from public records will be certified by the 
Secretary, under the seal of the Commission. Persons requesting the 
Commission to prepare such copies should clearly state the material to 
be copied, and whether it shall be certified. Charges will be made for 
certification and for the preparation of copies as provided in part 1002 
of this chapter.

[32 FR 20008, Dec. 20, 1967. Redesignated at 57 FR 24381, June 9, 1992]



Sec. 1001.5  Requests to inspect other records not considered public under 5 U.S.C. 552.

    Requests to inspect records other than those now deemed to be of a 
public nature shall be in writing and addressed to the Freedom of 
Information Officer. The Freedom of Information Officer shall determine 
within 10 days of receipt of a request (excepting Saturdays, Sundays, 
and legal public holidays) whether a requested record will be made 
available. If the Freedom of Information Officer determines that a 
request cannot be honored, he must inform the requesting party in 
writing of this decision and such letter shall contain a detailed 
explanation of why the requested material cannot be made available and 
explain to the requesting party his or her right of appeal. If the 
Freedom of Information Officer rules that such records cannot be made 
available because they are exempt under the provisions of 5 U.S.C. 
552(b), an appeal from such ruling may be addressed to the Chairman. The 
Chairman's decision shall be administratively final and state the 
specific exemption(s) contained in 5 U.S.C. 552(b) relied upon for 
denial. Such an appeal must be filed within 30 days of the date of the 
Freedom of Information Officer's letter. The Chairman shall act in 
writing on such appeals within 20 days (excepting Saturdays, Sundays, 
and legal public holidays) of receipt of any appeal. In unusual 
circumstances, as set forth in 5 U.S.C. 552(a)(6)(B), the time limit may 
be extended, by written notice to the person making the particular 
request, setting forth the reasons for such extension, for no more than 
10 working days. If the appeal is denied, the Chairman's order shall 
notify the requesting party of his or her right to judicial review. 
Charges shall be made as provided for in Sec. 1002.1(f) of this chapter.

[53 FR 23399, June 22, 1988. Redesignated at 57 FR 24381, June 9, 1992]

[[Page 15]]



Sec. 1001.6  Predisclosure notification procedures for confidential commercial information.

    (a) In general. Confidential commercial information provided to the 
Commission shall not be disclosed pursuant to a Freedom of Information 
Act (FOIA) request except in accordance with this section. For such 
purposes, the following definitions apply:
    (1) Confidential commercial information means records provided to 
the government by a submitter that arguably contain material exempt from 
release under Exemption 4 of the Freedom of Information Act, 5 U.S.C. 
552(b)(4), because disclosure could reasonably be expected to cause 
substantial competitive harm.
    (2) Submitter means any person or entity who provides confidential 
commercial information to the government. The term ``submitter'' 
includes, but is not limited to, corporations, state governments, and 
foreign governments.
    (b) Notice to submitters. The Commission, to the extent permitted by 
law, shall provide a submitter with prompt written notice of receipt of 
a FOIA request encompassing its submissions in accordance with paragraph 
(c) of this section, and except as provided in paragraph (g) of this 
section. This notice shall either describe the exact nature of the 
information requested or provide copies of the records themselves.
    (c) When notice is required. Notice shall be given to a submitter 
whenever:
    (1) The Commission has reason to believe that disclosure of the 
information could reasonably be expected to cause substantial 
competitive harm; or
    (2) The information has been designated, in good faith by the 
submitter, as confidential commercial information at the time of 
submission or a reasonable time thereafter.

Whenever possible, the submitter's claim of confidentiality shall be 
supported by a statement or certification by an officer or authorized 
representative of the company that the information in question is in 
fact confidential commercial information and has not been disclosed to 
the public.
    (d) Opportunity to object to disclosure. (1) Through the notice 
described in paragraph (b) of this section, the Commission shall afford 
a submitter a reasonable period of time in which to provide it with a 
detailed statement of any objection to disclosure. Such statement shall 
specify all grounds for withholding the requested information.
    (2) When notice is given to a submitter under this section, the 
Commission also shall notify the requester that it has been provided.
    (e) Notice of intent to disclose. The Commission shall consider 
carefully submitter's objections and specific grounds for nondisclosure 
prior to its determination whether or not to disclose the requested 
information. Whenever the Commission decides to disclose the information 
over a submitter's objection, it shall provide the submitter with 
written notice containing the following:
    (1) A description or copy of the information to be disclosed;
    (2) The reasons why the submitter's disclosure objections were not 
sustained; and
    (3) A specific disclosure date, which shall be a reasonable number 
of days after the notice of intent to disclose has been mailed to the 
submitter.

At the same time that notice of intent to disclose is given to a 
submitter, the Commission shall notify the requester accordingly.
    (f) Notice of lawsuit. (1) Whenever a FOIA requester brings legal 
action seeking to compel disclosure of confidential commercial 
information, the Commission shall promptly notify the submitter.
    (2) Whenever a submitter brings legal action seeking to prevent 
disclosure of confidential commercial information, the Commission shall 
promptly notify the requester.
    (g) Exception to notice requirement. The notice requirements of this 
section shall not apply if:
    (1) The Commission determines that the information requested should 
not be disclosed; or
    (2) The information already has been published or otherwise 
officially made available to the public; or
    (3) Disclosure of the information is required by law (other than 5 
U.S.C. 552); or
    (4) Disclosure is required by a Commission rule that:

[[Page 16]]

    (i) Was adopted pursuant to notice and public comment;
    (ii) Specifies narrow classes or records submitted to the Commission 
that are to be released; and
    (iii) Provides in exceptional circumstances for notice when the 
submitter provides written justification, at the time the information is 
submitted or a reasonable time thereafter, that disclosure of the 
information could reasonably be expected to cause substantial 
competitive harm; or
    (5) The information requested is not designated by the submitter as 
exempt from disclosure, when the submitter had an opportunity to do so 
at the time of submission or within a reasonable time thereafter, unless 
the Commission has reason to believe that disclosure of the information 
could reasonably be expected to cause substantial competitive harm; or
    (6) The designation made by the submitter in accordance with these 
regulations appears obviously frivolous; in such case, the Commission 
must provide the submitter only with written notice of any 
administrative disclosure determination within a reasonable number of 
days prior to the specified disclosure date.

[54 FR 16368, Apr. 24, 1989. Redesignated at 57 FR 24381, June 9, 1992]



PART 1002--FEES--Table of Contents




Sec.
1002.1  Fees for records search, review, copying, certification, and 
          related services.
1002.2  Filing fees.
1002.3  Updating user fees.

    Authority: 5 U.S.C. 552(a)(4)(A) and 553; 31 U.S.C. 9701; and 49 
U.S.C. 721(a).



Sec. 1002.1  Fees for records search, review, copying, certification, and related services.

    Certifications and copies of such tariffs, reports and other public 
records and documents on file with the Surface Transportation Board as 
may be practicable to furnish, as well as searches and copying of 
records not considered public under the Freedom of Information Act (5 
U.S.C. 552), will be furnished on the following basis:
    (a) Certificate of the Secretary, $9.00.
    (b) Service involved in examination of tariffs or schedules for 
preparation of certified copies of tariffs or schedules or extracts 
therefrom at the rate of $24.00 per hour.
    (c) Service involved in checking records to be certified to 
determine authenticity, including clerical work etc., incidental 
thereto, at the rate of $16.00 per hour.
    (d) Electrostatic copies of tariffs, reports, and other public 
documents, at the rate of $.80 per letter size or legal size exposure. A 
minimum charge of $5.00 will be made for this service.
    (e) The fee for search and copying services requiring ADP processing 
are as follows:
    (1) A fee of $42.00 per hour for professional staff time will be 
charged when it is required to fulfill a request for ADP data.
    (2) The fee for port minute time for the search will be set at the 
current rate set forth in the Board's contract with its time sharing 
computer contractor. Information on those charges can be obtained from 
the Chief, System Services Branch, Surface Transportation Board, 
Washington, DC 20423.
    (3) Printing shall be charged at the rates of $.10 per page of 
computer generated output with a minimum charge of $.25. A charge of $30 
per reel of magnetic tape will be made if the tape is to be permanently 
retained by the requestor.
    (f) The fees for search, review and copying services for records not 
considered public under the Freedom of Information Act are as follows:
    (1) When records are sought for commercial use, requesters will be 
assessed the full and reasonable direct costs of document search, review 
and duplication. A ``commercial use'' request refers to a request from 
or on behalf of one who seeks information for a use or purpose that 
furthers the commercial, trade, or profit interests of the requester or 
the person on whose behalf the request is made.
    (2) When records are not sought for commercial use and a request is 
made by an educational or noncommercial scientific institution, 
requesters will be assessed only for the cost of duplication (excluding 
charges for the first 100

[[Page 17]]

pages). The term ``Educational Institution'' refers to a preschool, a 
public or private elementary or secondary school, an institution of 
graduate higher education, an institution of undergraduate higher 
education, an institution of professional education, and an institution 
of vocational education, which operates a program of scholarly research. 
The term ``noncommercial scientific institution'' refers to an 
institution that is not operated on a ``commercial'' basis and that is 
operated solely for the purpose of conducting scientific research the 
results of which are not intended to promote any particular product or 
industry. They must show that their request is authorized by and under 
the auspices of a qualifying institution and the records are not sought 
for a commercial use but, instead, are in furtherance of scholarly or 
scientific research.
    (3) Requesters who are representatives of the news media (persons 
actively gathering news for an entity that is organized and operated to 
publish or broadcast news to the public) will be assessed only for the 
cost of duplication (excluding charges for the first 100 pages) if they 
can show that their request is not made for a commercial use. A request 
for records supporting the news dissemination function of the requester 
shall not be considered a request for a commercial use.
    (4) All other requesters will be assessed fees which recover the 
full, reasonable direct cost of searching for and duplicating records 
that are responsive to the request (excluding charges for the first 100 
pages of duplication and the first two hours of search time).
    (5) All requesters must reasonably describe the records sought.
    (6) The search and review hourly fees will be based upon employee 
grade levels in order to recoup the full, allowable direct costs 
attributable to their performance of these functions. They are as 
follows:


------------------------------------------------------------------------
                             Grade                                Rate  
------------------------------------------------------------------------
GS-1..........................................................     $7.13
GS-2..........................................................      7.76
GS-3..........................................................      8.75
GS-4..........................................................      9.82
GS-5..........................................................     10.99
GS-6..........................................................     12.25
GS-7..........................................................     13.61
GS-8..........................................................     15.07
GS-9..........................................................    $16.65
GS-10.........................................................     18.33
GS-11.........................................................     20.14
GS-12.........................................................     24.14
GS-13.........................................................     28.71
GS-14.........................................................     33.93
GS-15 and over................................................     39.91
------------------------------------------------------------------------


    (7) The fee for electrostatic copies shall be $.60 per letter or 
legal size exposure with a minimum charge of $3.00.
    (8) The fee charged for ADP data is set forth in paragraph (e) of 
this section.
    (9) If the cost of collecting any fee would be equal to or greater 
than the fee itself, it will not be assessed.
    (10) A fee may be charged for searches which are not productive and 
for searches for records or those parts of records which subsequently 
are determined to be exempt from disclosure.
    (11) Interest charges will be assessed on any unpaid bill starting 
on the date specified in the bill, at the rate prescribed in 31 U.S.C. 
3717 and will accrue from the date of the billing. The Debt Collection 
Act, 5 U.S.C. 5514 (1982), including disclosure to the consumer 
reporting agencies and the use of collection agencies, as prescribed in 
the Board's Debt Collection Regulations in 49 CFR part 1018, will be 
utilized to encourage payment where appropriate.
    (12) If search charges are likely to exceed $25, the requester will 
be notified of the estimated fees unless requester willingness to pay 
whatever fee is assessed has been provided in advance. The 
administrative time limits prescribed in 5 U.S.C. 552(a)(6) will not 
begin until after the requester agrees in writing to accept the 
prospective charges.
    (13) An advance payment (before work is commenced or continued on a 
request) may be required if the charges are likely to exceed $250. 
Requesters who have previously failed to pay a fee charged in timely 
fashion (i.e. within 30 days of the date of billing) may be required 
first to pay this amount plus any applicable interest (or demonstrate 
that the fee has been paid) and then make an advance payment of the full 
amount of the estimated fee before the new or pending request is 
processed.

[[Page 18]]

The administrative time limits prescribed in 5 U.S.C. 552(a)(6) also 
will not begin until after a requester has complied with this provision.
    (14) Documents shall be furnished without any charge or at a charge 
reduced below the fees set forth above if disclosure of the information 
is in the public interest because it is likely to contribute 
significantly to public understanding of the operations or activities of 
the government and is not primarily in the commercial interest of the 
requester. The following six factors will be employed in determining 
when such fees shall be waived or reduced:
    (i) The subject of the request: Whether the subject of the requester 
records concerns ``the operations or activities of the government'';
    (ii) The informative value of the information to be disclosed: 
Whether the disclosure is ``likely to contribute'' to an understanding 
of government operations or activities;
    (iii) The contribution to an understanding of the subject by the 
general public likely to result from disclosure: Whether disclosure of 
the requested information will contribute to ``public understanding'';
    (iv) The significance of the contribution to public understanding: 
Whether the disclosure is likely to contribute ``significantly'' to 
public understanding of government operations or activities;
    (v) The existence and magnitude of a commercial interest: Whether 
the requester has a commercial interest that would be furthered by the 
requested disclosure; and, if so
    (vi) The primary interest in disclosure: Whether the magnitude of 
the identified commercial interest of the requester is sufficiently 
large, in comparison with the public interest in disclosure, that 
disclosure is ``primarily in the commercial interest of the requester.''

This fee waiver and reduction provision will be implemented in 
accordance with guidelines issued by the U.S. Department of Justice on 
April 2, 1987 and entitled ``New FOIA Fee Waiver Policy Guidance.'' A 
copy of these guidelines may be inspected or obtained from the Surface 
Transportation Board's Freedom of Information Office, Washington, DC 
20423.
    (g) Payment for services described in paragraphs (a) through (f) of 
this section may be made in cash or by postal money order or check 
payable to the order of the Secretary, Surface Transportation Board, 
Washington, D.C., and forwarded to his office.
    (h) Transcript of testimony and of oral argument, or extracts 
therefrom, may be purchased by the public from the Board's official 
reporter. For information regarding the official reporter, contact the 
Secretary, Surface Transportation Board, Washington, DC 20423.

[32 FR 20010, Dec. 20, 1967, as amended at 47 FR 47394, Oct. 26, 1982; 
49 FR 18491, May 1, 1984; 49 FR 39548, Oct. 9, 1984; 50 FR 40025, Oct. 
1, 1985; 50 FR 41159, Oct. 9, 1985; 52 FR 46481, Dec. 8, 1987; 53 FR 
23399, June 22, 1988; 53 FR 33814, Sept. 1, 1988; 54 FR 36030, Aug. 31, 
1989; 55 FR 35636, Aug. 31, 1990; 56 FR 42237, Aug. 27, 1991; 58 FR 
7748, Feb. 9, 1993; 58 FR 43294, Aug. 16, 1993; 59 FR 44641, Aug. 30, 
1994; 59 FR 67643, Dec. 30, 1994; 61 FR 42191, Aug. 14, 1996]



Sec. 1002.2  Filing fees.

    (a) Manner of payment. (1) Except as specified in this section, all 
filing fees will be payable at the time and place the application, 
petition, notice, tariff, contract summary, or other document is 
tendered for filing. The filing fee for tariffs, including schedules, 
and contracts summaries including supplements (Item 78) may be charged 
to tariff filing fee accounts established by the Board in accordance 
with paragraph (a)(2) of this section.
    (2) Billing account procedure. Form ICC-1032 must be submitted to 
the Board's Budget and Fiscal Office to establish a tariff filing fee 
account or an insurance service fee account.
    (i) Each account will have a specific billing date within each month 
and a billing cycle. The billing date is the date that the bill is 
prepared and printed. The billing cycle is the period between the 
billing date in one month and the billing date in the next month. A bill 
for each account which has activity or an unpaid balance during the 
billing cycle will be sent on the billing date each month. Payment will 
be due 20 days from the billing date. Payments received before the next 
billing

[[Page 19]]

date are applied to the account. Interest will accrue in accordance with 
49 CFR 1018.30.
    (ii) The Debt Collection Act of 1982, including disclosure to the 
consumer reporting agencies and the use of collection agencies, as 
prescribed in the Board's Debt Collection Regulations in 49 CFR part 
1018, will be utilized to encourage payment where appropriate.
    (iii) An account holder who files a petition in bankruptcy or who is 
the subject of a bankruptcy proceeding must provide the following 
information to the Chief, Budget and Fiscal Office, Surface 
Transportation Board, Washington, DC:
    (A) The filing date of the bankruptcy petition;
    (B) The court in which the bankruptcy petition was filed;
    (C) The type of bankruptcy proceeding;
    (D) The name, address, and telephone number of its representative in 
the bankruptcy proceeding; and
    (E) The name, address, and telephone number of the bankruptcy 
trustee, if one has been appointed.
    (3) Fees will be payable to the Surface Transportation Board by a 
check payable in United States currency drawn upon funds deposited in a 
United States or foreign bank or other financial institution, money 
order payable in United States' currency, or credit card (VISA or 
MASTERCARD).
    (b) Any filing, other than a tariff filing, that is not accompanied 
by the appropriate filing fee is deficient except for filings that 
satisfy the deferred payment procedures in paragraph (a) of this 
section. However, the Board may find that a tariff which is submitted 
without the appropriate filing fee is deficient and reject the tariff 
filing, if the filer repeatedly fails to submit the appropriate filing 
fee after the Board has advised the filer of the proper filing fee and 
tariff filing procedures.
    (c) Fees not refundable. Fees will be assessed for every filing in 
the type of proceeding listed in the schedule of fees contained in 
paragraph (f) of this section, subject to the exceptions contained in 
paragraphs (d) and (e) of this section. After the application, petition, 
notice, tariff, contract, or other document has been accepted for filing 
by the Board, the filing fee will not be refunded, regardless of whether 
the application, petition, notice, tariff, contract, or other document 
is granted or approved, denied, rejected before docketing, dismissed, or 
withdrawn. If an individual exemption proceeding becomes a matter of 
general applicability and is handled through the rulemaking process, the 
Board will refund the filing fee.
    (d) Related or consolidated proceedings. (1) Separate fees need not 
be paid for related applications filed by the same applicant which would 
be the subject of one proceeding.
    (2) A separate fee will be assessed for the filing of an application 
for temporary authority to operate a motor carrier of passengers as 
provided for in paragraph (f)(5) of this section regardless of whether 
such application is related to a corresponding transfer proceeding as 
provided for in paragraph (f)(2) of this section.
    (3) The Board may reject concurrently filed applications, petitions, 
notices, contracts, or other documents asserted to be related and refund 
the filing fee if, in its judgment, they embrace two or more severable 
matters which should be the subject of separate proceedings.
    (e) Waiver or reduction of filing fees. It is the general policy of 
the Board not to waive or reduce filing fees except as described below:
    (1) Filing fees are waived for an application or other proceeding 
which is filed by a federal government agency, or a state or local 
government entity. For purposes of this section the phrases ``federal 
government agency'' or ``government entity'' do not include a quasi-
governmental corporation or government subsidized transportation 
company.
    (2) In extraordinary situations the Board will accept requests for 
waivers or fee reductions in accordance with the following procedure:
    (i) When to request. At the time that a filing is submitted to the 
Board the applicant may request a waiver or reduction of the fee 
prescribed in this part. Such request should be addressed to the 
Secretary.
    (ii) Basis. The applicant must show the waiver or reduction of the 
fee is in

[[Page 20]]

the best interest of the public, or that payment of the fee would impose 
an undue hardship upon the requestor.
    (iii) Board action. The Secretary will notify the applicant of the 
decision to grant or deny the request for waiver or reduction.
    (f) Schedule of filing fees.

------------------------------------------------------------------------
             Type of proceeding                          Fee            
------------------------------------------------------------------------
Part I: Non-Rail Applications or                                        
 Proceedings to Enter Upon a Particular                                 
 Financial Transaction or Joint                                         
 Arrangement:                                                           
    (1) An application for the pooling or    $2,400.                    
     division of traffic.                                               
    (2) An application involving the         1,100.                     
     purchase, lease, consolidation,                                    
     merger, or acquisition of control of a                             
     motor carrier of passengers under 49                               
     U.S.C. 14303.                                                      
    (3) An application for approval of a     15,400.                    
     non-rail rate association agreement.                               
     49 U.S.C. 13706.                                                   
    (4) An application for approval of an                               
     amendment to a non-rail rate                                       
     association agreement:                                             
        (i) Significant amendment..........  2,500.                     
        (ii) Minor amendment...............  50.                        
    (5) An application for temporary         250.                       
     authority to operate a motor carrier                               
     of passengers. 49 U.S.C. 14303(i).                                 
    (6)-(10) [Reserved]                                                 
Part II: Rail Licensing Proceedings other                               
 than Abandonment or Discontinuance                                     
 Proceedings:                                                           
    (11) (i) An application for a            4,000.                     
     certificate authorizing the extension,                             
     acquisition, or operation of lines of                              
     railroad. 49 U.S.C. 10901.                                         
        (ii) Notice of exemption under 49    1,000.                     
         CFR 1150.31-1150.35.                                           
        (iii) Petition for exemption under   7,000.                     
         49 U.S.C. 10502 (except petitions                              
         involving construction of a rail                               
         line).                                                         
    (12) An application or a petition for    41,700.                    
     exemption under 49 U.S.C. 10502                                    
     involving the construction of a rail                               
     line.                                                              
    (13) A Feeder Line Development Program   2,600.                     
     application filed under 49 U.S.C.                                  
     10907(b)(1)(A)(i) or                                               
     10907(b)(1)(A)(ii).                                                
    (14) (i) An application of a class II    3,400                      
     or class III carrier to acquire an                                 
     extended or additional rail line under                             
     49 U.S.C. 10902..                                                  
        (ii) Notice of exemption under 49    950.                       
         CFR 1150.41-1150.45.                                           
        (iii) Petition for exemption under   3,700.                     
         49 U.S.C. 10502 relating to an                                 
         exemption from the provisions of                               
         49 U.S.C. 10902.                                               
    (15) A notice of a modified certificate  950.                       
     of public convenience and necessity                                
     under 49 CFR 1150.21-1150.24.                                      
    (16)-(20) [Reserved]                                                
Part III: Rail Abandonment or                                           
 Discontinuance of Transportation Services                              
 Proceedings:                                                           
    (21) (i) An application for authority    12,400.                    
     to abandon all or a portion of a line                              
     of railroad or discontinue operation                               
     thereof filed by a railroad (except                                
     applications filed by Consolidated                                 
     Rail Corporation pursuant to the                                   
     Northeast Rail Service Act [Subtitle E                             
     of Title XI of Pub. L. 97-35],                                     
     bankrupt railroads, or exempt                                      
     abandonments).                                                     
        (ii) Notice of an exempt             2,000.                     
         abandonment or discontinuance                                  
         under 49 CFR 1152.50.                                          
        (iii) A petition for exemption       3,500.                     
         under 49 U.S.C. 10502.                                         
    (22) An application for authority to     250.                       
     abandon all or a portion of a line of                              
     a railroad or operation thereof filed                              
     by Consolidated Rail Corporation                                   
     pursuant to Northeast Rail Service Act.                            
    (23) Abandonments filed by bankrupt      1,000.                     
     railroads.                                                         
    (24) A request for waiver of filing      1,000.                     
     requirements for abandonment                                       
     application proceedings.                                           
    (25) An offer of financial assistance    900.                       
     under 49 U.S.C. 10904 relating to the                              
     purchase of or subsidy for a rail line                             
     proposed for abandonment.                                          
    (26) A request to set terms and          12,700.                    
     conditions for the sale of or subsidy                              
     for a rail line proposed to be                                     
     abandoned.                                                         
    (27) A request for a trail use           150.                       
     condition in an abandonment proceeding                             
     under 16 U.S.C. 1247(d).                                           
    (28)-(35) [Reserved]                                                
Part IV: Rail Applications to Enter Upon a                              
 Particular Financial Transaction or Joint                              
 Arrangement:                                                           
    (36) An application for use of terminal  10,600.                    
     facilities or other applications under                             
     49 U.S.C. 11102.                                                   
    (37) An application for the pooling or   5,700.                     
     division of traffic. 49 U.S.C. 11322.                              
    (38) An application for two or more                                 
     carriers to consolidate or merge their                             
     properties or franchises (or a part                                
     thereof) into one corporation for                                  
     ownership, management, and operation                               
     of the properties previously in                                    
     separate ownership. 49 U.S.C. 11324:                               
        (i) Major transaction..............  830,500.                   
        (ii) Significant transaction.......  166,100.                   
        (iii) Minor transaction............  3,400.                     
        (iv) Notice of an exempt             950.                       
         transaction under 49 CFR 1180.2(d).                            
        (v) Responsive application.........  3,400.                     
        (vi) Petition for exemption under    5,200.                     
         49 U.S.C. 10502.                                               
    (39) An application of a non-carrier to                             
     acquire control of two or more                                     
     carriers through ownership of stock or                             
     otherwise. 49 U.S.C. 11324:                                        
        (i) Major transaction..............  830,500.                   
        (ii) Significant transaction.......  166,100.                   
        (iii) Minor transaction............  3,400.                     
        (iv) A notice of an exempt           750.                       
         transaction under 49 CFR 1180.2(d).                            
        (v) Responsive application.........  3,400.                     

[[Page 21]]

                                                                        
        (vi) Petition for exemption under    5,200.                     
         49 U.S.C. 10502.                                               
    (40) An application to acquire trackage                             
     rights over, joint ownership in, or                                
     joint use of any railroad lines owned                              
     and operated by any other carrier and                              
     terminals incidental thereto. 49                                   
     U.S.C. 11324:                                                      
        (i) Major transaction..............  830,500.                   
        (ii) Significant transaction.......  166,100.                   
        (iii) Minor transaction............  3,400.                     
        (iv) Notice of an exempt             650.                       
         transaction under 49 CFR 1180.2(d).                            
        (v) Responsive application.........  3,400.                     
        (vi) Petition for exemption under    5,200.                     
         49 U.S.C. 10502.                                               
    (41) An application of a carrier or                                 
     carriers to purchase, lease, or                                    
     contract to operate the properties of                              
     another, or to acquire control of                                  
     another by purchase of stock or                                    
     otherwise. 49 U.S.C. 11324:                                        
        (i) Major transaction..............  830,500.                   
        (ii) Significant transaction.......  166,100.                   
        (iii) Minor transaction............  3,400.                     
        (iv) Notice of an exempt             800.                       
         transaction under 49 CFR 1180.2(d).                            
        (v) Responsive application.........  3,400.                     
        (vi) Petition for exemption under    3,700.                     
         49 U.S.C. 10502.                                               
    (42) Notice of a joint project           1,300.                     
     involving relocation of a rail line                                
     under 49 CFR 1180.2(d)(5).                                         
    (43) An application for approval of a    39,000.                    
     rail rate association agreement. 49                                
     U.S.C. 10706.                                                      
    (44) An application for approval of an                              
     amendment to a rail rate association                               
     agreement. 49 U.S.C. 10706:                                        
        (i) Significant amendment..........  7,200.                     
        (ii) Minor amendment...............  50                         
    (45) An application for authority to     400.                       
     hold a position as officer or director                             
     under 49 U.S.C. 11328.                                             
    (46) A petition for exemption under 49   4,400.                     
     U.S.C. 10502 (other than a rulemaking)                             
     filed by rail carrier not otherwise                                
     covered.                                                           
    (47) National Railroad Passenger         150.                       
     Corporation (Amtrak) conveyance                                    
     proceeding under 45 U.S.C. 562.                                    
    (48) National Railroad Passenger         150.                       
     Corporation (Amtrak) compensation                                  
     proceeding under Section 402(a) of the                             
     Rail PassengerService Act.                                         
    (49)-(55) [Reserved]                                                
Part V: Formal Proceedings:                                             
    (56) A formal complaint alleging                                    
     unlawful rates or practices of rail                                
     carriers, motor carriers of passengers                             
     or motor carriers of household goods:                              
        (i) A formal complaint filed under   1,000.                     
         the coal rate guidelines (Stand-                               
         Alone Cost Methodology) alleging                               
         unlawful rates and/or practices of                             
         rail carriers under 49 U.S.C.                                  
         10704(c)(1).                                                   
        (ii) All other formal complaints...  1,000.                     
    (57) A complaint seeking or a petition   4,900.                     
     requesting institution of an                                       
     investigation seeking the prescription                             
     or division of joint rates, or                                     
     charges. 49 U.S.C. 10705.                                          
    (58) A petition for declaratory order:                              
        (i) A petition for declaratory       1,000.                     
         order involving a dispute over an                              
         existing rate or practice which is                             
         comparable to a complaint                                      
         proceeding.                                                    
        (ii) All other petitions for         1,400.                     
         declaratory order.                                             
    (59) An application for shipper          3,900.                     
     antitrust immunity. 49 U.S.C.                                      
     10706(a)(5)(A).                                                    
    (60) Labor arbitration proceedings.....  7,600.                     
    (61) Appeals to a Surface                150.                       
     Transportation Board decision and                                  
     petitions to revoke an exemption                                   
     pursuant to 49 U.S.C. 10502(d).                                    
    (62) Motor carrier undercharge           150.                       
     proceedings.                                                       
    (63)-(75) [Reserved]                                                
Part VI: Informal Proceedings:                                          
    (76) An application for authority to     650.                       
     establish released value rates or                                  
     ratings for motor carriers and freight                             
     forwarders of household goods under 49                             
     U.S.C. 14706.                                                      
    (77) An application for special          70.                        
     permission for short notice or the                                 
     waiver of other tariff publishing                                  
     requirements.                                                      
    (78) (i) The filing of tariffs,          1 per page. ($13 minimum   
     including supplements, or contract       charge).                  
     summaries.                                                         
        (ii) Tariffs transmitted by fax....  1 per page.                
    (79) Special docket applications from                               
     rail and water carriers:                                           
        (i) Applications involving $25,000   40.                        
         or less.                                                       
        (ii) Applications involving over     80.                        
         $25,000.                                                       
    (80) Informal complaint about rail rate  300.                       
     applications.                                                      
    (81) Tariff reconciliation petitions                                
     from motor common carriers:                                        
        (i) Petitions involving $25,000 or   40.                        
         less.                                                          
        (ii) Petitions involving over        80.                        
         $25,000.                                                       
    (82) Request for a determination of the  100.                       
     applicability or reasonableness of                                 
     motor carrier rates under 49 U.S.C.                                
     13710(a) (2) and (3).                                              
    (83) Filing of documents for             22 per document.           
     recordation. 49 U.S.C. 11301 and 49                                
     CFR 1177.3(c).                                                     
    (84) Informal opinions about rate        100.                       
     applications (all modes).                                          
    (85) A railroad accounting               600.                       
     interpretation.                                                    
    (86) An operational interpretation.....  800.                       

[[Page 22]]

                                                                        
    (87)-(95) [Reserved]                                                
Part VII: Services:                                                     
    (96) Messenger delivery of decision to   17 per delivery.           
     a railroad carrier's Washington, DC,                               
     agent.                                                             
    (97) Request for service or pleading     13 per list.               
     list for proceedings.                                              
    (98) (i) Processing the paperwork        150.                       
     related to a request for the Carload                               
     Waybill Sample to be used in a Surface                             
     Transportation Board or State                                      
     proceeding that does not require a                                 
     Federal Register notice.                                           
        (ii) Processing the paperwork        350.                       
         related to a request for Carload                               
         Waybill Sample to be used for                                  
         reasons other than a Surface                                   
         Transportation Board or State                                  
         proceeding that requires a Federal                             
         Register notice.                                               
    (99) (i) Application fee for the         100                        
     Surface Transportation Board's                                     
     Practitioners' Exam.                                               
        (ii) Practitioners' Exam             25.                        
         Information Package.                                           
    (100) Uniform Railroad Costing System                               
     (URCS) software and information:                                   
        (i) Initial PC version URCS Phase    50.                        
         III software program and manual.                               
        (ii) Updated URCS PC version Phase   10.                        
         III cost file, if computer disk                                
         provided by requestor.                                         
        (iii) Updated URCS PC version Phase  20.                        
         III cost file, if computer disk                                
         provided by the Board.                                         
        (iv) Public requests for Source      500.                       
         Codes to the PC version URCS Phase                             
         III.                                                           
        (v) PC version or mainframe version  400.                       
         URCS Phase II.                                                 
        (vi) PC version or mainframe         50.                        
         version Updated Phase II databases.                            
        (vii) Public requests for Source     1,500.                     
         Codes to PC version URCS Phase II.                             
    (101) Carload Waybill Sample data on                                
     recordable compact disk (R-CD):                                    
        (i) Requests for Public Use File on  450.                       
         R-CD--First Year.                                              
        (ii) Requests for Public Use File    150.                       
         on R-CD Each Additional Year.                                  
        (iii) Waybill--Surface               650.                       
         Transportation Board or State                                  
         proceedings on R-CD--First Year.                               
        (iv) Waybill--Surface                450.                       
         Transportation Board or State                                  
         proceedings on R-CD--Second Year                               
         on same R-CD.                                                  
        (v) Waybill--Surface Transportation  500.                       
         Board or State proceeding on R-CD--                            
         Second Year on different R-CD.                                 
        (vi) User Guide for latest           50.                        
         available Carload Waybill Sample.                              
------------------------------------------------------------------------

    (g) Returned check policy. (1) If a check submitted to the Board for 
a filing or service fee is dishonored by a bank or financial institution 
on which it is drawn, the Board will notify the person who submitted the 
check that:
    (i) All work will be suspended on the filing or proceeding, other 
than a tariff filing, until the check is made good;
    (ii) A returned check charge of $6.00 and any bank charges incurred 
by the Board as a result of the dishonored check must be submitted with 
the filing fee which is outstanding; and
    (iii) If payment is not made within the time specified by the Board, 
the proceeding will be dismissed or the filing may be rejected.
    (2) If a person repeatedly submits dishonored checks to the Board 
for filing fees, the Board may notify the person that all future filing 
feeds must be submitted in the form of a certified or cashier's check or 
a money order.

[49 FR 18492, May 1, 1984, as amended at 50 FR 40026, Oct. 1, 1985; 50 
FR 41159, Oct. 9, 1985; 50 FR 41899, Oct. 16, 1985; 50 FR 43193, Oct. 
24, 1985; 50 FR 47224, Nov. 15, 1985; 51 FR 18589, May 21, 1986; 51 FR 
44297, Dec. 9, 1986; 53 FR 33814, Sept. 1, 1988; 54 FR 36030, Aug. 31, 
1989; 54 FR 40115, Sept. 29, 1989; 55 FR 35636, Aug. 31, 1990; 56 FR 
42237, Aug. 27, 1991; 56 FR 46667, Sept. 13, 1991; 58 FR 7749, Feb. 9, 
1993; 58 FR 43294, Aug. 16, 1993; 59 FR 44642, Aug. 30, 1994; 59 FR 
63727, Dec. 9, 1994; 59 FR 67643, Dec. 30, 1994; 60 FR 2544, Jan. 10, 
1995; 60 FR 4477, Jan. 23, 1995; 61 FR 32355, June 24, 1996; 61 FR 
42191, Aug. 14, 1996]

    Effective Date Note: At 61 FR 48639, September 16, 1996, Sec. 1002.2 
is amended in paragraph (f) by delaying the effective date of fee items 
(60) and (61) indefinitely.



Sec. 1002.3  Updating user fees.

    (a) Update. Each fee established in this part shall be updated in 
accordance with this section at least once a year. However, any fee may 
be updated more than once a year, if the Board finds that an additional 
update is necessary.
    (b) Publication and effective dates. Updated fees shall be published 
in the Federal Register and shall become effective 30 days after 
publication.

[[Page 23]]

    (c) Payment of fees. Any person submitting a filing for which a fee 
is established shall pay the fee in effect at the time of the filing.
    (d) Method of updating fees. Each fee shall be updated by updating 
the cost components comprising the fee. Cost components shall be updated 
as follows:
    (1) Direct labor costs shall be updated by multiplying base level 
direct labor costs by percentage changes in average wages and salaries 
of Board employees. Base level direct labor costs are direct labor costs 
determined by the cost study set forth in Revision of Fees For Services, 
1 I.C.C.2d 60 (1984) or subsequent cost studies. The base period for 
measuring changes shall be April 1984.
    (2) Operations overhead shall be developed each year on the basis of 
current relationships existing on a weighted basis, for indirect labor 
applicable to the first supervisory work centers directly associated 
with user fee activity. Actual updating of operations overhead will be 
accomplished by applying the current percentage factor to updated direct 
labor, including current governmental overhead costs.
    (3)(i) Office general and administrative costs shall be developed 
each year on the basis of current level costs, i.e., dividing actual 
office general and administrative costs for the current fiscal year by 
total office costs for the Offices directly associated with user fee 
activity. Actual updating of office general and administrative costs 
will be accomplished by applying the current percentage factor to 
updated direct labor, including current governmental overhead and 
current operations overhead costs.
    (ii) Board general and administrative costs shall be developed each 
year on the basis of current level costs; i.e., dividing actual Board 
general and administrative costs for the current fiscal year by total 
agency expenses for the current fiscal year. Actual updating of Board 
general and administrative costs will be accomplished by applying the 
current percentage factor to updated direct labor, including current 
governmental overhead, operations overhead and office general and 
administrative costs.
    (4) Publication costs shall be adjusted on the basis of known 
changes in the costs applicable to publication of material in the 
Federal Register.
    (e) Rounding of updated fees. Updated fees shall be rounded in the 
following manner: (1) Fees between $1-$30 will be rounded to the nearest 
$1; (2) fees between $30-$100 will be rounded to the nearest $10; (3) 
fees between $100-$999 will be rounded to the nearest $50; and (4) fees 
above $1,000 will be rounded to the nearest $100. (This rounding 
procedure excludes copying, printing and search fees.)

[49 FR 18494, May 1, 1984, as amended at 52 FR 46483, Dec. 8, 1987; 59 
FR 44644, Aug. 30, 1994; 61 FR 42194, Aug. 14, 1996]



PART 1003--FORMS--Table of Contents




    Authority: 5 U.S.C. 551(a), 5 U.S.C. 553(1)(c), 49 U.S.C. 10321.



Sec. 1003.1  General information.

    (a) Printed forms are prescribed for various applications under the 
Interstate Commerce Act and the Commission's regulations contained in 
this chapter.
    (b) All prescribed forms include instructions for their completion.
    (c) Copies of all prescribed forms except insurance forms are 
available upon request from the Office of the Secretary, Publications 
Unit, Interstate Commerce Commission, Washington, DC 20423.

[57 FR 41112, Sept. 9, 1992]



PART 1004--INTERPRETATIONS AND ROUTING REGULATIONS--Table of Contents




              Subpart A--Interpretation of Operating Rights

Sec.
1004.2  Authority to serve a particular area--construction.

                Subpart B--Miscellaneous Interpretations

1004.10  Gifts, donations, and hospitality by carriers.

                     Subpart C--Routing Regulations

1004.20  Regular-route motor passenger service.
1004.21  Traversal authority.

[[Page 24]]

1004.22  Tacking.
1004.23  Elimination of routing restrictions--regular-route carriers.
1004.24  Elimination of gateways--regular- and irregular-route carriers.
1004.25  Redesignated highways.
1004.26  Misrouting, adjustment of claims.

    Authority: 49 U.S.C. 10321 and 5 U.S.C. 553. Subpart C also issued 
under 49 U.S.C. 10922(h)(1)(A).

    Source: 53 FR 47219, Nov. 22, 1988, unless otherwise noted.



              Subpart A--Interpretation of Operating Rights



Sec. 1004.2  Authority to serve a particular area--construction.

    (a) Service at municipality. A motor carrier of property, motor 
passenger carrier of express, and household goods freight forwarder 
authorized to serve a municipality may serve all points within that 
municipality's commercial zone not beyond the territorial limits, if 
any, fixed in such authority.
    (b) Service at unincorporated community. A motor carrier of 
property, motor passenger carrier of express, and household goods 
freight forwarder, authorized to serve an unincorporated community 
having a post office of the same name, may serve all points in the 
United States not beyond the territorial limits, if any, fixed in such 
authority, as follows:
    (1) All points within 3 miles of the post office in such 
unincorporated community if it has a population of less than 2,500; 
within 4 miles if it has a population of 2,500 but less than 25,000; and 
within 6 miles if it has a population of 25,000 or more;
    (2) At all points in any municipality any part of which is within 
the limits described in paragraph (b)(1) of this section; and
    (3) At all points in any municipality wholly surrounded, or so 
surrounded except for a water boundary, by any municipality included 
under the terms of paragraph (b)(2) of this section.



                Subpart B--Miscellaneous Interpretations



Sec. 1004.10  Gifts, donations, and hospitality by carriers.

    It is unlawful for any common carrier engaged in interstate or 
foreign commerce to offer, make, or cause any undue or unreasonable 
preference or advantage to any person. Gifts of services or anything of 
substantial value to particular shippers or their representatives are 
considered violations of the law. Expenditures for such gifts may not 
support requests to increase carrier rates. The Commission shall take 
appropriate enforcement action to redress such unlawful expenditures.



                     Subpart C--Routing Regulations



Sec. 1004.20  Regular-route motor passenger service.

    (a) A motor common carrier authorized to transport passengers over 
regular routes may serve: (1) All points on its authorized route; (2) 
all municipalities wholly within 1 airline mile of its authorized route; 
(3) all unincorporated areas within 1 airline mile of its authorized 
route; and (4) all military posts, airports, schools, and similar 
establishments that may be entered within 1 airline mile of its 
authorized route, but operations within any part of such establishment 
more than 1 airline mile from such authorized route may not be over a 
public road.
    (b) This section does not apply to those motor passenger common 
carriers authorized to operate within:
    (1) New York, NY;
    (2) Rockland, Westchester, Orange, or Nassau Counties, NY;
    (3) Fairfield County, CT; and
    (4) Passaic, Bergen, Essex, Hudson, Union, Morris, Somerset, 
Middlesex, or Monmouth Counties, NJ.

[54 FR 21956, May 22, 1989]



Sec. 1004.21  Traversal authority.

    (a) Scope. An irregular-route motor carrier may operate between 
authorized service points over any reasonably

[[Page 25]]

direct or logical route unless expressly prohibited.
    (b) Requirements. Before commencing operations, the carrier must, 
regarding each State traversed:
    (1) Notify the State regulatory body in writing, attaching a copy of 
its operating rights;
    (2) Designate a process agent; and
    (3) Comply with 49 CFR 1043.8.



Sec. 1004.22  Tacking.

    Unless expressly prohibited, a motor common carrier of property 
holding separate authorities which have common service points may join, 
or ``tack,'' those authorities at the common point, or ``gateway,'' for 
the purpose of performing through service as follows:
    (a) Regular-route authorities may be tacked with one another;
    (b) Regular-route authority may be tacked with irregular-route 
authority;
    (c) Irregular-route authorities may be tacked with one another if 
the authorities were granted pursuant to applications filed on or before 
November 23, 1973, and the distance between the points at which service 
is provided, when measured through the gateway point, is 300 miles or 
less; and
    (d) Irregular-route authorities may be tacked with one another if 
the authorities involved contain a specific provision granting the right 
to tack.



Sec. 1004.23  Elimination of routing restrictions--regular-route carriers.

    (a) Regular-route authorities--construction. All certificates that, 
either singly or in combination, authorize the transportation by a motor 
common carrier of property over:
    (1) A single regular route or;
    (2) Over two or more regular routes that can lawfully be tacked at a 
common service point, shall be construed as authorizing transportation 
between authorized service points over any available route.
    (b) Service at authorized points. A common carrier departing from 
its authorized service routes under paragraph (a) of this section shall 
continue to serve points authorized to be served on or in connection 
with its authorized service routes.
    (c) Intermediate point service. A common carrier conducting 
operations under paragraph (a) of this section may serve points on, and 
within 1 airline mile of, an alternative route it elects to use if all 
the following conditions are met:
    (1) The carrier is authorized to serve all intermediate points 
(without regard to nominal restrictions) on the underlying service 
route;
    (2) The alternative route involves the use of a superhighway (i.e., 
a limited access highway with split-level crossings);
    (3) The alternative superhighway route, including highways 
connecting the superhighway portion of the route with the carrier's 
authorized service route,
    (i) Extends in the same general direction as the carrier's 
authorized service route and
    (ii) Is wholly within 25 airline miles of the carrier's authorized 
service route; and
    (4) Service is provided in the same manner as, and subject to any 
restrictions that apply to, service over the authorized service route.



Sec. 1004.24  Elimination of gateways--regular- and irregular-route carriers.

    A motor common carrier of property holding separate grants of 
authority (including regular-route authority), one or more of which 
authorizes transportation over irregular routes, where the authorities 
have a common service point at which they can lawfully be tacked to 
perform through service, may perform such through service over any 
available route.



Sec. 1004.25  Redesignated highways.

    Where a highway over which a regular-route motor common carrier of 
property is authorized to operate is assigned a new designation, such as 
a new number, letter, or name, the carrier shall advise the Commission 
by letter, and shall provide information concerning the new and the old 
designation, the points between which the highway is redesignated, and 
each place where the highway is referred to in the carrier's authority. 
The new designation of the highway will be shown

[[Page 26]]

in the carrier's certificate when the Commission has occasion to reissue 
it.



Sec. 1004.26  Misrouting, adjustment of claims.

    Carriers should adjust claims for damages resulting from misrouting. 
Where a carrier admits responsibility for billing, forwarding, or 
diverting a shipment over a higher rated route than that directed by the 
shipper or otherwise available, the misrouting carrier should refund the 
difference to the shipper (or reimburse the delivering carrier, as the 
case may be). Where the misrouting carrier alleges justification for 
using the higher rated route, the Commission may, at its discretion and 
upon appropriate petition, determine or express an advisory opinion on 
the lawfulness of such routing. This interpretation must not be used to 
evade or defeat tariff rates or to meet the rate of a competing carrier 
or route, nor to relieve a shipper from responsibility for routing 
instructions. Damages caused by misrouting are not overcharges. 
Therefore, adjustments of claims for misrouting against rail and water 
carriers are governed by 49 U.S.C. 11706 (c)(1) and (d).



PART 1005--PRINCIPLES AND PRACTICES FOR THE INVESTIGATION AND VOLUNTARY DISPOSITION OF LOSS AND DAMAGE CLAIMS AND PROCESSING SALVAGE--Table of Contents




Sec.
1005.1  Applicability of regulations.
1005.2  Filing of claims.
1005.3  Acknowledgment of claims.
1005.4  Investigation of claims.
1005.5  Disposition of claims.
1005.6  Processing of salvage.
1005.7  Weight as a measure of loss.

    Authority: 24 Stat. 380, 383 as amended, 386: 34 Stat. 595 as 
amended; 44 Stat. 1450 as amended; 49 Stat. 546 as amended; 550 as 
amended, 558 as amended, 560 as amended, 561 as amended, 563 as amended; 
52 Stat. 1237; 54 Stat. 900, 922, 933, 934 as amended, 935, 944 as 
amended, 946; 56 Stat. 285, 286, 287, 294 as amended, 295, 297, 746 as 
amended; 62 Stat. 472; 63 Stat. 486; and 64 Stat. 1114 as amended, 49 
U.S.C. 1, 5, 5b, 6, 12, 20, 304, 305, 316, 317, 318, 319, 320, 904, 905, 
906, 913, 916, 1003, 1004, 1005, 1009, 1012, 1013, and 1017.



Sec. 1005.1  Applicability of regulations.

    The regulations set forth in this part shall govern the processing 
of claims for loss, damage, injury, or delay to property transported or 
accepted for transportation, in interstate or foreign commerce, by each 
railroad, express company, motor carrier, water carrier, and freight 
forwarder (hereinafter called carrier), subject to the Interstate 
Commerce Act.

[46 FR 16224, Mar. 11, 1981]



Sec. 1005.2   Filing of claims.

    (a) Compliance with regulations. A claim for loss or damage to 
baggage or for loss, damage, injury, or delay to cargo, shall not be 
voluntarily paid by a carrier unless filed, as provided in paragraph (b) 
of this section, with the receiving or delivering carrier, or carrier 
issuing the bill of lading, receipt, ticket, or baggage check, or 
carrier on whose line the alleged loss, damage, injury, or delay 
occurred, within the specified time limits applicable thereto and as 
otherwise may be required by law, the terms of the bill of lading or 
other contract of carriage, and all tariff provisions applicable 
thereto.
    (b) Minimum filing requirements. A written or electronic 
communication (when agreed to by the carrier and shipper or receiver 
involved) from a claimant, filed with a proper carrier within the time 
limits specified in the bill of lading or contract of carriage or 
transportation and: (1) Containing facts sufficient to identify the 
baggage or shipment (or shipments) of property, (2) asserting liability 
for alleged loss, damage, injury, or delay, and (3) making claim for the 
payment of a specified or determinable amount of money, shall be 
considered as sufficient compliance with the provisions for filing 
claims embraced in the bill of lading or other contract of carriage; 
Provided, however, That where claims are electronically handled, 
procedures are established to ensure reasonable carrier access to 
supporting documents.
    (c) Documents not constituting claims. Bad order reports, appraisal 
reports of damage, notations of shortage or damage, or both, on freight 
bills, delivery receipts, or other documents, or inspection reports 
issued by carriers or their

[[Page 27]]

inspection agencies, whether the extent of loss or damage is indicated 
in dollars and cents or otherwise, shall, standing alone, not be 
considered by carriers as sufficient to comply with the minimum claim 
filing requirements specified in paragraph (b) of this section.
    (d) Claims filed for uncertain amounts. Whenever a claim is 
presented against a proper carrier for an uncertain amount, such as 
``$100 more or less,'' the carrier against whom such claim is filed 
shall determine the condition of the baggage or shipment involved at the 
time of delivery by it, if it was delivered, and shall ascertain as 
nearly as possible the extent, if any, of the loss or damage for which 
it may be responsible. It shall not, however, voluntarily pay a claim 
under such circumstances unless and until a formal claim in writing for 
a specified or determinable amount of money shall have been filed in 
accordance with the provisions of paragraph (b) of this section.
    (e) Other claims. If investigation of a claim develops that one or 
more other carriers has been presented with a similar claim on the same 
shipment, the carrier investigating such claim shall communicate with 
each such other carrier and, prior to any agreement entered into between 
or among them as to the proper disposition of such claim or claims, 
shall notify all claimants of the receipt of conflicting or overlapping 
claims and shall require further substantiation, on the part of each 
claimant of his title to the property involved or his right with respect 
to such claim.

[37 FR 4258, Mar. 1, 1972, as amended at 47 FR 12803, Mar. 25, 1982]



Sec. 1005.3  Acknowledgment of claims.

    (a) Each carrier shall, upon receipt in writing or by electronic 
transmission of a proper claim in the manner and form described in the 
regulations, acknowledge the receipt of such claim in writing or 
electronically to the claimant within 30 days after the date of its 
receipt by the carrier unless the carrier shall have paid or declined 
such claim in writing or electronically within 30 days of the receipt 
thereof. The carrier shall indicate in its acknowledgment to the 
claimant what, if any, additional documentary evidence or other 
pertinent information may be required by it further to process the claim 
as its preliminary examination of the claim, as filed, may have 
revealed.
    (b) The carrier shall at the time each claim is received create a 
separate file and assign thereto a successive claim file number and note 
that number on all documents filed in support of the claim and all 
records and correspondence with respect to the claim, including the 
acknowledgment of receipt. At the time such claim is received the 
carrier shall cause the date of receipt to be recorded on the face of 
the claim document, and the date of receipt shall also appear in the 
carrier's acknowledgment of receipt to the claimant. The carrier shall 
also cause the claim file number to be noted on the shipping order, if 
in its possession, and the delivery receipt, if any, covering such 
shipment, unless the carrier has established an orderly and consistent 
internal procedure for assuring: (1) That all information contained in 
shipping orders, delivery receipts, tally sheets, and all other 
pertinent records made with respect to the transportation of the 
shipment on which claim is made, is available for examination upon 
receipt of a claim; (2) that all such records and documents (or true and 
complete reproductions thereof) are in fact examined in the course of 
the investigation of the claim (and an appropriate record is made that 
such examination has in fact taken place); and (3) that such procedures 
prevent the duplicate or otherwise unlawful payment of claims.

[37 FR 4258, Mar. 1, 1972, as amended at 37 FR 20943, Oct. 10, 1972; 47 
FR 12803, Mar. 25, 1982]



Sec. 1005.4   Investigation of claims.

    (a) Prompt investigation required. Each claim filed against a 
carrier in the manner prescribed herein shall be promptly and thoroughly 
investigated if investigation has not already been made prior to receipt 
of the claim.
    (b) Supporting documents. When a necessary part of an investigation, 
each claim shall be supported by the original bill of lading, evidence 
of the freight charges, if any, and either the original invoice, a 
photographic copy of the original invoice, or an exact

[[Page 28]]

copy thereof or any extract made therefrom, certified by the claimant to 
be true and correct with respect to the property and value involved in 
the claim; or certification of prices or values, with trade or other 
discounts, allowance, or deductions, of any nature whatsoever and the 
terms thereof, or depreciation reflected thereon; Provided, however, 
That where property involved in a claim has not been invoiced to the 
consignee shown on the bill of lading or where an invoice does not show 
price or value, or where the property involved has been sold, or where 
the property has been transferred at bookkeeping values only, the 
carrier shall, before voluntarily paying a claim, require the claimant 
to establish the destination value in the quantity, shipped, 
transported, or involved; Provided, further, That when supporting 
documents are determined to be a necessary part of an investigation, the 
supporting documents are retained by the carriers for possible 
Commission inspection.
    (c) Verification of Loss. When an asserted claim for loss of an 
entire package or an entire shipment cannot be otherwise authenticated 
upon investigation, the carrier shall obtain from the consignee of the 
shipment involved a certified statement in writing that the property for 
which the claim is filed has not been received from any other source.

[37 FR 4258, Mar. 1, 1972, as amended at 37 FR 23909, Nov. 10, 1972; 47 
FR 12803, Mar. 25, 1982]



Sec. 1005.5  Disposition of claims.

    (a) Each carrier subject to the Interstate Commerce Act which 
receives a written or electronically transmitted claim for loss or 
damage to baggage or for loss, damage, injury, or delay to property 
transported shall pay, decline, or make a firm compromise settlement 
offer in writing or electronically to the claimant within 120 days after 
receipt of the claim by the carrier; Provided, however, That, if the 
claim cannot be processed and disposed of within 120 days after the 
receipt thereof, the carrier shall at that time and at the expiration of 
each succeeding 60-day period while the claim remains pending, advise 
the claimant in writing or electronically of the status of the claim and 
the reason for the delay in making final disposition thereof and it 
shall retain a copy of such advice to the claimant in its claim file 
thereon.
    (b) When settling a claim for loss or damage, a common carrier by 
motor vehicle of household goods as defined in Sec. 1056.1(b)(1) shall 
use the replacement costs of the lost or damaged item as a base to apply 
a depreciation factor to arrive at the current actual value of the lost 
or damaged item: Provided, That where an item cannot be replaced or no 
suitable replacement is obtainable, the proper measure of damages shall 
be the original costs, augmented by a factor derived from a consumer 
price index, and adjusted downward by a factor depreciation over average 
useful life.

[37 FR 4258, Mar. 1, 1972, as amended at 46 FR 16224, Mar. 11, 1981; 47 
FR 12803, Mar. 25, 1982]



Sec. 1005.6   Processing of salvage.

    (a) Whenever baggage or material, goods, or other property 
transported by a carrier subject to the provisions herein contained is 
damaged or alleged to be damaged and is, as a consequence thereof, not 
delivered or is rejected or refused upon tender thereof to the owner, 
consignee, or person entitled to receive such property, the carrier, 
after giving due notice, whenever practicable to do so, to the owner and 
other parties that may have an interest therein, and unless advised to 
the contrary after giving such notice, shall undertake to sell or 
dispose of such property directly or by the employment of a competent 
salvage agent. The carrier shall only dispose of the property in a 
manner that will fairly and equally protect the best interests of all 
persons having an interest therein. The carrier shall make an itemized 
record sufficient to identify the property involved so as to be able to 
correlate it to the shipment or transportation involved, and claim, if 
any, filed thereon. The carrier also shall assign to each lot of such 
property a successive lot number and note that lot number on its record 
of shipment and claim, if any claim is filed thereon.

[[Page 29]]

    (b) Whenever disposition of salvage material or goods shall be made 
directly to an agent or employee of a carrier or through a salvage agent 
or company in which the carrier or one or more of its directors, 
officers, or managers has any interest, financial or otherwise, that 
carrier's salvage records shall fully reflect the particulars of each 
such transaction or relationship, or both, as the case may be.
    (c) Upon receipt of a claim on a shipment on which salvage has been 
processed in the manner hereinbefore prescribed, the carrier shall 
record in its claim file thereon the lot number assigned, the amount of 
money recovered, if any, from the disposition of such property, and the 
date of transmittal of such money to the person or persons lawfully 
entitled to receive the same.

[37 FR 4258, Mar. 1972]



Sec. 1005.7   Weight as a measure of loss.

    Where weight is used as a measure of loss in rail transit of scrap 
iron and steel and actual tare and gross weights are determined at 
origin and destination, the settlement of claims shall be based upon a 
comparison of net weights at origin and destination.

[41 FR 25908, June 23, 1976]



PART 1007--RECORDS CONTAINING INFORMATION ABOUT INDIVIDUALS--Table of Contents




Sec.
1007.1  Purpose and scope.
1007.2  Definitions.
1007.3  Requests by an individual for information or access.
1007.4  Procedures for identifying the individual making the request.
1007.5  Disclosure of requested information to individuals; fees for 
          copies of records.
1007.6  Disclosure to third parties.
1007.7  Content of systems of records.
1007.8  Amendment of a record.
1007.9  Appeals to the Chairman.
1007.10  Information supplied by the Commission when collecting 
          information from an individual.
1007.11  Public notice of records systems.
1007.12  Exemptions.

    Authority: 5 U.S.C. 552, 553, and 559.

    Source: 41 FR 3087, Jan. 21, 1976, unless otherwise noted.



Sec. 1007.1   Purpose and scope.

    (a) This part contains the rules of the Interstate Commerce 
Commission implementing the Privacy Act of 1974 (5 U.S.C. 552a). These 
rules apply to all records maintained by this Commission which are not 
excepted or exempted as provided for in Sec. 1007.12, insofar as they 
contain personal information concerning an individual, identify that 
individual by name or other symbol and are contained in a system of 
records from which information is retrieved by the individual's name or 
identifying symbol. Among the primary purposes of these rules are to 
permit individuals to determine whether information about them is 
contained in Commission files and, if so, to obtain access to that 
information; to establish procedures whereby individuals may have 
inaccurate and incomplete information corrected; and, to restrict access 
by unauthorized persons to that information.
    (b) In this part the Commission is also exempting certain Commission 
systems of records from some of the provisions of the Privacy Act of 
1974 that would otherwise be applicable to those systems.



Sec. 1007.2   Definitions.

    As used in this part:
    Commission means the Interstate Commerce Commission.
    Chairman means the Presidentially appointed Commissioner who is the 
administrative head of the Interstate Commerce Commission.
    Privacy Officer refers to the individual designated to process 
requests and handle various other matters relating to the Commission's 
implementation of the Privacy Act of 1974.
    Individual means a citizen of the United States or an alien lawfully 
admitted for permanent residence.
    Maintain means the maintenance, collection, use, or dissemination 
(of records).
    Record means any item, collection or grouping of information about 
an individual that is maintained by an agency, including, but not 
limited to, his education, financial transactions, medical history, and 
criminal or employment history and that contains his

[[Page 30]]

name, or the identifying number, symbol, or other identifying particular 
assigned to the individual, such as a finger or voice print or a 
photograph.
    Statistical Record means a record in a system of records maintained 
for statistical research or reporting purposes only and not used in 
whole or in part in making any determination about an identifiable 
individual, except as provided by section 8 of Title 13 of the United 
States Code.
    System of records means a group of any records under the control of 
the Commission retrieved by the name of the individual or by some 
identifying number, symbol, or other identifying particular assigned to 
the individual.
    Routine use means, with respect to the disclosure of a record, the 
use of such record for a purpose which is compatible with the purpose of 
which the record was compiled.
    Agency means any executive department, military department, 
Government corporation, Government-controlled corporation or other 
establishment in the Executive Branch of the Government or any 
independent regulatory agency.



Sec. 1007.3   Requests by an individual for information or access.

    (a) Any individual may request information on whether a system of 
records maintained by the Commission contains any information pertaining 
to him or her, or may request access to his or her record or to any 
information pertaining to him or her which is contained in a system of 
records. All requests shall be directed to the Privacy Officer, Office 
of the Managing Director, Interstate Commerce Commission, Twelfth Street 
and Constitution Avenue NW, Washington, DC 20423.
    (b) A request for information or for access to records under this 
part may be made by mail or in person. The request shall:
    (1) Be in writing and signed by the individual making the request; 
and,
    (2) Include the full name of the individual seeking the information 
or record, along with his or her home and business addresses and 
telephone numbers.
    (c) For each system of records from which information is sought, the 
request shall:
    (1) Specify the title and identifying number as it appears in the 
system notice published by the Commission;
    (2) Provide such additional identifying information, if any, as may 
be required by the system notice;
    (3) Describe the specific information or kind of information sought 
within that system of records; and,
    (4) Set forth any unusual arrangements sought concerning the time, 
place, or form of access.
    (d) The Commission will respond in writing to a request made under 
this section within ten days (excluding Saturdays, Sundays and legal 
public holidays) after receipt of the request. If a definitive reply 
cannot be given within ten days, the request will be acknowledged and an 
explanation will be given of the status of the request.
    (e) The individual either will be notified in writing of where and 
when he or she may obtain access to the records requested or will be 
given the name, address and telephone number of the member of the 
Commission staff with whom he or she should communicate to make further 
arrangements for access.



Sec. 1007.4   Procedures for identifying the individual making the request.

    When a request for information or for access to records has been 
made pursuant to Sec. 1007.3, before information is given or access is 
granted pursuant to Sec. 1007.5 of these rules, the Commission shall 
require reasonable identification of the person making the request to 
insure that information is given and records are disclosed only to the 
proper person.
    (a) An individual may establish his identity by:
    (1) Submitting with his written request for information or for 
access to photocopy, two pieces of identification bearing his or her 
name and signature, one of which shall bear his or her current home or 
business address; or
    (2) Appearing at any office of the Commission during the regular 
working hours for that office and presenting either:
    (i) One piece of identification containing a photograph and 
signature,

[[Page 31]]

such as a driver's license or passport, or, in the case of a Commission 
employee, his or her ICC identification card; or
    (ii) Two pieces of identification bearing the individual's name and 
signature, one of which shows the individual's current home or business 
address; and
    (3) Providing such other proof of identity as the Commission deems 
satisfactory in the circumstances of a particular request.
    (b) Nothing in this section shall preclude the Commission from 
requiring additional identification before granting access to the 
records if there is reason to believe that the person making the request 
may not be the individual to whom the record pertains, or where the 
sensitivity of the data may warrant.
    (c) The requirements of this subsection shall not apply if the 
records involved would be available to any person under the Freedom of 
Information Act.



Sec. 1007.5   Disclosure of requested information to individuals; fees for copies of records.

    (a) Any individual who has requested access to his or her record or 
to any information pertaining to that individual in the manner 
prescribed in Sec. 1007.3 and has identified himself or herself as 
prescribed in Sec. 1007.4 shall be permitted to review the record and 
have a copy made of all or any portion thereof in a form comprehensible 
to the individual, subject to fees for copying services set forth in 
paragraph (f) of this section. Upon request, persons of the individual's 
own choosing may accompany the individual, provided that the individual 
has furnished a written statement authorizing discussion of his or her 
record in the accompanying person's presence.
    (b) Access will generally be granted in the office of the Commission 
where the records are maintained during normal business hours, but for 
good cause shown the Commission may grant access at another office of 
the Commission or at different times for the convenience of the 
individual making the request. When a request for access is from a 
Commission employee, this request may be granted by forwarding the 
information desired through registered mail, return receipt requested.
    (c) Where a document containing information about an individual also 
contains information not pertaining to him or her, the portion not 
pertaining to the individual shall not be disclosed except to the extent 
the information is available to any person under the Freedom of 
Information Act. If the records sought cannot be provided for review and 
copying in a meaningful form, the Commission shall provide to the 
individual a summary of the information concerning the individual 
contained in the record or records which shall be complete and accurate 
in all material aspects.
    (d) Where the disclosure involves medical records, the Privacy 
Officer may determine that such information will be provided only to a 
physician designated by the individual.
    (e) Requests for copies of documents may be directed to the Privacy 
Officer or to the member of the Commission's staff through whom 
arrangements for access were made.
    (f) Fees for copies of records shall be charged at the rate set 
forth in 49 CFR 1002.1(d). Fees for requests requiring the use of a 
computer shall be charged at the actual cost for machine time. Payment 
should be made by check or money order payable to the Treasury of the 
United States. When it is determined to be in the best interest of the 
public, the Privacy Officer may waive the fee provision.
    (g) Nothing in this subsection or in Sec. 1007.3 shall:
    (1) Require the disclosure of records exempted under Sec. 1007.12 of 
these rules, including the exemption relating to investigative records;
    (2) Allow an individual access to any information compiled in 
reasonable anticipation of a civil action or proceeding or a criminal 
proceeding; or,
    (3) Require the furnishing of information or records which in the 
regular course of business cannot be retrieved by the name or other 
identifier of the individual making the request.

[41 FR 3087, Jan. 21, 1976, as amended at 53 FR 46483, Dec. 8, 1987]

[[Page 32]]



Sec. 1007.6   Disclosure to third parties.

    (a) The Commission shall not disclose to any agency or to any person 
by any means of communication a record pertaining to an individual which 
is contained in a system of records, except under the following 
circumstances:
    (1) The individual to whom the record pertains has given his written 
consent to the disclosure;
    (2) The disclosure is to officers and employees of the Commission 
who need it in the performance of their duties;
    (3) Disclosure is required under the Freedom of Information Act (5 
U.S.C. 552).
    (4) Disclosure is for a routine use as defined in Sec. 1007.2 of 
these rules and described in the system notice for that system of 
records;
    (5) The disclosure is made to the Bureau of the Census for the 
purposes of planning or carrying out a census or survey or related 
activity;
    (6) The disclosure is made to a recipient who has provided the 
agency with advance adequate written assurance that the record will be 
used solely as a statistical research or reporting record, and the 
record is to be transferred in a form that is not individually 
identifiable;
    (7) The disclosure is made to another agency or to an 
instrumentality of any Governmental jurisdiction within or under the 
control of the United States for a civil or criminal law enforcement 
activity if the activity is authorized by law and if the head of the 
agency or instrumentality has made a written request to the Commission 
specifying the particular portion desired and the law enforcement 
activity for which the record is sought;
    (8) The disclosure is made to the National Archives of the United 
States as a record which has sufficient historical or other value to 
warrant its continued preservation by the United States Government, or 
for evaluation by the Administrator of General Services or his designee 
to determine whether the record has such value.
    (9) The disclosure is made to a person pursuant to a showing of 
compelling circumstances affecting the health or safety of an individual 
if upon such disclosure notification is transmitted to the last known 
address of such individual;
    (10) The disclosure is made to either House of Congress, or, to the 
extent of matter(s) within its jurisdiction, any committee or 
subcommittee thereof, any joint committee of Congress or subcommittee of 
any such joint committee;
    (11) The disclosure is made to the Comptroller General, or any of 
his authorized representatives, in the course of the performance of the 
duties of the General Accounting Office; or,
    (12) Pursuant to the order of a court of competent jurisdiction.
    (b) The Commission, with respect to each system of records under its 
control, shall keep for at least five years an accurate accounting of 
certain disclosures:
    (1) A record shall be kept of all disclosures made under paragraph 
(a) of this section, except disclosures made with the consent of the 
individual to whom the record pertains (paragraph (a)(1) of this 
section), disclosures to authorized employees (paragraph (a)(2) of this 
section), and disclosures required under the Freedom of Information Act 
(paragraph (a)(3) of this section).
    (2) The record shall include:
    (i) The date, nature, and purpose of each disclosure of a record 
made to any person or to another agency;
    (ii) The name and address of the person or agency to whom the 
disclosure was made.
    (c) The accounting described in paragraph (b) of this section will 
be made available to the individual named in the record upon his written 
request, directed to the Privacy Officer, Interstate Commerce 
Commission, Twelfth Street and Constitution Avenue NW., Washington, DC 
20423, except that the accounting will not be revealed with respect to 
disclosures made under paragraph (a)(7) of this Sec. 1107.6 pertaining 
to law enforcement activity, and will not be maintained as to 
disclosures involving systems of records exempted under Sec. 1007.12.
    (d) Whenever an amendment or correction of a record or a notation of 
dispute concerning the accuracy of records is made by the Commission in 
accordance with Secs. 1007.8 and 1007.9, the Commission will inform any 
person or

[[Page 33]]

other agency to whom the record was previously disclosed, if an 
accounting of the disclosure was made pursuant to the requirements of 
paragraph (b) of this section.



Sec. 1007.7   Content of systems of records.

    (a) The Commission will maintain in its records only such 
information about an individual as is relevant and necessary to 
accomplish the purposes of the Interstate Commerce Act and other 
purposes required to be accomplished by statute or by Executive Order of 
the President.
    (b) The Commission will maintain no record describing how any 
individual exercises rights guaranteed by the First Amendment of the 
United States Constitution unless expressly authorized by statute or by 
the individual about whom the record is maintained or unless pertinent 
to and within the scope of an authorized law enforcement activity.
    (c) The Commission will collect information to the greatest extent 
practicable directly from the subject individual when the information 
may result in adverse determinations about an individual's rights, 
benefits, and privileges under Federal programs.
    (d) The Commission will maintain all records which are used by the 
Commission in making any determination about any individual with such 
accuracy, relevance, timeliness, and completeness as is reasonably 
necessary to assure fairness to the individual in the determination.



Sec. 1007.8   Amendment of a record.

    (a) Any individual may request amendment of information pertaining 
to him which is contained in a system of records maintained by the 
Commission and which is filed under his name or other individual 
identifier if he believes the information is not accurate, relevant, 
timely or complete. A request for amendment shall be directed to the 
Privacy Officer.
    (b) A request for amendment may be made by mail or in person and 
shall: (1) Be in writing and signed by the person making the request; 
(2) describe the particular record to be amended with sufficient 
specificity to permit the record to be located among those maintained by 
the Commission; and (3) specify the nature of the amendment sought and 
the justification for the requested change. The person making the 
request may be required to provide the information specified in 
Secs. 1007.3 and 1007.4 in order to simplify identification of the 
record and permit verification of the identity of the person making the 
request for amendment.
    (c) Receipt of a request for amendment will be acknowledged in 
writing within ten days (excluding Saturdays, Sundays and legal public 
holidays); except that if the individual is given notice within the ten-
day period that his or her request will or will not be complied with, no 
acknowledgment is required.
    (d) Assistance in preparing a request to amend a record may be 
obtained from the Privacy Officer, Office of the Managing Director, 
Interstate Commerce Commission, Twelfth Street and Constitution Avenue 
NW., Washington, DC 20423.
    (e) Upon receipt of a request for amendment the Privacy Officer or a 
person designated by him shall promptly determine whether the record is 
materially inaccurate, incomplete, misleading, or is irrelevant or not 
timely, as claimed by the individual, and, if so, shall cause the record 
to be amended in accordance with the individual's request.
    (f) If the Privacy Officer or designee grants the request to amend 
the record, the individual shall promptly be advised of the decision and 
of the action taken, and notice shall be given of the correction and its 
substance to each person or agency to whom the record had previously 
been disclosed, as shown on the record of disclosures maintained in 
accordance with Sec. 1007.6(b).
    (g) If the Privacy Officer or designee disagrees in whole or in part 
with a request for amendment of a record, the individual shall promptly 
be notified of the complete or partial denial of his request and the 
reasons for the refusal. The individual shall also be notified of the 
procedures for administrative review by the Chairman of any complete or 
partial denial of a request for amendment, which are set forth in 
Sec. 1007.9.

[[Page 34]]

    (h) If a request is received for amendment of a record prepared by 
another agency which is in the possession or control of the Commission, 
the request for amendment will be forwarded to that agency. If that 
agency determines that the correction should be made, the Commission 
will amend its records accordingly and notify the individual making the 
request for amendment of the change. If the other agency declines to 
make the amendment, the Privacy Officer or designee will independently 
determine whether the amendment will be made to the record in the 
Commission's possession or control, considering any explanation given by 
the other agency for its decision.



Sec. 1007.9   Appeals to the Chairman.

    (a) Any individual may petition the Chairman:
    (1) To review a refusal to comply with an individual request for 
access to records pursuant to the Privacy Act (5 U.S.C. 552a(d)(1)), and 
Secs. 1007.3 and 1007.5 in this part;
    (2) To review denial of a request for amendment made pursuant to 
Sec. 1007.8;
    (3) To correct any determination that may have been made adverse to 
the individual based in whole or in part upon inaccurate, irrelevant, 
untimely or incomplete information; and,
    (4) To correct a failure to comply with any other provision of the 
Privacy Act and the rules of this part 1007, which has had an adverse 
effect on the individual.
    (b) The petition to the Chairman shall be in writing and shall: (1) 
State in what manner it is claimed the Commission or any Commission 
employee has failed or refused to comply with provisions of the Privacy 
Act or of the rules contained in this part 1007, and (2) set forth the 
corrective action the petitioner wishes the Commission to take. The 
petitioner may, if he or she wishes, state such facts and cite such 
legal or other authorities as are considered appropriate.
    (c) The Chairman will make a determination of any petition filed 
pursuant to this subsection within thirty days (excluding Saturdays, 
Sundays and legal public holidays) after receipt of the petition, unless 
for good cause shown, the Chairman extends the 30-day period. If a 
petition is denied, the petitioner will be notified in writing of the 
reasons for such denial, and the provisions for judicial review of that 
determination which are set forth in section 552a(g) (1)(A) and (2)(A), 
of Title 5 of the United States Code and the provisions for disputed 
records set forth in paragraph (d) of this section.
    (d) If, after review, the Chairman declines to amend the records as 
the individual has requested, the individual may file with the Privacy 
Officer a concise statement setting forth why he or she disagrees with 
the Chairman's denial of the request. Any subsequent disclosure 
containing information about which a statement of disagreement has been 
filed shall clearly note the portion which is disputed and include a 
copy of a concise statement explaining its reasons for not making the 
amendments requested. Prior recipients of the disputed record will be 
provided a copy of any statement of dispute to the extent that an 
accounting of disclosures was maintained.



Sec. 1007.10   Information supplied by the Commission when collecting information from an individual.

    The Commission will inform each individual whom it asks to supply 
information, on the form which it uses to collect the information or on 
a separate form that can be retained by the individual, of:
    (a) The authority which authorizes the solicitation of the 
information and whether disclosure of such information is mandatory or 
voluntary;
    (b) The principal purpose or purposes for which the information is 
intended to be used;
    (c) The routine uses which may be made of the information, as 
published in the Federal Register; and,
    (d) The effects on the individual of not providing all or any part 
of the requested information.



Sec. 1007.11   Public notice of records systems.

    (a) The Commission will publish in the Federal Register, at least 
annually, a notice of the existence and character of each of its system 
of records, which notice shall include:

[[Page 35]]

    (1) The name and location of the system;
    (2) The categories of individuals on whom records are maintained in 
the system;
    (3) The categories of records maintained in the system;
    (4) Each routine use of the records contained in the system, 
including the categories of users and purpose of such use;
    (5) The policies and practices of the Commission regarding storage, 
retrieval, access controls, retention, and disposal of the records;
    (6) The title and business address of the Commission official who is 
responsible for the system of records;
    (7) The procedures whereby an individual can be notified at his or 
her request if the system of records contains a record pertaining to 
that individual;
    (8) The procedures whereby an individual can be notified at his or 
her request how he or she can gain access to any record pertaining to 
that individual contained in the system of records, and how the content 
of the record can be contested; and,
    (9) The categories of sources of records in the system.
    (b) Copies of the notices as printed in the Federal Register will be 
available in each office of the Commission. Mail requests should be 
directed to the Privacy Officer, Office of the Managing Director, 
Interstate Commerce Commission, Twelfth Street and Constitution Avenue 
NW., Washington, DC 20423. The first copy will be provided free of 
charge; additional copies are subject to charge provided for in 
paragraph (e) of this Sec. 1007.5.



Sec. 1007.12   Exemptions.

    (a) Investigatory materials compiled for law enforcement purposes 
are exempt from portions of the Privacy Act of 1974 and of these rules 
on the basis and to the extent that individual access to these files 
could impair the effectiveness and orderly conduct of the Commission's 
enforcement program. Provided, however, That if any individual is denied 
any right, privilege, or benefit to which he or she would otherwise be 
entitled by Federal law, or for which he or she would otherwise be 
eligible, as a result of the maintenance of such material, such 
materials shall be provided to the individual; except to the extent that 
the disclosure of such material would reveal the identity of a source 
who furnished information to the Government under an express promise 
that the identity of the source would be held in confidence, or, prior 
to the effective date of this section, under an implied promise that the 
identity of the source would be held in confidence.
    (b) Investigatory material compiled solely for the purpose of 
determining suitability, eligibility, or qualifications for employment 
with or contracts with the Commission are exempt from portions of the 
Privacy Act of 1974 and of these rules to the extent that it identifies 
a confidential source. This is done in order to encourage persons from 
whom information is sought to provide information to the Commission 
which, absent assurances of confidentiality, they might otherwise be 
unwilling to give. However, if practicable, material identifying a 
confidential source shall be extracted or summarized in a manner which 
protects the source, and the summary or extract shall be provided to the 
requesting individual.
    (c) Complaints and investigatory materials compiled by the 
Commission's Office of Inspector General are exempt from the provisions 
of 5 U.S.C. 552a and the regulations in this part, pursuant to 5 U.S.C. 
552a(j)(2), except subsections (b), (c)(1) and (2), (e)(4)(A) through 
(F), (e)(6), (7), (9), (10), and (11) and (i) to the extent that the 
system of records pertains to the enforcement of criminal laws. 
Complaint and investigatory materials compiled by the Commission's 
Office of Inspector General for law enforcement purposes also are exempt 
from the provisions of 5 U.S.C. 552a and the regulations of this part, 
pursuant to 5 U.S.C. 552a(k)(2).

[41 FR 3087, Jan. 21, 1976, as amended at 58 FR 15291, Mar. 22, 1993; 58 
FR 28520, May 14, 1993]

[[Page 36]]



PART 1008--PROCEDURES GOVERNING THE PROCESSING, INVESTIGATION, AND DISPOSITION OF OVERCHARGE, DUPLICATE PAYMENT, OR OVERCOLLECTION CLAIMS--Table of Contents




Sec.
1008.1  Applicability.
1008.2  Definitions.
1008.3  Filing and processing claims.
1008.4  Documentation of claims.
1008.5  Investigation of claims.
1008.6  Claim records.
1008.7  Acknowledgment of claims.
1008.8  Disposition of claims.
1008.9  Disposition of unidentified payments, overcharges, duplicate 
          payments, and overcollections not supported by claims.

    Authority: 49 U.S.C. 10321, 11101, 11705, 11706; 5 U.S.C. 553 and 
559.

    Source: 43 FR 41040, Sept. 14, 1978, unless otherwise noted.



Sec. 1008.1  Applicability.

    The regulations set forth in this part govern the processing of 
claims for overcharge, duplicate payment, or overcollection for the 
transportation of property in interstate or foreign commerce by motor 
common carriers and household goods freight forwarders subject to part 
II or IV of the Interstate Commerce Act.

[43 FR 41040, Sept. 14, 1978, as amended at 51 FR 44297, Dec. 9, 1986]



Sec. 1008.2  Definitions.

    (a) Carrier means a motor common carrier or household goods freight 
forwarder subject to part II or IV of the Interstate Commerce Act.
    (b) Overcharge means an overcharge as defined in section 11705(b)(1) 
of the Interstate Commerce Act. It also includes duplicate payments as 
defined in paragraph (c) of this section and overcollections as defined 
in paragraph (d) of this section when a dispute exists between the 
parties concerning such charges.
    (c) Duplicate payment means two or more payments for transporting 
the same shipment. Where one or more payment is not in the exact amount 
of the applicable tariff rates and charges, refunds shall be made on the 
basis of the excess amount over the applicable tariff rates and charges.
    (d) Overcollection means the receipt by a household goods carrier of 
a payment in excess of the transportation and/or accessorial charges 
applicable to a particular shipment of household goods, as defined in 
part 1056 of this chapter, under tariffs lawfully on file with this 
Commission.
    (e) Unidentified payment means a payment which a carrier has 
received but which the carrier is unable to match with its open accounts 
receivable or otherwise identify as being due for the performance of 
transportation services.
    (f) Claimant means any shipper or receiver, or its authorized agent, 
filing a request with a carrier for the refund of an overcharge, 
duplicate payment, or overcollection.

[43 FR 41040, Sept. 14, 1978, as amended at 44 FR 66832, Nov. 21, 1979; 
51 FR 34989, Oct. 1, 1986; 51 FR 44297, Dec. 9, 1986]



Sec. 1008.3  Filing and processing claims.

    (a) A claim for overcharge, duplicate payment, or overcollection 
shall not be paid unless filed in writing or electronically communicated 
(when agreed to by the carrier and shipper or receiver involved) with 
the carrier that collected the transportation charges. The collecting 
carrier shall be the carrier to process all such claims. When a claim is 
filed with another carrier that participated in the transportation, that 
carrier shall transmit the claim to the collecting carrier within 15 
days after receipt of the claim. If the collecting carrier is unable to 
dispose of the claim for any reason, the claim may be filed with or 
transferred to any participating carrier for final disposition.
    (b) A single claim may include more than one shipment provided the 
claim on each shipment involves:
    (1) The same tariff issue or authority or circumstances,
    (2) Single line service by the same carrier, or
    (3) Service by the same interline carriers.

[43 FR 41040, Sept 14, 1978, as amended at 47 FR 12804, Mar. 25, 1982]

[[Page 37]]



Sec. 1008.4  Documentation of claims.

    (a) Claims for overcharge, duplicate payment, or overcollection 
shall be accompanied by sufficient information to allow the carriers to 
conduct an investigation and pay or decline the claim within the time 
limitations set forth in Sec. 1008.8. Claims shall include the name of 
the claimant, its file number, if any, and the amount of the refund 
sought to be recovered, if known.
    (b) Except when the original freight bill is not a paper document 
but is electronically transmitted, claims for overcharge shall be 
accompanied by the original freight bill. Additional information may 
include, but is not limited to, the following:
    (1) The rate, classification, or commodity description or weight 
claimed to have been applicable.
    (2) Complete tariff authority for the rate, classification, or 
commodity description claimed.
    (3) Freight bill payment information.
    (4) Other documents or data which is believed by claimant to 
substantiate the basis for its claim.
    (c) Claims for duplicate payment and overcollection shall be 
accompanied by the original freight bill(s) for which charges were paid 
(except when the original freight bill is not a paper document but is 
electronically transmitted) and by freight bill payment information.
    (d) Regardless of the provisions of paragraphs (a), (b), and (c) of 
this section, the failure to provide sufficient information and 
documentation to allow a carrier to conduct an investigation and pay or 
decline the claim within the allowable time limitation shall not 
constitute grounds for disallowance of the claim. Rather, the carrier 
shall comply with Sec. 1008.5(c) to obtain the additional information 
required.
    (e) A carrier shall accept copies instead of the orginal documents 
required to be submitted in this section where the carrier is furnished 
with an agreement entered into by the claimant which indemnifies the 
carrier for subsequent duplicate claims which might be filed and 
supported by the original documents.

[43 FR 41040, Sept. 14, 1978, as amended at 44 FR 4679, Jan. 23, 1979; 
47 FR 12804, Mar. 25, 1982]



Sec. 1008.5  Investigation of claims.

    (a) Upon receipt of a claim, whether written or otherwise, the 
processing carrier shall promptly initiate an investigation and 
establish a file, as required by Sec. 1008.6.
    (b) If a carrier discovers an overcharge, duplicate payment, or 
overcollection which has not been the subject of a claim, it shall 
promptly initiate an investigation and comply with the provisions in 
Sec. 1008.9.
    (c) In the event the carrier processing the claim requires 
information or documents in addition to that submitted with the claim, 
the carrier shall promptly notify the claimant and request the 
information required. This includes notifying the claimant that a 
written or electronically transmitted claim must be filed before the 
carrier becomes subject to the time limits for settling such a claim 
under Sec. 1008.8.

[43 FR 41040, Sept. 14, 1978, as amended at 47 FR 12804, Mar. 25, 1982]



Sec. 1008.6  Claim records.

    At the time a claim is received the carrier shall create a separate 
file and assign it a successive claim file number and note that number 
on all documents filed in support of the claim and all records and 
correspondence with respect to the claim, including the written or 
electronic acknowledgment of receipt required under Sec. 1008.7. If 
pertinent to the disposition of the claim, the carrier shall also note 
that number on the shipping order and delivery receipt, if any, covering 
the shipment involved.

[47 FR 12804, Mar. 25, 1982]



Sec. 1008.7  Acknowledgment of claims.

    Upon receipt of a written or electronically transmitted claim, the 
carrier shall acknowledge its receipt in writing or electronically to 
the claimant within 30 days after the date of receipt except when the 
carrier shall have paid or declined in writing or electronically within 
that period. The carrier shall include the date of receipt in its 
written or electronic claim which shall be placed in the file for that 
claim.

[47 FR 12804, Mar. 25, 1982]

[[Page 38]]



Sec. 1008.8  Disposition of claims.

    The processing carrier shall pay, decline to pay, or settle each 
written or electronically communicated claim within 60 days after its 
receipt by that carrier, except where the claimant and the carrier agree 
in writing or electronically to a specific extension based upon 
extenuating circumstances. If the carrier declines to pay a claim or 
makes settlement in an amount different from that sought, the carrier 
shall notify the claimant in writing or electronically, of the reason(s) 
for its action, citing tariff authority or other pertinent information 
developed as a result of its investigation.

[47 FR 12804, Mar. 25, 1982]



Sec. 1008.9  Disposition of unidentified payments, overcharges, duplicate payments, and overcollections not supported by claims.

    (a)(1) Carriers shall establish procedures for identifying and 
properly applying all unidentified payments. If a carrier does not have 
sufficient information with which properly to apply such a payment, the 
carrier shall notify the payor of the unidentified payment within 60 
days of receipt of the payment and request information which will enable 
it to identify the payment. If the carrier does not receive the 
information requested within 90 days from the date of the notice, the 
carrier may treat the unidentified payment as a payment in fact of 
freight charges owing to it. Following the 90-day period, the regular 
claims procedure under this part shall be applicable.
    (2) Notice shall be in writing and clearly indicate that it is a 
final notice and not a bill. Notice shall include: The check number, 
amount, and date; the payor's name; and any additional basic information 
the carrier is able to provide. The final notice also must inform payor 
that: (i) Applicable regulations allow the carrier to conditionally 
retain the payment as revenue in the absence of a timely response by the 
payor; and (ii) following the 90-day period the regular claims procedure 
shall be applicable.
    (3) Upon a carrier's receipt of information from the payor, the 
carrier shall, within 14 days: (i) Make a complete refund of such funds 
to the payor; or (ii) notify the payor that the information supplied is 
not sufficient to identify the unapplied payment and request additional 
information; or (iii) notify the payor of the carrier's determination 
that such payment was applicable to particular freight charges lawfully 
due the carrier. Where no refund is made by the carrier, the carrier 
shall advise the payor of its right to file a formal claim for refund 
with the carrier in accordance with the regular claims procedure under 
this part.
    (b) When a carrier which participates in a transportation movement, 
but did not collect the transporation charges, finds that an overpayment 
has been made, that carrier shall immediately notify the collecting 
carrier. When the collecting carrier (when single or joint line haul) 
discovers or is notified by such a participating carrier that an 
overcharge, duplicate payment, or overcollection exists for any 
tranportation charge which has not been the subject of a claim, the 
carrier shall create a file as if a claim had been submitted and shall 
record in the file the date it discovered or was notified of the 
overpayment. The carrier that collected the charges shall then refund 
the amount of the overpayment to the person who paid the transportation 
charges or to the person that made duplicate payment within 30 days from 
the date of such discovery or notification.

[43 FR 41040, Sept. 14, 1978, as amended at 44 FR 66832, Nov. 21, 1979]



PART 1011--COMMISSION ORGANIZATION; DELEGATIONS OF AUTHORITY--Table of Contents




Sec.
1011.1  General.
1011.2  The Commission.
1011.3  Divisions of the Commission.
1011.4  The Chairman, Vice Chairman, and Senior Commissioner present.
1011.5  Delegations to individual Commissioners.
1011.6  Employee Boards.
1011.7  Delegations of authority by the Chairman.
1011.8  Delegations of authority by the Commission to specific offices 
          of the Commission.


[[Page 39]]


    Authority: 5 U.S.C. 553; 31 U.S.C. 9701; 49 U.S.C. 10301, 10302, 
10304, 10305, 10321, 10762.

    Source: 58 FR 29357, May 20, 1993, unless otherwise noted.



Sec. 1011.1  General.

    (a) This part describes the organization of the Commission, and the 
assignment of jurisdiction and responsibilities to the Commission, 
individual Commissioners or employees, and employee boards.
    (b) As used in this part, matter includes any case, proceeding, 
question, or other matter within the Commission's jurisdiction; and 
decision includes any decision, ruling, order, or requirement of the 
Commission, an individual Commissioner or employee, or an employee 
board.



Sec. 1011.2  The Commission.

    (a) The Commission reserves to itself for consideration and 
disposition:
    (1) All rulemaking and similar proceedings involving the 
promulgation of rules or the issuance of statements of general policy.
    (2) All investigations and other proceedings instituted by the 
Commission, except as may be ordered in individual situations.
    (3) All administrative appeals in a matter previously considered by 
the Commission.
    (4) All other matters submitted for decision except those assigned 
to an individual Commissioner or employee or an employee board.
    (5) Except for matters assigned to the Chairman of the Commission 
under Sec. 1011.5(a)(6),
    (i) The determination of whether to reconsider a decision being 
challenged in court;
    (ii) The disposition of matters that have been the subject of an 
adverse decision by a court; and
    (iii) The determination whether to file any memorandum or brief or 
otherwise participate on behalf of the Commission in any court.
    (6) The disposition of all matters involving issues of general 
transportation importance, and the determination whether issues of 
general transportation importance are involved in any matter.
    (7) All appeals of initial decisions issued by the Director of the 
Office of Proceedings under authority delegated at Sec. 1011.8(c). 
Appeals must be filed within 10 days after service of the Director 
decision or publication of the notice, and replies must be filed within 
10 days after the due date for appeals or any extension thereof.
    (b) The Commission may bring before it any matter assigned to an 
individual Commissioner or employee or employee board.



Sec. 1011.3  Divisions of the Commission.

    The Commission may establish such divisions as it considers 
necessary to handle any matter before it.



Sec. 1011.4  The Chairman, Vice Chairman, and Senior Commissioner present.

    (a)(1) The Chairman of the Commission is appointed by the President 
as provided by 49 U.S.C. 10301(b). The Chairman has authority, duties, 
and responsibilities assigned under 49 U.S.C. 10301(f) and described in 
this part.
    (2) The Vice Chairman is elected by the Commission for the term of 1 
calendar year.
    (3) In the Chairman's absence, the Vice Chairman is Acting Chairman, 
and has the authority and responsibilities of the Chairman. In the Vice 
Chairman's absence, the Chairman, if present, has the authority and 
responsibilities of the Vice Chairman. In the absence of both the 
Chairman and Vice Chairman, the senior Commissioner present, based on 
time of continuous service as a member of the Commission, is Acting 
Chairman, and has the authority and responsibilities of the Chairman and 
Vice Chairman.
    (b)(1) The Chairman is the executive head of the Commission and has 
general responsibility for:
    (i) The overall management and functioning of the Commission;
    (ii) The formulation of plans and policies designed to assure the 
effective administration of the Interstate Commerce Act and related 
Acts;
    (iii) Prompt identification and early resolution, at the appropriate 
level, of major substantive regulatory problems; and

[[Page 40]]

    (iv) The development and use of effective staff support to carry out 
the duties and functions of the Commission.
    (2) The Chairman of the Commission exercises the executive and 
administrative functions of the Commission, including:
    (i) The appointment, supervision, and removal of Commission 
employees, except those in the immediate offices of Commissioners other 
than the Chairman;
    (ii) The distribution of business among such personnel and among 
administrative units of the Commission; and
    (iii) The use and expenditure of funds.
    (3) In carrying out his functions, the Chairman is governed by 
general policies of the Commission and by such regulatory decisions, 
findings, and determinations as the Commission by law is authorized to 
make.
    (4) The appointment by the Chairman of the heads of offices and 
bureaus is subject to the approval of the Commission. All heads of 
offices report to the Chairman.
    (c)(1) The Chairman presides at all sessions of the Commission and 
sees that every vote and official act of the Commission required by law 
to be recorded is accurately and promptly recorded by the Secretary or 
the person designated by the Commission for that purpose.
    (2) Regular sessions of the Commission are provided for by 
Commission regulations. The Chairman may call the Commission into 
special session to consider any matter or business of the Commission. 
The Chairman shall convene a special session to consider any matter or 
business on request of a member of the Commission unless a majority of 
the Commission votes either not to hold a special session or to delay 
conference consideration of that item, or unless the Chairman finds that 
special circumstances warrant a delay. Notwithstanding the two 
immediately preceding sentences of this paragraph, on the written 
request of any member of the Commission, the Chairman shall schedule a 
Commission conference to discuss and vote on significant Commission 
proceedings involving major transportation issues, and such conference 
shall be held within a reasonable time following the close of the record 
in the involved proceeding.
    (3) The Chairman exercises general control over the Commission's 
argument calendar and conference agenda.
    (4) The Chairman acts as correspondent and speaks for the Commission 
in all matters where an official expression of the Commission is 
required.
    (5) The Chairman brings any delay or failure in the work to the 
attention of the supervising Commissioner, employee, or board, and 
initiates ways of correcting or preventing avoidable delays in the 
performance of any work or the disposition of any matter.
    (6) The Chairman may appoint such standing or ad hoc committees of 
the Commission as he considers necessary.
    (7) The Chairman of the Interstate Commerce Commission and the 
Secretary of the U.S. Department of Transportation shall take 
appropriate action to implement 49 U.S.C. 1483.
    (8) The Chairman may reassign related proceedings to a board of 
employees and may remove a matter from an individual Commissioner or 
employee or employee board for consideration and disposition by the 
Commission.
    (9) The Chairman may authorize any officer, employee, or 
administrative unit of the Commission to perform a function vested in or 
delegated to the Chairman.
    (10) The Chairman authorizes the institution of investigations on 
the Commission's own motion, and their discontinuance at any time before 
hearing, except for investigations under 49 U.S.C. 10708.
    (11) The Chairman approves for publication all publicly-issued 
documents by a bureau or office, except:
    (i) Those authorized or adopted by the Commission or an individual 
Commissioner that involve decisions in formal proceedings;
    (ii) Decisions or informal opinions of a bureau or office, or an 
initial decision of a hearing officer; and
    (iii) Documents prepared for court cases or for introduction into 
evidence in a formal proceeding.

[[Page 41]]



Sec. 1011.5  Delegations to individual Commissioners.

    (a) The following matters are referred to the Chairman of the 
Commission:
    (1) Entry of reparation orders responsive to findings authorizing 
the filing of statements of claimed damages as provided at 49 CFR part 
1133.
    (2) Extensions of time for compliance with orders and procedural 
matters in any formal case or pending matter, except appeals taken from 
the decision of a hearing officer on requests for discovery.
    (3) Postponement of the effective date of orders in proceedings that 
are the subject of suits brought in a court to enjoin, suspend, or set 
aside the decision.
    (4) Dismissal of complaints and applications on the unopposed motion 
of any party.
    (5) Requests for access to waybills and to statistics reported under 
orders of the Commission.
    (6) Exercise of control over litigation arising under the Freedom of 
Information Act (5 U.S.C. 552) and the Privacy Act (5 U.S.C. 552a), 
except for determinations whether to seek further judicial review of:
    (i) A decision in which a court finds under 5 U.S.C. 552(a)(4)(F) 
that Commission personnel may have acted arbitrarily or capriciously in 
improperly withholding records from disclosure; or
    (ii) A decision in which a court finds under 5 U.S.C. 552a(g)(4) 
that Commission personnel acted intentionally or wilfully in violating 
the Privacy Act.
    (7) Issuance of certificates and decisions when no protest is 
received within 30 days after an abandonment or discontinuance 
application is filed under 49 U.S.C. 10903 and the Commission must find, 
under 49 U.S.C. 10904(b), that the public convenience and necessity 
require or permit the abandonment or discontinuance.
    (8) Issuance of certificates and decisions authorizing Consolidated 
Rail Corporation to abandon or discontinue service over lines for which 
an application under section 308 of the Regional Rail Reorganization Act 
of 1973 has been filed.
    (b) The following matters are referred to the Vice Chairman of the 
Commission:
    (1) Matters within the jurisdiction of the Accounting Board if 
certified to the Vice Chairman by the Board or if removed from the Board 
by the Vice Chairman.
    (2) Matters involving the admission, disbarment, or discipline of 
practitioners before the Commission under 49 CFR part 1103.
    (3) In cases of calamitous visitation:
    (i) Reduced rates authorization under 49 U.S.C. 10721;
    (ii) Relief from the provisions of 49 U.S.C. 10730; and
    (iii) Relief from the long and short haul restrictions of 49 U.S.C. 
10726.
    (c) The Chairman, Vice Chairman, or any other Commissioner to whom a 
matter is assigned under this part may certify such matter to the 
Commission.
    (d) The Chairman shall notify all Commissioners that a petition for 
a stay has been referred to the Chairman for disposition under 
paragraphs (a) (2) or (3) of this section. The Chairman shall also 
inform all Commissioners of the decision on that petition before service 
of such decision. At the request of a Commissioner, made at any time 
before the Chairman's decision is served, the petition will be referred 
to the Commission for decision.



Sec. 1011.6  Employee boards.

    This section covers matters assigned to boards of employees of the 
Commission. Except as provided at paragraph (f) of this section, a board 
may certify any matter assigned to it to the Commission.
    (a) Suspension/Special Permission Board. This board has authority to 
act initially on matters involving tariff provisions and railroad 
contracts as follows:
    (1) In matters arising from 49 U.S.C. 10707 and 10708 relating to 
suspension and/or investigation of a tariff matter, the board is not 
authorized to act on petitions or requests relating to rates, 
classifications, rules, or practices filed in purported compliance with 
decisions of the Commission or to act in connection with suspensions to 
be taken during or after formal hearings and investigations. The board 
is authorized:

[[Page 42]]

    (i) To not suspend a rate or a classification, rule, or practice 
related to a rate, or to suspend such rate, classification, rule, or 
practice and order an investigation;
    (ii) To institute investigations into rates, fares, charges, and 
practices of regulated carriers; and
    (iii) Before the submission of evidence, to discontinue any 
proceeding when the proposed rate, classification, rule, or practice has 
been cancelled.
    (iv) To handle any disputes that may arise concerning the 
applicability or reasonableness of motor common carrier rates under 49 
U.S.C. 10762(a) (3) and (4).
    (2) In matters arising from 49 U.S.C. 10726, the board is authorized 
to grant or withhold relief from the long and short haul transportation 
requirements of that statute, except for proceedings made the subject of 
formal hearings, matters prompted by an order or requirement of the 
Commission, matters arising from general increase proceedings, or in 
cases of calamitous visitation where the Vice Chairman has been 
delegated authority at 49 CFR 1011.5(b)(3).
    (3) In matters arising from 49 U.S.C. 10701, 10702, 10761, and 
10762, the board is authorized to grant or withhold special tariff 
authority or other permissible waivers of rules regarding tariffs or 
schedules, including authorization for the cancellation of suspended 
tariffs or schedules, that have not involved taking testimony at a 
public hearing or the submission of evidence by opposing parties in the 
form of affidavits.
    (4) In matters arising from 49 U.S.C. 10713, the board is 
authorized:
    (i) To grant or withhold discovery of railroad transportation 
contracts;
    (ii) To institute investigations of railroad transportation 
contracts; and
    (iii) To grant or withhold relief from 49 CFR 1313.7(a), (b), (c), 
and (d) governing the construction and filing of railroad transportation 
contracts and railroad transportation contract summaries.
    (b) OCCA boards. (1) Insurance Board. (i) Matters arising under 49 
U.S.C. 10924 and 10927, regarding bonds or other security to assure 
financial responsibility of brokers, and 49 U.S.C. 10927, regarding 
motor carriers providing bonds, insurance, or other security for the 
protection of the public, except matters involving taking testimony at a 
public hearing or the submission of evidence by opposing parties in the 
form of affidavits.
    (ii) Matters arising under 49 U.S.C. 10329 and 10330 regarding the 
designation by motor carriers and brokers of persons on whom orders and 
notices may be served and the designation of agents on whom service of 
process may be made, except matters involving taking testimony at a 
public hearing or the submission of evidence by opposing parties in the 
form of affidavits.
    (iii) Matters arising under 49 U.S.C. 11711 regarding review and 
approval of claim dispute settlement programs submitted by motor common 
carriers of household goods, and revocation or suspending approval of 
such programs if the carrier(s) fail to comply with that statute. The 
Insurance Board shall certify a representative sampling of proposed 
dispute settlement programs to the Commission.
    (2) Motor Carrier Leasing Board. Matters arising under 49 U.S.C. 
10321, 11101, and 11107 and the implementing regulations at 49 CFR part 
1057 regarding the lease and interchange of vehicles by motor carriers, 
except matters involving taking testimony at a public hearing or the 
submission of evidence by opposing parties in the form of affidavits.
    (3) Railroad Service Board. Matters regarding car-service except 
controversies between carriers as to compensation, under 49 U.S.C. 
11123, 11124, 11127, and 11128, which have not involved taking testimony 
at a public hearing or the submission of evidence by opposing parties in 
the form of affidavits.
    (4) Revocation Board. Entry of show cause orders under 49 U.S.C. 
11701 and 10925 (b)(1), (c)(1), and (c)(3) directed to motor carriers, 
brokers, water carriers, and household goods freight forwarders who have 
failed to submit the proper application fee or to file required annual 
reports; and determination of uncontested motor carrier, broker, water 
carrier, and household goods freight forwarder suspension, change, or 
revocation proceedings under 49 U.S.C. 10925 that have not involved

[[Page 43]]

taking testimony at a public hearing. The Motor Carrier Board is 
delegated revocation authority in connection with licensing matters at 
Sec. 1011.6(g)(7).
    (5) Any matter referred to an OCCA Board that is subsequently 
assigned for taking testimony at a public hearing shall be withdrawn 
from the board.
    (6) The Railroad Service Board will establish and oversee modified 
hearing procedures implementing section 226 of the Staggers Rail Act of 
1980, Public Law No. 96-448, which revises 49 U.S.C. 11123(a) and 
provides for issuance of extensions of emergency service orders by the 
Commission. Each order issued under revised 49 U.S.C. 11123(a) will 
contain a notice of the hearing procedures to be followed with respect 
to any extension of that order.
    (c) Released Rates Board. Matters arising under 49 U.S.C. 10730(a) 
regarding applications to establish released rates and ratings that have 
not involved taking testimony at a public hearing or the submission of 
evidence by opposing parties in the form of affidavits.
    (d) Accounting Board. (1) Authority:
    (i) To permit departure from general rules prescribing uniform 
systems of accounts for carriers and other persons under the revised 
Interstate Commerce Act, subtitle IV of title 49 of the U.S. Code, and 
from the regulations governing the forms and recording of passes for 
carriers and other persons under the Act;
    (ii) To prescribe rates of depreciation to be used by railroad and 
water carriers;
    (iii) To issue special authorizations permitted by the regulations 
governing the destruction of records of carriers subject to the Act;
    (iv) To grant extensions of time for filing annual, periodical, and 
special reports in matters that do not involve taking testimony at a 
public hearing or the submission of evidence by opposing parties in the 
form of affidavits; and
    (v) To issue valuation reports in matters that do not involve taking 
testimony at public hearings or the submission of evidence by opposing 
parties in the form of affidavits.
    (2) The board may certify any matter assigned to it to the Vice 
Chairman of the Commission.
    (e) Special Docket Board. Disposition of special docket and tariff 
reconciliation proceedings under 49 CFR 1130.2(e), (f) and (g).
    (f) Regional Motor Carrier Boards. (1) Matters arising under 49 
U.S.C. 10928 regarding applications for temporary authority by common or 
contract carriers by motor vehicle or water, except matters involving 
broad questions of policy, matters in which the decision of the boards 
would be inconsistent with a decision of the Commission, and matters in 
which substantially the same question is already before the Commission.
    (2) Effective June 21, 1993, authority to process applications 
(including all matters related thereto) under 49 U.S.C. 10530 filed by, 
and issue certificates of registration to, foreign motor carriers and 
foreign motor private carriers.
    (g) Motor Carrier Board. (1) Pre-publication matters in operating 
rights applications of motor carriers, water carriers, household goods 
freight forwarders, and property brokers.
    (2) Motor passenger carrier and water carrier finance applications 
under 49 U.S.C. 11343-11344, and small carrier transfer applications 
under 49 U.S.C. 10926.
    (3) Temporary authority applications related to finance proceedings 
under 49 U.S.C. 11349.
    (4) Applications that have not involved taking testimony at a public 
hearing or the submission of evidence by opposing parties in the form of 
affidavits, under:
    (i) 49 U.S.C. 10321, relating to the transfer of brokers' licenses; 
and
    (ii) 49 U.S.C. 10931 and 10932, relating to the transfer of 
Certificates of Registration and rights to operate pending determination 
of applications for Certificates of Registration.
    (5) Issuance of decisions substituting applicants in non-rail 
licensing proceedings and finance proceedings where operating authority 
has not yet been issued.
    (6) Issuance of decisions on requests by motor passenger contract 
carriers for exemption from the tariff filing requirements of 49 U.S.C. 
10702(b), 10761(b), and 10762(f).

[[Page 44]]

    (7) Authority to decide all routine appeals from initial actions of 
the Motor Carrier Board. Non-routine appeals from initial actions of the 
Motor Carrier Board shall be certified by the Board to the Secretary of 
the Commission for disposition.

[58 FR 29357, May 20, 1993, as amended at 59 FR 65505, Dec. 20, 1994; 60 
FR 2544, Jan. 10, 1995]



Sec. 1011.7  Delegations of authority by the Chairman.

    (a)(1) This section provides for delegations of authority by the 
Chairman of the Interstate Commerce Commission to individual Commission 
employees.
    (2) The Chairman of the Commission may remove for disposition any 
matter delegated under this section, and any matter delegated under this 
section may be referred by the Commission employee to the Chairman for 
disposition.
    (b)(1) The Chairman of the Commission will decide appeals from 
decisions of employees acting under authority delegated under this 
section. Appeals must be filed within 10 days after the date of the 
employee's action, and replies must be filed within 10 days after the 
due date for appeals. Appeals are not favored and will be granted only 
in exceptional circumstances to correct a clear error of judgment or to 
prevent manifest injustice.
    (2) The Chairman may on his own motion review, reverse, or modify 
any decision of an employee acting under authority delegated under this 
section.
    (c)(1) As used in this paragraph, procedural matter includes, but is 
not limited to, the assignment of the time and place of hearing; the 
assignment of proceedings to Administrative Law Judges; the issuance of 
decisions directing special hearing procedures; the establishment of 
dates for filing statements in cases assigned for handling under 
modified (non-oral hearing) procedure; the consolidation of proceedings 
for hearing or disposition; the postponement of hearings and of 
procedural dates; the waiver of formal specifications for pleadings; and 
extensions of time for filing pleadings. It does not include 
interlocutory appeals from the rulings of hearing officers; nor does it 
include postponement of the effective date of:
    (i) Decisions pending judicial review,
    (ii) Decisions of the entire Commission,
    (iii) Cease and desist orders,
    (iv) Orders suspending or revoking operating authority, or
    (v) Final decisions where petitions for discretionary review have 
been filed under 49 CFR 1115.5.
    (2) Unless otherwise ordered by the Commission in individual 
proceedings, authority to dispose of procedural matters arising before 
issuance of an initial decision in proceedings assigned for handling 
under oral hearing procedure or assigned to an Administrative Law Judge 
under modified procedure is delegated to the Chief Administrative Law 
Judge of the Commission. Notwithstanding this delegation, Commissioners, 
Administrative Law Judges, and Joint Boards appointed under 49 U.S.C. 
10341-10344 retain the authority to dispose of procedural matters in 
proceedings assigned to them.
    (3) Unless otherwise ordered by the Commission in individual 
proceedings, authority to dispose of routine procedural matters in 
proceedings assigned for handling under modified procedure, other than 
those assigned to an Administrative Law Judge, or arising after issuance 
of an initial decision by a hearing officer in a proceeding that has 
been the subject of an oral hearing, is delegated to the Secretary of 
the Commission. The Secretary shall also have authority, unless 
otherwise ordered by the Chairman or by a majority of the Commission in 
individual proceedings, to decide whether operating rights application 
and complaint proceedings shall be handled under the modified procedure 
or be assigned to the Office of Hearings. In carrying out these duties, 
the Secretary shall consult, as necessary, with the General Counsel and 
the Director of any other Commission Office to which an individual 
proceeding has been assigned.
    (d) Except as provided at 49 CFR 1113.3(b)(1), authority to dismiss 
a complaint on complainant's request, or an application on applicant's 
request, is delegated to the Secretary and to the Chief Administrative 
Law Judge.

[[Page 45]]

    (e) The entry of reparation orders, responsive to findings 
authorizing the filing of statements of claimed damages as provided at 
49 CFR 1133.2, is delegated to the Director of the Office of Tariffs.
    (f) Authority to grant or deny access to waybills and to statistics 
reported under orders of the Commission is delegated to the Director of 
the Office of Economics.
    (g) Certain accounts in the Uniform Systems of Accounts, 49 CFR 
parts 1200 through 1207, require Commission approval to use. Authority 
to grant or deny requests for use of these accounts is delegated to the 
Director of the Office of Economics, the Deputy Director of Economics--
Accounts, and the Chief of the Section of Audit and Accounting.
    (h) The Secretary of the Commission is delegated authority, under 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., to:
    (1) Sign and transmit to the Small Business Administration 
certifications of no significant economic effect for proposed rules, 
that if adopted by the Commission, will not have a significant economic 
impact on a substantial number of small entities; and
    (2) Sign and transmit findings regarding waiver or delay of an 
initial regulatory flexibility analysis or delay of a final regulatory 
flexibility analysis.
    (i) Issuance of certificates and decisions when no protest is 
received within 30 days after an abandonment or discontinuance 
application is filed under 49 U.S.C. 10903, and the Commission must 
find, under 49 U.S.C. 10904(b) that the public convenience and necessity 
require or permit the abandonment or discontinuance, is delegated to the 
Director of the Office of Proceedings.
    (j) Issuance of certificates and decisions authorizing Consolidated 
Rail Corporation to abandon or discontinue service over lines for which 
an application under section 308 of the Regional Rail Reorganization Act 
of 1973 has been filed is delegated to the Director of the Office of 
Proceedings.



Sec. 1011.8  Delegations of authority by the Commission to specific offices of the Commission.

    (a) Office of Public Assistance. (1) There is established an Office 
of Public Assistance. The Office assumes the functions previously 
assigned to the former Office of Special Counsel, the former Small 
Business Assistance Office, and the State/Community Affairs Liaison 
position formerly in the Office of Legislation and Governmental Affairs.
    (2) The Office shall be managed by a Director, who also serves as 
Special Counsel of the Commission, and by a Deputy Director, who also 
serves as the Small Business Assistance Officer of the Commission. The 
Special Counsel shall be appointed by the Chairman, subject to the 
approval of a majority of the Commission.
    (3) The mission of the Office is to assist the Commission and the 
public in determining and representing the public interest, with regard 
to the Interstate Commerce Act and related statutes. The primary 
function of the Office is to act as the focal point to coordinate 
Commission activities ensuring that:
    (i) The public interest is fully developed in proceedings before the 
Commission and especially to contribute to the development of a complete 
record in proceedings in which important aspects of the public interest 
otherwise would not be explored adequately, particularly proceedings 
affecting the interests of bus passengers, household goods shippers, 
owner operators, and classes II and III rail carriers and the shippers 
they serve;
    (ii) Small and minority-owned transportation entities, 
transportation-related entities, consumer groups, small communities, 
carriers and shippers, and State regulatory officials are advised on the 
applicability of the law and of the availability of assistance from the 
Commission as this applies to their enterprise; and
    (iii) The Commission is advised on policy matters regarding its 
small business assistance functions and programs.

[[Page 46]]

    (4) The Office will participate as a party in Commission 
proceedings, including rulemakings, only on the filing of a petition 
seeking, and on the approval of a majority of the Commission granting, 
such recourse.
    (5) The Office of Hearings, in noticing cases for public hearings, 
shall advise parties of the availability of assistance from the Office 
of Public Assistance.
    (b) Office of the Secretary. The Secretary of the Commission is 
delegated the following authority:
    (1) Whether (in consultation with involved Offices) to waive filing 
fees set forth at 49 CFR 1002.2(f).
    (2) To issue, on written request, informal opinions and 
interpretations (exclusive of informal opinions and interpretations on 
carrier tariff provisions), which are not binding on the Commission. In 
issuing informal opinions or interpretations, the Secretary shall 
consult with the Director of the appropriate Commission office. Such 
requests must be directed to the Office of the Secretary, Legal Branch, 
Interstate Commerce Commission, Washington, DC 20423. Authority to issue 
informal opinions and interpretations on carrier tariff provisions is 
delegated at 49 CFR 1011.8(d)(2) to the Office of Tariffs.
    (c) Office of Proceedings. The Director of the Office of Proceedings 
shall have authority initially determinative of the following:
    (1) Whether to designate protested abandonment proceedings for 
investigation (including action on requests for oral hearing).
    (2) Whether offers of financial assistance satisfy the statutory 
standards of 49 U.S.C. 10905(d) for the purpose of negotiations or, in 
exemption proceedings, for purposes of partial revocation and 
negotiations.
    (3) Whether: (i) To impose, modify, or remove environmental and 
historic preservation conditions; and
    (ii) In abandonment proceedings, to impose public use conditions 
under 49 U.S.C. 10906 and the implementing regulations at 49 CFR 
1152.28.
    (4) In abandonment proceedings, when a request for interim trail 
use/rail banking is filed under 49 CFR 1152.29, determining whether the 
National Trails System Act, 16 U.S.C. 1247(d), is applicable and, where 
appropriate, issuing Certificates of Interim Trail Use or Abandonment 
(in application proceedings) or Notices of Interim Trail Use or 
Abandonment (in exemption proceedings).
    (5) In any abandonment proceeding where interim trail use/rail 
banking is an issue, to make such findings and issue decisions as may be 
necessary for the orderly administration of the National Trails System 
Act, 16 U.S.C. 1247(d).
    (6) Whether to institute requested declaratory order proceedings 
under 5 U.S.C. 554(e).
    (7) In all exemption proceedings under 49 U.S.C. 11343(e) involving 
non-rail intermodal parties, to make such findings as necessary and to 
issue notices of exemption.
    (8) To issue decisions, after 60 days' notice by any person 
discontinuing a subsidy established under 49 U.S.C. 10905 and at the 
railroad's request:
    (i) In application proceedings, immediately issuing certificates of 
abandonment or discontinuance; and
    (ii) In exemption proceedings, immediately vacating the decision 
that postponed the effective date of the exemption.
    (9) In proceedings under the Feeder Railroad Development Program 
under 49 U.S.C. 10910 and the implementing regulations at 49 CFR part 
1151:
    (i) Whether to accept or reject primary applications under 
Sec. 1151.2(b); competing applications under Sec. 1151.2(c); and 
incomplete applications under Sec. 1151.2(d).
    (ii) Whether to grant waivers from specific provisions of 49 CFR 
part 1151.
    (10) In exemption proceedings subject to environmental or historic 
preservation reporting requirements, to issue a decision, under 49 CFR 
1105.10(g), making a finding of no significant impact where no 
environmental or historic preservation issues have been raised by any 
party or identified by the Commission's Section of Energy and 
Environment.
    (11) Whether to issue notices of exemption under 49 U.S.C. 10505:
    (i) For acquisition, lease, and operation transactions under 49 
U.S.C. 10901 and the implementing regulations at 49 CFR part 1150, 
subpart D; and

[[Page 47]]

    (ii) For rail transactions under 49 U.S.C. 11343 and the 
implementing regulations at 49 CFR 1180.2(d).
    (12) Whether to issue rail modified certificates of public 
convenience and necessity under 49 CFR part 1150, subpart C.
    (13) Whether to waive the regulations at 49 CFR part 1152, subpart 
C, on appropriate petition.
    (14) To reject applications, petitions for exemption, and verified 
notices (filed in class exemption proceedings) for noncompliance with 
the environmental rules at 49 CFR part 1105.
    (15) To reject applications by Burlington Northern Railroad Company 
to abandon rail lines in North Dakota exceeding the 350-mile cap of 
section 402 of Public Law 97-102, 95 Stat. 1465 (1981), as amended by 
The Department of Transportation and Related Agencies Appropriations 
Act, 1992, Public Law 102-143, section 343 (Oct. 28, 1991).
    (16) Whether to extend the 120-day limit within which 49 U.S.C. 
10706(b)(3)(B)(vii) mandates that rate bureaus shall finally dispose of 
rules or rates docketed with them.
    (17) Whether, absent controversy or unusual circumstances, to issue 
notices of provisional recertification under State Intrastate Rail Rate 
Authority, 5 I.C.C.2d 680, 684 (1989).
    (d) Office of Tariffs. The Office of Tariffs is delegated the 
authority to:
    (1) Reject tariffs, schedules, railroad transportation contracts, 
and railroad transportation contract summaries filed with the Commission 
that violate applicable statutes, rules, or regulations, except when 
such summary rejection of facially defective tariff filings would give 
rise to potential undercharge problems. In such event, the defective 
tariff filings shall not be rejected and instead shall become effective 
on schedule provided that corrections are filed within 15 days. Any 
rejection of a tariff, schedule, contract, or summary may be by letter 
signed by or for the Director, Office of Tariffs, or the Chief, Section 
of Tariff Maintenance and Compliance, Office of Tariffs.
    (2) Issue, on written request, informal opinions and interpretations 
on carrier tariff provisions, which are not binding on the Commission.



PART 1012--MEETINGS OF THE COMMISSION--Table of Contents




Sec.
1012.1  General provisions.
1012.2  Time and place of meetings.
1012.3  Public notice.
1012.4  Public participation.
1012.5  Transcripts; minutes.
1012.6  Petitions seeking to open or close a meeting.
1012.7  Meetings which may be closed to the public.

    Authority: 5 U.S.C. 552b(g), as amended by Pub. L. 94-409, 90 Stat. 
1241; 49 U.S.C. 17(3), 24 Stat. 385, as amended.

    Source: 42 FR 13796, Mar. 11, 1977, unless otherwise noted.



Sec. 1012.1  General provisions.

    (a) The regulations contained in this part are issued pursuant to 
the provisions of 5 U.S.C. 552b(g), added by section 3(a) of the 
Government in the Sunshine Act, Pub. L. 94-409 (Act), and section 17(3) 
of the Interstate Commerce Act. They establish procedures under which 
meetings of the Interstate Commerce Commission (Commission), Divisions 
of the Commission (Division), and standing committees of the Commission 
are held. They apply to oral arguments as well as to deliberative 
conferences. They apply to meetings of the Commission and of Divisions 
and committees of the Commission where the Division or committee is 
empowered to act on the Commission's behalf, but not where a Division or 
committee is meeting only to formulate an internal recommendation to the 
Commission. They include provisions for giving advance public notice of 
meetings, for holding meetings which may lawfully be closed to the 
public, and for issuing minutes and transcripts of meetings.
    (b) The words meeting and conference are used interchangeably in 
this part to mean the deliberations of at least a majority of the 
members of the Commission, a Division, or a committee of the Commission 
where such deliberations determine or result in the joint conduct or 
disposition of official Commission business. They do not include 
meetings held to determine whether some future meeting should be open or 
closed to the public. They do not include the deliberations of members 
of

[[Page 48]]

boards of employees of the Commission.
    (c) These regulations are not intended to govern situations in which 
members of the Commission consider individually and vote by notation 
upon matters which are circulated to them in writing. Copies of the 
votes or statements of position of all Commissioners eligible to 
participate in action taken by notation voting will be made available, 
as soon as possible after the date upon which the action taken is made 
public or any decision or order adopted is served, in a public reading 
room or other easily accessible place within the Commission, or upon 
written request to the Secretary of the Commission.



Sec. 1012.2  Time and place of meetings.

    (a) Conferences, oral arguments, and other meetings are held at the 
Commission's headquarters building at the northwest corner of 12th 
Street and Constitution Avenue in Washington, DC, unless advance notice 
of an alternative site is given. Room assignments for meetings will be 
posted on the day of the meeting at the Constitution Avenue entrance to 
the Interstate Commerce Commission building and at the Commission's 
Public Information Office (Room 1211).
    (b) Regular Commission conferences are held on the first and third 
Tuesdays of each month, or on the following day if the regular 
conference day is a holiday. Oral arguments before the Commission are 
normally scheduled on the first or third Wednesday of each month. 
Regular Commission conferences and oral arguments before the Commission 
or a Division normally begin at 9:30 a.m. A luncheon recess is taken at 
approximately noon, and other recesses may be called by the presiding 
officer. Times for reconvening following a recess, or on subsequent days 
if a conference or oral argument lasts more than one day, are set by the 
presiding officer at the time the recess is announced.
    (c) Special Commission conferences, Division conferences, oral 
arguments before a Division, and meetings of committees of the 
Commission are scheduled by the Chairman of the Commission or of the 
respective Division or committee.
    (d) If one or more portions of the same meeting are open to the 
public while another portion or other portions are closed, all those 
portions of the meeting which are open to the public are scheduled at 
the beginning of the meeting agenda, and are followed by those portions 
which are closed.



Sec. 1012.3  Public notice.

    (a) Unless a majority of the Commission determines that such 
information is exempt from disclosure under the Act, public notice of 
the scheduling of a meeting will be given by posting a notice on the 
bulletin board in the Commission's Public Information Office, by filing 
a copy of the notice with the Secretary of the Commission for posting 
and for service on all parties of record in any proceeding which is the 
subject of the meeting or any other person who has requested notice with 
respect to meetings of the Commission, and by submitting a copy of the 
notice for publication in the Federal Register.
    (b) Public notice of a scheduled meeting will contain:
    (1) The date, time, place, and subject matter of the meeting.
    (2) Whether it is open to the public.
    (3) If the meeting or any portion of the meeting is not open to the 
public, an explanation of the action taken in closing the meeting or 
portion of the meeting, together with a list of those expected to attend 
the meeting and their affiliations.
    (4) If a vote is taken on the question whether to close a meeting or 
a portion of a meeting to the public, a statement of the vote or 
position of each Commissioner eligible to participate in that vote. If 
such a vote is taken, public notice of its result will be posted within 
one working day following completion of the voting. If the result of the 
vote is to close the meeting or a portion of the meeting, an explanation 
of that action will be included in the notice to be issued within one 
working day following completion of the voting. The public notice 
otherwise required by this subparagraph may be withheld if the 
Commission finds that such information is exempt from disclosure under 
the Act.

[[Page 49]]

    (5) The name and telephone number of the Commission official 
designated to respond to requests for information about the meeting. 
Unless otherwise specified, that official will be the Commission's 
Public Information Officer, whose telephone number is (202) 275-7252.
    (c) Except as provided in paragraphs (d) and (e) of this section, 
public notice will be given at least one week before the date upon which 
a meeting is scheduled.
    (d) Due and timely execution of the Commission's functions will not 
normally permit the giving on one week's public notice of meetings 
called to consider or determine whether to suspend or investigate a 
tariff or schedule under sections 15(7), 15(8), 215(g), 218(c), 307(g), 
307(i), or 406(e) of the Interstate Commerce Act (49 U.S.C. 15(7), 
15(8), 316(g), 318(c), 907(g), 907(i), 1006(e)); to consider whether to 
grant special permission to deviate from tariff filing requirements 
under section 6(3), 217(c), 218(a), 306(d), 306(e), or 405(d) of the 
Interstate Commerce Act (49 U.S.C. 6(3), 317(c), 318(a), 906(d), 906(e), 
or 1005(d)); or to consider or dispose of an application for temporary 
authority under section 210a(a) or 311(a) of the Interstate Commerce Act 
(49 U.S.C. 310a(a) or 911(a)). Such meetings will normally be called on 
less than one week's notice, and public notice will be posted and 
published at the earliest practicable time.
    (e) If a majority of the Commissioners eligible to participate in 
the conduct or disposition of the matter which is the subject of a 
meeting determines, by recorded vote, that Commission business requires 
that a meeting be called on less than one week's notice, the meeting may 
be called on short notice, and public notice will be posted and 
published at the earliest practicable time.
    (f) Changes in the scheduling of a meeting which has been the 
subject of a public notice will also be made the subject of a public 
notice, which will be posted at the earliest practicable time. Changes 
in, or additions to a conference agenda or in the open or closed status 
of a meeting will be made only if a majority of the Commissioners 
eligible to participate in the conduct or disposition of the matter 
which is the subject of the meeting determines, by recorded vote, that 
the Commission's business requires such change and that no earlier 
announcement of the change was possible. In such a case, the public 
notice of the change, will show the vote of each Commissioner on the 
change.



Sec. 1012.4  Public participation.

    (a) In the case of Commission or Division conferences or meetings of 
committees of the public, members of the public will be admitted as 
observers only. Active participation, as by asking questions or 
attempting to participate in the discussion, will not be permitted, and 
anyone violating this proscription may be required to leave the meeting 
by the presiding officer.
    (b) Oral arguments are always open to the public. The scheduling of 
participants in the arguments and the allotment of time is governed by 
49 CFR part 1116.

[42 FR 13796, Mar. 11, 1977, as amended at 47 FR 49596 and 49597, Nov. 
1, 1982; 47 FR 54083, Dec. 1, 1982; 47 FR 55686, Dec. 13, 1982; 57 FR 
44135, Sept. 24, 1992]



Sec. 1012.5  Transcripts; minutes.

    (a) A verbatim transcript, sound recording or minutes will be made 
of all meetings closed to the public under these regulation, and will be 
retained by the Commission for two years following the date upon which 
the meeting ended, or until one year after the conclusion of any 
proceeding with respect to which the meeting was held, whichever occurs 
later. In the case of meetings closed to the public under Sec. 1012.7(d) 
(1) through (7) and (9) of this part, a transcript or recording rather 
than minutes will be made and retained.
    (b) The Commission will make available free of charge, upon request, 
in a public reading room or some other easily accessible place, the 
minutes, transcript or recording of all portions of any meeting which 
was closed to the public except those portions which it finds to be 
properly exempt from disclosure under the Act. A copy of such minutes, 
transcript or recording will be provided, upon request, upon payment

[[Page 50]]

of fees as provided in part 1002 of this chapter.
    (c) In the case of all meetings closed to the public, the presiding 
officer shall cause to be made, and the Commission shall retain, a 
statement setting forth:
    (1) The date, time, and place of the meeting.
    (2) The names and affiliations of those attending.
    (3) The subject matter.
    (4) The action taken. 
    (5) A copy of the certification issued by the General Counsel that, 
in his or her opinion, the meeting was one that might properly be closed 
to the public.



Sec. 1012.6  Petitions seeking to open or close a meeting.

    (a) The Commission will entertain petitions requesting either the 
opening of a meeting proposed to be closed to the public or the closing 
of a meeting proposed to be open to the public. In the case of a meeting 
of the Commission, the original and 15 copies of such a petition shall 
be filed, and in the case of a meeting of a Division or committee of the 
Commission, an original and five copies shall be filed.
    (b) A petition to open a meeting proposed to be closed, filed by any 
interested person, will be entertained.
    (c) A petition to close a meeting proposed to be open will be 
entertained only in cases in which the subject at the meeting would:
    (1) Involve accusing a person of a crime or formally censuring a 
person.
    (2) Disclose information of a personal nature where disclosure would 
constitute a clearly unwarranted invasion of personal privacy.
    (3) Disclose trade secrets or commercial or financial information 
obtained on a privileged or confidential basis.
    (4) Disclose investigatory records or information, compiled for law 
enforcement purposes, to the extent that the production of such records 
or information would (i) interfere with enforcement proceedings being 
conducted or under consideration by an agency other than the Commission; 
(ii) deprive a person of a right to a fair trial or an impartial 
adjudication; (iii) constitute an unwarranted invasion of personal 
privacy; (iv) disclose the identity of a confidential investigation 
agency or a national security intelligence agency; (v) disclose 
investigative techniques and procedures of an agency other than the 
Commission; or (vi) endanger the life or physical safety of law 
enforcement personnel.
    (5) Disclose information the premature disclosure of which could 
lead to significant financial speculation in securities.
    (d) Every effort will be made to dispose of petitions to open or 
close a meeting in advance of the meeting date. However, if such a 
petition is received less than three working days prior to the date of 
the meeting, it may be disposed of as the first order of business at the 
meeting, in which case the decision will be communicated to the 
petitioner orally through the Commission's Public Information Officer or 
other spokesperson.



Sec. 1012.7  Meetings which may be closed to the public.

    (a) A meeting may be closed pursuant to this section only if a 
majority of the Commissioners eligible to participate in the conduct or 
disposition of the matter which is the subject of the meeting votes to 
close the meeting.
    (b) A single vote may be taken to close a series of meetings on the 
same particular matters held within 30 days of the initial meeting in 
the series.
    (c) With respect to any meeting closed to the public under this 
section, the General Counsel of the Commission will issue his or her 
certification that, in his opinion, the meeting is one which may 
properly be closed pursuant to one or more of the provisions of 
paragraph (d) of this section.
    (d) Meetings or portions of meetings may be closed to the public if 
the meeting or portion thereof is likely to:
    (1) Disclose matters (i) specifically authorized under criteria 
established by an Executive order to be kept secret in the interests of 
national defense or foreign policy and (ii) in fact properly classified 
pursuant to such Executive order.
    (2) Relate solely to the internal personnel rules and practices of 
the Commission.
    (3) Disclose matters specifically exempted from disclosure by 
statute

[[Page 51]]

(other than 5 U.S.C. 552); Provided, That such statute (A) requires that 
the matters be withheld from the public in such a manner as to leave no 
discretion on the issue, or (B) establishes particular criteria for 
withholding or refers to particular types of matters to be withheld.
    (4) Disclose trade secrets or commercial information obtained from a 
person and privileged or confidential.
    (5) Involve accusing any person of a crime, or formally censuring 
any person.
    (6) Disclose information of a personal nature where disclosure would 
constitute a clearly unwarranted invasion of personal privacy.
    (7) Disclose investigatory records compiled for law enforcement 
purposes, or information which if written would be contained in such 
records, but only to the extent that the production of such records or 
information would (i) interfere with enforcement proceedings, (ii) 
deprive a person of a right to a fair trial or an impartial 
adjudication, (iii) constitute an unwarranted invasion of personal 
privacy, (iv) disclose the identity of a confidential source and (in the 
case of a record compiled by a criminal law enforcement authority in the 
course of a criminal investigation, or by an agency conducting a lawful 
national security intelligence investigation) disclose confidential 
information furnished only by the confidential source, (v) disclose 
investigative techniques and procedures, or (vi) endanger the life or 
physical safety of law enforcement personnel.
    (8) Disclose information the premature disclosure of which could (i) 
lead to significant financial speculation in currencies, securities, or 
commodities, or (ii) significantly endanger the stability of any 
financial institution.
    (9) Disclose information, the premature disclosure of which would be 
likely significantly to frustrate implementation of a proposed 
Commission action, except that this subparagraph shall not apply in any 
instance after the content or nature of the proposed Commission action 
has already been disclosed to the public by the Commission, or where the 
Commission is required by law to make such disclosure prior to the 
taking of final Commission action on such proposal.
    (10) Specifically concern the issuance of a subpoena.
    (11) Specifically concern the Commission's participation in a civil 
action or proceeding or an arbitration.
    (12) Specifically concern the initiation, conduct, or disposition of 
a particular case or formal adjudication conducted pursuant to the 
procedures in 5 U.S.C. 554 or otherwise involving a determination on the 
record after an opportunity for hearing.



PART 1013--GUIDELINES FOR THE PROPER USE OF VOTING TRUSTS--Table of Contents




Sec.
1013.1  The independence of the trustee of a voting trust.
1013.2  The irrevocability of the trust.
1013.3  Review and reporting requirements for regulated carriers.

    Authority: 49 U.S.C. 10321 and 5 U.S.C. 553.

    Source: 44 FR 59909, Oct. 17, 1979, unless otherwise noted.



Sec. 1013.1  The independence of the trustee of a voting trust.

    (a) In order to avoid an unlawful control violation, the independent 
voting trust should be established before a controlling block of voting 
securities is purchased.
    (b) In voting the trusteed stock, the trustee should maintain 
complete independence from the creator of the trust (the settlor).
    (c) Neither the trustee, the settlor, nor their respective 
affiliates should have any officers or board members in common or direct 
business arrangements, other than the voting trust, that could be 
construed as creating an indicium of control by the settlor over the 
trustee.
    (d) The trustee should not use the voting power of the trust in any 
way which would create any dependence or intercorporate relationship 
between the settlor and the carrier whose corporate securities 
constitute the corpus of the trust.
    (e) The trustee should be entitled to receive cash dividends 
declared and paid upon the trusteed voting stock

[[Page 52]]

and turn them over to the settlor. Dividends other than cash should be 
received and held by the trustee upon the same terms and conditions as 
the stock which constitutes the corpus of the trust.
    (f) If the trustee becomes disqualified because of a violation of 
the trust agreement or if the trustee resigns, the settlor should 
appoint a successor trustee within 15 days.



Sec. 1013.2  The irrevocability of the trust.

    (a) The trust and the nomination of the trustee during the term of 
the trust should be irrevocable.
    (b) The trust should remain in effect until certain events, 
specified in the trust, occur. For example, the trust might remain in 
effect until (1) all the deposited stock is sold to a person not 
affiliated with the settlor or (2) the trustee receives a Commission 
decision authorizing the settlor to acquire control of the carrier or 
authorizing the release of the securities for any reason.
    (c) The settlor should not be able to control the events terminating 
the trust except by filing with this Commission an application to 
control the carrier whose stock is held in trust.
    (d) The trust agreement should contain provisions to ensure that no 
violations of 49 U.S.C. 11343 will result from termination of the trust.



Sec. 1013.3  Review and reporting requirements for regulated carriers.

    (a) Any carrier choosing to utilize a voting trust may voluntarily 
submit a copy of the voting trust to the Commission for review. The 
Commission's staff will give an informal, nonbinding opinion as to 
whether the voting trust effectively insulates the settlor from any 
violation of Commission policy against unauthorized acquisition of 
control of a regulated carrier.
    (b) Any person who establishes an independent trust for the receipt 
of the voting stock of carrier must file a copy of the trust, along with 
any auxiliary or modifying documents, with the Commission.
    (c) Any carrier required to file a Schedule 13D with the Securities 
and Exchange Commission (17 CFR 240.13d-1) which reports the purchase of 
5 percent or more of the registered securities of another I.C.C. 
regulated carrier (or the listed shares of a company controlling 10 
percent or more of the stock of an I.C.C. regulated carrier), must 
simultaneously file a copy of that schedule with this Commission, along 
with any supplements to that schedule.
    (d) Failure to comply with the reporting requirements in paragraphs 
(b) or (c) of this section will result in denial of the application in 
which acquisition of control, through the acquisition of the voting 
stock of another carrier, is sought, unless the applicant shows, by 
clear and convincing evidence, and the Commission finds, that the 
failure to comply was unintentional and that denial of the application 
will substantially and adversely affect the public interest and the 
national transportation policy.



PART 1014--ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE INTERSTATE COMMERCE COMMISSION--Table of Contents




Sec.
1014.101  Purpose.
1014.102  Application.
1014.103  Definitions.
1014.104--1014.109  [Reserved]
1014.110  Self-evaluation.
1014.111  Notice.
1014.112--1014.129  [Reserved]
1014.130  General prohibitions against discrimination.
1014.131--1014.139  [Reserved]
1014.140  Employment.
1014.141--1014.148  [Reserved]
1014.149  Program accessibility: Discrimination prohibited.
1014.150  Program accessibility: Existing facilities.
1014.151  Program accessibility: New construction and alterations.
1014.152--1014.159  [Reserved]
1014.160  Communications.
1014.161--1014.169  [Reserved]
1014.170  Compliance procedures.
1014.171--1014.999  [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 51 FR 22896, June 23, 1986, unless otherwise noted.



Sec. 1014.101  Purpose.

    This part effectuates section 119 of the Rehabilitation, 
Comprehensive

[[Page 53]]

Services, and Developmental Disabilities Amendments of 1978, which 
amended section 504 of the Rehabilitation Act of 1973 to prohibit 
discrimination on the basis of handicap in programs or activities 
conducted by Executive agencies or the United States Postal Service.



Sec. 1014.102  Application.

    This part applies to all programs or activities conducted by the 
agency.



Sec. 1014.103  Definitions.

    For purposes of this part, the term--
    Assistant Attorney General means the Assistant Attorney General, 
Civil Rights Division, United States Department of Justice.
    Auxiliary aids means services or devices that enable persons with 
impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in, and enjoy the benefits of, programs or 
activities conducted by the agency. For example, auxiliary aids useful 
for persons with impaired vision include readers, brailled materials, 
audio recordings, telecommunications devices and other similar services 
and devices. Auxiliary aids useful for persons with impaired hearing 
include telephone handset amplifiers, telephones compatible with hearing 
aids, telecommunication devices for deaf persons (TDD's), interpreters, 
notetakers, written materials, and other similar services and devices.
    Complete complaint means a written statement that contains the 
complainant's name and address and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.
    Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    Handicapped person means any person who has a physical or mental 
impairment that substantially limits one or more major life activities, 
has a record of such an impairment, or is regarded as having such an 
impairment.
    As used in this definition, the phrase:
    (1) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
Neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term ``physical or mental 
impairment'' includes, but is not limited to, such diseases and 
conditions as orthopedic, visual, speech, and hearing impairments, 
cerebral palsy, epilepsy, muscular dystrophy, multiple sclerosis, 
cancer, heart disease, diabetes, mental retardation, emotional illness, 
and drug addiction and alcoholism.
    (2) Major life activities includes functions such as caring for 
one's self performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the agency as constituting 
such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in paragraph (1) of this 
definition but is treated by the agency as having such an impairment.
    Historic preservation programs means programs conducted by the 
agency that

[[Page 54]]

have preservation of historic properties as a primary purpose.
    Historic properties means those properties that are listed or 
eligible for listing in the National Register of Historic Places or 
properties designated as historic under a statute of the appropriate 
State or local government body.
    Qualified handicapped person means--
    (1) With respect to preschool, elementary, or secondary education 
services provided by the agency, a handicapped person who is a member of 
a class of persons otherwise entitled by statute, regulation, or agency 
policy to receive education services from the agency.
    (2) With respect to any other agency program or activity under which 
a person is required to perform services or to achieve a level of 
accomplishment, a handicapped person who meets the essential eligibility 
requirements and who can achieve the purpose of the program or activity 
without modifications in the program or activity that the agency can 
demonstrate would result in a fundamental alteration in its nature;
    (3) With respect to any other program or activity, a handicapped 
person who meets the essential eligibility requirements for 
participation in, or receipt of benefits from, that program or activity; 
and
    (4) Qualified handicapped person is defined for purposes of 
employment in 29 CFR 1613.702(f), which is made applicable to this part 
by Sec. 1014.140.
    Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617), 
and the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955). As used 
in this part, section 504 applies only to programs or activities 
conducted by Executive agencies and not to federally assisted programs.
    Substantial impairment means a significant loss of the integrity of 
finished materials, design quality, or special character resulting from 
a permanent alteration.
Secs. 1014.104--1014.109  [Reserved]



Sec. 1014.110  Self-evaluation.

    (a) The agency shall, by August 24, 1987, evaluate its current 
policies and practices, and the effects thereof, that do not or may not 
meet the requirements of this part, and, to the extent modification of 
any such policies and practices is required, the agency shall proceed to 
make the necessary modifications.
    (b) The agency shall provide an opportunity to interested persons, 
including handicapped persons or organizations representing handicapped 
persons, to participate in the self-evaluation process by submitting 
comments (both oral and written).
    (c) The agency shall, until three years following the completion of 
the self-evaluation, maintain on file and make available for public 
inspection:
    (1) A description of areas examined and any problems identified, and
    (2) A description of any modifications made.



Sec. 1014.111  Notice.

    The agency shall make available to employees, applicants, 
participants, beneficiaries, and other interested persons such 
information regarding the provisions of this part and its applicability 
to the programs or activities conducted by the agency, and make such 
information available to them in such manner as the head of the agency 
finds necessary to apprise such persons of the protections against 
discrimination assured them by section 504 and this regulation.
Secs. 1014.112--1014.129  [Reserved]



Sec. 1014.130  General prohibitions against discrimination.

    (a) No qualified handicapped person shall, on the basis of handicap, 
be excluded from participation in, be denied the benefits of, or 
otherwise be subjected to discrimination under any program or activity 
conducted by the agency.
    (b)(1) The agency, in providing any aid, benefit, or service, may 
not, directly or through contractual, licensing, or other arrangements, 
on the basis of handicap--

[[Page 55]]

    (i) Deny a qualified handicapped person the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified handicapped person an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified handicapped person with an aid, benefit, 
or service that is not as effective in affording equal opportunity to 
obtain the same result, to gain the same benefit, or to reach the same 
level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
handicapped persons or to any class of handicapped persons than is 
provided to others unless such action is necessary to provide qualified 
handicapped persons with aid, benefits, or services that are as 
effective as those provided to others;
    (v) Deny a qualified handicapped person the opportunity to 
participate as a member of planning or advisory boards; or
    (vi) Otherwise limit a qualified handicapped person in the enjoyment 
of any right, privilege, advantage, or opportunity enjoyed by others 
receiving the aid, benefit, or service.
    (2) The agency may not deny a qualified handicapped person the 
opportunity to participate in programs or activities that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The agency may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified handicapped persons to discrimination on the 
basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to handicapped persons.
    (4) The agency may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude handicapped persons from, deny them the benefits of, or 
otherwise subject them to discrimination under any program or activity 
conducted by the agency; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to handicapped persons.
    (5) The agency, in the selection of procurement contractors, may not 
use criteria that subject qualified handicapped persons to 
discrimination on the basis of handicap.
    (6) The agency may not administer a licensing or certification 
program in a manner that subjects qualified handicapped persons to 
discrimination on the basis of handicap, nor may the agency establish 
requirements for the programs or activities of licensees or certified 
entities that subject qualified handicapped persons to discrimination on 
the basis of handicap. However, the programs or activities of entities 
that are licensed or certified by the agency are not, themselves, 
covered by this part.
    (c) The exclusion of nonhandicapped persons from the benefits of a 
program limited by Federal statute or Executive order to handicapped 
persons or the exclusion of a specific class of handicapped persons from 
a program limited by Federal statute or Executive order to a different 
class of handicapped persons is not prohibited by this part.
    (d) The agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified handicapped 
persons.
Secs. 1014.131--1014.139  [Reserved]



Sec. 1014.140  Employment.

    No qualified handicapped person shall, on the basis of handicap, be 
subjected to discrimination in employment under any program or activity 
conducted by the agency. The definitions, requirements, and procedures 
of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 791), as 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1613, shall apply to employment in federally conducted programs or 
activities.

[[Page 56]]

Secs. 1014.141--1014.148  [Reserved]



Sec. 1014.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec. 1014.150, no qualified 
handicapped person shall, because the agency's facilities are 
inaccessible to or unusable by handicapped persons, be denied the 
benefits of, be excluded from participation in, or otherwise be 
subjected to discrimination under any program or activity conducted by 
the agency.



Sec. 1014.150  Program accessibility: Existing facilities.

    (a) General. The agency shall operate each program or activity so 
that the program or activity, when viewed in its entirety, is readily 
accessible to and usable by handicapped persons. This paragraph does 
not--
    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by handicapped persons;
    (2) In the case of historic preservation programs, require the 
agency to take any action that would result in a substantial impairment 
of significant historic features of an historic property; or
    (3) Require the agency to take any action that it can demonstrate 
would result in a fundamental alteration in the nature of a program or 
activity or in undue financial and administrative burdens. In those 
circumstances where agency personnel believe that the proposed action 
would fundamentally alter the program or activity or would result in 
undue financial and administrative burdens, the agency has the burden of 
proving that compliance with Sec. 1014.150(a) would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the agency head or his or her 
designee after considering all agency resources available for use in the 
funding and operation of the conducted program or activity, and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action would result in such an alteration or such 
burdens, the agency shall take any other action that would not result in 
such an alteration or such burdens but would nevertheless ensure that 
handicapped persons receive the benefits and services of the program or 
activity.
    (b) Methods--(1) General. The agency may comply with the 
requirements of this section through such means as redesign of 
equipment, reassignment of services to accessible buildings, assignment 
of aides to beneficiaries, home visits, delivery of services at 
alternate accessible sites, alteration of existing facilities and 
construction of new facilities, use of accessible rolling stock, or any 
other methods that result in making its programs or activities readily 
accessible to and usable by handicapped persons. The agency is not 
required to make structural changes in existing facilities where other 
methods are effective in achieving compliance with this section. The 
agency, in making alterations to existing buildings, shall meet 
accessibility requirements to the extent compelled by the Architectural 
Barriers Act of 1968, as amended (42 U.S.C. 4151-4157), and any 
regulations implementing it. In choosing among available methods for 
meeting the requirements of this section, the agency shall give priority 
to those methods that offer programs and activities to qualified 
handicapped persons in the most integrated setting appropriate.
    (2) Historic preservation programs. In meeting the requirements of 
Sec. 1014.150(a) in historic preservation programs, the agency shall 
give priority to methods that provide physical access to handicapped 
persons. In cases where a physical alteration to an historic property is 
not required because of Sec. 1014.150(a)(2) or (a)(3), alternative 
methods of achieving program accessibility include--
    (i) Using audio-visual materials and devices to depict those 
portions of an historic property that cannot otherwise be made 
accessible;
    (ii) Assigning persons to guide handicapped persons into or through 
portions of historic properties that cannot otherwise be made 
accessible; or
    (iii) Adopting other innovative methods.
    (c) Time period for compliance. The agency shall comply with the 
obligations established under this section by

[[Page 57]]

October 21, 1986, except that where structural changes in facilities are 
undertaken, such changes shall be made by August 22, 1989, but in any 
event as expeditiously as possible.
    (d) Transition plan. In the event that structural changes to 
facilities will be undertaken to achieve program accessibility, the 
agency shall develop, by February 23, 1987, a transition plan setting 
forth the steps necessary to complete such changes. The agency shall 
provide an opportunity to interested persons, including handicapped 
persons or organizations representing handicapped persons, to 
participate in the development of the transition plan by submitting 
comments (both oral and written). A copy of the transition plan shall be 
made available for public inspection. The plan shall, at a minimum--
    (1) Identify physical obstacles in the agency's facilities that 
limit the accessibility of its programs or activities to handicapped 
persons;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
compliance with this section and, if the time period of the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period; and
    (4) Indicate the official responsible for implementation of the 
plan.



Sec. 1014.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, or for the use of the agency shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
handicapped persons. The definitions, requirements, and standards of the 
Architectural Barriers Act (42 U.S.C. 4151-4157), as established in 41 
CFR 101-19.600 to 101-19.607, apply to buildings covered by this 
section.
Secs. 1014.152--1014.159  [Reserved]



Sec. 1014.160  Communications.

    (a) The agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where 
necessary to afford a handicapped person an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the 
agency shall give primary consideration to the requests of the 
handicapped person.
    (ii) The agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.
    (2) Where the agency communicates with applicants and beneficiaries 
by telephone, telecommunication devices for deaf person (TDD's) or 
equally effective telecommunication systems shall be used.
    (b) The agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The agency shall provide signage at a primary entrance to each 
of its inaccessible facilities, directing users to a location at which 
they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that 
it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and adminstrative 
burdens. In those circumstances where agency personnel believe that the 
proposed action would fundamentally alter the program or activity or 
would result in undue financial and administrative burdens, the agency 
has the burden of proving that compliance with Sec. 1014.160 would 
result in such alteration or burdens. The decision that compliance would 
result in such alteration or burdens must be made by the agency head or 
his or her designee after considering all agency resources available for 
use in the funding and operation of the conducted program or activity, 
and must be accompanied by a written statement of

[[Page 58]]

the reasons for reaching that conclusion. If an action required to 
comply with this section would result in such an alteration or such 
burdens, the agency shall take any other action that would not result in 
such an alteration or such burdens but would nevertheless ensure that, 
to the maximum extent possible, handicapped persons receive the benefits 
and services of the program or activity.
Secs. 1014.161--1014.169  [Reserved]



Sec. 1014.170  Compliance procedures.

    (a) Except as provided in paragraph (b) of this section, this 
section applies to all allegations of discrimination on the basis of 
handicap in programs or activities conducted by the agency.
    (b) The agency shall process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1613 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (c) The Equal Opportunity Officer shall be responsible for 
coordinating implementation of this section. Complaints may be sent to 
Director, Office of Human Relations, Interstate Commerce Commission, 
Room 3147, Washington, DC 20423.
    (d) The agency shall accept and investigate all complete complaints 
for which it has jurisdiction. All complete complaints must be filed 
within 180 days of the alleged act of discrimination. The agency may 
extend this time period for good cause.
    (e) If the agency receives a complaint over which it does not have 
jurisdiction, it shall promptly notify the complainant and shall make 
reasonable efforts to refer the complaint to the appropriate government 
entity.
    (f) The agency shall notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), or section 502 of the 
Rehabilitation Act of 1973, as amended (29 U.S.C. 792), is not readily 
accessible to and usable by handicapped persons.
    (g) Within 180 days of the receipt of a complete complaint for which 
it has jurisdiction, the agency shall notify the complainant of the 
results of the investigation in a letter containing--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation found; and
    (3) A notice of the right to appeal.
    (h) Appeals of the findings of fact and conclusions of law or 
remedies must be filed by the complainant within 90 days of receipt from 
the agency of the letter required by Sec. 1014.170(g). The agency may 
extend this time for good cause.
    (i) Timely appeals shall be accepted and processed by the head of 
the agency.
    (j) The head of the agency shall notify the complainant of the 
results of the appeal within 60 days of the receipt of the request. If 
the head of the agency determines that additional information is needed 
from the complainant, he or she shall have 60 days from the date of 
receipt of the additional information to make his or her determination 
on the appeal.
    (k) The time limits cited in paragraphs (g) and (j) of this section 
may be extended with the permission of the Assistant Attorney General.
    (l) The agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another agency.

[51 FR 22896, June 23, 1986, as amended at 51 FR 22896, June 23, 1986]
Secs. 1014.171--1014.999  [Reserved]



PART 1016--SPECIAL PROCEDURES GOVERNING THE RECOVERY OF EXPENSES BY PARTIES TO COMMISSION ADJUDICATORY PROCEEDINGS--Table of Contents




                      Subpart A--General Provisions

Sec.
1016.101  Purpose of these rules.
1016.102  When the Act applies.
1016.103  Proceedings covered.
1016.104  Decisionmaking authority.
1016.105  Eligibility of applicants.
1016.106  Standards for awards.
1016.107  Allowable fees and expenses.

[[Page 59]]

1016.109  Awards against other agencies.

             Subpart B--Information Required From Applicants

1016.201  Contents of application.
1016.202  Net worth exhibit.
1016.203  Documentation of fees and expenses.

           Subpart C--Procedures for Considering Applications

1016.301  When an application may be filed.
1016.302  Filing and service of documents.
1016.303  Answer to application.
1016.304  Reply.
1016.305  Comments by other parties.
1016.306  Settlement.
1016.307  Further proceedings.
1016.308  Decision.
1016.309  Agency review.
1016.310  Judicial review.
1016.311  Payment of award.

    Authority: 49 U.S.C. 10321, 5 U.S.C. 504(c)(1), and 5 U.S.C. 553.


    Source: 46 FR 61660, Dec. 18, 1981, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 1016.101  Purpose of these rules.

    The Equal Access to Justice Act (5 U.S.C. 504) (called the ``Act'' 
in this part), provides for the award of attorney fees and other 
expenses to eligible individuals and entities who are parties to certain 
administrative proceedings (called ``adversary adjudications'') before 
the Interstate Commerce Commission. An eligible party may receive an 
award when it prevails over the Commission or another agency of the 
United States participating in the Commission proceeding, unless the 
Commission's position in the proceeding, or that of the other agency, 
was substantially justified or special circumstances make an award 
unjust. The rules in this part describe the parties eligible for awards 
and the proceedings that are covered. They also explain how to apply for 
awards, and the procedures and standards that the Commission will use to 
make them.



Sec. 1016.102  When the Act applies.

    The Act applies to any adversary adjudication pending before the 
Commission after October 1, 1981. This includes proceedings begun before 
October 1, 1981, if final Commission action has not been taken before 
that date, regardless of when they were initiated or when final 
Commission action occurs. These rules incorporate the changes made in 
Pub. L. No. 99-80, 99 Stat. 183, which applies generally to cases 
instituted after October 1, 1984. If awards are sought for cases pending 
on October 1, 1981 or filed between that date and September 30, 1984, 
the prior statutory provisions (to the extent they differ from the 
existing ones, and our implementing rules) apply.

[54 FR 26379, June 23, 1989]



Sec. 1016.103  Proceedings covered.

    (a) The Act applies to adversary adjudications conducted by the 
Commission under 5 U.S.C. 554 in which the position of this or any other 
agency of the United States, or any component of an agency, is presented 
by an attorney or other representative (hereinafter ``agency counsel'') 
who enters an appearance and participates in the proceeding. Proceedings 
for the purpose of establishing or fixing a rate are not covered by the 
Act. Proceedings to grant or renew licenses are also excluded, but 
proceedings to modify, suspend, or revoke licenses are covered if they 
are otherwise ``adversary adjudications.'' Generally, the types of 
Commission proceedings covered by the Act include, but are not limited 
to, investigation proceedings instituted under 49 U.S.C. 11701 and 49 
U.S.C. 10925 and disciplinary proceedings conducted pursuant to 49 CFR 
1100.11.
    (b) The Commission may also designate a proceeding not listed in 
paragraph (a) of this section as an adversary adjudication for purposes 
of the Act by so stating in an order initiating the proceeding, 
designating the matter for hearing or at any other time during the 
proceeding. The Commission's failure to designate a proceeding as an 
adversary adjudication shall not preclude the filing of an application 
by a party who believes the proceeding is covered by the Act; whether 
the proceeding is covered will then be an issue for resolution in 
proceedings on the application.
    (c) If a proceeding includes both matters covered by the Act and 
matters specifically excluded from coverage,

[[Page 60]]

any award made will include only fees and expenses related to covered 
issues.



Sec. 1016.104  Decisionmaking authority.

    Unless otherwise ordered by the Commission in a particular 
proceeding, each application for an award under this part shall be 
assigned for decision to the official or decisionmaking body that 
entered the decision in the adversary adjudication. That official or 
decisionmaking body is referred to in this part as the ``adjudicative 
officer.''

[46 FR 61660, Dec. 18, 1981, as amended at 54 FR 26379, June 23, 1989]



Sec. 1016.105  Eligibility of applicants.

    (a) To be eligible for an award of attorney fees and other expenses 
under the Act, the applicant must be a party to the adversary 
adjudication for which it seeks an award, it must have stood in an 
adversary relationship to the position taken by agency counsel, and it 
must have prevailed on one or more of the issues raised by agency 
counsel. The term ``party''is defined in 5 U.S.C. 504(b)(1)(B). The 
applicant must show that it meets all conditions of eligibility set out 
in this subpart and in Subpart B.
    (b) The types of eligible applicants are as follows:
    (1) An individual whose net worth did not exceed $2 million at the 
time the adversary adjudication was initiated;
    (2) Any owner of an unincorporated business, or any partnership, 
corporation, association, unit of local government, or organization 
whose net worth does not exceed $7 million and which had no more than 
500 employees at the time the adversary adjudication was initiated;
    (3) Any organization described in section 501(c)(3) of the Internal 
Revenue Code of 1954 (26 U.S.C. 501(c)(3)) exempt from taxation under 
section 501(a) of such Code, or a cooperative association as defined in 
section 15(a) of the Agricultural Marketing Act (12 U.S.C. 1141j(a)), 
may be a party regardless of the net worth of such organization or 
cooperative association.
    (c) For the purpose of eligibility, the net worth and number of 
employees of an applicant shall be determined as of the date the 
proceeding was initiated.
    (d) The employees of an applicant include all persons who regularly 
perform services for remuneration for the applicant, under the 
applicant's direction and control. Part-time employees shall be included 
on a proportional basis. Independent contractors under lease to motor 
carriers are not employees of the carriers under these rules. Also, 
agents for motor common carriers of household goods are not employees of 
their respective principal carriers.
    (e) The net worth and number of employees of the applicant and all 
of its affiliates shall be aggregated to determine eligibility. Any 
individual, corporation or other entity that directly or indirectly 
controls or owns a majority of the voting shares or other interest of 
the applicant or any corporation or other entity of which the applicant 
directly or indirectly owns or controls a majority of the voting shares 
or other interest, will be considered an affiliate for purposes of this 
part, unless the adjudicative officer determines that such treatment 
would be unjust and contrary to the purposes of the Act in light of the 
actual relationship between the affiliated entities. In addition, the 
adjudicative officer may determine that financial relationships of the 
applicant other than those described in this paragraph constitute 
special circumstances that would make an award unjust.
    (f) An applicant that participates in a proceeding primarily on 
behalf of one or more other persons or entities that would be ineligible 
is not itself eligible for an award.

[46 FR 61660, Dec. 18, 1981, as amended at 54 FR 26379, June 23, 1989]



Sec. 1016.106  Standards for awards.

    (a) A prevailing applicant may receive an award for fees and 
expenses incurred in connection with a proceeding, or in a significant 
and discrete substantive portion of the proceeding, unless the position 
of the agency over which the applicant has prevailed was substantially 
justified. Whether or not the position of the agency was substantially 
justified shall be determined on the basis of the administrative record 
made in the adversary adjudication for which fees and other expenses are

[[Page 61]]

sought. The burden of proof that an award should not be made to an 
eligible prevailing applicant is on the agency counsel, which may avoid 
an award by showing that its position was reasonable in law and fact.
    (b) An award will be reduced or denied if the applicant has unduly 
or unreasonably protracted the proceeding or if special circumstances 
make the award sought unjust.

[46 FR 61660, Dec. 18, 1981, as amended at 54 FR 26379, June 23, 1989]



Sec. 1016.107  Allowable fees and expenses.

    (a) Awards will be based on rates customarily charged by persons 
engaged in the business of acting as attorneys, agents and expert 
witnesses, even if the services were made available without charge or at 
a reduced rate to the applicant.
    (b) No award for the fee of an attorney or agent under these rules 
may exceed $75.00 per hour, unless a higher fee is justified. 5 U.S.C. 
504(b)(1)(A). However, an award may also include the reasonable expenses 
of the attorney, agent, or witness as a separate item, if the attorney, 
agent, or witness ordinarily charges clients separately for such 
expenses.
    (c) In determining the reasonableness of the fee sought for an 
attorney, agent or expert witness, the adjudicative officer shall 
consider the following:
    (1) If the attorney, agent or witness is in private practice, his or 
her customary fee for similar services, or, if an employee of the 
applicant, the fully allocated cost of the services;
    (2) The prevailing rate for similar services in the community in 
which the attorney, agent, or witness ordinarily performs services;
    (3) The time actually spent in the representation of the applicant;
    (4) The time reasonably spent in light of the difficulty or 
complexity of the issues in the proceeding; and
    (5) Such other factors as may bear on the value of the services 
provided.
    (d) The reasonable cost of any study, analysis, engineering report, 
test, project or similar matter prepared on behalf of a party may be 
awarded, to the extent that the charge for the service does not exceed 
the prevailing rate for similar services, and the study or other matter 
was necessary for preparation of the applicant's case.

[46 FR 61660, Dec. 18, 1981, as amended at 54 FR 26379, June 23, 1989]



Sec. 1016.109  Awards against other agencies.

    If an applicant is entitled to an award because it prevails over 
another agency of the United States that participates in a proceeding 
before this agency and takes a position that is not substantially 
justified, the award or an appropriate portion of the award shall be 
made against that agency.



             Subpart B--Information Required From Applicants



Sec. 1016.201  Contents of application.

    (a) An application for an award of fees and expenses under the Act 
shall identify the applicant and the proceeding for which an award is 
sought. The application shall show that the applicant has prevailed and 
identify the position of the Commission or other agencies in the 
proceeding that the applicant alleges was not substantially justified. 
Unless the applicant is an individual, the application shall also state 
the number of employees of the applicant and describe briefly the type 
and purpose of its organization or business.
    (b) The application shall also include a statement that the 
applicant's net worth does not exceed $2 million (if an individual) or 
$7 million (for all other applicants, including their affiliates). 
However, an applicant may omit this statement if:
    (1) It attaches a copy of a ruling by the Internal Revenue Service 
that it qualifies as an organization described in section 501(c)(3) of 
the Internal Revenue Code (26 U.S.C. 501(c)(3)) exempt from taxation 
under section 501(a) of such Code; or
    (2) It states that it is a cooperative association as defined in 
section 15(a) of the Agricultural Marketing Act (12 U.S.C. 1141j(a)).
    (c) The application shall state the amount of fees and expenses for 
which an award is sought.

[[Page 62]]

    (d) The application may also include any other matters that the 
applicant wishes the Commission to consider in determining whether and 
in what amount an award should be made.
    (e) The application shall be signed by the applicant or an 
authorized officer or attorney of the applicant. It shall also contain 
or be accompanied by a written verification under oath or under penalty 
of perjury that the information provided in the application is true and 
correct.

[46 FR 61660, Dec. 18, 1981, as amended at 54 FR 26380, June 23, 1989]



Sec. 1016.202  Net worth exhibit.

    (a) Each applicant must provide with its application a detailed 
exhibit showing the net worth of the applicant and any affiliates (as 
defined in Sec. 1016.105(f) of this part) when the proceeding was 
initiated. The exhibit may be in any form convenient to the applicant 
that provides full disclosure of the applicant's and its affiliates' 
assets and liabilities and is sufficient to determine whether the 
applicant qualifies under the standards in this part. The adjudicative 
officer may require an applicant to file additional information to 
determine its eligibility for an award.
    (b) Ordinarily, the net worth exhibit will be included in the public 
record of the proceeding. However, an applicant that objects to public 
disclosure of information in any portion of the exhibit and believes 
that there are legal grounds for withholding it from disclosure may file 
a motion to withhold the information from public disclosure. The burden 
is on the moving party to justify the confidentiality of the 
information.

[46 FR 61660, Dec. 18, 1981, as amended at 54 FR 26380, June 23, 1989]



Sec. 1016.203  Documentation of fees and expenses.

    The application shall be accompanied by full documentation of the 
fees and expenses, including the cost of any study, analysis, 
engineering report, test, project or similar matter, for which an award 
is sought. A separate itemized statement shall be submitted for each 
professional firm or individual whose services are covered by the 
application, showing the hours spent in connection with the proceeding 
by each individual, a description of the specific services performed, 
the rate at which each fee has been computed, any expenses for which 
reimbursement is sought, the total amount claimed, and the total amount 
paid or payable by the applicant or by another person or entity for the 
services provided. The adjudicative officer may require the applicant to 
provide vouchers, receipts, or other substantiation for any expenses 
claimed.



           Subpart C--Procedures for Considering Applications



Sec. 1016.301  When an application may be filed.

    (a) An application may be filed whenever the applicant has prevailed 
in the proceeding or in a significant and discrete substantive portion 
of the proceeding, but in no case later than 30 days after an 
administratively final disposition of the proceeding.
    (b) If review or reconsideration is sought or taken of a decision as 
to which an applicant believes it has prevailed, proceedings for the 
award of fees shall be stayed pending final disposition of the 
underlying controversy.
    (c) For purposes of this rule, see the Commission's rules governing 
appellate procedures at Secs. 1115.2 and 1115.3 to determine when a 
decision becomes administratively final.

[46 FR 61660, Dec. 18, 1981, as amended at 54 FR 26380, June 23, 1989]



Sec. 1016.302  Filing and service of documents.

    Any application for an award or other pleading or document related 
to an application shall be filed and served on all parties to the 
proceeding in the same manner as other pleadings in the proceeding, 
except as provided in Sec. 1016.202(b) for confidential financial 
information.



Sec. 1016.303  Answer to application.

    (a) Within 30 days after service of an application, counsel 
representing the agency against which an award is sought may file an 
answer to the application. Unless agency counsel requests

[[Page 63]]

an extension of time for filing or files a statement of intent to 
negotiate under paragraph (b) of this section, failure to file an answer 
within the 30-day period may be treated as a consent to the award 
requested.
    (b) If agency counsel and the applicant believe that the issues in 
the fee application can be settled, they may jointly file a statement of 
their intent to negotiate a settlement. The filing of this statement 
shall extend the time for filing an answer for an additional 30 days, 
and further extensions may be granted as justified.
    (c) The answer shall explain in detail any objections to the award 
requested and identify the facts relied on in support of agency 
counsel's position. If the answer is based on any alleged facts not 
already in the record of the proceeding, agency counsel shall include 
with the answer either supporting affidavits or a request for further 
proceedings under Sec. 1016.307.

[46 FR 61660, Dec. 18, 1981, as amended at 54 FR 26380, June 23, 1989]



Sec. 1016.304  Reply.

    Within 15 days after service of an answer, the applicant may file a 
reply. If the reply is based on any alleged facts not already in the 
record of the proceeding, the applicant shall include with the reply 
either supporting affidavits or a request for further proceedings under 
Sec. 1016.307.



Sec. 1016.305  Comments by other parties.

    Any party to a proceeding other than the applicant and agency 
counsel may file comments on an application within 30 days after it is 
served or on an answer within 15 days after it is served. A commenting 
party may not broaden the issues.

[46 FR 61660, Dec. 18, 1981, as amended at 54 FR 26380, June 23, 1989]



Sec. 1016.306  Settlement.

    The applicant and agency counsel may agree on a proposed settlement 
of the award before final action on the application, either in 
connection with a settlement of the underlying proceeding, or after the 
underlying proceeding has been concluded. If a prevailing party and 
agency counsel agree on a proposed settlement of an award before an 
application has been filed, the application shall be filed with the 
proposed settlement.



Sec. 1016.307  Further proceedings.

    (a) Ordinarily, the determination of an award will be made on the 
basis of the written record. However, on request of either the applicant 
or agency counsel or on his or her own initiative, the adjudicative 
officer may order further proceedings when necessary.
    (b) A request that the adjudicative officer order further 
proceedings under this section shall specifically identify the 
information sought or the disputed issues and shall explain why the 
additional proceedings are necessary to resolve the issues.

[46 FR 61660, Dec. 18, 1981, as amended at 54 FR 26380, June 23, 1989]



Sec. 1016.308  Decision.

    The adjudicative officer shall issue a decision on the application 
within 50 days after completion of proceedings on the application. The 
decision shall include written findings and conclusions on the 
applicant's eligibility and status as a prevailing party, and an 
explanation of the reasons for any difference between the amount 
requested and the amount awarded. The decision shall also include, if at 
issue, findings on whether the Commission's or other agency's position 
was substantially justified, whether the applicant unduly protracted the 
proceedings, or whether special circumstances make an award unjust. If 
the applicant has sought an award against more than one agency, the 
decision shall allocate responsibility for payment of any award made 
among the agencies, and shall explain the reasons for the allocation 
made.

[46 FR 61660, Dec. 18, 1981, as amended at 54 FR 26380, June 23, 1989]



Sec. 1016.309  Agency review.

    In the event the adjudicative officer is not the entire Commission, 
the applicant or agency counsel may seek review of the initial decision 
on the fee application, or the Commission may review the decision on its 
own initiative, in accordance with Sec. 1115.2. If no

[[Page 64]]

appeal is taken, the initial decision becomes the action of the 
Commission 20 days after it is issued. If the adjudicative officer is 
the entire Commission, Sec. 1115.3 applies.

[54 FR 26380, June 23, 1989]



Sec. 1016.310  Judicial review.

    Judicial review of final Commission decisions on awards may be 
sought as provided in 5 U.S.C. 504(c)(2).



Sec. 1016.311  Payment of award.

    An applicant seeking payment of an award shall submit to the 
appropriate official of the paying agency a copy of the Commission's 
final decision granting the award, accompanied by a statement that the 
applicant will not seek review of the decision in the United States 
courts. Where the award is granted against the Interstate Commerce 
Commission the applicant shall make its submission to the Secretary, 
Interstate Commerce Commission, Washington, DC 20423. The Commission 
will pay the amount awarded to the applicant within 60 days of the 
applicant's submission unless the judicial review of the award or of the 
underlying decision of the adversary adjudication has been sought by the 
applicant or any other party to the proceeding.



PART 1017--DEBT COLLECTION--COLLECTION BY OFFSET FROM INDEBTED GOVERNMENT AND FORMER GOVERNMENT EMPLOYEES--Table of Contents




Sec.
1017.1  Purpose and scope.
1017.2  Definitions.
1017.3  Applicability.
1017.4  Notice requirements.
1017.5  Hearing procedures.
1017.6  Result if employee fails to meet deadlines.
1017.7  Written decision following hearing.
1017.8  Exception to entitlement to notice, hearing, written responses 
          and final decisions.
1017.9  Coordinating offset with another Federal agency.
1017.10  Procedures for administrative offset.
1017.11  Refunds.
1017.12  Statute of limitations.
1017.13  Nonwaiver of rights.
1017.14  Interest, penalties, and administrative costs.

    Authority: 31 U.S.C. 3716, 5 U.S.C. 5514; Pub. L. 97-365; 4 CFR 
parts 101-105; 5 CFR part 550.

    Source: 56 FR 32333, July 16, 1991, unless otherwise noted.



Sec. 1017.1  Purpose and scope.

    (a) These regulations set forth guidelines for implementing the Debt 
Collection Act of 1982 at the Interstate Commerce Commission (ICC). The 
purpose of the Act is to give agencies the ability to more aggressively 
pursue debts owed the Federal Government and to increase the efficiency 
of governmentwide efforts to collect debts owed the United States. The 
authority for these regulations is found in the Debt Collection Act of 
1982 (Pub. L. 97-365 and 4 CFR 101.1 et seq.), Collection by Offset From 
Indebted Government Employees (5 CFR 550.1101 et seq.), Federal Claims 
Collection Standards (4 CFR 101.1 et seq.), and Administrative Offset 
(31 U.S.C. 3716).
    (b) These regulations provide procedures for administrative offset 
of a Federal employee's salary without his/her consent to satisfy 
certain debts owed to the Federal Government. The regulations covered in 
this part apply to all current and former Federal employees who owe 
debts to the Commission and to current Commission employees who owe 
debts to other Federal agencies. The regulations set forth herein do not 
apply when the employee consents to recovery from his/her current pay 
account.
    (c) These regulations do not apply to debts or claims arising under:
    (1) The Social Security Act;
    (2) The Internal Revenue Code of 1954;
    (3) The tariff laws of the United States; or
    (4) Any case where a collection of a debt by salary offset is 
explicitly provided for or prohibited by another statute.
    (d) These regulations also do not preclude the compromise, 
suspension, or termination of collection action, where appropriate, 
under the standards implementing the Federal Claims Collection Act (31 
U.S.C. 3711 et seq., 4 CFR 101.1 et seq.). These regulations do not 
preclude an employee's requesting a waiver of a salary overpayment 
(i.e., alleged indebtedness) under 5 U.S.C.

[[Page 65]]

5584, 10 U.S.C. 2774, or 32 U.S.C. 716, or in any way questioning the 
amount or validity of a debt by submitting a claim to the General 
Accounting Office (GAO), or requesting a waiver under statutory 
provisions pertaining to the particular debt.
    (e) The Commission's regulations governing debt collection for 
entities and individuals who are not current or former government 
employees are contained in 49 CFR part 1018.

[56 FR 32333, July 16, 1991, as amended at 58 FR 7749, Feb. 9, 1993]



Sec. 1017.2  Definitions.

    For the purposes of these regulations, the following definitions 
will apply:
    (a) Agency. An executive agency as defined at 5 U.S.C. 105, 
including the U.S. Postal Service; the U.S. Postal Rate Commission; a 
military department as defined at 5 U.S.C. 102; an agency or court in 
the Judicial Branch; an agency of the Legislative Branch, including the 
U.S. Senate and House of Representatives; and other independent 
establishments that are entities of the Federal Government.
    (b) Creditor agency. The agency to which the debt is owed.
    (c) Debt. An amount of money or property which has been determined 
by an appropriate agency official to be owed to the United States from 
any person.
    (d) Disposable pay. The amount that remains from an employee's 
Federal pay after required deductions for social security; Federal, 
State, or local income taxes; health insurance premiums; retirement 
contributions; life insurance premiums; Federal employment taxes; and 
any other deductions that are required to be withheld by law.
    (e) FCCS. The Federal Claims Collection Standards jointly published 
by the Justice Department and the General Accounting Office at 4 CFR 
101.1 et seq.
    (f) Hearing official. The official responsible for conducting a 
hearing which is properly and timely requested by the debtor. An 
Administrative Law Judge shall be responsible for conducting the hearing 
and the Chief Administrative Law Judge shall determine which judicial 
official will be assigned the hearing.
    (g) Paying agency. The agency that employs the individual who owes 
the debt and authorizes the payment of his/her current pay.
    (h) Administrative offset. The withholding of monies payable by the 
United States to or held by the United States on behalf of an employee 
to satisfy a debt owed the United States by that employee.
    (i) Waiver. A cancellation, forgiveness, or non-recovery of a debt 
allegedly owed by an employee or former employee to the agency as 
permitted or required by law.



Sec. 1017.3  Applicability.

    These regulations are to be followed when:
    (a) The Commission is owed a debt by a current employee;
    (b) The Commission is owed a debt by an individual currently 
employed by another Federal agency;
    (c) The Commission employs an individual who owes a debt to another 
Federal agency; and
    (d) The Commission is owed a debt by an employee who separates from 
Federal Government service. The authority to collect debts owed by 
former Federal employees is found in the FCCS and 31 U.S.C. 3716.



Sec. 1017.4  Notice requirements.

    (a) Deductions shall not be made unless the employee is provided 
with written notice, signed by the debt collection official (Chief, 
Fiscal Services Branch), of the debt at least 30 days before 
administrative offset commences.
    (b) The written notice to current Federal employees shall be hand 
delivered if at headquarters or sent certified mail, return receipt 
requested, if located in a field office and shall contain:
    (1) A statement that the debt is owed and an explanation of its 
nature and amount;
    (2) The agency's intention to collect the debt by means of deduction 
from the employee's current disposable pay account;
    (3) The amount, frequency, proposed beginning date, and duration of 
the intended deduction(s);

[[Page 66]]

    (4) An explanation of interest, penalties, and administrative 
charges, including a statement that such charges will be assessed unless 
excused in accordance with the FCCS (4 CFR 101.1 et seq.);
    (5) The employee's right to inspect, request, and copy Government 
records relating to the debt (if an employee is unable to physically 
inspect the Government records, the agency will reproduce copies of the 
records and may charge for those copies);
    (6) If not previously provided, the opportunity (under terms 
agreeable to the creditor agency) to establish a schedule for the 
voluntary repayment of the debt or to enter into a written agreement 
with the agency to establish a schedule for the voluntary repayment of 
the debt in lieu of offset. The agreement must be in writing, signed by 
both the employee and the creditor agency, and documented in the 
creditor agency's files (4 CFR 102.2(e));
    (7) The right to a hearing conducted by an impartial hearing 
official concerning the existence or amount of the debt and the 
repayment schedule, if it was not established by a written agreement 
between the employee and the creditor agency;
    (8) The method and time period for petitioning for a hearing;
    (9) A statement that the timely filing of a petition for a hearing 
(on or before the 15th day following receipt of the written notice) will 
stay the commencement of collection proceedings, together with 
instructions on how and where to file a petition;
    (10) A statement that a final decision on the hearing (if one is 
requested) will be issued not later than 60 days after the filing of the 
petition requesting the hearing unless the employee requests, and the 
hearing official grants, a delay in the proceedings;
    (11) A statement that knowingly false or frivolous statements, 
representations, or evidence may subject the employee to appropriate 
disciplinary procedures and criminal penalties (i.e., for false 
certification, etc.);
    (12) A statement of other rights and remedies available to the 
employee under statutes or regulations governing the program for which 
the collection is being made; and
    (13) Unless there are contractual or statutory provisions to the 
contrary, a statement that amounts paid on or deducted for the debt 
which are later waived or found not owed to the United States will be 
promptly refunded to the employee.
    (c) The written notice to former Federal employees shall be sent 
certified mail, return receipt requested, and shall contain:
    (1) A statement that the debt is owed and an explanation of its 
nature and amount;
    (2) The agency's intention to collect the debt by administrative 
offset against amounts due and payable to the debtor from the Civil 
Service Retirement and Disability Fund or by use of a collection service 
to recover the delinquent debt;
    (3) An explanation of interest, penalties, and administrative 
charges, including a statement that such charges will be assessed unless 
excused in accordance with 4 CFR 101.1 et seq.;
    (4) The former employee's rights to inspect, request, and copy 
Government records relating to the debt (if the former employee is 
unable to physically inspect the Government records, the agency will 
reproduce copies of the records and may charge for those copies);
    (5) The opportunity to enter into a written agreement with the 
agency to establish a schedule for the voluntary repayment of the debt;
    (6) The right to a hearing conducted by an impartial hearing 
official concerning the existence or amount of the debt and the 
repayment schedule, if it was not established by a written agreement 
between the former employee and the creditor agency;
    (7) The method and time period for petitioning for a hearing;
    (8) A statement that the timely filing of a petition for a hearing 
(on or before the 15th day following receipt of the written notice) will 
stay the commencement of collection proceedings, together with 
instructions on how and where to file a petition;
    (9) A statement that a final decision on the hearing will be issued 
not later than 60 days after the filing of the petition requesting the 
hearing unless the former employee requests, and the

[[Page 67]]

hearing official grants, a delay in the proceedings;
    (10) A statement that knowingly false or frivolous statements, 
representations, or evidence may subject the former employee to 
appropriate criminal penalties (i.e., for false certification, etc.);
    (11) A statement of other rights and remedies available to the 
former employee under statutes or regulations governing the program for 
which the collection is being made; and
    (12) Unless there are contractual or statutory provisions to the 
contrary, a statement that amounts paid on or deducted for the debt 
which are later waived or found not owed to the United States will be 
promptly refunded to the former employee.



Sec. 1017.5  Hearing procedures.

    (a) Upon the Administrative Law Judge's determination of an 
employee's compliance with Sec. 1017.4(b)(8) or Sec. 1017.4(c)(7) of 
this part, whichever is applicable, he/she shall set the time, date, and 
location for the hearing, paying due consideration to convenience to the 
employee.
    (b) All significant matters discussed at the hearing shall be 
documented, although a verbatim transcript of the hearing shall not be 
made.
    (c) The Administrative Law Judge may exclude any evidence he/she 
deems irrelevant, immaterial, or unduly repetitious.
    (d) Any party to a hearing under these regulations is entitled to 
present his or her case or defense by oral or documentary evidence, and 
to conduct such cross-examination as may be required for a full and true 
disclosure of the facts.
    (e) The Commission has the initial burden of proof as to the 
existence and amount of the debt.
    (f) The employee requesting the hearing shall bear the ultimate 
burden of proof.
    (g) The evidence presented by the employee must prove that no debt 
exists or cast sufficient doubt that reasonable minds could differ as to 
the existence or amount of the debt.
    (h) Where the employee files a petition for a hearing contesting the 
offset schedule imposed by the Commission, the Administrative Law Judge 
shall take into consideration all relevant factors as to the employee's 
financial situation in determining whether said offset schedule should 
be altered.
    (i) Any party to a hearing under these regulations is entitled to be 
accompanied, represented, and advised by counsel, as well as to appear 
in person or by or with counsel.
    (j) The Administrative Law Judge shall issue a final written 
decision at the earliest practicable date, but not later than 60 days 
after the filing of the petition requesting the hearing, as stated in 
Sec. 1017.4(b)(10) or Sec. 1017.4(c)(9) of this part, whichever is 
applicable.



Sec. 1017.6  Result if employee fails to meet deadlines.

    An employee will not be granted a hearing and will have his/her 
disposable pay offset in accordance with the Commission's offset 
schedule if the employee:
    (a) Fails to file a petition for a hearing in conformity with the 
requirements of Sec. 1017.4(b)(8) or Sec. 1017.4(c)(9) of this part, 
whichever is applicable. However, failure to file within the requisite 
time period set out in Sec. 1017.4(b)(8) or Sec. 1017.4(c)(9) of this 
part whichever is applicable, will not result in denial of a hearing or 
in immediate offset, if the Administrative Law Judge excuses the late 
filing if the employee can show that the delay was because of 
circumstances beyond his/her control or because of failure to receive 
notice of the filing deadline.
    (b) Is scheduled to appear and fails to appear at the hearing 
without good cause.



Sec. 1017.7  Written decision following hearing.

    (a) Written decisions provided after a request for a hearing will 
include:
    (1) A statement of the facts presented to support the nature and 
origin of the alleged debt;
    (2) The Administrative Law Judge's analysis, findings, and 
conclusions, in light of the hearing, concerning the employee's or the 
Commission's grounds;
    (3) The amount and validity of the alleged debt; and

[[Page 68]]

    (4) The repayment schedule (including percentage), if applicable.
    (b) The Administrative Law Judge's decision does not preclude an 
employee from requesting a waiver of a salary payment under 5 U.S.C. 
5584, 10 U.S.C. 2774, or 32 U.S.C. 716, or in any way questioning the 
amount or validity of a debt by submitting a subsequent claim to GAO in 
accordance with procedures prescribed by GAO.



Sec. 1017.8  Exception to entitlement to notice, hearing, written responses and final decisions.

    The Commission shall except from the provisions of Sec. 1017.4 
through Sec. 1017.7 any adjustment to pay arising out of an employee's 
election of coverage or a change in coverage under a Federal benefits 
program, requiring periodic deductions from pay, if the amount to be 
recovered was accumulated over four pay periods or less.



Sec. 1017.9  Coordinating offset with another Federal agency.

    (a) The Commission as creditor agency. When the Chief, Budget and 
Fiscal Office, determines that an employee of another Federal agency 
owes a delinquent debt to the Commission, he/she shall:
    (1) Arrange for a hearing upon proper petitioning by the employee;
    (2) Certify in writing to the other Federal agency that the employee 
owes the debt, the amount and basis of the debt, the date on which 
payment is due, the date the Government's right to collect the debt 
accrued, that the Commission's regulations for administrative offset 
have been approved by the Office of Personnel Management, and that the 
provisions of 4 CFR 102.3(f) have been fully complied with;
    (3) If collection must be made in installments, advise the paying 
agency of the amount or percentage of disposable pay to be collected in 
each installment;
    (4) Advise the paying agency of any action taken under 5 U.S.C. 
5514(a);
    (5) If the employee is in the process of separating, the Commission 
must submit its debt claim to the paying agency as provided in this 
part. The paying agency must certify any amounts already collected, 
notify the employee, and send a copy of the certification and notice of 
the employee's separation to the creditor agency--if the paying agency 
is aware that the employee is entitled to money from the Civil Service 
Retirement and Disability Fund, it must certify to the Office of 
Personnel Management (OPM) that:
    (i) The debtor owes the U.S. a debt, including the amount of that 
debt;
    (ii) The Commission has complied with the applicable statutes, 
regulations, and procedures of OPM; and
    (iii) The Commission has complied with the requirements of 4 CFR 
102.3, including any hearing or review; and
    (6) If the employee has already separated and all payments due from 
the paying agency have been paid, the Chief, Budget and Fiscal Office, 
may request from OPM, unless otherwise prohibited, that money payable to 
the employee from the Civil Service Retirement and Disability Fund or 
other similar funds be collected by administrative offset and provide 
the certification described in paragraph (a)(5) of this section.
    (b) The Commission as paying agency. (1) Upon receipt of a properly 
certified debt claim from another agency, deductions will be scheduled 
to begin at the next established pay interval. The employee must receive 
written notice that the Commission has received a certified debt claim 
from the creditor agency, the amount of the debt, the date 
administrative offset will begin, and the amount of the deduction(s). 
The Commission shall not review the merits of the creditor agency's 
determination of the validity or the amount of the certified claim.
    (2) When the Commission receives an incomplete debt from another 
(creditor) agency, the Commission must return the debt claim with a 
notice that procedures under 5 U.S.C. 5514 and 5 CFR 1108 must be 
provided and a properly certified debt claim received before action will 
be taken to collect from the employee's current pay account.
    (3) If the employee transfers to another agency after the creditor 
agency has submitted its debt claim to the Commission and before the 
debt is fully collected, the Commission must certify the total amount 
collected to the creditor agency, along with notice of the

[[Page 69]]

transfer, and furnish a copy of same to the employee.



Sec. 1017.10  Procedures for administrative offset.

    (a) Debts will be collected in one lump sum where possible. If the 
employee is financially unable to pay in one lump sum, collection shall 
be made in installments.
    (b) Debts shall be collected by deduction at officially established 
pay intervals from an employee's current pay account, unless alternative 
arrangements for repayment are made.
    (c) Installment deductions will be made over a period not greater 
than the anticipated period of employment. The size of installment 
deductions must bear a reasonable relationship to the size of the debt 
and the employee's ability to pay. The deduction for the pay intervals 
for any period shall not exceed 15 percent of disposable pay, unless the 
employee has agreed in writing to a deduction of a greater amount.
    (d) Unliquidated debts may be offset against any financial payment 
due to a separated employee (including, but not limited to, final salary 
payment or lump-sum payment for leave).



Sec. 1017.11  Refunds.

    (a) The Commission shall promptly refund any amounts deducted to 
satisfy debts owed to it when the debt is waived, found not owed to the 
Commission, or when directed by an administrative or judicial order.
    (b) A creditor agency will promptly return any amounts deducted by 
the Commission to satisfy debts owed to a creditor agency when the debt 
is waived, found not owed, or when directed by an administrative or 
judicial order.
    (c) Unless required by law, refunds under this subsection shall not 
bear interest.



Sec. 1017.12  Statute of limitations.

    If a debt has been outstanding for more than 10 years after the 
agency's right to collect the debt first accrued, the agency may not 
collect by salary offset unless facts material to the Government's right 
to collect were not known and could not reasonably have been known by 
the official or officials who were charged with the responsibility for 
discovery and collection of such debts.



Sec. 1017.13  Nonwaiver of rights.

    An employee's involuntary payment of all or any part of a debt 
collected under these regulations will not be construed as a waiver of 
any rights that employee may have under 5 U.S.C. 5514 or any other 
provision of law.



Sec. 1017.14  Interest, penalties, and administrative costs.

    (a) The rate of interest assessed shall be the rate of the current 
value of funds to the U.S. Treasury (i.e., the Treasury tax and loan 
account rate), as prescribed and published by the Secretary of the 
Treasury in the Federal Register and the Treasury Financial Manual 
Bulletins. A higher rate of interest can be assessed if the Commission 
can reasonably determine that a higher rate is necessary to protect the 
interests of the United States. The rate of interest, as initially 
assessed, shall remain fixed for the duration of the indebtedness, 
except where a debtor has defaulted on a repayment agreement and seeks 
to enter into a new agreement. The Commission may set a new interest 
rate which reflects the current value of funds to the Treasury at the 
time the new agreement is executed. The Commission shall waive the 
collection of interest on the debt or any portion of the debt which is 
paid within 30 days after the date on which interest began to accrue.
    (b) The Commission shall assess a penalty charge not to exceed 6 
percent a year on any portion of a debt that is delinquent as defined in 
4 CFR 101.2(b) for more than 90 days. This charge need not be calculated 
until the 91st day of delinquency, but shall accrue from the date that 
the debt became delinquent.
    (c) The Commission shall assess against a debtor charges to cover 
administrative costs incurred as a result of a delinquent debt--that is, 
the additional costs incurred in processing and handling the debt 
because it became delinquent as defined in 4 CFR 101.2(b).
    (d) When a debt is paid in partial or installment payments, amounts 
received by the agency shall be applied

[[Page 70]]

first to outstanding penalty and administrative cost charges, second to 
accrued interest, and third to outstanding principal.



PART 1018--DEBT COLLECTION--Table of Contents




                   Subpart A--Application and Coverage

Sec.
1018.1  Application.
1018.2  Definitions.
1018.3  Communications.
1018.4  Claims that are covered.
1018.5  Monetary limitation on Commission authority.
1018.6  Omissions not a defense.
1018.7  Conversion claims.
1018.8  Subdivision of claims.

             Subpart B--Administrative Collection of Claims

1018.20  Written demand for payment.
1018.21  Telephone inquiries and investigations.
1018.22  Personal interviews.
1018.23  Use of consumer reporting agencies.
1018.24  Contact with the debtor's employing agency.
1018.25  Sanctions.
1018.26  Disputed debts.
1018.27  Contracting for collection services.
1018.28  Collection by administrative offset.
1018.29  Payments.
1018.30  Interest, penalties, and administrative costs.
1018.31  Use of credit reports.
1018.32  Bankruptcy claims.
1018.33  Use and disclosure of mailing addresses.
1018.34  Additional administrative collection action.

                    Subpart C--Compromise of a Claim

1018.50  When a claim may be compromised.
1018.51  Reasons for compromising of a claim.
1018.52  Restrictions on the compromise of a claim.
1018.53  Finality of a compromise.

        Subpart D--Suspension or Termination of Collection Action

1018.60  When collection action may be suspended or terminated.
1018.61  Reasons for suspending collection action.
1018.62  Reasons for terminating collection action.
1018.63  Termination of collection action.
1018.64  Transfer of a claim.

                     Subpart E--Referral of a Claim

1018.70  Prompt referral.
1018.71  Referral of a compromise offer.
1018.72  Referral to the Department of Justice.

              Subpart F--Internal Revenue Service Procedure

1018.80  Reporting discharged debts to the Internal Revenue Service.

                      Subpart G--Tax Refund Offset

1018.90  Purpose.
1018.91  Applicability and scope.
1018.92  Administrative charges.
1018.93  Notice requriement before offset.
1018.94  Review within the Commission.
1018.95  Commission determination.
1018.96  Stay of offset.

    Authority: 31 U.S.C. 3701; 31 U.S.C. 3711 et seq.; 5 U.S.C. 553; 4 
CFR parts 101-105; 49 U.S.C. 10321.

    Source: 58 FR 7749, Feb. 9, 1993, unless otherwise noted.



                   Subpart A--Application and Coverage



Sec. 1018.1  Application.

    (a) This part applies to claims for the payment of debts owed to the 
United States Government in the form of money or property and unless a 
different procedure is specified in a statute, regulation, or a 
contractual agreement with the Commission, prescribes procedures by 
which the Commission:
    (1) Collects, compromises, suspends, and terminates collection 
actions for claims;
    (2) Determines and collects interest and other charges on these 
claims; and
    (3) Refers unpaid claims to the General Accounting Office (GAO) and 
the Department of Justice (DOJ) for litigation.
    (b) The following are examples of the kinds of debts to which 
special statutory and administrative procedures apply:
    (1) A claim against an employee for erroneous payment of pay and 
allowances subject to waiver under 5 U.S.C. 5584 and other claims 
against employees which are handled under 49 CFR part 1017.
    (2) A claim involving the payment of civil penalties or forfeitures 
which may

[[Page 71]]

arise under provisions of the Interstate Commerce Act or legislation 
supplemental thereto. Those claims are handled under procedures set 
forth in 49 CFR part 1021.
    (3) A claim involved in a case pending before any Federal Contract 
Appeals Board or Grant Appeals Board. However, nothing in this part 
prevents negotiation and settlement of a claim pending before a Board.



Sec. 1018.2  Definitions.

    (a) Administrative offset means withholding money payable by the 
United States to, or held by the Government for, a person to satisfy a 
debt the person owes the Government.
    (b) Claim and debt are used synonymously and interchangeably for 
purposes of this part. These terms refer to an amount of money or 
property which has been determined by an appropriate agency official to 
be owed to the United States by any person, organization, or entity 
except another Federal agency.
    (c) Delinquent. A debt is considered delinquent if it has not been 
paid by the date specified in the initial written demand for payment or 
applicable contractual agreement with the Commission, unless other 
satisfactory payment arrangements have been made by that date. If the 
debtor fails to satisfy an obligation under a payment agreement with the 
Commission after other payment arrangements have been made, the debt 
becomes a delinquent debt.
    (d) Payment in full means payment of the total debt due the United 
States, including any interest, penalty, and administrative costs of 
collection assessed against the debtor.



Sec. 1018.3  Communications.

    Unless otherwise specified, all communications concerning the 
regulations in this part should be addressed to Chief, Budget and Fiscal 
Office, Interstate Commerce Commission, room 1330, Washington, DC 20423.



Sec. 1018.4  Claims that are covered.

    (a) These procedures generally apply to any claim for payment of a 
debt which:
    (1) Results from activities of the Commission including fees imposed 
under 49 CFR part 1002; or
    (2) Is referred to the Commission for collection.
    (b) These procedures do not apply to:
    (1) A claim based on a civil monetary penalty for violation of a 
requirement of the Interstate Commerce Act or an order or regulation of 
the Commission unless 49 CFR part 1021 provides otherwise;
    (2) A claim as to which there is an indication of fraud, the 
presentation of a false claim, or misrepresentation on the part of the 
debtor, or any other party having an interest in the claim;
    (3) A claim between Federal agencies; and
    (4) A claim once it becomes subject to salary offset which is 
governed by 5 U.S.C. 5514.



Sec. 1018.5  Monetary limitation on Commission authority.

    The Commission's authority to compromise a claim or to terminate or 
suspend collection action on a claim covered by these procedures is 
limited by 31 U.S.C. 3711(a) to claims that:
    (a) Have not been referred to another Federal agency, including the 
GAO, for further collection action; and
    (b) Do not exceed $100,000, exclusive of interest, penalties, and 
administrative costs (the monetary limitation).



Sec. 1018.6  Omissions not a defense.

    (a) The failure of the Commission to include in this part any 
provision of the Federal Claims Collection Standards, 4 CFR parts 101 
through 105, does not prevent the Commission from applying these 
provisions.
    (b) A debtor may not use the failure of the Commission to comply 
with any provision of this part or the Federal Claims Collection 
Standards as a defense to the debt.



Sec. 1018.7  Conversion claims.

    These procedures are directed primarily to the recovery of money on 
behalf of the Government. The Commission may demand:
    (a) The return of specific property; or
    (b) Either the return of property or the payment of its value.

[[Page 72]]



Sec. 1018.8  Subdivision of claims.

    The Commission shall consider a debtor's liability arising from a 
particular transaction or contract as a single claim in determining 
whether the claim is less than the monetary limitation for the purpose 
of compromising or suspending or terminating collection action. A claim 
may not be subdivided to avoid the monetary limitation established by 31 
U.S.C. 3711(a)(2) and Sec. 1018.5 of this part.



             Subpart B--Administrative Collection of Claims



Sec. 1018.20  Written demand for payment.

    (a) The Commission shall make appropriate written demand upon the 
debtor for payment of money in terms which specify:
    (1) The basis for the indebtedness and the right of the debtor to 
request review within the Commission;
    (2) The amount claimed;
    (3) The date by which payment is to be made, which normally should 
not be more than 30 days from the date that the initial demand letter 
statement was mailed, unless otherwise specified by contractual 
agreement, established by Federal statute or regulation, or agreed to 
under a payment agreement;
    (4) The applicable standards for assessing interest, penalties, and 
administrative costs (4 CFR 102.13 and 49 CFR 1018.30); and
    (5) The applicable policy for reporting the delinquent debt to 
consumer reporting agencies.
    (b) The Commission normally shall send three progressively stronger 
written demands at not more than 30-day intervals, unless circumstances 
indicate that alternative remedies better protect the Government's 
interest, that the debtor has explicitly refused to pay, or that sending 
a further demand is futile. Depending upon the circumstances of the 
particular case, the second and third demands may:
    (1) Offer or seek to confer with the debtor;
    (2) State the amount of the interest and penalties that will be 
added on a daily basis, as well as the administrative costs that will be 
added to the debt until the debt is paid; and
    (3) State that the authorized collection procedures include any 
procedure authorized in this part including:
    (i) Contacts with the debtor's employer when the debtor is employed 
by the Federal Government or is a member of the military establishment 
or the Coast Guard;
    (ii) Possible referral of the debt to a private agency for 
collection;
    (iii) Possible reporting of the delinquent debt to consumer 
reporting agencies in accordance with the guidelines and standards 
contained in 4 CFR 102.5 and the Commission's procedures set forth in 
Sec. 1018.23 of this part;
    (iv) The suspension or revocation of a license or other remedy under 
Sec. 1018.25 of this part;
    (v) Installment payments possibly requiring security; and
    (vi) The right to refer claims to GAO or DOJ for litigation.
    (c) The failure to state in a letter of demand a matter described in 
Sec. 1018.20 is not a defense for a debtor and does not prevent the 
Commission from proceeding with respect to that matter.

[58 FR 7749, Feb. 9, 1993; 58 FR 11099, Feb. 23, 1993]



Sec. 1018.21  Telephone inquiries and investigations.

    (a) If a debtor has not responded to one or more written demands, 
the Commission shall make reasonable efforts by telephone to determine 
the debtor's intentions. If the debtor cannot be reached by telephone at 
the debtor's place of employment, the Commission may telephone the 
debtor at his or her residence between 8 a.m. and 9 p.m.
    (b) The Commission may undertake an investigation to locate a 
debtor, if the whereabouts of a debtor is a problem, or if a debtor 
cannot be contacted by telephone. The Commission may also send a 
representative to a debtor's place of employment if the debtor cannot be 
contacted by phone or the debtor does not respond to written demands by 
the Commission for payment of claims.
    (c) The Commission under 15 U.S.C. 1681(f) may obtain consumer 
credit information from private firms, including name, address, former 
address, place of employment, and former place of employment of a 
debtor.

[[Page 73]]



Sec. 1018.22  Personal interviews.

    (a) The Commission may seek an interview with the debtor at the 
offices of the Commission when:
    (1) A matter involved in the claim needs clarification;
    (2) Information is needed concerning the debtor's circumstances; or
    (3) An agreement of payment might be negotiated.
    (b) The Commission shall grant an interview with a debtor upon the 
debtor's request. The Commission will not reimburse a debtor's interview 
expenses.



Sec. 1018.23  Use of consumer reporting agencies.

    (a) In addition to assessing interest, penalties, and administrative 
costs under Sec. 1018.30 of this part, the Commission may report a debt 
that has been delinquent for 90 days to a consumer reporting agency, if 
all the conditions of this paragraph are met.
    (1) The debtor has not:
    (i) Paid or agreed to pay the debt under a written payment plan that 
has been signed by the debtor and agreed to by the Commission; or
    (ii) Filed for review of the debt under Sec. 1018.23(a)(2)(iv) of 
this section.
    (2) The Commission has included a notification in the third written 
demand (see Sec. 1018.20(b)) to the debtor stating:
    (i) That the account has been reviewed and payment of the debt is 
delinquent;
    (ii) That, within not less than 60 days after the date of 
notification, the Commission intends to disclose to a consumer reporting 
agency that the individual is responsible for the debt;
    (iii) The specific information to be disclosed to the consumer 
reporting agency; and
    (iv) That the debtor has the right to a complete explanation of the 
debt (if that has not already been given), to dispute information on 
Commission records about the debt, and to request reconsideration of the 
debt by administrative appeal or review of the debt.
    (3) The Commission has sent at least one written demand by either 
registered or certified mail with the notification described in 
paragraph (a)(2) of this section.
    (4) The Commission has reconsidered its initial decision on the debt 
when the debtor has requested a review under Sec. 1018.23(a)(2)(iv).
    (5) The Commission has taken reasonable action to locate a debtor 
for whom the Commission does not have a current address to send the 
notifications provided for in paragraph (a)(2) of this section.
    (b) If there is a substantial change in the condition or amount of 
the debt, the Commission shall:
    (1) Promptly disclose that fact(s) to each consumer reporting agency 
to which the original disclosure was made;
    (2) Promptly verify or correct information about the debt, on 
request of a consumer reporting agency for verification of any or all 
information so disclosed by the Commission; and
    (3) Obtain satisfactory assurances from each consumer reporting 
agency that they are complying with all applicable Federal, state, and 
local laws relating to its use of consumer credit information.
    (c) The information the Commission discloses to the consumer 
reporting agency is limited to:
    (1) Information necessary to establish the identity of the 
individual debtor, including name, address, and taxpayer identification 
number;
    (2) The amount, status, and history of the debt; and
    (3) The Commission activity under which the claim arose.



Sec. 1018.24  Contact with the debtor's employing agency.

    If a debtor is employed by the Federal government or is a member of 
the military establishment or the Coast Guard, and collection by offset 
cannot be accomplished in accordance with 5 U.S.C. 5514, the Commission 
shall contact the employing agency to arrange with the debtor for 
payment of the indebtedness by allotment or otherwise.



Sec. 1018.25  Sanctions.

    (a) Closure of accounts. If a tariff filing fee or insurance filing 
fee account is past due more than 90 days, the Commission will freeze 
the account until the account is made current. The Commission will 
notify the account holder

[[Page 74]]

that the account has been frozen and that until the account balance 
including any applicable interest, penalties, and administrative costs 
are paid, all future filings, must be accompanied by a certified or 
cashier's check or a money order. The Commission reserves the right to 
refuse to maintain an account which is repeatedly delinquent.
    (b) Suspension or revocation of tariff or insurance filing 
privileges. If the account holder fails to satisfy all claims for tariff 
or insurance filing fees including applicable interest, penalties, and 
the administrative costs of collection of the debt, the Commission may 
suspend or prohibit a tariff or insurance filing fee account holder from 
submitting tariff or insurance filings in its own name or on behalf of 
others.
    (c) Suspension or revocation of certificates, licenses, or permits 
granted by the Commission. The Commission may suspend or revoke any 
certificates, permits, or licenses which the Commission has granted to 
an account holder or other debtor for any inexcusable, prolonged, or 
repeated failure or refusal to pay a delinquent debt.
    (d) Procedures for suspension or revocation of filing privileges or 
certificates, licenses, or permits for failure to pay tariff or 
insurance filing fees. Before suspending or revoking an account holder's 
privilege to submit tariff or insurance filings or suspending or 
revoking any certificate, license, or permit which the Commission has 
granted to any account holder, the Commission shall issue to the account 
holder an order to show cause why the tariff or insurance filing 
privilege or any certificate, license, or permit should not be suspended 
or revoked. The Commission shall allow the debtor no more than 30 days 
to pay the debt in full including applicable interest, penalties, and 
administrative costs of collection of the delinquent debt. The 
Commission may suspend or revoke any certificate, license, permit, 
approval or filing privilege at the end of this period upon a finding of 
willful noncompliance with the Commission's order. If any certificate, 
license, permit, or filing privilege is revoked under this authority of 
this part, a new application with appropriate fees must be made to the 
Commission, and all previous delinquent debts of the debtor to the 
Commission must be paid before the Commission will consider such 
application.
    (e) Other sanctions. The remedies and sanctions available to the 
Commission in this area are not exclusive. The Commission may impose 
other sanctions, where permitted by law for any inexcusable, prolonged, 
or repeated failure of a debtor to pay such claim. In such cases, the 
Commission will provide notice and a hearing, as required by law, to the 
debtor prior to the imposition of any such sanctions.



Sec. 1018.26  Disputed debts.

    (a) A debtor who disputes a debt shall explain why the debt is 
incorrect in fact or law within 30 days from the date that the initial 
demand letter was mailed. The debtor may support the explanation by 
submitting affidavits, statements certified under penalty of perjury, 
canceled checks, or other relevant evidence.
    (b) The Commission may extend the interest waiver period as 
described in Sec. 1018.30(j) pending a final determination of the 
existence or amount of the debt.
    (c) The Commission may investigate the facts involved in the dispute 
and if necessary, the Commission may arrange for a conference at which 
the debtor may present evidence and arguments in support of the debtor's 
positions.



Sec. 1018.27  Contracting for collection services.

    The Commission may contract for collection services in order to 
recover delinquent debts. However, the Commission retains the authority 
to resolve disputes, compromise claims, suspend or terminate collection 
action, and initiate enforced collection through litigation. When 
appropriate, the Commission shall contract in accordance with 4 CFR 
102.6.



Sec. 1018.28  Collection by administrative offset.

    (a) The Commission may administratively undertake collection by 
offset on each claim which is liquidated or certain in amount in 
accordance with the guidelines and the standards contained in 4 CFR 
102.2, 102.3, and 102.4

[[Page 75]]

and 5 U.S.C. 5514, as applicable. The Commission may not initiate 
administrative offset to collect a debt more than 10 years after the 
Government's right to the debt first accrued, unless facts material to 
the Government's right to collect the debt were not known and could not 
reasonably have been known to the Commission.
    (b) Collection by administrative offset of amounts payable from the 
Civil Service Retirement and Disability Fund, the Federal Employees 
Retirement System, or other similar fund is made pursuant to 4 CFR 102.4 
and the provisions of paragraph (d) of this section.
    (c) Salary offset is governed by 5 U.S.C. 5514.
    (d) The following procedures apply when the Commission seeks to 
collect a debt by offset against any payment to be made to a debtor or 
against the assets of a holder of a certificate, permit, license, or 
authorization issued by the Commission.
    (1) Before the offset is made, the Commission shall provide the 
debtor written notice of the nature and amount of the debt and:
    (i) Notice of the Commission's intent to collect the debt by offset;
    (ii) An opportunity to inspect and copy Commission records 
pertaining to the debt;
    (iii) An opportunity to request reconsideration of the debt by the 
Commission, or if provided for by statute, waiver of the debt;
    (iv) An opportunity to enter into a written agreement with the 
Commission to repay or pay the debt, as the case may be;
    (v) An explanation of the debtor's rights under this subpart; and
    (vi) An opportunity for a hearing when required under the provisions 
of 4 CFR 102.3(c).
    (2) If the Commission learns that other agencies of the Government 
are holding funds payable to the debtor, the Commission shall provide 
the other agencies with written certification that the debt is owed to 
the Commission and that the Commission has complied with the provisions 
of 4 CFR 102.3. The Commission shall request that funds which are due 
the debtor and which are necessary to offset the debt to the Commission 
be transferred to the Commission.
    (3) The Commission may accept a repayment or payment agreement, as 
appropriate, in lieu of offset, but will do so only after balancing the 
Government's interest in collecting the debts against fairness to the 
debtor. If the debt is delinquent and the debtor has not disputed its 
existence or amount, the Commission may accept a repayment or payment 
agreement in lieu of offset only if the debtor is able to establish 
under sworn affidavit or statement certified under penalty of perjury 
that offset would result in financial hardship or would result in undue 
financial hardship or would be against equity and good conscience.
    (4) Administrative offset is not authorized with respect to:
    (i) Debts owed by any State or local government;
    (ii) Debts once they become subject to the salary offset provisions 
of 5 U.S.C. 5514; or
    (iii) Any case in which collection of the type of debt involved by 
administrative offset is explicitly provided for or prohibited by 
another statute.
    (5) The Commission reserves the right to take any other action in 
respect to offset as is permitted under 4 CFR 102.3.
    (e) The Commission shall make appropriate use of the cooperative 
efforts of other agencies including the Army Holdup List in effecting 
collections by offset. The Army Holdup List is a list of contractors 
indebted to the United States.



Sec. 1018.29  Payments.

    (a) Payment in full. The Commission shall make every effort to 
collect a claim in full before it becomes delinquent. The Commission 
shall impose charges for interest, penalties, and administrative costs 
as specified in Sec. 1018.30.
    (b) Payment in installments. If a debtor furnishes satisfactory 
evidence of inability to pay a claim in one lump sum, payment in regular 
installments may be arranged. Evidence may consist of a financial 
statement or a signed statement certified under penalty of perjury to be 
true and correct that application for a loan to enable the debtor to pay

[[Page 76]]

the claim in full was rejected. Except for a claim described at 5 U.S.C. 
5514, all installment payment arrangements must be in writing and 
require the payment of interest and administrative charges.
    (1) Installment note forms including confess-judgement notes may be 
used. The written installment agreement must contain a provision 
accelerating the debt payment in the event the debtor defaults. If the 
debtor's financial statement discloses the ownership of assets which are 
free and clear of liens or security interests, or assets in which the 
debtor owns equity, the debtor may be asked to secure the payment of an 
installment note by executing a Security Agreement and Financial 
Statement transferring to the United States a security interest in the 
assets until the debt is discharged.
    (2) If the debtor owes more than one debt and designates how a 
voluntary installment payment is to be applied among those debts, the 
Commission shall follow that designation. If the debtor does not 
designate the application of the payment, the Commission shall apply the 
payment to the various debts in accordance with the best interest of the 
United States as determined by the facts and circumstances of the 
particular case.
    (c) To whom payment is made. Payment of a debt is made by check, 
money order, or credit card (VISA or MASTERCARD) payable to the 
Interstate Commerce Commission and mailed or delivered to the Budget and 
Fiscal Office, room 1330, Interstate Commerce Commission, Washington, DC 
20423, unless payment is:
    (1) Made pursuant to arrangements with the GAO or DOJ;
    (2) Ordered by a Court of the United States; or
    (3) Otherwise directed in any other part of this chapter.



Sec. 1018.30  Interest, penalties, and administrative costs.

    (a) The Commission shall assess interest, penalties, and 
administrative costs on debts owed to the United States Government in 
accordance with the guidance provided under the Federal Claims 
Collection Standards, 4 CFR 102.13 unless otherwise directed by statute, 
regulation, or contract.
    (b) Before assessing any charges on delinquent debts, the Commission 
shall mail a written notice to debtor explaining its requirements 
concerning these charges under 4 CFR 102.2 and 102.13.
    (c) Interest begins to accrue from the date on which the initial 
invoice is first mailed to the debtor unless a different date is 
specified on a statute, regulation, or contract.
    (d) The Commission shall assess interest based upon the rate of the 
current value of funds to the United States Treasury (the Treasury tax 
and loan account rate) prescribed by statute, regulation, or contract.
    (e) Interest is computed only on the principal of the debt, and the 
interest rate remains fixed for the duration of the indebtedness, unless 
the debtor defaults on a repayment agreement and seeks to enter into a 
new agreement.
    (f) The Commission shall assess against a debtor charges to cover 
administrative costs incurred as a result of a delinquent debt. 
Administrative costs may include costs incurred in obtaining a credit 
report or in using a private debt collector, to the extent they are 
attributable to the delinquency.
    (g) The Commission shall assess a penalty charge of six percent a 
year on any portion of a debt that is delinquent for more than 90 days. 
The charge accrues retroactively to the date that the debt became 
delinquent.
    (h) Amounts received by the Commission as partial or installment 
payments are applied first to outstanding penalty and administrative 
cost charges, second to accrued interest, and third to outstanding 
principal.
    (i) The Commission shall waive collection of interest on the debt or 
any portion of the debt which is paid in full within 30 days after the 
date on which interest began to accrue.
    (j) The Commission may waive interest during the periods a debt 
disputed under Sec. 1018.26 is under investigation or review before the 
Commission. This additional waiver is not automatic and must be 
requested before the expiration of the initial 30-day waiver period.

[[Page 77]]

The Commission may grant the additional waiver only when it finds merit 
in the explanation the debtor has submitted under Sec. 1018.26.
    (k) The Commission may waive the collection of interest, penalties, 
and administrative costs if it finds that one or more of the following 
conditions exists:
    (1) The debtor is unable to pay any significant sum toward the debt 
within a reasonable time;
    (2) Collection of interest, penalties, and administrative costs will 
jeopardize collection of the principal of the debt;
    (3) The Commission is unable to enforce collection in full within a 
reasonable time by enforced collection proceedings; or
    (4) Collection would be against equity and good conscience or not in 
the best interest of the United States, including the situation in which 
an administrative offset or installment payment agreement is in effect.



Sec. 1018.31  Use of credit reports.

    The Commission may institute a credit investigation of the debtor at 
any time following receipt of knowledge of the debt in order to aid the 
Commission in making appropriate determinations as to:
    (a) The collection and compromise of a debt;
    (b) The collection of interest, penalties, and administrative costs;
    (c) The use of administrative offset;
    (d) The use of other collection methods; and
    (e) The likelihood of collecting the debt.



Sec. 1018.32  Bankruptcy claims.

    When the Commission receives information that a debtor has filed a 
petition in bankruptcy or is the subject of a bankruptcy proceeding, it 
shall suspend all collection actions against the debtor in accordance 
with 11 U.S.C. 362 and shall furnish information concerning the debt 
owed the United States to the Department of Justice's Nationwide Central 
Intake Facility to permit the filing of a claim.



Sec. 1018.33  Use and disclosure of mailing addresses.

    (a) When attempting to locate a debtor in order to collect or 
compromise a debt under this part, the Commission may send a written 
request to the Secretary of the Treasury (or designee) in order to 
obtain a debtor's mailing address from the records of the Internal 
Revenue Service.
    (b) The Commission may disclose a mailing address obtained under 
paragraph (a) of this section to other agents, including collection 
service contractors, in order to facilitate the collection or compromise 
of debts under this part, except that a mailing address may be disclosed 
to a consumer reporting agency only for the limited purpose of obtaining 
a commercial credit report on the particular taxpayer.
    (c) The Commission and its agents, including consumer reporting 
agencies and collection services, must comply with the provisions of 26 
U.S.C. 6103(p)(4) and applicable regulations of the Internal Revenue 
Service.



Sec. 1018.34  Additional administrative collection action.

    Nothing contained in this part is intended to preclude any other 
administrative remedy which may be available.



                    Subpart C--Compromise of a Claim



Sec. 1018.50  When a claim may be compromised.

    The Commission may compromise a claim not in excess of the monetary 
limitation if it has not been referred to GAO or DOJ for litigation. 
Only the Comptroller General of the United States or designee may effect 
the compromise of a claim that arises out of the exceptions made by the 
GAO in that account of an accountable officer, including a claim against 
the payee, prior to its referral by GAO for litigation.

[58 FR 7749, Feb. 9, 1993; 58 FR 11099, Feb. 23, 1993]

[[Page 78]]



Sec. 1018.51  Reasons for compromising a claim.

    (a) A claim may be compromised for one or more reasons set forth 
below:
    (1) The full amount cannot be collected because:
    (i) The debtor is unable to pay the full amount within a reasonable 
time; or
    (ii) The debtor refuses to pay the claim in full, and the Government 
is unable to enforce collection in full within a reasonable time; or
    (2) There is a real doubt concerning the Government's ability to 
prove its case in Court for the full amount claimed, either because of 
the legal issues involved or a bona fide dispute as to the facts; or
    (3) The costs of collecting the claim do not justify the enforced 
collection of the full amount. The Commission shall apply this reason 
for compromise in accordance with the guidelines in 4 CFR 103.4.
    (b) The Commission shall determine the debtor's inability to pay, 
the Government's ability to enforce collection, and the amounts which 
are acceptable in compromise in accordance with the Federal Claims 
Collection Standards, 4 CFR part 103.
    (c) Compromises payable in installments are discouraged, but, if 
necessary, must be in the form of a legally enforceable agreement for 
the reinstatement of the prior indebtedness less sums paid thereon. The 
agreement also must provide that in the event of default:
    (1) The entire balance of the debt becomes immediately due and 
payable; and
    (2) The Government has the right to enforce any security agreement.



Sec. 1018.52  Restrictions on the compromise of a claim.

    (a) The Commission may not accept a percentage of a debtor's profits 
or stock in a debtor's corporation in compromise of a claim. In 
negotiating a compromise with a business concern, consideration is given 
to requiring a waiver of the tax-loss-carry-forward and tax-loss-carry-
back rights of the debtor.
    (b) If two or more debtors are jointly or severally liable, 
collection action is not withheld against one debtor until the other or 
others pay their share. The amount of a compromise with one debtor is 
not considered a precedent or binding in determining the amount which 
will be required from other debtors jointly and severally liable on the 
claim.



Sec. 1018.53  Finality of a compromise.

    An offer of compromise must be in writing and signed by the debtor. 
An offer of compromise which is accepted by the Commission is final and 
conclusive on the debtor and on all officials, agencies and courts of 
the United States, unless obtained by fraud, misrepresentation, the 
presentation of a false claim, or mutual mistake of fact.



        Subpart D--Suspension or Termination of Collection Action



Sec. 1018.60  When collection action may be suspended or terminated.

    The Commission may suspend or terminate collection action on a claim 
not in excess of the monetary limitation, exclusive of interest, 
penalties, and administrative costs, after deducting the amount of 
partial payments, if any, if it has not been referred to GAO or DOJ for 
litigation.



Sec. 1018.61  Reasons for suspending collection action.

    Collection action may be suspended temporarily:
    (a) When the debtor cannot be located after diligent efforts, and 
there is reason to believe that future collection action may be 
sufficiently productive to justify periodic review and action on the 
claim considering the size of the claim and the amount which may be 
realized on it; or
    (b) When the debtor owns no substantial equity in realty and is 
unable to make payments on the Government's claim or effect a compromise 
on it at the time, but the debtor's future prospects justify retention 
of the claim for periodic review and action:
    (1) The applicable statute of limitations has been tolled or started 
anew; or
    (2) Future collection can be effected by offset notwithstanding the 
statute of limitations.

[[Page 79]]



Sec. 1018.62  Reasons for terminating collection action.

    Collection action may be terminated:
    (a) When it becomes clear that the Government cannot collect or 
enforce collection of any significant sum from the debtor having due 
regard for the judicial remedies available to the Government, the 
debtor's future financial prospects, and the exemptions available to the 
debtor under State and Federal law;
    (b) When the debtor cannot be located, there is no security 
remaining to be liquidated, the applicable statute of limitations has 
run, and the prospects of collecting by offset, notwithstanding the bar 
of the statute of limitations, are too remote to justify retention of 
the claim; or
    (c) When it is likely that the cost of the collection action will 
exceed the amount recoverable.



Sec. 1018.63  Termination of collection action.

    Collection action shall be terminated:
    (a) Whenever it is determined that the claim is legally without 
merit; or
    (b) When it is determined that the evidence necessary to prove the 
claim cannot be produced, or necessary witnesses are unavailable, and 
efforts to induce voluntary payments have been unavailing.



Sec. 1018.64  Transfer of a claim.

    The Commission may refer a claim to GAO when there is doubt as to 
whether or not a collection action should be suspended or terminated.



                     Subpart E--Referral of a Claim



Sec. 1018.70  Prompt referral.

    (a) A claim which requires enforced collection is referred to GAO or 
DOJ for litigation. A referral is made as early as possible consistent 
with aggressive collection action and, in, any event, well within the 
time required to bring a timely suit against the debtor. Ordinarily, 
referrals are made within 1 year of the Commission's final determination 
of the fact and the amount of the debt.
    (b) When the merits of the Commission's claim, the amount owed on 
the claim, or the propriety of acceptance of a proposed compromise, 
suspension, or termination of collection actions is in doubt, the 
Commission shall refer the matter to GAO for resolution and instruction 
prior to proceeding with collection actions and/or referral to DOJ for 
litigation.
    (c) The Commission may refer a claim to GAO or DOJ even though the 
termination of collection activity might otherwise be given 
consideration under Sec. 1018.63 if:
    (1) A significant enforcement policy is involved in reducing a 
statutory penalty or forfeiture to judgment; or
    (2) Recovery of a judgement is a prerequisite to the imposition of 
administrative sanctions, such as suspension or revocation of a license 
or privilege of participating in a Government sponsored program.
    (d) Once a claim has been referred to GAO or DOJ under this subpart, 
the Commission shall refrain from any contact with the debtor and shall 
direct the debtor to GAO or DOJ as appropriate, when questions 
concerning the claim are raised by the debtor. The Commission shall 
immediately advise GAO or DOJ, as appropriate, of any payments by the 
debtor.



Sec. 1018.71  Referral of a compromise offer.

    The Commission may refer a debtor's firm written offer of compromise 
which is substantial in amount to GAO or to DOJ if the Commission is 
uncertain whether the offer should be accepted.



Sec. 1018.72  Referral to the Department of Justice.

    (a) Claims for which the gross original amount is over $500,000 must 
be referred to the Commercial Litigation Branch, Civil Division, 
Department of Justice, Washington, DC 20530. Claims for which the gross 
original amount is $500,000 or less must be referred to the Department 
of Justice's Nationwide Central Intake Facility.
    (b) A claim of less than $600, exclusive of interest, is not 
referred for litigation unless:
    (1) Referral is important to a significant enforcement policy; or

[[Page 80]]

    (2) The debtor has the clear ability to pay the claim, and the 
government can effectively enforce payment.
    (c) A claim on which the Commission holds a judgment is referred to 
DOJ for further action if renewal of the judgment lien or enforced 
collection proceedings are justified under the criteria discussed in 
this part.
    (d) Claims must be referred to the Department of Justice in the 
manner prescribed by 4 CFR 105.2. Care must be taken to preserve all 
files, records, and exhibits on claims referred under paragraphs (a) and 
(b) of this section.



              Subpart F--Internal Revenue Service Procedure



Sec. 1018.80  Reporting discharged debts to the Internal Revenue Service.

    When the Commission discharges a debt for less than the full value 
of the indebtedness, it will report the outstanding balance discharged, 
not including interest to the Internal Revenue Service, using IRS Form 
1099-G or any other form prescribed by the IRS, when:
    (a) The principal amount of the debt not in dispute is $600 or more;
    (b) The obligation has not been discharged in a bankruptcy 
proceeding; and
    (c) The obligation is no longer collectible either because the time 
limit in the applicable statute for enforcing collection expired during 
the tax year, or because during the tax year a formal compromise 
agreement was reached in which the debtor was legally discharged of all 
or a portion of the obligation.



                      Subpart G--Tax Refund Offset



Sec. 1018.90  Purpose.

    This subpart establishes procedures for the Commission to refer 
past-due debts to the Internal Revenue Service (IRS) for the offset 
against the income tax refunds of persons owing debts to the Commission. 
It specifies the Commission's procedures and the rights of the debtor 
applicable to claims for the payment of debts owed to the Commission.



Sec. 1018.91  Applicability and scope.

    (a) These regulations implement 31 U.S.C. 3720A which authorizes the 
IRS to reduce a tax refund by the amount of a past-due legally 
enforceable debt owed to the Government of the United States.
    (b) For purposes of this section, a past-due legally enforceable 
debt referable to the IRS is a debt which is owed to the Government of 
the United States and:
    (1) Except in the case of a judgment debt, has been delinquent for 
at least 3 months but has not been delinquent for more than 10 years at 
the time the offset is made;
    (2) Cannot be currently collected pursuant to the salary offset 
provisions of 5 U.S.C. 5514(a)(1);
    (3) Is ineligible for administrative offset under 31 U.S.C. 3716(a) 
by reason of 31 U.S.C. 3716(c)(2) or cannot be collected by 
administrative offset under 31 U.S.C. 3716(a) by the Commission against 
amounts payable to or on behalf of the debtor by or on behalf of the 
Commission.
    (4) With respect to which the Commission has given the taxpayer at 
least 60 days from the date of notification to present evidence that all 
or part of the debt is not past-due or legally enforceable, has 
considered evidence presented by such taxpayer, and has determined that 
an amount of such debt is past-due and legally enforceable.
    (5) Has been disclosed by the Commission to a consumer reporting 
agency as authorized by 31 U.S.C. 3711(f), unless a consumer reporting 
agency would be prohibited from using such information by 15 U.S.C. 
1681c, or unless the amount of the debt does not exceed $100.00;
    (6) With respect to which the Commission has notified or has made a 
reasonable attempt to notify the taxpayer that the debt is past-due and, 
unless repaid within 60 days thereafter, the debt will be referred to 
the IRS for offset against any overpayment of tax;
    (7) Is at least $25.00;
    (8) All other requirements of 31 U.S.C. 3720A and the Department of 
the Treasury regulations codified at 26 CFR 301.6402-6T relating to the 
eligibility of a debt for tax return offset have been satisfied.

[[Page 81]]



Sec. 1018.92  Administrative charges.

    In accordance with 49 CFR 1018.30, all administrative charges 
incurred in connection with the referral of the debts to the IRS shall 
be assessed on the debt and thus increase the amount of the offset.



Sec. 1018.93  Notice requirement before offset.

    A request for reduction of an IRS tax refund will be made only after 
the Commission makes a determination that an amount is owed and past-due 
and provides the debtor with 60 days written notice. The Commission's 
notice of intention to collect by IRS tax refund offset (Notice of 
intent) will state:
    (a) The amount of the debt;
    (b) That unless the debt is repaid within 60 days from the date of 
the Commission's Notice of Intent, the Commission intends to collect the 
debt by requesting that the IRS reduce any amount payable to the debtor 
as Federal Income tax refunds an amount equal to amount of the debt 
including all accumulated interest and other charges;
    (c) That the debtor has the right to present evidence that all or 
part of the debt is not past-due or legally enforceable; and
    (d) A mailing address for forwarding any written correspondence and 
a contact name and phone number for any questions.



Sec. 1018.94  Review within the Commission.

    (a) Notification by Debtor. A debtor who receives a Notice of Intent 
has the right to present evidence that all or part of the debt is not 
past-due or not legally enforceable. To exercise this right, the debtor 
must:
    (1) Send a written request for a review of the evidence to the 
address provided in the notice.
    (2) State in the request the amount disputed and the reasons why the 
debtor believes that the debt is not past-due or is not legally 
enforceable.
    (3) Include in the request any documents which the debtor wishes to 
be considered or state that additional information will be submitted 
within the 60-day period.
    (b) Submission of evidence. The debtor may submit evidence showing 
that all or part of the debt is not past-due or not legally enforceable 
along with the notification required by paragraph (a) of this section. 
Failure to submit the notification and evidence within 60 days will 
result in an automatic referral of the debt to the IRS without further 
action by the Commission.
    (c) Review of the evidence. The Commission will consider all 
available evidence related to the debt. Within 30 days, if feasible, the 
Commission will notify the debtor whether the Commission has sustained, 
amended, or canceled its determination that the debt is past-due and 
legally enforceable.



Sec. 1018.95  Commission determination.

    (a) Following review of the evidence, the Commission will issue a 
written decision which will include the supporting rationale for the 
decision.
    (b) If the Commission either sustains or amends its determination, 
it shall notify the debtor of its intent to refer the debt to the IRS 
for offset against the debtor's Federal income tax refund. If the 
Commission cancels its original determination, the debt will not be 
referred to IRS.



Sec. 1018.96    Stay of offset.

    If the debtor timely notifies the Commission that the debtor is 
exercising the right described in Sec. 1018.94(a) of this subpart, any 
notice to the IRS will be stayed until the issuance of a written 
decision which sustains or amends its original determination.



PART 1019--REGULATIONS GOVERNING CONDUCT OF INTERSTATE COMMERCE COMMISSION EMPLOYEES--Table of Contents




Sec.
1019.1  Cross-reference to employee ethical conduct standards and 
          financial disclosure regulations.
1019.2  Interpretation and advisory service.
1019.3  Ex parte communications.
1019.4  Use of intoxicants.
1019.5  Sexual harassment.
1019.6  Disciplinary and other remedial action.

    Authority: 49 U.S.C. 10321.


[[Page 82]]


    Source: 58 FR 42027, Aug. 6, 1993, unless otherwise noted.



Sec. 1019.1  Cross-reference to employee ethical conduct standards and financial disclosure regulations.

    Members and employees of the Interstate Commerce Commission also 
should refer to the executive branch Standards of Ethical Conduct at 5 
CFR part 2635, the ICC regulations at 5 CFR part 5001 which supplement 
the executive branch standards, and the executive branch financial 
disclosure regulations at 5 CFR part 2634.



Sec. 1019.2  Interpretation and advisory service.

    (a) The Managing Director's Counsel shall be the Commission's 
Designated Agency Ethics Official (DAEO).
    (b) By June 30 of each year, the DAEO shall report to the Commission 
on the operation of the Commission's ethics program with any 
recommendations that the DAEO deems advisable.



Sec. 1019.3  Ex parte communications.

    Members and employees of the Commission must conform to the 
standards adopted by the Commission in 49 CFR 1102.2.



Sec. 1019.4  Use of intoxicants.

    Members and employees of the Commission shall not use alcohol, 
drugs, or other intoxicants so as to impede the discharge of their 
official duties.



Sec. 1019.5  Sexual harassment.

    (a) Members and employees shall not engage in harassment on the 
basis of sex. Unwelcome sexual advances, requests for sexual favors, and 
other verbal or physical conduct of a sexual nature constitute sexual 
harassment when:
    (1) Submission to such conduct is made either explicitly or 
implicitly a term or condition of an individual's employment;
    (2) Submission to or rejection of such conduct by an individual is 
used as the basis for employment decisions affecting such individual; or
    (3) Such conduct has the purpose or effect of interfering with an 
individual's work performance or creating an intimidating, hostile, 
offensive, or unpleasant working environment.
    (b) Employees and applicants may follow the standard Equal 
Employment Opportunity Commission complaint process if they believe they 
have a work-related sexual harassment problem. This requires that the 
employee or applicant contact an EEO Counselor within 45 days of the 
alleged harassment or, if a personnel action is involved, within 45 days 
of its effective date.
    (c) The regulations in this section apply also to harassment based 
on race, color, religion, or national origin.



Sec. 1019.6  Disciplinary and other remedial action.

    Any violation of the regulations in this part by an employee shall 
be cause for appropriate disciplinary or other remedial action as 
provided in the ICC's Manual of Administration 22-751, which may be in 
addition to any penalty prescribed by law. The manual is available from 
the Office of the Managing Director, Interstate Commerce Commission, 
12th Street and Constitution Ave., NW., Washington, DC 20423.



PARTS 1021-1029--ENFORCEMENT--Table of Contents






PART 1021--ADMINISTRATIVE COLLECTION OF ENFORCEMENT CLAIMS--Table of Contents




Sec.
1021.1  Standards.
1021.2  Enforcement claims and debtors.
1021.3  Enforcement collection designee.
1021.4  Notice of claim and demand.
1021.5  Agreement and release.
1021.6  Method of claim payment.

    Authority: Sec. 3, 80 Stat. 309; 31 U.S.C. 952.

    Source: 32 FR 20015, Dec. 20, 1967, unless otherwise noted.



Sec. 1021.1   Standards.

    The regulations issued jointly by the Comptroller General of the 
United States and the Attorney General of the United States under 
section 3 of the Federal Claims Collection Act of 1966 (31 U.S.C. 951 et 
seq.) and published in 4 CFR parts 101 through 105 are hereby adopted by 
the Interstate Commerce

[[Page 83]]

Commission for the administrative collection of enforcement claims.



Sec. 1021.2   Enforcement claims and debtors.

    (a) Enforcement claims are all separate civil penalty or forfeiture 
claims not exceeding $20,000 which may arise under the provisions of the 
Interstate Commerce Act or legislation supplementary thereto.
    (b) Debtor is any person or corporation subject to civil penalties 
or forfeitures for violation of the provisions of the Interstate 
Commerce Act or legislation supplementary thereto.



Sec. 1021.3  Enforcement collection designee.

    The Director, Office of Consumer Protection, Interstate Commerce 
Commission, is the Commission's designee to take all necessary action 
administratively to settle by collection, compromise, suspension or 
termination, enforcement claims within the contemplation of the Federal 
Claims Collection Act of 1966.

[45 FR 31374, May 13, 1980]



Sec. 1021.4   Notice of claim and demand.

    Initiation of administrative collection of enforcement claims will 
be commenced by the enforcement collection designee mailing a letter of 
notice of claim and demand to the debtor. Such letter will state the 
statutory basis for the claim, a brief resume of the factual basis for 
the claim, the amount of the claim, and indicate the availability of the 
designee or his personal agent for discussion of the claim should the 
debtor so desire.



Sec. 1021.5   Agreement and release.

    Upon the debtor's agreement to settle a claim, an Agreement and 
Release Form will be provided to the debtor in duplicate. This form, 
after reciting the statutory basis for the claim, will contain a 
statement to be signed in duplicate by the debtor evidencing his 
agreement to settlement of the claim for the amount stated in the 
agreement. Both copies of the signed agreement shall be returned to the 
collection designee. Upon final collection of the claim, one copy of the 
agreement and release shall be returned to the debtor with the release 
thereon signed by the enforcement collection designee.



Sec. 1021.6   Method of claim payment.

    (a) Debtors: Debtors shall be required to settle claims by:
    (1) Payment by bank cashier check or other instrument acceptable to 
designee.
    (2) Installment payments by check after the execution of a 
promissory note containing an agreement for judgment.
    (b) All checks or other instruments will be made out to ``Interstate 
Commerce Commission,'' and after receipt will be forwarded to U.S. 
Treasury.



PART 1022--COOPERATIVE AGREEMENTS WITH STATES--Table of Contents




Sec.
1022.1  Eligibility.
1022.2  Extent of agreement.
1022.3  Cancellation.
1022.4  Exchange of information.
1022.5  Requests for assistance.
1022.6  Joint investigation or inspection.
1022.7  Joint administrative activities.
1022.8  Supplemental agreements.

    Authority: 49 U.S.C. 10101, 10321, and 11502.

    Source: 55 FR 11197, Mar. 27, 1990, unless otherwise noted.



Sec. 1022.1  Eligibility.

    Any State may agree with the Interstate Commerce Commission to 
enforce the economic laws and regulations of that State and the United 
States concerning highway transportation.



Sec. 1022.2  Extent of agreement.

    The written agreement, signed by a competent State authority and 
filed with the Commission's Office of the Secretary, shall specify the 
extent of the State's participation, as described below. The Commission 
will reciprocate to that extent.



Sec. 1022.3  Cancellation.

    Either party may cancel or withdraw from all or part of a 
cooperative agreement by written notice indicating the effective date of 
such action.

[[Page 84]]



Sec. 1022.4  Exchange of information.

    Information acquired by a State agent, in his official duties, 
regarding violation of the economic laws of the United States concerning 
highway transportation or of the Commission's regulations, shall be 
communicated to the Regional Director of the Commission's Office of 
Compliance and Consumer Assistance.



Sec. 1022.5  Requests for assistance.

    Either party to a cooperative agreement may request, in writing, the 
other's assistance in obtaining evidence to enforce the economic laws 
and regulations governing highway transportation. Such evidence, 
obtained as time, personnel, and funds permit, shall be transmitted to 
the State authority or Regional Director, as the case may be, together 
with the name and address of any agent or personnel available to testify 
in an enforcement action.



Sec. 1022.6  Joint investigation or inspection.

    The Regional Director and appropriate State authority may agree to 
conduct a joint inspection or investigation of the property, equipment, 
or records of motor carriers or others, to enforce the pertinent 
economic laws and regulations. They shall decide the location, time, and 
objectives of the joint effort, and shall select the persons who will 
supervise it and make the necessary decisions. Any agent or personnel of 
either agency having knowledge of the facts shall be made available to 
testify in an enforcement action.



Sec. 1022.7  Joint administrative activities.

    To facilitate the interchange of information and evidence, and the 
conduct of the joint effort and any ensuing administrative action, the 
Regional Director and appropriate State authority shall, when warranted, 
schedule joint conferences. They shall inform each other of their 
enforcement capabilities and of any changes in their regulations.



Sec. 1022.8  Supplemental agreements.

    The Commission and State may agree to supplement their agreement to 
further implement 49 U.S.C. 11502.



PART 1023--STANDARDS FOR REGISTRATION WITH STATES--Table of Contents




Sec.
1023.1  Definitions.
1023.2  Participation by States.
1023.3  Selection of registration State.
1023.4  Requirements for registration.
1023.5  Registration receipts.
1023.6  Registration State accounting.
1023.7  Violations unlawful; criminal penalties and civil sanctions.

Appendix A to Part 1023--Uniform Application for Single State 
          Registration for Motor Carriers Operating Under Authority 
          Issued by the Interstate Commerce Commission

    Authority: 49 U.S.C. 10321 and 11506; 5 U.S.C. 553.

    Source: 58 FR 28933, May 18, 1993, unless otherwise noted.



Sec. 1023.1  Definitions.

    (a) The Commission. The Interstate Commerce Commission.
    (b) Motor carrier and carrier. A person authorized to engage in the 
transportation of passengers or property, as a common or contract 
carrier, in interstate or foreign commerce, under the provisions of 49 
U.S.C. 10922, 10923, or 10928.
    (c) Motor vehicle. A self-propelled or motor driven vehicle operated 
by a motor carrier in interstate or foreign commerce under authority 
issued by the Commission.
    (d) Principal place of business. A single location that serves as a 
motor carrier's headquarters and where it maintains or can make 
available its operational records.
    (e) State. A State of the United States or the District of Columbia.



Sec. 1023.2  Participation by States.

    (a) A State is eligible to participate as a registration State and 
to receive fee revenue only if, as of January 1, 1991, it charged or 
collected a fee for a vehicle identification stamp or a number pursuant 
to the provisions of the predecessor to this part.

[[Page 85]]

    (b) An eligible State that intends either to commence or to cease 
participating in the registration program must publish notice of its 
intention by the 1st day of July of the year preceding the registration 
year in which it will commence or cease participating.



Sec. 1023.3  Selection of registration State.

    (a) Each motor carrier required to register and pay filing fees must 
select a single participating State as its registration State. The 
carrier must select the State in which it maintains its principal place 
of business, if such State is a participating State. A carrier that 
maintains its principal place of business outside of a participating 
State must select the State in which it will operate the largest number 
of motor vehicles during the next registration year. In the event a 
carrier will operate the same largest number of vehicles in more than 
one State, it must select one of those States.
    (b) A carrier may not change its registration State unless it 
changes its principal place of business or its registration State ceases 
participating in the program, in which case the carrier must select a 
registration State for the next registration year under the standards of 
paragraph (a) of this section.
    (c) A carrier must give notice of its selection to the State 
commission of its selected registration State, and, the State commission 
of its prior registration State, within 30 days after it has made its 
selection. If a carrier changes its principal place of business during 
the annual registration period specified in Sec. 1023.4(b)(2), the 
carrier may continue to use its prior registration State, if any, for 
the next registration year.
    (d) A carrier must give notice of its selection to its insurer or 
insurers as soon as practicable after it has made its selection.



Sec. 1023.4  Requirements for registration.

    (a) Except as provided in paragraph (c)(1) of this section with 
regard to a carrier operating under temporary authority, only a motor 
carrier holding a certificate or permit issued by the Commission under 
49 U.S.C. 10922 or 10923 shall be required to register under these 
standards.
    (b) A motor carrier operating in interstate or foreign commerce in 
one or more participating States under a certificate or permit issued by 
the Commission shall be required to register annually with a single 
registration State, and such registration shall be deemed to satisfy the 
registration requirements of all participating States.
    (1) The registration year will be the calendar year.
    (2) A carrier must file its annual registration application between 
the 1st day of August and the 30th day of November of the year preceding 
the registration year. A carrier that intends to commence operating 
during the current registration year may register at any time, but it 
must do so before it commences operating.
    (3) The registration application must be in the form appended to 
this part and must contain the information and be accompanied by the 
fees specified in paragraph (c) of this section. There will be no 
prorating of fees to account for partial year operations.
    (4) A carrier that has changed its registration State since its last 
filing must identify the registration State with which it previously 
filed.
    (c) A motor carrier must file, or cause to be filed, the following 
with its registration State:
    (1) Copies of its certificates and/or permits. A carrier must 
supplement its filing by submitting copies of any new operating 
authorities as they are issued. Once a carrier has submitted copies of 
its authorities, it may thereafter satisfy the filing requirement by 
certifying that the copies are on file. A carrier may, with the 
permission of its registration State, submit a summary of its operating 
authorities in lieu of copies. A carrier granted emergency temporary 
authority or temporary authority having a duration of 120 days or less 
is not required to file evidence of such authority, but it must 
otherwise comply with the requirements of this section;
    (2) A copy of its proof of public liability security submitted to 
and accepted by the Commission under 49 CFR part 1043 or a copy of an 
order of the Commission approving a public liability

[[Page 86]]

self-insurance application or other public liability security or 
agreement under the provisions of that part. A carrier must supplement 
its filings as necessary to ensure that current information is on file. 
Once a carrier has submitted, or caused to be submitted, a copy of its 
proof or order of the Commission, it may thereafter satisfy the filing 
requirement by certifying that it has done so and that its security, 
self-insurance, or agreement remains in effect;
    (3) A copy of its designation of an agent or agents for service of 
process submitted to and accepted by the Commission under 49 CFR part 
1044. A carrier must supplement its filings as necessary to ensure that 
current information is on file. Once a carrier has submitted a copy of 
its designation, it may thereafter satisfy the filing requirement by 
certifying that its designation is on file; and
    (4) A fee for the filing of proof of insurance. In support of such 
fee, the carrier must submit the following information:
    (i) The number of motor vehicles it intends to operate in each 
participating State during the next registration year;
    (ii) The per vehicle fee each pertinent participating State charges, 
which fee must equal the fee, not to exceed $10, that such State 
collected or charged as of November 15, 1991;
    (iii) The total fee due each participating State; and
    (iv) The total of all fees specified in paragraph (c)(4)(iii) of 
this section.
    (d) Consistent with its obligations under paragraph (c)(2) of this 
section, a carrier must cause to be timely filed with its registration 
State copies of any notices of cancellation or of any replacement 
certificates of insurance, surety bonds, or other security filed with 
the Commission under 49 CFR part 1043.
    (e) A carrier must make such supplemental filings at any time during 
the registration year as may be necessary to specify additional vehicles 
and/or States of operation and to pay additional fees.
    (f) A motor carrier must submit to its insurer or insurers a copy of 
the supporting information, including any supplemental information, 
filed with its registration State under paragraphs (c)(4) and (e) of 
this section.
    (g) The charging or collection of any fee that is not in accordance 
with the fee system established above is deemed a burden on interstate 
commerce. This includes fees for the registration or filing of evidence 
of insurance whether assessed directly upon the carrier or indirectly 
upon the insurance provider or other party who seeks reimbursement from 
the carrier.
    (h) To the extent any State registration requirement imposes 
obligations in excess of those specified in this part, the requirement 
is an unreasonable burden on transportation within the Commission's 
jurisdiction under 49 U.S.C. 10521(a).



Sec. 1023.5  Registration receipts.

    (a) On compliance by a motor carrier with the annual or supplemental 
registration requirements of Sec. 1023.4, the registration State must 
issue the carrier a receipt reflecting that the carrier has filed the 
required proof of insurance and paid fees in accordance with the 
requirements of that section.
    (1) The receipt must contain only information identifying the 
carrier and specifying the States for which fees were paid. Supplemental 
receipts need contain only information relating to their underlying 
supplemental registrations.
    (b) Receipts issued pursuant to a filing made during the annual 
registration period specified in Sec. 1023.4(b)(2) must be issued within 
30 days. All other receipts must be issued by the 30th day following the 
date of filing of a fully acceptable supplemental registration 
application. All receipts shall expire at midnight on the 31st day of 
December of the registration year for which they were issued.
    (c) A carrier is permitted to operate its motor vehicles only in 
those participating States with respect to which it has paid appropriate 
fees.
    (d) A motor carrier may make copies of receipts to the extent 
necessary to comply with the provisions of paragraph (e) of this 
section. However, it may not alter a receipt or a copy of a receipt.

[[Page 87]]

    (e) A motor carrier must maintain in each of its motor vehicles a 
copy(ies) of its receipt(s), indicating that it has filed the required 
proof of insurance and paid the required fees.
    (f) The driver of a motor vehicle must present a copy(ies) of a 
receipt(s) for inspection by any authorized government personnel on 
reasonable demand.
    (g) No registration State shall require decals, stamps, cab cards, 
or any other means of registering or identifying specific vehicles 
operated by a motor carrier.

[60 FR 39875, Aug. 4, 1995]

    Effective Date Note: At 60 FR 39875, Aug. 4, 1995, the above 
Sec. 1023.5, was reinstated, effective from August 4, 1995, until 
December 31, 1996. Also at 60 FR 39875, Aug. 4, 1995, the following 
Sec. 1023.5 which was revised at 60 FR 30012, June 7, 1995, was 
suspended from August 4, 1995, until January 1, 1997. For the 
convenience of the reader the text suspended until January 1, 1997 is 
set forth below.
Sec. 1023.5  Registration receipts.
    (a) On compliance by a motor carrier with the annual or supplemental 
registration requirements of Sec. 1023.4, the registration State must 
issue the carrier a receipt reflecting that the carrier has filed the 
required proof of insurance and paid fees in accordance with the 
requirements of that section. The registration State also must issue a 
number of official copies of the receipt equal to the number of motor 
vehicles for which fees have been paid.
    (1) The receipt and official copies must contain only information 
identifying the carrier and specifying the States for which fees were 
paid. Supplemental receipts and official copies need contain only 
information relating to their underlying supplemental registrations.
    (b) Receipts and official copies issued pursuant to a filing made 
during the annual registration period specified in Sec. 1023.4(b)(2) 
must be issued within 30 days of filing of a fully acceptable 
registration application. All other receipts and official copies must be 
issued by the 30th day following the date of filing of a fully 
acceptable supplemental registration application. All receipts and 
official copies shall expire at midnight on the 31st day of December of 
the registration year for which they were issued.
    (c) A carrier is permitted to operate its motor vehicles only in 
those participating States with respect to which it has paid appropriate 
fees, as indicated on the receipts and official copies. It may not 
operate more motor vehicles in a participating State than the number for 
which it has paid fees.
    (d) A motor carrier may not copy or alter a receipt or an official 
copy of a receipt.
    (e) A motor carrier must maintain in each of its motor vehicles an 
official copy of its receipt indicating that it has filed the required 
proof of insurance and paid appropriate fees for each State in which it 
operates.
    (f) A motor carrier may transfer its official copies of its receipts 
from vehicles taken out of service to their replacement vehicles.
    (g) The driver of a motor vehicle must present an official copy of a 
receipt for inspection by any authorized government personnel on 
reasonable demand.
    (h) No registration State shall require decals, stamps, cab cards, 
or any other means of registering or identifying specific vehicles 
operated by a motor carrier.

[60 FR 30012, June 7, 1995]



Sec. 1023.6  Registration State accounting.

    (a) A participating State must, on or before the last day of each 
month, allocate and remit to each other participating State the 
appropriate portion of the fee revenue registrants submitted during the 
preceding month. Each remittance must be accompanied by a supporting 
statement identifying registrants and specifying the number of motor 
vehicles for which each registrant submitted fees. A participating State 
must submit a report of ``no activity'' to any other participating State 
for which it collected no fees during any month.
    (b) A participating State must maintain records of fee revenue 
received from and remitted to each other participating State. Such 
records must specify the fees received from and remitted to each 
participating State with respect to each motor carrier registrant. A 
participating State must retain such records for a minimum of 3 years.
    (c) A participating State must keep records pertaining to each of 
the motor carriers for which it acts as a registration State. The 
records must, at a minimum, include copies of annual and supplemental 
registration applications containing the information required by 
Sec. 1023.4(c). A registration State must retain all such records for a 
minimum of 3 years.

[[Page 88]]



Sec. 1023.7  Violations unlawful; criminal penalties and civil sanctions.

    Any violation of the provisions of these standards is unlawful. 
Nothing in these standards shall be construed to prevent a State from 
imposing criminal penalties or civil sanctions upon any person or 
organization violating any provision of them.

     Appendix A to Part 1023--Uniform Application for Single State 
Registration for Motor Carriers Operating Under Authority Issued by the 
                     Interstate Commerce Commission

Motor Carrier Identification Numbers:

ICC MC No.(s.)__________________________________________________________

US DOT No.______________________________________________________________
Applicant (Identical to name on ICC order):

Name:___________________________________________________________________

D/B/A___________________________________________________________________
Principal Place of Business Address: \1\
---------------------------------------------------------------------------

    \1\ A principal place of business is a single location that serves 
as a motor carrier's headquarters and where it maintains or can make 
available its operational records.

---------------------------------------------------------------------------
Street__________________________________________________________________

City____________________________________________________________________

State___________________________________________________________________

Zip_____________________________________________________________________
Mailing Address if Different From Business Address Above:

Street__________________________________________________________________

City____________________________________________________________________

State___________________________________________________________________

Zip_____________________________________________________________________
Type of Registration:
[  ] New Carrier Registration--The motor carrier has not previously 
          registered.
[  ] Annual Registration--The motor carrier is renewing its annual 
          registration.
[  ] Supplemental Registration--The motor carrier is adding additional 
          vehicles or States of travel after its annual registration.
[  ] New Registration State Selection--The motor carrier has changed its 
          principal place of business or its prior registration State 
          has left the registration program. The prior registration 
          State was ____________________.

[  ] Additional States not registered in prior years. List

_______________________________________________________________________

_______________________________________________________________________

Type of Motor Carrier: (Check one)
[  ] Individual   [  ] Partnership   [  ] Corporation

    If corporation, give State in which 
incorporated:____________________

List names of partners or officers:

Name:___________________________________________________________________

Title:__________________________________________________________________

Name:___________________________________________________________________

Title:__________________________________________________________________

Name:___________________________________________________________________

Title:__________________________________________________________________

Type of ICC Registered Authority:
Permanent Certificate or Permit [  ] Temporary Authority (TA) [  ] 
          Emergency Temporary Authority (ETA)  [  ]

ICC Certificate(s) or Permit(s):
[  ] ICC Authority Order(s) attached for initial registration.
[  ] ICC Authority Order(s) attached for additional grants received.
[  ] No change from prior year registration.
Proof of Public Liability Security:
[  ] The applicant is filing, or causing to be filed, a copy of its 
          proof of public liability security submitted to and accepted 
          by the ICC under 49 CFR part 1043.
[  ] The applicant has filed, or caused to be filed, a copy of its proof 
          of public liability security submitted to and accepted by the 
          ICC under 49 CFR part 1043, and the security remains in 
          effect.

ICC Approved Self-Insurance or Other Securities:
[  ] ICC Insurance order attached for new carrier registration. (Check 
          one when completing for annual registration.)
[  ] The ICC Order approving the self-insurance plan or other security 
          is still in full force and effect, and the carrier is in full 
          compliance with all conditions imposed by the ICC Order.
[  ] The motor carrier is no longer approved under a self-insurance plan 
          or other security, and the motor carrier will file, or cause 
          to be filed, a copy of proof of public liability security with 
          this application in the registration State.

Hazardous Materials: (Check one)
[  ] The applicant will not haul hazardous materials in any quantity.
[  ] The applicant will haul hazardous materials that require the 
          following limits in accordance with Title 49 CFR 1043.2:

(Check one)
[  ] Public Liability and Property Damage Insurance of $1 million.
[  ] Public Liability and Property Damage Insurance of $5 million.

Process Agents:
[  ] ICC Form No. BOC-3 or blanket designation attached for new 
          registration.
[  ] ICC Form No. BOC-3 or blanket designation attached reflecting 
          changes of designation of process agents.

[[Page 89]]

[  ] No change from prior year registration.

Certification:
    I, the undersigned, under penalty for false statement, certify that 
the above information is true and correct and that I am authorized to 
execute and file this document on behalf of the applicant. (Penalty 
provisions subject to the laws of the registration State.)

Name (Printed)__________________________________________________________

Signature_______________________________________________________________

Title___________________________________________________________________

Telephone Number________________________________________________________

Date____________________________________________________________________



PARTS 1030-1039--CARRIERS SUBJECT TO PART I, INTERSTATE COMMERCE ACT--Table of Contents






PART 1030--FILING OF CONTRACTS BY COMMON CARRIERS--Table of Contents






Sec. 1030.1   Filing of contracts, agreements, or arrangements with other common carriers.

    (a) Common carriers subject to part I of the Interstate Commerce Act 
are hereby relieved from the provisions of section 6 (5) of said act 
requiring the filing with the Commission of copies of all contracts, 
agreements, and arrangements with other common carriers, except that 
common carriers subject to part I of said act shall file with the 
Commission copies of all such contracts, agreements, and arrangements as 
shall have been or may hereafter be required to be filed by order, rule 
or regulation of the Commission, including any requirement contained in 
any annual or other report form.
    (b) The Commission reserves the right to modify this regulation upon 
appropriate notice, at any time in the future, by enlarging or reducing 
the specifications contained herein, and this regulation is subject to 
the further condition that the carrier promptly furnish upon request of 
the Commission, or any bureau thereof, a copy of any contract, 
agreement, or arrangement as may be requested by such bureau or 
Commission.

(Sec. 12, 24 Stat. 383, as amended, sec. 5, 63 Stat. 486; 49 U.S.C. 12, 
6)

[32 FR 20023, Dec. 20, 1967]



PART 1033--CAR SERVICE--Table of Contents




Sec.
1033.1  Car hire rates.
1033.2  Car service orders.

    Authority: 5 U.S.C. 553; 49 U.S.C. 10321, 10326, 11121, and 11122.



Sec. 1033.1  Car hire rates.

    (a) Definitions applicable to this section:
    (1) Car. A freight car bearing railroad reporting marks, other than 
an excluded boxcar as defined in Sec. 1039.14(c)(2) of this chapter 
whenever it is owned or leased by any class III carrier and bears a 
class III carrier's reporting marks.
    (2) Car hire. Compensation to be paid by a user to an owner for use 
of a car. Such compensation may include, but need not be limited to, 
hourly and mileage rates.
    (3) Fixed rate car. Any car placed in service or rebuilt prior to 
January 1, 1993 or for which there was a written and binding contract to 
purchase, build, or rebuild prior to July 1, 1992, regardless of whether 
such car bore railroad reporting marks prior to January 1, 1993, 
provided, however, that until December 31, 1993, all cars shall be 
deemed to be fixed rate cars.
    (4) Market rate car. Any car that is not a fixed rate car.
    (5) Owner. A rail carrier entitled to receive car hire on cars 
bearing its reporting marks.
    (6) Prescribed rates. The hourly and mileage rates in effect on 
December 31, 1990, as published in Association of American Railroads 
Circular No. OT-10 found in the information section of tariff ICC RER 
6411-U known as the Official Railway Equipment Register. This 
information can be obtained at the Association of American Railroads or 
the Commission. Prescribed rates will be enhanced to reflect OT-37 
surcharges and Rule 88 rebuilds for work undertaken and completed during 
1991 and 1992, and for rebuilding work for which there was a written and 
binding contract prior to July 1, 1992.
    (7) User. A rail carrier in possession of a car of which it is not 
the owner.
    (b) Fixed rate cars. Car hire for fixed rate cars shall be 
determined as follows:

[[Page 90]]

    (1) Except as provided in paragraph (b)(3) of this section, for a 
10-year period beginning January 1, 1993, the prescribed rates shall 
continue to apply to fixed rate cars without regard to the aging of such 
cars subsequent to December 31, 1990. Prescribed car hire rates shall 
not be increased for any additions and betterments performed on such 
cars after December 31, 1990. Any OT-37 surcharge to prescribed rates 
for work performed prior to January 1, 1993 shall expire upon the 
earlier of:
    (i) The car becoming a market rate car; or
    (ii) The expiration date provided in Association of American 
Railroads Circular No. OT-37.
    (2) Upon termination of the 10-year period specified in paragraph 
(b)(1) of this section, all fixed rate cars shall be deemed to be market 
rate cars and shall be governed by paragraph (c) of this section.
    (3) (i) During each calendar year beginning January 1, 1994, a rail 
carrier may voluntarily elect to designate up to 10% of the cars in its 
fleet as of January 1, 1993 to be treated as market rate cars for the 
purposes of this section. The 10% limitation shall apply each calendar 
year and shall be noncumulative. Cars designated to be treated as market 
rate cars shall be governed by paragraph (c) of this section. Such 
election shall be effective only in accordance with the following 
provisions:
    (A) An election shall be irrevocable and binding as to the rail 
carrier making the election and all users and subsequent owners if:
    (1) The rail carrier making the election has legal title to the car; 
or
    (2) The rail carrier making the election does not have legal title 
to the car but obtains written consent for such election from the party 
holding legal title; or
    (3) The transaction pursuant to which the party holding legal title 
to the car has furnished the car to the rail carrier making the election 
was entered into after January 1, 1991.
    (B) An election shall be irrevocable and binding only for the term 
of the transaction pursuant to which the car was furnished to the rail 
carrier making the election as to that rail carrier and all users and 
subsequent owners if:
    (1) That rail carrier does not have legal title to the car and does 
not obtain written consent or such election from the party holding legal 
title;
    (2) The transaction was entered into prior to January 1, 1991; and
    (3) The transaction does not provide that the compensation to be 
paid to the party furnishing the car is to be based in whole or in part 
directly on the car hire earnings of the car; provided, however, that if 
the rail carrier making the election subsequently obtains legal title to 
the car, such election shall then be irrevocable and binding as to the 
rail carrier and all users and subsequent owners.
    (C) The party holding legal title to the car may revoke an election 
subject to the provisions of paragraph (b)(3)(i)(B) of this section 
only:
    (1) At the time the transaction pursuant to which the car was 
furnished to the rail carrier making the election is first extended or 
renewed after January 1, 1991; or
    (2) If such transaction is not extended or renewed, at the time such 
transaction terminates.

If such election is so revoked, a rail carrier may make a new election 
only with the written consent of the party holding legal title to the 
car, and such election shall be irrevocable and binding as to the rail 
carrier making the election and all users and subsequent owners.
    (ii) Nothing in paragraph (b)(3)(i) of this section shall be 
construed to limit the rights of parties to any transaction to provide 
for the consent of any party to an election made pursuant to paragraph 
(b)(3)(i) of this section.
    (c) Market rate cars. (1) Market rate cars shall not be subject to 
prescribed rates or to the provisions of 49 CFR 1039.14(c)(1) (i) and 
(ii) and (c)(4).
    (2) (i) The Commission shall not prescribe car hire for market rate 
cars.
    (ii) The Code of Car Hire Rules referenced in the Association of 
American Railroads Car Service and Car Hire Agreement provides that 
owners and users party to that agreement shall resolve car hire disputes 
thereunder. The Commission may review allegations of

[[Page 91]]

abuse of the car hire dispute resolution process established under those 
rules.
    (iii) Car hire disputes involving an owner or user not a party to 
that agreement may be resolved by the Commission.
    (d) Car hire agreements. Rail carriers are authorized to negotiate 
and enter into agreements governing car hire.
    (e) Effective date. This part shall take effect on January 1, 1994.

[58 FR 60144, Nov. 15, 1993]



Sec. 1033.2  Car service orders.

    Emergency and temporary service orders are issued under this part 
but are not carried in the Code of Federal Regulations.

[58 FR 60145, Nov. 15, 1993]



PART 1034--ROUTING OF TRAFFIC--Table of Contents




    Editorial Note: For service orders issued under this part before 
1983 but not carried in the Code of Federal Regulations, see the List of 
CFR Sections Affected in the Finding Aids section of this volume.



Sec. 1034.1  Temporary authority.

    (a) Authority. Any railroad subject to regulation under 49 U.S.C. 
10501 may reasonably divert or reroute traffic to other carriers, if it 
is unable due to circumstances beyond its control promptly to transport 
traffic over a portion of its lines. Traffic necessarily diverted under 
this authority shall be rerouted to preserve as much as possible the 
participation and revenues of other carriers provided in the original 
routing. This authority may be exercised for no more than 30 days 
following the day on which the rerouting begins. If a carrier needs more 
than 30 days before its disability or the disability of a receiving 
carrier is cured, it may automatically extend its rerouting for 
additional 30-day periods. To extend the period, it must submit a 
written or telegraphic notice to the Association of American Railroads 
and the Commission's Railroad Service Board explaining why the rerouting 
is necessary, when it began, when the disability occurred, why an 
extension is necessary, the specific lines disabled, the rerouting to be 
continued, which shippers are affected, and any other important facts.
    (b) Concurrence by carriers. A railroad rerouting traffic must 
receive the concurrence of other railroads to which the traffic will be 
diverted or rerouted, before the rerouting or diversion begins. A 
rerouting carrier must also confirm the inability of a disabled 
receiving carrier to handle the traffic before rerouting that traffic. 
If the receiving carrier is no longer disabled, it must accept the 
traffic according to the routing originally designated.
    (c) Notice by rerouting carrier. A rerouting carrier must notify the 
Commission's Railroad Service Board, the Association of American 
Railroads, Car Service Division, as agent of all railroads subscribing 
to car service and car hire agreements, and the American Short Line 
Railroad Association before the rerouting or diversion begins. The 
originating carrier must notify each shipper at the time each shipment 
is rerouted or diverted and furnish to each shipper the rerouting, 
except when the disability requiring the rerouting occurs after the 
movement has begun. When a rerouting carrier submits to the Commission a 
notice and explanation for an extension of the rerouting period, it must 
immediately also submit a copy of that notice and explanation to the 
AAR, the ASLRA and all shippers that have been affected or that the 
carrier believes will be affected or that request a copy.
    (d) Notice by AAR. The AAR shall notify all carriers affected by 
rerouting or by an extension of a rerouting period, in a manner similar 
to that used for embargoes.
    (e) Applicable rates. The rates applicable on shipments rerouted or 
diverted will be the rates applicable over the route originally 
designated at the time the shipments are tendered.
    (f) Divisions. The carriers involved in the rerouting or diversion 
shall proceed even though no contracts, agreements, or arrangements 
exist between them at the time concerning the divisions of

[[Page 92]]

the rates applicable to the traffic. Divisions shall be, during the time 
the rerouting is in effect, those voluntarily agreed upon by the 
carriers.

(49 U.S.C. 10321, 11124, 5 U.S.C. 553)

[46 FR 21782, Apr. 14, 1981; 46 FR 26064, May 11, 1981]



PART 1035--BILLS OF LADING--Table of Contents




Sec.
1035.1  Requirement for certain forms of bills of lading.
1035.2  Modification of front of uniform bill of lading.

Appendix A to Part 1035--Uniform Straight Bill of Lading.

Appendix B to Part 1035--Contract Terms and Conditions.

    Authority: 49 U.S.C. 10321 and 5 U.S.C. 553.

    Source: 58 FR 60797, Nov. 18, 1993, unless otherwise noted.

    Cross References: For interstate transportation of livestock, see 9 
CFR parts 71-77. For lading and unlading of vessels, see 19 CFR part 4.



Sec. 1035.1  Requirement for certain forms of bills of lading.

    (a) All common carriers, except express companies, engaged in the 
transportation of property other than livestock and wild animals, by 
rail or by water subject to the Interstate Commerce Act are required to 
use straight bills of lading as prescribed in Appendix A and B to this 
part, or order bills of lading as prescribed in Appendix A and B to this 
Part, except that order bills of lading shall:
    (1) Be entitled ``Uniform Order Bill of Lading'' and be designated 
as ``Negotiable'' on the front (appendix A to this part);
    (2) Indicate consignment ``to the order of * * * '' on the front 
(appendix A to this part); and
    (3) Provide for endorsement on the back portion (appendix B to this 
part).
    (b) All such bills of lading:
    (1) May be either documented on paper or issued electronically;
    (2) May be a copy, reprographic or otherwise, of a printed bill of 
lading, free from erasure and interlineation;
    (3) May vary in the arrangement and spacing of the printed matter on 
the face of the form.



Sec. 1035.2  Modification of front of uniform bill of lading.

    Notwithstanding any other provision of Sec. 1035.1(a), with respect 
to the information called for, the front portion only (appendix A to 
this part) of a bill of lading may deviate from the language prescribed 
in this part so long as the deviation conforms with approved national 
standards for the electronic data interchange or other commercial 
requirements for bill of lading information; provided that no such 
deviation in the language shall affect the obligations of any shipper to 
provide information absent the consent of such shipper nor shall such 
deviation be deemed to alter any rights or obligations conferred by 
statute or regulation on either carriers or shippers with respect to the 
preparation or issuance of bills of lading.

                         Appendix A to Part 1035

                     Uniform Straight Bill of Lading

                        Original--Not Negotiable

Shipper's No____________________________________________________________

Agent's No______________________________________________________________

Company_________________________________________________________________

    Received, subject to the classifications and tariffs in effect on 
the date of this Bill of Lading:

at__________________________, 19__

from____________________________________________________________________
the property described below, in apparent good order, except as noted 
(contents and condition of contents of packages unknown), marked, 
consigned, and destined as indicated below, which said company (the word 
company being understood throughout this contract as meaning any person 
or corporation in possession of the property under the contract) agrees 
to carry to its usual place of delivery at said destination, if on its 
own road or its own water line, otherwise to deliver to another carrier 
on the route to said destination. It is mutually agreed, as to each 
carrier of all or any of said property over all or any portion of said 
route to destination, and as to each party at any time interested in all 
or any of said property, that every service to be performed hereunder 
shall be subject to all the conditions not prohibited by law, whether 
printed or written, herein contained, including the conditions on back 
hereof, which are hereby agreed to by the shipper and accepted for 
himself and his assigns.
[Mail or street address of consignee--For purposes of notification 
only.]

[[Page 93]]

Consigned to____________________________________________________________

Destination_____________________________________________________________

State of________________________________________________________________

County of_______________________________________________________________

Route___________________________________________________________________

Delivering Carrier______________________________________________________

Car Initial_____________________________________________________________

Car No__________________________________________________________________

Trailer Initials/Number_________________________________________________

Length__________________________________________________________________

Plan____________________________________________________________________

Length__________________________________________________________________

Plan____________________________________________________________________

Container Initials/Number_______________________________________________

Length__________________________________________________________________

Plan____________________________________________________________________

Length__________________________________________________________________

Plan____________________________________________________________________


                                                                                                                
----------------------------------------------------------------------------------------------------------------
                           Description of                                                                       
                         articles, special    *Weight      Class or      Check                                  
      No. packages           marks, and     (subject to      rate        column                                 
                             exceptions     correction)                                                         
----------------------------------------------------------------------------------------------------------------
.......................  .................  ...........  ...........  ...........  Subject to Section 7 of      
                                                                                    conditions, if this shipment
                                                                                    is to be delivered to the   
                                                                                    consignee without recourse  
                                                                                    on the consignor, the       
                                                                                    consignor shall sign the    
                                                                                    following statement:        
.......................  .................  ...........  ...........  ...........     ..........................
.......................  .................  ...........  ...........  ...........  The carrier shall not make   
                                                                                    delivery of this shipment   
                                                                                    without payment of freight  
                                                                                    and all other lawful        
                                                                                    charges.                    
.......................  .................  ...........  ...........  ...........  .............................
.......................  .................  ...........  ...........  ...........  .............................
.......................  .................  ...........  ...........  ...........  .............................
                                                                                    .....................       
                                                                                     (Signature of consignor)   
.......................  .................  ...........  ...........  ...........  .............................
                                                                                  ==============================
.......................  .................  ...........  ...........  ...........  If charges are to be prepaid,
                                                                                    write or stamp here,        
.......................  .................  ...........  ...........  ...........  ``To be Prepaid.''           
.......................  .................  ...........  ...........  ...........  .............................
.......................  .................  ...........  ...........  ...........  Received $______ to apply in 
                                                                                    prepayment of the charges on
                                                                                    the property described      
                                                                                    hereon.                     
.......................  .................  ...........  ...........  ...........  .............................
.......................  .................  ...........  ...........  ...........  .............................
                                                                                    .....................       
                                                                                     Agent or Cashier           
.......................  .................  ...........  ...........  ...........  Per________________          
.......................  .................  ...........  ...........  ...........  (The signature here          
                                                                                    acknowledges only the amount
                                                                                    prepaid.)                   
.......................  .................  ...........  ...........  ...........  .............................
                                                                                  ==============================
                                                                                                                
----------------------------------------------------------------------------------------------------------------
*If the shipment moves between two ports by a carrier by water, the law requires that the bill of lading shall  
  state whether it is ``carrier's or shipper's weight                                                     

    Note.--Where the rate is dependent on value, shippers are required 
to state specifically in writing the agreed or declared value of the 
property.
    The agreed or declared value of the property is hereby specifically 
stated by the shipper to be not exceeding--
________________________________________per______________________________
__________

Charges advanced:    ________________________________________

Shipper

Agent

Per

Per

Permanent post office address of shipper

                         Appendix B to Part 1035

                      Contract Terms and Conditions

    Sec. 1. (a) The carrier or party in possession of any of the 
property herein described shall be liable as at common law for any loss 
thereof or damage thereto, except as hereinafter provided.
    (b) No carrier or party in possession of all or any of the property 
herein described shall be liable for any loss thereof or damage thereto 
or delay caused by the act of God, the public enemy, the authority of 
law, or

[[Page 94]]

the act or default of the shipper or owner, or for natural shrinkage. 
The carrier's liability shall be that of warehouseman, only, for loss, 
damage, or delay caused by fire occurring after the expiration of the 
free time allowed by tariffs lawfully on file (such free time to be 
computed as therein provided) after notice of the arrival of the 
property at destination or at the port of export (if intended for 
export) has been duly sent or given, and after placement of the property 
for delivery at destination, or tender of delivery of the property to 
the party entitled to receive it, has been made. Except in case of 
negligence of the carrier or party in possession (and the burden to 
prove freedom from such negligence shall be on the carrier or party in 
possession), the carrier or party in possession shall not be liable for 
loss, damage, or delay occurring while the property is stopped and held 
in transit upon the request of the shipper, owner, or party entitled to 
make such request, or resulting from a defect or vice in the property, 
or for country damage to cotton, or from riots or strikes.
    (c) In case of quarantine the property may be discharged at risk and 
expense of owners into quarantine depot or elsewhere, as required by 
quarantine regulations or authorities, or for the carrier's dispatch at 
nearest available point in carrier's judgment, and in any such case 
carrier's responsibility shall cease when property is so discharged, or 
property may be returned by carrier at owner's expense to shipping 
point, earning freight both ways. Quarantine expenses of whatever nature 
or kind upon or in respect to property shall be borne by the owners of 
the property or be a lien thereon. The carrier shall not be liable for 
loss or damage occasioned by fumigation or disinfection or other acts 
required or done by quarantine regulations or authorities even though 
the same may have been done by carrier's officers, agents, or employees, 
nor for detention, loss, or damage of any kind occasioned by quarantine 
or the enforcement thereof. No carrier shall be liable, except in case 
of negligence, for any mistake or inaccuracy in any information 
furnished by the carrier, its agents, or officers, as to quarantine laws 
or regulations. The shipper shall hold the carriers harmless from any 
expense they may incur, or damages they may be required to pay, by 
reason of the introduction of the property covered by this contract into 
any place against the quarantine laws or regulations in effect at such 
place.
    Sec. 2. (a) No carrier is bound to transport said property by any 
particular train or vessel, or in time for any particular market or 
otherwise than with reasonable dispatch. Every carrier shall have the 
right in case of physical necessity to forward said property by any 
carrier or route between the point of shipment and the point of 
destination. In all cases not prohibited by law, where a lower value 
than actual value has been represented in writing by the shipper or has 
been agreed upon in writing as the released value of the property as 
determined by the classification or tariffs upon which the rate is 
based, such lower value plus freight charges if paid shall be the 
maximum amount to be recovered, whether or not such loss or damage 
occurs from negligence.
    (b) As a condition precedent to recovery, claims must be filed in 
writing with the receiving or delivering carrier, or carrier issuing 
this bill of lading, or carrier on whose line the loss, damage, injury 
or delay occurred, within nine months after delivery of the property 
(or, in case of export traffic, within nine months after delivery at 
port of export) or, in case of failure to make delivery, then within 
nine months after a reasonable time for delivery has elapsed; and suits 
shall be instituted against any carrier only within two years and one 
day from the day when notice in writing is given by the carrier to the 
claimant that the carrier has disallowed the claim or any part or parts 
thereof specified in the notice. Where claims are not filed or suits are 
not instituted thereon in accordance with the foregoing provisions, no 
carrier hereunder shall be liable, and such claims will not be paid.
    (c) Any carrier or party liable on account of loss of or damage to 
any of said property shall have the full benefit of any insurance that 
may have been effected upon or on account of said property, so far as 
this shall not avoid the policies or contracts of insurance: Provided, 
That the carrier reimburse the claimant for the premium paid thereon.
    Sec. 3. Except where such service is required as the result of 
carrier's negligence, all property shall be subject to necessary 
cooperage and baling at owner's cost. Each carrier over whose route 
cotton or cotton linters is to be transported hereunder shall have the 
privilege, at its own cost and risk, of compressing the same for greater 
convenience in handling or forwarding, and shall not be held responsible 
for deviation or unavoidable delays in procuring such compression. Grain 
in bulk consigned to a point where there is a railroad, public or 
licensed elevator, may (unless otherwise expressly noted herein, and 
then if it is not promptly unloaded) be there delivered and placed with 
other grain of the same kind and grade without respect to ownership (and 
prompt notice thereof shall be given to the consignor), and if so 
delivered shall be subject to a lien for elevator charges in addition to 
all other charges hereunder.
    4. (a) Property not removed by the party entitled to receive it 
within the free time allowed by tariffs, lawfully on file (such free 
time to be computed as therein provided), after notice of the arrival of 
the property at

[[Page 95]]

destination or at the port of export (if intended for export) has been 
duly sent or given, and after placement of the property for delivery at 
destination has been made, may be kept in vessel, car, depot, warehouse 
or place of delivery of the carrier, subject to the tariff charge for 
storage and to carrier's responsibility as warehouseman, only, or at the 
option of the carrier, may be removed to and stored in a public or 
licensed warehouse at the place of delivery or other available place, at 
the cost of the owner, and there held without liability on the part of 
the carrier, and subject to a lien for all freight and other lawful 
charges, including a reasonable charge for storage.
    (b) Where nonperishable property which has been transported to 
destination hereunder is refused by consignee or the party entitled to 
receive it, or said consignee or party entitled to receive it fails to 
receive it within 15 days after notice of arrival shall have been duly 
sent or given, the carrier may sell the same at public auction to the 
highest bidder, at such place as may be designated by the carrier: 
Provided, That the carrier shall have first mailed, sent, or given to 
the consignor notice that the property has been refused or remains 
unclaimed, as the case may be, and that it will be subject to sale under 
the terms of the bill of lading if disposition be not arranged for, and 
shall have published notice containing a description of the property, 
the name of the party to whom consigned, or, if shipped order notify, 
the name of the party to be notified, and the time and place of sale, 
once a week for two successive weeks, in a newspaper of general 
circulation at the place of sale or nearest place where such newspaper 
is published: Provided, That 30 days shall have elapsed before 
publication of notice of sale after said notice that the property was 
refused or remains unclaimed was mailed, sent, or given.
    (c) Where perishable property which has been transported hereunder 
to destination is refused by consignee or party entitled to receive it, 
or said consignee or party entitled to receive it shall fail to receive 
it promptly, the carrier, may, in its discretion, to prevent 
deterioration or further deterioration, sell the same to the best 
advantage at private or public sale: Provided, That if time serves for 
notification to the consignor or owner of the refusal of the property or 
the failure to receive it, and request for disposition of the property, 
such notification shall be given, in such manner as the exercise of due 
diligence requires, before the property is sold.
    (d) Where the procedure provided for in the two paragraphs last 
preceding is not possible, it is agreed that nothing contained in said 
paragraphs shall be construed to abridge the right of the carrier at its 
option to sell the property under such circumstances and in such manner 
as may be authorized by law.
    (e) The proceeds of any sale made under this section shall be 
applied by the carrier to the payment of freight, demurrage, storage, 
and any other lawful charges and the expense of notice, advertisement, 
sale, and other necessary expense and of caring for and maintaining the 
property, if proper care of the same requires special expense, and 
should there be a balance it shall be paid to the owner of the property 
sold hereunder.
    (f) Property destined to or taken from a station, wharf, or landing 
at which there is no regularly appointed freight agent shall be entirely 
at risk of owner after unloaded from cars or vessels or until loaded 
into cars or vessels, and except in case of carrier's negligence, when 
received from or delivered to such stations, wharves, or landings shall 
be at owner's risk until the cars are attached to and after they are 
detached from locomotive or train or until loaded into and after 
unloaded from vessels.
    Sec. 5. No carrier hereunder will carry or be liable in any way for 
any documents, specie, or for any articles of extraordinary value not 
specifically rated in the published classifications or tariffs unless a 
special agreement to do so and a stipulated value of the articles are 
indorsed hereon.
    Sec. 6. Every party, whether principal or agent, shipping explosives 
or dangerous goods, without previous full written disclosure to the 
carrier of their nature, shall be liable for and indemnify the carrier 
against all loss or damage cased by such goods, and such goods may be 
warehoused at owner's risk and expense or destroyed without 
compensation.
    Sec. 7. The owner or consignee shall pay the freight and average, if 
any, and all other lawful charges accruing on said property; but, except 
in those instances where it may lawfully be authorized to do so, no 
carrier by railroad shall deliver or relinquish possession at 
destination of the property covered by this bill of lading until all 
tariff rates and charges thereon have been paid. The consignor shall be 
liable for the freight and all other lawful charges, except that if the 
consignor stipulates, by signature, in the space provided for that 
purpose on the face of this bill of lading that the carrier shall not 
make delivery without requiring payment of such charges and the carrier, 
contrary to such stipulation, shall make delivery without requiring such 
payment, the consignor (except as hereinafter provided) shall not be 
liable for such charges. Provided, that, where the carrier has been 
instructed by the shipper or consignor to deliver said property to a 
consignee other than the shipper or consignor, such consignee shall not 
be legally liable for transportation charges in respect of the 
transportation of said property (beyond those billed against him at the 
time of delivery for which he is otherwise liable) which may be found to 
be due after the property

[[Page 96]]

has been delivered to him, if the consignee (a) is an agent only and has 
no beneficial title in said property, and (b) prior to delivery of said 
property has notified the delivering carrier in writing of the fact of 
such agency and absence of beneficial title, and, in the case of a 
shipment reconsigned or diverted to a point other than that specified in 
the original bill of lading, has also notified the delivering carrier in 
writing of the name and address of the beneficial owner of said 
property; and, in such cases the shipper or consignor, or, in the case 
of a shipment so reconsigned or diverted, the beneficial owner, shall be 
liable for such additional charges. If the consignee has given to the 
carrier erroneous information as to who the beneficial owner is, such 
consignee shall himself be liable for such additional charges. On 
shipments reconsigned or diverted by an agent who has furnished the 
carrier in the reconsignment or diversion order with a notice of agency 
and the proper name and address of the beneficial owner, and where such 
shipments are refused or abandoned at ultimate destination, the said 
beneficial owner shall be liable for all legally applicable charges in 
connection therewith. If the reconsignor or diverter has given to the 
carrier erroneous information as to who the beneficial owner is, such 
reconsignor or diverter shall himself be liable for all such charges.
    If a shipper or consignor of a shipment of property (other than a 
prepaid shipment) is also the consignee named in the bill of lading and, 
prior to the time of delivery, notifies, in writing, a delivering 
carrier by railroad (a) to deliver such property at destination to 
another party, (b) that such party is the beneficial owner of such 
property, and (c) that delivery is to be made to such party only upon 
payment of all transportation charges in respect of the transportation 
of such property, and delivery is made by the carrier to such party 
without such payment, such shipper or consignor shall not be liable (as 
shipper, consignor, consignee, or otherwise) for such transportation 
charges but the party to whom delivery is so made shall in any event be 
liable for transportation charges billed against the property at the 
time of such delivery, and also for any additional charges which may be 
found to be due after delivery of the property, except that if such 
party prior to such delivery has notified in writing the delivering 
carrier that he is not the beneficial owner of the property, and has 
given in writing to such delivering carrier the name and address of such 
beneficial owner, such party shall not be liable for any additional 
charges which may be found to be due after delivery of the property; but 
if the party to whom delivery is made has given to the carrier erroneous 
information as to the beneficial owner, such party shall nevertheless be 
liable for such additional charges. If the shipper or consignor has 
given to the delivering carrier erroneous information as to who the 
beneficial owner is, such shipper or consignor shall himself be liable 
for such transportation charges, notwithstanding the foregoing 
provisions of this paragraph and irrespective of any provisions to the 
contrary in the bill of lading or in the contract of transportation 
under which the shipment was made. The term ``delivering carrier'' means 
the line-haul carrier making ultimate delivery.
    Nothing herein shall limit the right of the carrier to require at 
time of shipment the prepayment or guarantee of the charges. If upon 
inspection it is ascertained that the articles shipped are not those 
described in this bill of lading, the freight charges must be paid upon 
the articles actually shipped.
    Where delivery is made by a common carrier by water the foregoing 
provisions of this section shall apply, except as may be inconsistent 
with part III of the Interstate Commerce Act.
    Sec. 8. If this bill of lading is issued on the order of the 
shipper, or his agent, in exchange or in substitution for another bill 
of lading, the shipper's signature to the prior bill of lading as to the 
statement of value or otherwise, or election of common law or bill of 
lading liability, in or in connection with such prior bill of lading, 
shall be considered a part of this bill of lading as fully as if the 
same were written or made in or in connection with this bill of lading.
    Sec. 9. (a) If all or any part of said property is carried by water 
over any part of said route, and loss, damage or injury to said property 
occurs while the same is in the custody of a carrier by water the 
liability of such carrier shall be determined by the bill of lading of 
the carrier by water (this bill of lading being such bill of lading if 
the property is transported by such water carrier thereunder) and by and 
under the laws and regulations applicable to transportation by water. 
Such water carriage shall be performed subject to all the terms and 
provisions of, and all the exemptions from liability contained in the 
Act of Congress of the United States, approved on February 13, 1893, and 
entitled ``An act relating to the navigation of vessels, etc.'' and of 
other statutes of the United States according carriers by water the 
protection of limited liability as well as the following subdivisions of 
this section: and to the conditions contained in this bill of lading not 
inconsistent with this section, when this bill of lading becomes the 
bill of lading of the carrier by water.
    (b) No such carrier by water shall be liable for any loss or damage 
resulting from any fire happening to or on board the vessel, or from 
explosion, bursting of boilers or breakage of shafts, unless caused by 
the design or neglect of such carrier.
    (c) If the owner shall have exercised due diligence in making the 
vessel in all respects

[[Page 97]]

seaworthy and properly manned, equipped and supplied, no such carrier 
shall be liable for any loss or damage resulting from the perils of the 
lakes, seas, or other waters, or from latent defects in hull, machinery, 
or appurtenances whether existing prior to, at the time of, or after 
sailing, or from collision, stranding, or other accidents of navigation, 
or from prolongation of the voyage. And, when for any reason it is 
necessary, any vessel carrying any or all of the property herein 
described shall be at liberty to call at any port or ports, in or out of 
the customary route, to tow and be towed, to transfer, trans-ship, or 
lighter, to load and discharge goods at any time, to assist vessels in 
distress, to deviate for the purpose of saving life or property, and for 
docking and repairs. Except in case of negligence such carrier shall not 
be responsible for any loss or damage to property if it be necessary or 
is usual to carry the same upon deck.
    (d) General Average shall be payable according to the York-Antwerp 
Rules of 1924, sections 1 to 15, inclusive, and sections 17 to 22, 
inclusive, and as to matters not covered thereby according to the laws 
and usages of the Port of New York. If the owners shall have exercised 
due diligence to make the vessel in all respects seaworthy and properly 
manned, equipped and supplied, it is hereby agreed that in case of 
danger, damage or disaster resulting from faults or errors in 
navigation, or in the management of the vessel, or from any latent or 
other defects in the vessel, her machinery or appurtenance, or from 
unseaworthiness, whether existing at the time of shipment or at the 
beginning of the voyage (provided the latent or other defects or the 
unseaworthiness was not discoverable by the exercise of due diligence), 
the shippers, consignees and/or owners of the cargo shall nevertheless 
pay salvage and any special charges incurred in respect of the cargo, 
and shall contribute with the shipowner in general average to the 
payment of any sacrifices, losses or expenses of a general average 
nature that may be made or incurred for the common benefit or to relieve 
the adventure from any common peril.
    (e) If the property is being carried under a tariff which provides 
that any carrier or carriers party thereto shall be liable for loss from 
perils of the sea, then as to such carrier or carriers the provisions of 
this section shall be modified in accordance with the tariff provisions, 
which shall be regarded as incorporated into the conditions of this bill 
of lading.
    (f) The term ``water carriage'' in this section shall not be 
construed as including lighterage in or across rivers, harbors, or 
lakes, when performed by or on behalf of rail carriers.
    Sec. 10. Any alteration, addition, or erasure in this bill of lading 
which shall be made without the special notation hereon of the agent of 
the carrier issuing this bill of lading, shall be without effect, and 
this bill of lading shall be enforceable according to its original 
tenor.



PART 1037--RULES FOR THE HANDLING OF BULK GRAIN AND GRAIN PRODUCTS IN INTERSTATE COMMERCE, AND THE FILING, INVESTIGATION, AND DISPOSITION OF CLAIMS FOR LOSS AND 
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--Table of Contents





Sec.
1037.1  Weights and weighing.
1037.2  Cars.
1037.3  Claims.

    Authority: 49 U.S.C. 10321.

    Source: 40 FR 49342, Oct. 22, 1975, unless otherwise noted.



Sec. 1037.1   Weights and weighing.

    (a) How determined--Accuracy of the weights used in determining the 
quantity of grain and grain products received for transportation by 
carriers and delivered by them to consignees being of primary and 
fundamental importance, the use of estimated weights based upon the 
cubical contents of the load and the test weight per bushel of the grain 
and grain products, or otherwise, will not be accepted. All shipments 
shall be carefully weighed by competent weighers upon scales that are 
known to be accurate within the limits of tolerance stated in scale 
specifications.
    (b) Inspection of scales--Before weighing grain and grain products 
to and from cars, the scale and all other facilities to be used must be 
thoroughly inspected to ascertain whether they are in proper working 
condition, necessary adjustments or repairs, if any required, must be 
made, and an accurate and complete record thereof shall be entered at 
the time of inspection.
    (c) Shipping weights--Where the shipper weighs the grain or grain 
products for shipment and a claim for loss

[[Page 98]]

and damage is subsequently filed on that shipment, the shipper shall 
furnish the carrier with whom the claim is filed certificates of weight 
showing car initials and number; the kind of grain or grain products; 
the total scale weight; the type and house number of the scale used; the 
number of drafts and weight of each draft; the date and time of 
weighing; whether the weight is official, board-of-trade, grain-
exchange, State, or other supervised weight; and the number of grain 
doors used. This information should be furnished at the time the claim 
is filed.
    (d) Destination weights--Where the consignee weighs a shipment of 
grain or grain products and a claim for loss and damage is subsequently 
filed on the shipment, the consignee shall furnish the carrier with whom 
the claim is filed certificates of weight showing the car initials and 
number; the kind of grain or grain products; the total scale weight; the 
type and house number of the scale used; the number of drafts and weight 
of each draft, and the date and time of weighing; and whether the weight 
is official, board-of-trade, grain-exchange, State, or other supervised 
weight. This information should be furnished at the time the claim is 
filed.
    (e) A difference in weights at origin and destination, both of which 
are based on supervised scales, establishes prima facie that the loss 
occurred in transit and that the railroad is liable. When a difference 
in weights is based in part on an unsupervised weight, which 
nevertheless, was accepted by the railroad as the basis for assessing 
freight charges, such unsupervised weight in combination with a 
supervised weight establishes prima facie that the loss occurred in 
transit and the railroad is liable. When a difference in weights is 
based in part on an unsupervised weight, with the above exception, a 
prima facie case of railroad liability for loss in transit has not been 
established. Such difference in weights is a factor, however, to be 
considered in connection with other evidence that a clear-record car 
arrived at destination with seals intact and unbroken or that the 
shipper made a written complaint that any car placed for loading was 
defective, in response to which the railroad filed a written report 
after investigation of the complaint. See paragraph (c) of Sec. 1037.3.



Sec. 1037.2   Cars.

    A car is not in suitable condition for the transportation of bulk 
grain and grain products when it is defective. The rules prescribed in 
this part 1037 apply on shipments transported solely in railroad-owned 
and railroad-leased cars.

[57 FR 54334, Nov. 18, 1992]



Sec. 1037.3   Claims.

    (a) In computing the amount of the loss for which the carrier will 
pay there will be deducted from the gross amount of the ascertained 
actual loss one-fourth of 1 percent of the established loading weight to 
cover invisible loss and waste; provided, however, that where grain and 
grain products heat in transit and investigation shows that the 
invisible loss resulting therefrom exceeded one-fourth of 1 percent of 
such other amount as may hereafter be fixed in the manner above stated, 
and that the carrier is not otherwise liable for said loss, then the 
ascertained actual amount of the invisible loss due to heating of the 
grain and grain products will be deducted.
    (b) Where investigation discloses a defect in equipment, seal or 
seal record, or a transfer in transit by the carrier of a carload of 
bulk grain or grain products upon which the unloading weight is less 
than the loading weight and the shipper furnishes duly attested 
certificates showing the correctness of the claimed weight, and 
investigation fails to show that the discrepancy is due to defective 
scales or other shipper facilities, or to inaccurate weighing or other 
error at point of origin or destination, or to fraud, then the resulting 
claim will be adjusted subject to the deductions authorized in the 
immediately preceding paragraph (a) of this Sec. 1037.3; provided, 
however, that the clear record of either the carrier's or shippers' 
facilities shall not be interpreted as affecting or changing the burden 
of proof now lawfully resting upon either party. Therefore, movement in 
a clear-record car is not conclusive evidence of the fact that the car 
is not defective. It must be considered along with other evidence to

[[Page 99]]

determine liability. See paragraph (e) of Sec. 1037.1
    (c) In case of a disputed claim, the records of both the carrier and 
the claimant affecting the shipment involved shall be available to both 
parties. These records shall include a written complaint, if any, filed 
by the shipper with the railroad at the time the car was placed for 
loading that the car was defective, and the written report of an 
investigation of the complaint, filed by the railroad with the shipper, 
if made.



PART 1039--EXEMPTIONS--Table of Contents




Sec.
1039.10  Exemption of agricultural commodities except grain, soybeans, 
          and sunflower seeds.
1039.11  Miscellaneous commodities exemptions.
1039.12  Long and short haul transportation exemption.
1039.13  Rail intermodal transportation exemption.
1039.14  Boxcar transportation exemption and rules.
1039.16  Exemption of new highway trailers or containers.
1039.17  Protective service contracts exemption.
1039.20  Storage leases.
1039.21  International joint through rates.
1039.22  Exemption of certain payments, services, and commitments from 
          the Elkins Act and related provisions.

    Authority: 5 U.S.C. 553; 49 U.S.C. 10502 and 13301.

    Source: 47 FR 50262, Nov. 5, 1982, unless otherwise noted.



Sec. 1039.10  Exemption of agricultural commodities except grain, soybeans, and sunflower seeds.

    The rail transportation of the commodities listed below is exempt 
from the provisions of subtitle IV of title 49, except that carriers 
must continue to comply with Commission accounting and reporting 
requirements, including a brief statement in their annual reports of 
operations under this exemption, and must maintain copies of rates, 
charges, rules or regulations, for traffic moved under this exemption, 
at their principal office, subject to inspection, and send a letter of 
notification to the docket [Ex Parte No. 346 (Sub-No. 14)], within 30 
days, of the fact that they are using the exemption. All tariffs 
pertaining to the transportation of these miscellaneous commodities will 
no longer apply except to the extent adopted by carrier quotations. The 
categories of commodities which are exempt under this decision, by 
Standard Transportation Commodity Code (STCC) number are:

                                                                        
01..................................  Farm products, with the exception 
                                       of grain (STCC No. 0113),        
                                       soybeans (STCC No. 01144), and   
                                       sunflower seeds (STCC No.        
                                       0114940).                        
09..................................  Fresh fish and other marine       
                                       products.                        
20-11...............................  Fresh meat.                       
20-15...............................  Fresh dressed poultry.            
20-17...............................  Processed poultry.                
20-21...............................  Creamery Butter.                  
20-23...............................  Condensed, Evaporated or Dried    
                                       Milk.                            
20-25...............................  Cheese and Special Dairy Products.
20-26...............................  Processed Whole Milk.             
20-141..............................  Hides and Skins.                  
20-144..............................  Animal refuse, tankage, or meat   
                                       meal.                            
20-421-27...........................  Citrus pomace.                    
20-712-12...........................  Shelled walnuts.                  
20-914-25...........................  Cottonseed hulls.                 
20-915..............................  Cotton linters.                   
20-999-29...........................  Butter and honey mixed.           
20-999-41...........................  Honey, comb, granulated or        
                                       strained, or heat treated to     
                                       retard granulation.              
20-999-76...........................  Freeze-dried poultry.             
20-999-77...........................  Freeze-dried meat.                
20-999-78...........................  Freeze-dried salad ingredients.   
20-999-93...........................  Fresh and salted meat and products
                                       mixed, not hung.                 
20-999-94...........................  Fresh and salted meat and products
                                       mixed, hung and not hung.        
21-4................................  Stemmed or redried tobacco.       
22-811-30...........................  Cotton, carded, dyed or not dyed, 
                                       but not spun, woven or knitted,  
                                       but including cotton lap.        
22-911-63...........................  Matress felt, nec, cjors, not     
                                       finished.                        
22-911-74...........................  Felts, cotton, nec.               
22-971-35...........................  Wool, nec, scoured.               
22-995-22...........................  Flax fibre.                       
22-999-26...........................  Cotton linters, bleached or dyed. 
28-423-37...........................  Beeswax.                          
                                                                        

and shall embrace all articles assigned additional digits. The STCC 
shall be those code numbers in effect as of January 1, 1979, as shown in 
Standard Transportation Commodity Code Tariff 1-G, ICC STCC 6001-C. 
Nothing in this exemption shall be construed to affect our jurisdiction 
under section 10505 or our ability to enforce this decision or any 
subsequent decision made under authority of this exemption section. This 
exemption shall remain in effect, unless modified or revoked by a 
subsequent order of this Commission.

[48 FR 9277, Mar. 4, 1983; 49 FR 22095, May 25, 1984, as amended at 49 
FR 26745, June 29, 1984; 49 FR 27321, July 3, 1984]

[[Page 100]]



Sec. 1039.11  Miscellaneous commodities exemptions.

    (a) Commodities exempted. Except as indicated in paragraph (b) of 
this section, the rail transportation of the commodities listed below is 
exempt from the provisions of 49 U.S.C. subtitle IV. The Standard 
Transportation Commodity Code (STCC) numbers that identify the exempted 
commodities are those in effect on the effective date of the tariff 
cited, and shall embrace all commodities assigned additional digits.


------------------------------------------------------------------------
            STCC No.                  STCC tariff          Commodity    
------------------------------------------------------------------------
14 1............................  6001-T, eff. 1-1-   Dimension stone,  
                                   92.                 quarry.          
14 2............................  ......do..........  Crushed or broken 
                                                       stone or riprap. 
14 411..........................  ......do..........  Sand (aggregate or
                                                       ballast).        
14 412..........................  ......do..........  Gravel (aggregate 
                                                       or ballast).     
20..............................  ......do..........  Food or kindred   
                                                       products except  
                                                      20 143 Grease or  
                                                       inedible tallow. 
                                                      20 32 Canned      
                                                       specialties.     
                                                      20 33 Canned      
                                                       fruits, jams,    
                                                       jellies,         
                                                       preserves or     
                                                       vegetables.      
                                                      20 4 Grain mill   
                                                       products.        
                                                      20 6 Sugar, beet  
                                                       or cane.         
                                                      20 8 Beverages or 
                                                       flavoring        
                                                       extracts.        
                                                      20 911 Cottonseed 
                                                       oil, crude or    
                                                       refined.         
                                                      20 914 Cottonseed 
                                                       cake or meal or  
                                                       by-products.     
                                                      20 92 Soybean oil 
                                                       or by-products.  
                                                      20 93 Nut or      
                                                       vegetable oils or
                                                       by-products.     
22..............................  ......do..........  Textile mill      
                                                       products.        
23..............................  ......do..........  Apparel or other  
                                                       finished textile 
                                                       products or knit 
                                                       apparel.         
24..............................  ......do..........  Lumber or wood    
                                                       products.        
25..............................  ......do..........  Furniture or      
                                                       fixtures.        
26..............................  ......do..........  Pulp, paper or    
                                                       allied products  
                                                       except           
                                                      26 1 Pulp or pulp 
                                                       mill products.   
                                                      26 211 Newsprint. 
                                                      26 212 Ground wood
                                                       paper, uncoated. 
                                                      26 213 Printing   
                                                       paper, coated or 
                                                       uncoated, etc.   
                                                      26 214 Wrapping   
                                                       paper, wrappers  
                                                       or coarse paper. 
                                                      26 218 Sanitary   
                                                       tissue stock.    
                                                      26 471 Sanitary   
                                                       tissues or health
                                                       products.        
                                                      26 6 Building     
                                                       paper or building
                                                       board except     
                                                      26 613 Wallboard. 
27..............................  ......do..........  Printed matter.   
28 195 22-23....................  ......do..........  Iron chloride,    
                                                       liquid.          
28 195 27-30....................  ......do..........  Iron sulphate.    
28 195 68-69....................  ......do..........  Ferrous sulphate. 
29 914..........................  ......do..........  Coke produced from
                                                       coal.            
29 915..........................  ......do..........  Distillate or     
                                                       residual fuel oil
                                                       from coal        
                                                       refining.        
30..............................  ......do..........  Rubber or         
                                                       miscellaneous    
                                                       plastics products
                                                       except           
                                                      30 111 Rubber     
                                                       pneumatic tires  
                                                       or parts.        
31..............................  ......do..........  Leather or leather
                                                       products.        
32..............................  ......do..........  Clay, concrete,   
                                                       glass or stone   
                                                       products except  
                                                      32 411 Hydraulic  
                                                       cement, natural, 
                                                       portland or      
                                                       masonry.         
                                                      32 741 Lime or    
                                                       lime plaster.    
                                                      32 95 Nonmetallic 
                                                       earths or        
                                                       minerals, ground 
                                                       or treated in any
                                                       other manner     
                                                       except           
                                                      32 952 15 Cinders,
                                                       clay, shale      
                                                       expanded shale), 
                                                       slate or volcanic
                                                       (not pumice      
                                                       stone), or       
                                                       haydrite.        
33..............................  ......do..........  Primary metal     
                                                       products,        
                                                       including        
                                                       galvanized.      
34..............................  ......do..........  Fabricated metal  
                                                       products except  
                                                      34 6 Metal        
                                                       stampings.       
                                                      34 919 40         
                                                       Radioactive      
                                                       material shipping
                                                       containers, etc. 
35..............................  ......do..........  Machinery except  
                                                      35 11 Steam       
                                                       engines,         
                                                       turbines, turbine
                                                       generator sets,  
                                                       or parts.        
                                                      35 85             
                                                       Refrigerators or 
                                                       refrigeration    
                                                       machinery or     
                                                       complete air-    
                                                       conditioning     
                                                       units.           
36..............................  ......do..........  Electrical        
                                                       machinery,       
                                                       equipment or     
                                                       supplies except  
                                                      36 12 Power,      
                                                       distribution or  
                                                       specialty        
                                                       transformers.    
                                                      36 21 Motors or   
                                                       generators.      
37 11...........................  ......do..........  Motor vehicles.   
37 14...........................  ......do..........  Motor vehicle     
                                                       parts or         
                                                       accessories.     
38..............................  ......do..........  Instruments,      
                                                       photographic     
                                                       goods, optical   
                                                       goods, watches or
                                                       clocks.          
39..............................  ......do..........  Miscellaneous     
                                                       products of      
                                                       manufacturing.   
41 118..........................  6001-U, eff. 1-1-   Used vehicles.    
                                   93.                                  
14 715..........................  6001-V, eff. 1-1-   Rock salt.        
                                   94.                                  
20 143..........................  ......do..........  Grease or inedible
                                                       tallow.          
28 133..........................  ......do..........  Carbon dioxide.   
28 991..........................  ......do..........  Salt.             
32-4............................  ......do..........  Hydraulic cement, 
                                                       except shipments 
                                                       from the Dacotah 
                                                       Cement plant at  
                                                       Rapid City, SD.  
34 912..........................  6001-W, eff. 1-1-   Steel shipping    
                                   95..                containers.      
40 211..........................  ......do..........  Iron and steel    
                                                       scrap.           
33 119..........................  6001-X, eff. 1-11-  Blast furnace,    
                                   96.                 open hearth,     
                                                       rolling mill or  
                                                       coke oven        
                                                       products, NEC.   
------------------------------------------------------------------------


Also excepted from this exemption are those recyclable products 
specifically identified by the Commission at 356 I.C.C. 445-447, those 
commodities previously exempt, and any transportation service regarding 
which the Commission has made a finding of market dominance. However, 
this exemption shall not be construed as affecting in any way the 
existing regulations, agreements, prescriptions, conditions, allowances 
or levels of compensation

[[Page 101]]

regarding the use of equipment, whether shipper or railroad owned or 
leased, including car hire, per diem and mileage allowances, and also 
including exemption from the anti-trust laws necessary to negotiate car 
service regulations or mandatory interchange of equipment or to maintain 
and execute such agreements. Nor shall this exemption be construed to 
affect existing Class III railroad ``protections'' in the case of 
boxcars.
    (b) Conditions. Carriers must continue to comply with Commission 
accounting and reporting requirements. All railroad tariffs pertaining 
to the transportation of these miscellaneous commodities will no longer 
apply. This exemption shall remain in effect, unless modified or revoked 
by a subsequent order of this Commission.

[48 FR 24901, June 3, 1983, as amended at 48 FR 33306, July 21, 1983; 48 
FR 55744, Dec. 15, 1983; 54 FR 51402, Dec. 15, 1989; 56 FR 31547, July 
11, 1991; 58 FR 4356, Jan. 14, 1993; 58 FR 27951, May 12, 1993; 58 FR 
43818, Aug. 18, 1993; 58 FR 53434, Oct. 15, 1993; 59 FR 51134, Oct. 7, 
1994; 59 FR 59663, Nov. 18, 1994; 59 FR 63926, Dec. 12, 1994; 60 FR 
26840, May 19, 1995; 60 FR 38281, July 26, 1995; 61 FR 7426, Feb. 28, 
1996; 61 FR 47446, Sept. 9, 1996]

    Effective Date Note: At 61 FR 47446, Sept. 9, 1996, Sec. 1039.11 was 
amended by adding entry ``33 119'' to the table in paragraph (a), 
effective, October 9, 1996.



Sec. 1039.12  Long and short haul transportation exemption.

    (a) All rates and charges for rail transportation are exempt from 
the provisions of 49 U.S.C. 10726 to the extent that:
    (1) Commission approval or consideration before the effective date 
of these rates and charges is not required; and
    (2) Section 10707 will not apply to rates to the extent that they 
are challenged on the basis of alleged violations of section 10726.
    (b) This exemption does not extend to review by the Commission upon 
the filing of a formal complaint alleging a violation of section 10726. 
Commission review will, however, be subject to the following conditions:
    (1) A showing that a rate violates section 10726 will not create a 
presumption that the higher rate is unreasonably high, and
    (2) A finding by the Commission that a rate or charge violates the 
provisions of section 10726 will not, absent a specific showing of 
damages, afford a basis for an award of reparations.

[48 FR 9649, Mar. 8, 1983]



Sec. 1039.13  Rail intermodal transportation exemption.

    See Part 1090.

[52 FR 23660, June 24, 1987]



Sec. 1039.14  Boxcar transportation exemptions and rules.

    (a) The Rail transportation of all commodities in boxcars is exempt 
from the provisions of 49 U.S.C. subtitle IV except as otherwise 
provided in this section.
    (b) The Commission retains jurisdiction in the following areas:
    (1) Car hire and car service.
    (2) Mandatory interchange of equipment.
    (3) Reciprocal switching or joint use of terminal facilities.
    (4) Car supply.
    (5) Freight car pooling agreements.
    (6) Freight rates applicable to boxcar traffic originating or 
terminating at an industry facility served physically by a Class III 
rail carrier, to the extent provided in paragraphs (c)(4) and (c)(5) of 
this section.
    (c)(1) Except as provided in paragraph (c)(2) of this section, 
carriers are authorized to take the following actions with respect to 
boxcar equipment use:
    (i) Assess charges for empty movement of cars where movements are 
made at the request of the car owner, the Association of American 
Railroads, or the Commission. The empty mileage charge is subject to a 
maximum of 35 cents per mile, as adjusted for inflation or deflation 
using the rail cost adjustment factors published periodically by the 
Commission in Ex Parte No. 290 (Sub-No. 2), Railroad Cost Recovery 
Procedures. In applying those factors, the figure of 35 cents will be 
treated as having been in effect on October 1, 1982.
    (ii) Store empty cars and reclaim car hire payments beginning at the 
expiration of a 72-hour grace period after the car is made empty.

[[Page 102]]

    (iii) Negotiate bilateral agreements governing car hire rates, empty 
movements, and storage.
    (2) The authorization in paragraphs (c)(1) (i) and (ii) of this 
section will not apply to excluded carriers, as defined in paragraph 
(c)(2)(i) of this section, nor will it apply to any boxcar which, on 
December 30, 1983, was owned or leased by a carrier which then would 
have qualified as an excluded carrier and which bears the reporting 
marks of an excluded carrier.
    (i) An ``excluded carrier'' is a Class III carrier or a Class II 
carrier not affiliated with one or more Class I carriers. To be 
affiliated, the Class II carrier must be more than 50 percent owned by 
one or more Class I carriers.
    (ii) The boxcar exclusion of paragraph (c)(2) of this section will 
apply:
    (A) To an excluded boxcar whenever it is owned or leased by any 
Class III carrier and bears a Class III carrier's reporting marks; and
    (B) To an excluded boxcar owned or leased by an excluded Class II 
carrier beginning on October 16, 1986, and ending on October 31, 1990, 
so long as such boxcar has not been otherwise owned or leased by another 
carrier during this period.
    (iii) The exclusion will not apply during any period in which an 
excluded boxcar is leased or assigned to a Class I or affiliated Class 
II carrier. If an excluded Class II carrier becomes a Class III carrier 
within the period under Sec. 1039.14(c)(2)(ii)(B), that carrier will 
thereafter, for purposes of this rule, be treated as if it had been a 
Class III carrier on December 10, 1983.
    (iv) Nothing in paragraph (c)(2) of this section will affect the 
right of any carrier to negotiate bilateral agreements governing car 
hire rates and rules.
    (3) The hourly and mileage car hire rates in effect on January 1, 
1985, as published in AAR Traffic Circular No. OT-10, for any boxcar 
excluded under paragraph (c)(2) of this section, will remain in effect 
without regard to the aging of such car subsequent to January 1, 1986, 
and any modification to the existing car hire formula will not apply to 
such cars. With respect to an excluded boxcar owned or leased by an 
excluded Class II carrier, those car hire rates shall remain in effect 
through October 31, 1990. Any improvements subsequent to January 1, 
1985, to the excluded boxcars capitalized under OT-37 criteria or under 
rebuilt criteria will be subject to the same formula applicable to OT-37 
or rebuilt cars under Ex Parte No. 334 or any other railroad car hire 
proceeding, including any efficiency ratio, if adopted. Any improvements 
or repairs subsequent to December 31, 1990, to the excluded boxcars 
performed under OT-37 criteria or under rebuilt criteria or any other 
criteria shall not result in any increases, additions, or surcharges in 
the car hire rates for such cars.
    (4) No freight rate made effective after April 1, 1985, that applies 
to traffic moving by boxcar and originating or terminating at an 
industry facility served physically by a Class III rail carrier may 
discriminate while these rules are in effect on the basis of:
    (i) The ownership of the boxcar used or the reporting marks any such 
boxcar bears;
    (ii) The car hire rate applicable to the boxcar used; or
    (iii) Any car hire discounts, in the form of reclaims or otherwise, 
available to any carriers with respect to the boxcar used.

Except as prohibited above, carriers may use car ownership or car marks 
for identification purposes when establishing rates.
    (5) The provisions of 49 U.S.C. 10705 and 10705a applicable to joint 
rates and through routes will be effective as to rates and routes 
applicable to boxcar traffic originating or terminating at an industry 
facility served physically by a Class III rail carrier.
    (6) The following carriers are not regarded as Class III or 
unaffiliated Class II carriers for the purpose of this section:

Central New York Railroad Corporation
Cooperstown and Charlotte Valley Railway Corporation
Fonda, Johnstown & Gloversville Railroad Corporation
Lackawaxen and Stourbridge Railroad Corporation
New York, Susquehanna & Western Railway Corporation
Rahway Valley Railroad Company
Staten Island Railway Corporation.


[[Page 103]]


    (d) Carriers must continue to comply with Commission accounting and 
reporting requirements. Railroad tariffs pertaining to the exempted 
transportation of commodities in boxcars will no longer apply. This 
exemption shall remain in effect, unless modified or revoked by a 
subsequent order of this Commission.

[48 FR 20415, May 6, 1983, as amended at 50 FR 20419, May 16, 1985; 51 
FR 32656, Sept. 15, 1986; 51 FR 32922, Sept. 17, 1986; 52 FR 37971, Oct. 
13, 1987; 55 FR 41339, Oct. 11, 1990; 57 FR 53451, Nov. 10, 1992; 57 FR 
56641, Nov. 30, 1992; 61 FR 26847, May 29, 1996]



Sec. 1039.16  Exemption of new highway trailers or containers.

    The rail transportation of new highway trailers or containers (which 
is not otherwise exempt) is exempt from the provisions of 49 U.S.C. 
Subtitle IV, except that carriers must continue to comply with the 
Commission's accounting and reporting requirements. This exemption will 
remain in effect unless modified or revoked by subsequent order of this 
Commission.

[52 FR 17404, May 8, 1987]



Sec. 1039.17  Protective service contracts exemption.

    Contracts for protective services against heat or cold, provided to 
or on behalf of rail carriers and express companies, are exempt from the 
requirements of 49 U.S.C. 11105. Nothing in this exemption shall be 
construed to affect our jurisdiction under section 10505 or our ability 
to enforce this decision or any subsequent decision made under authority 
of this exemption section. This exemption shall remain in effect, unless 
modified or revoked by a subsequent order of this Commission.

[49 FR 19025, May 4, 1984]



Sec. 1039.20  Storage leases.

    Storage leases for all equipment for all carrriers are exempt from 
the provisions of 49 U.S.C. subtitle IV except for 49 U.S.C. 11123. 
Nothing in this exemption should be construed to affect our jurisdiction 
under section 10505 or our ability to enforce this decision or any 
subsequent decision made under authority of this exemption section. This 
exemption shall remain in effect, unless modified or revoked by a 
subsequent decision of this Commission.

[51 FR 46675, Dec. 24, 1986]



Sec. 1039.21  International joint through rates.

    Rail carriers are exempt from the provisions of Sec. 1312.37 that 
require the filing of tariffs containing international joint through 
rates. Rail carriers must continue to comply with Commission accounting 
and reporting requirements. This exemption shall remain in effect, 
unless modified or revoked by a subsequent order of this Commission.

[51 FR 27046, July 29, 1986]



Sec. 1039.22  Exemption of certain payments, services, and commitments from the Elkins Act and related provisions.

    (a) Whenever a rail carrier:
    (1) Provides payments or services for industrial development 
activities; or,
    (2) Makes commitments regarding future transportation;

and reasonably determines that such payments, services or commitments 
would not be eligible for inclusion in rail contracts under 49 U.S.C. 
10713, such transaction(s) shall be exempt from 49 U.S.C. 10761(a), 
10762(a)(1), 11902, 11903, and 11904(a), subject to the conditions set 
forth in paragraphs (b) through (e) of this section.
    (b) If any interested person(s) believes a transaction is eligible 
for inclusion in one or more contracts under 49 U.S.C. 10713, that 
person's exclusive remedy shall be to request the Commission to so 
determine, and if the Commission does so, the transaction shall no 
longer be exempted by this section commencing 60 days after the date of 
the Commission's determination.
    (c) Transactions that are exempt under paragraph (a) of this section 
shall be subject to all other applicable provisions of Title 49 U.S.C. 
Subtitle IV and to the antitrust laws to the extent that the activity 
does not fall within the Commission's exclusive jurisdiction.
    (d) For any actual movement of traffic, a carrier must file any 
required tariff or section 10713 contract, and

[[Page 104]]

conform to all other applicable provisions of the Interstate Commerce 
Act, but this paragraph shall not be interpreted to limit, revoke, or 
remove the effect of the exemption granted under paragraph (a) of this 
section with respect to any payments, services, or commitments made 
prior to the filing of the rate or contract.
    (e) When any person files with the Commission a petition to revoke 
the exemption granted by this section as to any specific transaction, 
the rail carrier shall have the burden of showing that, with respect to 
such transaction, all requirements of paragraph (a) of this section were 
met, and the carrier reasonably expected, before undertaking such 
payments, services or commitments, that such payments, services or 
commitments would result, within a reasonable time, in a contribution to 
the carrier's going concern value.
    (f) This exemption shall remain in effect unless modified or revoked 
by a subsequent order of this Commission.

[57 FR 11913, Apr. 8, 1992]



PARTS 1040-1069--MOTOR CARRIERS--BROKERS--GENERAL--Table of Contents






PART 1043--SURETY BONDS AND POLICIES OF INSURANCE--Table of Contents




Sec.
1043.1  Surety bond, certificate of insurance, or other securities.
1043.2  Security for the protection of the public: Minimum limits.
1043.3  Combination vehicles.
1043.4  Property broker surety bond or trust fund.
1043.5  Qualifications as a self-insurer and other securities or 
          agreements.
1043.6  Bonds and certificates of insurance.
1043.7  Forms and procedures.
1043.8  Insurance and surety companies.
1043.9  Refusal to accept, or revocation by the Commission of surety 
          bonds, etc.
1043.10  Fiduciaries.
1043.11  Operations in foreign commerce.
1043.12  Electronic filing of surety bonds, trust fund agreements, 
          certificates of insurance and cancellations.

    Authority 49 U.S.C. 10101, 10321, 11701, 10927; 5 U.S.C. 553.

    Source: 32 FR 20032, Dec. 20, 1967, unless otherwise noted.

    Cross Reference: Prescribed forms relating to this part are listed 
in Part 1003 of this chapter.



Sec. 1043.1  Surety bond, certificate of insurance, or other securities.

    (a) Public liability. (1) No common or contract carrier or foreign 
(Mexican) motor private carrier or foreign motor carrier transporting 
exempt commodities subject to subchapter II, chapter 105, subtitle IV of 
title 49 of the U.S. Code shall engage in interstate or foreign 
commerce, and no certificate or permit shall be issued to such a carrier 
or remain in force unless and until there shall have been filed with and 
accepted by the Commission surety bonds, certificates of insurance, 
proof of qualifications as self-insurer, or other securities or 
agreements, in the amounts prescribed in Sec. 1043.2, conditioned to pay 
any final judgment recovered against such motor carrier for bodily 
injuries to or the death of any person resulting from the negligent 
operation, maintenance or use of motor vehicles in transportation 
subject to subchapter II, chapter 105, subtitle IV of title 49 of the 
U.S. Code, or for loss of or damage to property of others, or, in the 
case of motor carriers of property operating freight vehicles described 
in Sec. 1043.2(b)(2) of this part, for environmental restoration.
    (2) Motor Carriers of property which are subject to the conditions 
set forth in paragraph (a)(1) of this section and transport the 
commodities described in Sec. 1043.2(b)(2), are required to obtain 
security in the minimum limits prescribed in Sec. 1043.2(b)(2).
    (b) Common carriers-cargo insurance; exempt commodities. No common 
carrier by motor vehicle subject to subchapter II, chapter 105, subtitle 
IV of title 49 of the U.S. Code nor any foreign (Mexican) common carrier 
of exempt commodities shall engage in interstate or foreign commerce, 
nor shall any certificate be issued to such a carrier or remain in force 
unless and until there shall have been filed with and accepted by the 
Commission, a surety bond, certificate of insurance, proof of 
qualifications as a self-insurer, or other securities or agreements in 
the amounts prescribed in Sec. 1043.2, conditioned upon such carrier 
making compensation to shippers or consignees for all property

[[Page 105]]

belonging to shippers or consignees and coming into the possession of 
such carrier in connection with its transportation service: Provided, 
That the requirements of this paragraph shall not apply in connection 
with the transportation of the following commodities:

Agricultural ammonium nitrate.
Agricultural nitrate of soda.
Anhydrous ammonia--used as a fertilizer only.
Ashes, wood or coal.
Bituminous concrete (also known as blacktop or amosite), including 
mixtures of asphalt paving.
Cement, dry, in containers or in bulk.
Cement, building blocks.
Charcoal.
Chemical fertilizer.
Cinder blocks.
Cinders, coal.
Coal.
Coke.
Commercial fertilizer.
Concrete materials and added mixtures.
Corn cobs.
Cottonseed hulls.
Crushed stone.
Drilling salt.
Dry fertilizer.
Fish scrap.
Fly ash.
Forest products; viz: Logs, billets, or bolts, native woods, Canadian 
wood or Mexican pine; pulpwood, fuel wood, wood kindling; and wood 
sawdust or shavings (shingle tow) other than jewelers' or paraffined.
Foundry and factory sweepings.
Garbage.
Gravel, other than bird gravel.
Hardwood and parquet flooring.
Haydite.
Highway construction materials, when transported in dump trucks and 
unloaded at destination by dumping.
Ice.
Iron ore.
Lime and limestone.
Liquid fertilizer solutions, in bulk, in tank vehicles.
Lumber.
Manure.
Meat scraps.
Mud drilling salt.
Ores, in bulk, including ore concentrates.
Paving materials, unless contain oil hauled in tank vehicles.
Peat moss.
Peeler cores.
Plywood.
Poles and piling, other than totem poles.
Potash, used as commercial fertilizer.
Pumice stone, in bulk in dump vehicles.
Salt, in bulk or in bags.
Sand, other than asbestos, bird, iron, monazite, processed, or tobacco 
sand.
Sawdust.
Scoria stone.
Scrap iron.
Scrap steel.
Shells, clam, mussel, or oyster.
Slag, other than slag with commercial value for the further extraction 
of metals.
Slag, derived aggregates--cinders.
Slate, crushed or scrap.
Slurry, as waste material.
Soil, earth or marl, other than infusorial, diatomaceous, tripoli, or 
inoculated soil or earth.
Stone, unglazed and unmanufactured, including ground agricultural 
limestone.
Sugar beet pulp.
Sulphate of ammonia, bulk, used as fertilizer.
Surfactants.
Trap rock.
Treated poles.
Veneer.
Volcanic scoria.
Waste, hazardous and nonhazardous, transported solely for purposes of 
disposal.
Water, other than mineral or prepared--water.
Wood chips, not processed.
Wooden pallets, unassembled.
Wreck or disabled motor vehicles.
Other materials or commodities of low value, upon specific application 
to and approval by the Commission.

    (c) Continuing compliance required. Such security as is accepted by 
the Commission in accordance with the requirements of section 10927, 
subchapter II, chapter 109, subtitle IV of title 49 of the U.S. Code, 
shall remain in effect at all times.

[48 FR 51780, Nov. 14, 1983, as amended at 60 FR 63981, Dec. 13, 1995]



Sec. 1043.2  Security for the protection of the public: Minimum limits.

    (a) Definitions. (1) Primary security means public liability 
coverage provided by the insurance or surety company responsible for the 
first dollar of coverage.
    (2) Excess security means public liability coverage above the 
primary security, or above any additional underlying security, up to and 
including the required minimum limits set forth in paragraph (b)(2) of 
this section.
    (b)(1) Motor carriers subject to Sec. 1043.1(a)(1) are required to 
have security for the required minimum limits as follows:
    (i) Small freight vehicles:

[[Page 106]]



------------------------------------------------------------------------
                                          Transportation        Minimum 
          Kind of equipment                  provided           limits  
------------------------------------------------------------------------
Fleet including only vehicles under   Commodities not           $300,000
 10,000 pounds GVWR.                   subject to Sec.                  
                                       1043.2(b)(2)(d).                 
------------------------------------------------------------------------

    (ii) Passenger carriers

                            Kind of Equipment                           
------------------------------------------------------------------------
                                                     Effective dates    
                                               -------------------------
           Vehicle seating capacity               Nov. 19,     Nov. 19, 
                                                    1983         1985   
------------------------------------------------------------------------
(1) Any vehicle with a seating capacity of 16                           
 passengers or more...........................   $2,500,000   $5,000,000
(2) Any vehicle with a seating capacity of 15                           
 passengers or less...........................      750,000    1,500,000
------------------------------------------------------------------------

    (2) Motor carriers subject to Sec. 1043.1(a)(2) are required to have 
security for the required minimum limits as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                            July 1,     July 1, 
             Kind of equipment                          Commodity transported                1983*       1984*  
----------------------------------------------------------------------------------------------------------------
(a) Freight Vehicles of 10,000 Pounds or    Property (non-hazardous)....................    $500,000    $750,000
 More GVWR.                                                                                                     
(b) Freight Vehicles of 10,000 Pounds or    Hazardous substances, as defined in Sec.       1,000,000   5,000,000
 More GVWR.                                  171.8, transported in cargo tanks, portable                        
                                             tanks, or hopper-type vehicles with                                
                                             capacities in excess of 3,500 water                                
                                             gallons, or in bulk Class A or B                                   
                                             explosives, poison gas (Poison A) liquefied                        
                                             compressed gas or compressed gas, or                               
                                             highway route controlled quantity                                  
                                             radioactive materials as defined in Sec.                           
                                             173.455.                                                           
(c) Freight Vehicles of 10,000 Pounds or    Oil listed in Sec.  172.101; hazardous           500,000   1,000,000
 More GVWR.                                  waste, hazardous materials and hazardous                           
                                             substances defined in Sec.  171.8 and                              
                                             listed in Sec.  172.101, but not mentioned                         
                                             in (b) above or (d) below.                                         
(d) Freight Vehicles Under 10,000 Pounds    Any quantity of Class A or B explosives; any   1,000,000   5,000,000
 GVWR.                                       quantity of poison gas (Poison A); or                              
                                             highway route controlled quantity                                  
                                             radioactive materials as defined in Sec.                           
                                             173.455.                                                           
----------------------------------------------------------------------------------------------------------------
*Note: The effective date of the current required minimum limit in Sec.  1043.2(b)(2)(d) was January 6, 1983, in
  accordance with the requirements of Pub. L. 97-424, 96 Stat. 2097.                                            

    (3) Motor carriers subject to the minimum limits governed by this 
section, which are also subject to Department of Transportation limits 
requirements, are at no time required to have security for more than the 
required minimum limits established by the Secretary of Transportation 
in the applicable provisions of 49 CFR Part 387--Minimum Levels of 
Financial Responsibility for Motor Carriers.
    (4) Foreign motor carriers and foreign motor private carriers. 
Foreign motor carriers and foreign motor private carriers (Mexican), 
subject to the requirements of 49 U.S.C. 10530 and 49 CFR part 1171 
regarding obtaining certificates of registration from the Commission, 
must meet our minimum financial responsibility requirements by obtaining 
insurance coverage, in the required amounts, for periods of 24 hours or 
longer, from insurance or surety companies, that meet the requirements 
of 49 CFR 1043.8. These carriers must have available for inspection, in 
each vehicle operating in the United States, copies of the following 
documents:
    (i) The certificate of registration;
    (ii) The required insurance endorsement (Form MCS-90); and
    (iii) An insurance identification card, binder, or other document 
issued by an authorized insurer which specifies both the effective date 
and the expiration date of the insurance coverage.

Notwithstanding the provisions of Sec. 1043.1(a)(1), the filing of 
evidence of insurance is not required as a condition to the issuance of 
a certificate of registration. Further, the reference to continuous 
coverage at Sec. 1043.7(a)(6) and the reference to cancellation notice 
at Sec. 1043.7(d) are not applicable to these carriers.
    (c) Motor common carriers: Cargo liability. Security required to 
compensate shippers or consignees for loss or damage to property 
belonging to shippers or consignees and coming into the possession of 
motor carriers in connection with their transportation service, (1)

[[Page 107]]

for loss of or damage to property carried on any one motor vehicle--
$5,000, (2) for less of or damage to or aggregate of losses or damages 
of or to property occurring at any one time and place--$10,000.

[47 FR 55944, Dec. 14, 1982, as amended at 48 FR 43333, Sept. 23, 1983; 
48 FR 45775, Oct. 7, 1983; 48 FR 51780, Nov. 14, 1983; 49 FR 1991, Jan. 
17, 1984; 49 FR 27767, July 6, 1984; 50 FR 40030, Oct. 1, 1985; 53 FR 
36984, Sept. 23, 1988; 54 FR 52034, Dec. 20, 1989; 55 FR 47338, Nov. 13, 
1990]



Sec. 1043.3   Combination vehicles.

    The following combinations will be regarded as one motor vehicle for 
purposes of this part, (a) a tractor and trailer or semitrailer when the 
tractor is engaged solely in drawing the trailer or semitrailer, and (b) 
a truck and trailer when both together bear a single load.



Sec. 1043.4  Property broker surety bond or trust fund.

    (a) Security. A property broker must have a surety bond or trust 
fund in effect for $10,000. The Commission will not issue a property 
broker license until a surety bond or trust fund for the full limits of 
liability prescribed herein is in effect. The broker license shall 
remain valid or effective only as long as a surety bond or trust fund 
remains in effect and shall ensure the financial responsibility of the 
broker.
    (b) Evidence of Security. Evidence of a surety bond must be filed 
using the Commission's prescribed Form BMC 84. Evidence of a trust fund 
with a financial institution must be filed using the Commission's 
prescribed Form BMC 85. The surety bond or the trust fund shall ensure 
the financial responsibility of the broker by providing for payments to 
shippers or motor carriers if the broker fails to carry out its 
contracts, agreements, or arrangements for the supplying of 
transportation by authorized motor carriers.
    (c) Financial Institution--when used in this section and in forms 
prescribed under this section, where not otherwise distinctly expressed 
or manifestly incompatible with the intent thereof, shall mean--Each 
agent, agency, branch or office within the United States of any person, 
as defined by the Interstate Commerce Act, doing business in one or more 
of the capacities listed below:
    (1) An insured bank (as defined in section 3(h) of the Federal 
Deposit Insurance Act (12 U.S.C. 1813(h));
    (2) A commercial bank or trust company;
    (3) An agency or branch of a foreign bank in the United States;
    (4) An insured institution (as defined in section 401(a) of the 
National Housing Act (12 U.S.C. 1724(a));
    (5) A thrift institution (savings bank, building and loan 
association, credit union, industrial bank or other);
    (6) An insurance company;
    (7) A loan or finance company; or
    (8) A person subject to supervision by any state or federal bank 
supervisory authority.
    (d) Forms and Procedures--(1) Forms for broker surety bonds and 
trust agreements. Form BMC-84 broker surety bond will be filed with the 
Commission for the full security limits under subsection (a); or Form 
BMC-85 broker trust fund agreement will be filed with the Commission for 
the full security limits under paragraph (a) of this section.
    (2) Broker surety bonds and trust fund agreements in effect 
continuously. Surety bonds and trust fund agreements shall specify that 
coverage thereunder will remain in effect continuously until terminated 
as herein provided.
    (i) Cancellation notice. The surety bond and the trust fund 
agreement may be cancelled as only upon 30 days' written notice to the 
Commission, on prescribed Form BMC 36, by the principal or surety for 
the surety bond, and on prescribed Form BMC 85, by the trustor/broker or 
trustee for the trust fund agreement. The notice period commences upon 
the actual receipt of the notice at the Commission's Washington, DC 
office.
    (ii) Termination by replacement. Broker surety bonds or trust fund 
agreements which have been accepted by the Commission under these rules 
may be replaced by other surety bonds or trust fund agreements, and the 
liability of the retiring surety or trustee under such surety bond or 
trust fund agreements shall be considered as having terminated as of the 
effective date

[[Page 108]]

of the replacement surety bond or trust fund agreement. However, such 
termination shall not affect the liability of the surety or the trustee 
hereunder for the payment of any damages arising as the result of 
contracts, agreements or arrangements made by the broker for the 
supplying of transportation prior to the date such termination becomes 
effective.
    (3) Filing and copies. Broker surety bonds and trust fund agreements 
must be filed with the Commission in duplicate.

[53 FR 10396, Mar. 31, 1988]



Sec. 1043.5  Qualifications as a self-insurer and other securities or agreements.

    (a) As a self-insurer. The Commission will consider and will 
approve, subject to appropriate and reasonable conditions, the 
application of a motor carrier to qualify as a self-insurer, if the 
carrier furnishes a true and accurate statement of its financial 
condition and other evidence that establishes to the satisfaction of the 
Commission the ability of the motor carrier to satisfy its obligation 
for bodily injury liability, property damage liability, or cargo 
liability. Application Guidelines: In addition to filing Form B.M.C. 40, 
applicants for authority to self-insure against bodily injury and 
property damage claims should submit evidence that will allow the 
Commission to determine:
    (1) The adequacy of the tangible net worth of the motor carrier in 
relation to the size of operations and the extent of its request for 
self-insurance authority. Applicant should demonstrate that it will 
maintain a net worth that will ensure that it will be able to meet its 
statutory obligations to the public to indemnify all claimants in the 
event of loss.
    (2) The existence of a sound self-insurance program. Applicant 
should demonstrate that it has established, and will maintain, an 
insurance program that will protect the public against all claims to the 
same extent as the minimum security limits applicable to applicant under 
Sec. 1043.2 of this part. Such a program may include, but not be limited 
to, one or more of the following: Irrevocable letters of credit; 
irrevocable trust funds; reserves; sinking funds; third-party financial 
guarantees, parent company or affiliate sureties; excess insurance 
coverage; or other similar arrangements.
    (3) The existence of an adequate safety program. Applicant must 
submit evidence of a current ``satisfactory'' safety rating by the 
United States Department of Transportation. Non-rated carriers need only 
certify that they have not been rated. Applications by carriers with a 
less than satisfactory rating will be summarily denied. Any self-
insurance authority granted by the Commission will automatically expire 
30 days after a carrier receives a less than satisfactory rating from 
DOT.
    (4) Additional information. Applicant must submit such additional 
information to support its application as the Commission may require.
    (b) Other securities or agreements. The Commission also will 
consider applications for approval of other securities or agreements and 
will approve any such application if satisfied that the security or 
agreement offered will afford the security for protection of the public 
contemplated by 49 U.S.C. 10927.

[48 FR 51780, Nov. 14, 1983 and 51 FR 15008, Apr. 22, 1986, as amended 
at 52 FR 3815, Feb. 6, 1987]



Sec. 1043.6  Bonds and certificates of insurance.

    (a) Public liability. Each Form BMC 82 surety bond filed with the 
Commission must be for the full limits of liability required under 
Sec. 1043.2(b)(1). Form MCS-82 surety bonds and other forms of similar 
import prescribed by the Department of Transportation, may be aggregated 
to comply with the minimum security limits required under 
Sec. 1043.2(b)(1) or Sec. 1043.2(b)(2). Each Form BMC 91 certificate of 
insurance filed with the Commission will always represent the full 
security minimum limits required for the particular carrier, while it 
remains in force, under Sec. 1043.2(b)(1) or Sec. 1043.2(b)(2), 
whichever is applicable. Any previously executed Form BMC 91 filed 
before the current revision which is left on file with the Commission 
after the effective date of this regulation, and not canceled within 30 
days of that date will be deemed to certify the same coverage limits as 
would the filing of a revised Form BMC

[[Page 109]]

91. Each Form BMC 91X certificate of insurance filed with the Commission 
will represent the full security limits under Sec. 1043.2(b)(1) or 
Sec. 1043.2(b)(2) or the specific security limits of coverage as 
indicated on the face of the form. If the filing reflects aggregation, 
the certificate must show clearly whether the insurance is primary or, 
if excess coverage, the amount of underlying coverage as well as amount 
of the maximum limits of coverage.* Each Form BMC 91MX certificate of 
insurance filed with the Commission will represent the security limits 
of coverage as indicated on the face of the form. The Form BMC 91MX must 
show clearly whether the insurance is primary or, if excess coverage, 
the amount of underlying coverage as well as amount of the maximum 
limits of coverage.
---------------------------------------------------------------------------

    *Note: Aggregation to meet the requirement of Sec. 1043.2(b)(1) will 
not be allowed until the completion of our rulemaking in Ex Parte No. 
MC-5 (Sub-No. 2), Motor Carrier and Freight Forwarder Insurance 
Procedures and Minimum Amounts of Liability.
---------------------------------------------------------------------------

    (b) Cargo Liability. Each form B.M.C. 83 surety bond filed with the 
Commission must be for the full limits of liability required under 
Sec. 1043.2(c). Each Form B.M.C. 34 certificate of insurance filed with 
the Commission will represent the full security limits under 
Sec. 1043.2(c) or the specific security limits of coverage as indicated 
on the face of the form. If the filing reflects aggregation, the 
certificate must show clearly whether the insurance is primary or, if 
excess coverage, the amount of underlying coverage as well as amount of 
the maximum limits of coverage.
    (c) Each policy of insurance in connection with the certificate of 
insurance which is filed with the Commission, shall be amended by 
attachment of the appropriate endorsement prescribed by the Commission 
or the Department of Transportation and the certificate of insurance 
filed must accurately reflect that endorsement.

[47 FR 55944, Dec. 14, 1982, as amended at 48 FR 43332, Sept. 23, 1983; 
48 FR 51781, Nov. 14, 1983; 50 FR 40030, Oct. 1, 1985]



Sec. 1043.7  Forms and procedures.

    (a) Forms for endorsements, certificates of insurance and others. 
(1) In form prescribed. Endorsements for policies of insurance and 
surety bonds, certificates of insurance, applications to qualify as a 
self-insurer, or for approval of other securities or agreements, and 
notices of cancellation must be in the form prescribed and approved by 
the Commission.
    (2) Aggregation of Insurance.** When insurance is provided by more 
than one insurer in order to aggregate security limits for carriers 
operating only freight vehicles under 10,000 pounds Gross Vehicle Weight 
Rating, as defined in Sec. 1043.2(b)(1), a separate Form BMC 90, with 
the specific amounts of underlying and limits of coverage shown thereon 
or appended thereto, and Form BMC 91X certificate is required of each 
insurer.
---------------------------------------------------------------------------

    **Note: See Note for Rule 1043.6. Also, it should be noted that DOT 
is considering prescribing adaptations of the Form MCS 90 endorsement 
and the Form MCS 82 surety bond for use by passenger carriers and Rules 
Secs. 1043.6 and 1043.7 have been written sufficiently broad to provide 
for this contingency when new forms are prescribed by that Agency.

For aggregation of insurance for all other carriers to cover security 
limits under Sec. 1043.2 (b)(1) or (b)(2), a separate Department of 
Transportation prescribed form endorsement and Form BMC 91X certificate 
is required of each insurer. When insurance is provided by more than one 
insurer to aggregate coverage for security limits under Sec. 1043.2(c) a 
separate Form BMC 32 endorsement and Form BMC 34 certificate of 
---------------------------------------------------------------------------
insurance is required for each insurer.

For aggregation of insurance for foreign motor private carriers of 
nonhazardous commodities to cover security limits under 
Sec. 1043.2(b)(4), a separate Form BMC 90 with the specific amounts of 
underlying and limits of coverage shown thereon or appended thereto, or 
Department of Transportation prescribed form endorsement, and Form BMC 
91MX certificate is required for each insurer.

    (3) Use of Certificates and Endorsements in BMC Series. Form BMC 91 
certificates of insurance will be filed with the Commission for the full 
security limits under Sec. 1043.2 (b)(1) or (b)(2).


[[Page 110]]


Form BMC 91X certificate of insurance will be filed to represent full 
coverage or any level of aggregation for the security limits under 
Sec. 1043.2 (b)(1) or (b)(2).

Form BMC 90 endorsement will be used with each filing of Form BMC 91 or 
Form 91X certificate with the Commission which certifies to coverage not 
governed by the requirements of the Department of Transportation. Form 
BMC 32 endorsement and Form BMC 34 certificate of insurance and Form BMC 
83 surety bonds are used for the limits of cargo liability under 
Sec. 1043.2(c).

Form BMC 91MX certificate of insurance will be filed to represent any 
level of aggregation for the security limits under Sec. 1043.2(b)(4).

    (4) Use of Endorsements in MCS Series. When Security limits 
certified under Sec. 1043.2 (b)(1) or (b)(2) involves coverage also 
required by the Department of Transportation a Form MCS endorsement 
prescribed by the Department of Transportation such as, and including, 
the Form MCS 90 endorsement is required.
    (5) Surety bonds. When surety bonds are used rather than 
certificates of insurance, Form BMC 82 is required for the security 
limits under Sec. 1043.2(b)(1) not subject to regulation by the 
Department of Transportation, and Form MCS 82, or any form of similar 
import prescribed by the Department of Transportation, is used for the 
security limits subject also to minimum coverage requirements of the 
Department of Transportation.
    (6) Surety bonds and certificates in effect continuously. Surety 
bonds and certificates of insurance shall specify that coverage 
thereunder will remain in effect continuously until terminated as herein 
provided, except: (1) When filed expressly to fill prior gaps or lapses 
in coverage or to cover grants of emergency temporary authority of 
unusually short duration and the filing clearly so indicates, or (2) in 
special or unusual circumstances, when special permission is obtained 
for filing certificates of insurance or surety bonds on terms meeting 
other particular needs of the situation.
    (b) Filing and copies. Certificates of insurance, surety bonds, and 
notices of cancellation must be filed with the Commission in triplicate.
    (c) Name of insured. Certificates of insurance and surety bonds 
shall be issued in the full and correct name of the individual, 
partnership, corporation or other person to whom the certificate, 
permit, or license is, or is to be, issued. In the case of a 
partnership, all partners shall be named.
    (d) Cancellation notice. Except as provided in paragraph (e) of this 
section, surety bonds, certificates of insurance and other securities or 
agreements shall not be cancelled or withdrawn until 30 days after 
written notice has been submitted to the Commission at its offices in 
Washington, DC, on the prescribed form (Form BMC-35, Notice of 
Cancellation Motor Carrier Policies of Insurance under 49 U.S.C. 10927, 
and BMC-36, Notice of Cancellation Motor Carrier and Broker Surety 
Bonds, as appropriate) by the insurance company, surety or sureties, 
motor carrier, broker or other party thereto, as the case may be, which 
period of thirty (30) days shall commence to run from the date such 
notice on the prescribed form is actually received by the Commission.
    (e) Termination by replacement. Certificates of insurance or surety 
bonds which have been accepted by the Commission under these rules may 
be replaced by other certificates of insurance, surety bonds or other 
security, and the liability of the retiring insurer or surety under such 
certificates of insurance or surety bonds shall be considered as having 
terminated as of the effective date of the replacement certificate of 
insurance, surety bond or other security, provided the said replacement 
certificate, bond or other security is acceptable to the Commission 
under the rules and regulations in this part.

    Cross Reference: For list of forms prescribed, see Sec. 1003.1(b) of 
this chapter.

[47 FR 55944, Dec. 14, 1982, as amended at 48 FR 43334, Sept. 23, 1983; 
48 FR 51781, Nov. 14, 1983; 50 FR 40030, Oct. 1, 1985; 51 FR 34623, 
Sept. 30, 1986]

[[Page 111]]



Sec. 1043.8  Insurance and surety companies.

    A certificate of insurance or surety bond will not be accepted by 
the Commission unless issued by an insurance or surety company that is 
authorized (licensed or admitted) to issue bonds or underlying insurance 
policies:
    (a) In each state in which the motor carrier is authorized by the 
Commission to operate, or
    (b) In the state in which the motor carrier has its principal place 
of business or domicile, and will designate in writing upon request by 
the Commission, a person upon whom process, issued by or under the 
authority of a court of competent jurisdiction, may be served in any 
proceeding at law or equity brought in any state in which the carrier 
operates, or
    (c) In any state, and is eligible as an excess or surplus lines 
insurer in any state in which business is written, and will make the 
designation of process agent described in paragraph (b) of this section.

[56 FR 28111, June 19, 1991]



Sec. 1043.9  Refusal to accept, or revocation by the Commission of surety bonds, etc.

    The Commission may, at any time, refuse to accept or may revoke its 
acceptance of any surety bond, certificate of insurance, qualifications 
as a self-insurer, or other securities or agreements if, in its judgment 
such security does not comply with these sections or for any reason 
fails to provide satisfactory or adequate protection for the public. 
Revocation of acceptance of any certificate of insurance, surety bond or 
other security shall not relieve the motor carrier from compliance with 
Sec. 1043.1(d).

[47 FR 55945, Dec. 14, 1982]



Sec. 1043.10  Fiduciaries.

    (a) Definitions. The terms ``insured'' and ``principal'' as used in 
a certificate of insurance, surety bond, and notice of cancellation, 
filed by or for a motor carrier, include the motor carrier and its 
fiduciary as of the moment of succession. The term ``fiduciary'' means 
any person authorized by law to collect and preserve property of 
incapacitated, financially disabled, bankrupt, or deceased holders of 
operating rights, and assignees of such holders.
    (b) Insurance coverage in behalf of fiduciaries to apply 
concurrently. The coverage furnished under the provisions of this 
section on behalf of fiduciaries shall not apply subsequent to the 
effective date of other insurance, or other security, filed with and 
approved by the Commission in behalf of such fiduciaries. After the 
coverage provided in this section shall have been in effect thirty (30) 
days, it may be cancelled or withdrawn within the succeeding period of 
thirty (30) days by the insurer, the insured, the surety, or the 
principal upon ten (10) days' notice in writing to the Commission at its 
office in Washington, DC, which period of ten (10) days shall commence 
to run from the date such notice is actually received by the Commission. 
After such coverage has been in effect for a total of sixty (60) days, 
it may be cancelled or withdrawn only in accordance with Sec. 1043.7.

[32 FR 20032, Dec. 20, 1967, as amended at 47 FR 49596, Nov. 1, 1982; 47 
FR 55945, Dec. 14, 1982; 55 FR 11197, Mar. 27, 1990]



Sec. 1043.11  Operations in foreign commerce.

    No motor carrier may operate in the United States in the course of 
transportation between places in a foreign country or between a place in 
one foreign country and a place in another foreign country unless and 
until there shall have been filed with and accepted by the Commission a 
certificate of insurance, surety bond, proof of qualifications as a 
self-insurer, or other securities or agreements in the amount prescribed 
in Sec. 1043.2(b), conditioned to pay any final judgment recovered 
against such motor carrier for bodily injuries to or the death of any 
person resulting from the negligent operation, maintenance, or use of 
motor vehicles in transportation between places in a foreign country or 
between a place in one foreign country and a place in another foreign 
country, insofar as such transportation takes place in the United 
States, or for loss of or damage to property of others. The security for 
the protection of the public required by

[[Page 112]]

this section shall be maintained in effect at all times and shall be 
subject to the provisions of Secs. 1043.5, 1043.6, 1043.7, 1043.8, 
1043.9 and 1043.10. The requirements of Sec. 1043.8(a) shall be 
satisfied if the insurance or surety company, in addition to having been 
approved by this Commission, is legally authorized to issue policies or 
surety bonds in at least one of the States in the United States, or one 
of the Provinces in Canada, and has filed with this Commission the name 
and address of a person upon whom legal process may be served in each 
State in or through which the motor carrier operates. Such designation 
may from time to time be changed by like designation similarly filed, 
but shall be maintained during the effectiveness of any certificate of 
insurance or surety bond issued by the company, and thereafter with 
respect to any claims arising during the effectiveness of such 
certificate or bond. The term ``motor carrier'' as used in this section 
shall not include private carriers or carriers operating under the 
partial exemption from regulation in 49 U.S.C. 10523 and 10526.

[47 FR 55945, Dec. 14, 1982]



Sec. 1043.12  Electronic filing of surety bonds, trust fund agreements, certificates of insurance and cancellations.

    (a) Insurers may, at their option and in accordance with the 
requirements and procedures set forth in paragraphs (a) through (d) of 
this section, file forms BMC 34, BMC 35, BMC 36, BMC 82, BMC 83, BMC 84, 
BMC 85, BMC 91, and BMC 91X electronically, in lieu of using the 
prescribed printed forms.
    (b) Each insurer must obtain authorization to file electronically by 
registering with the Commission. An individual account number and 
password for computer access will be issued to each registered insurer.
    (c) All files to be transmitted must be in an ASCII fixed format, 
i.e., all records must have the same number of fields and same length. 
The record layouts for electronic filing transactions are as described 
in the following table:

                                    Electronic Insurance Filing Transactions                                    
----------------------------------------------------------------------------------------------------------------
                                                                                Required                        
           Field name             Number of positions      Description          F=filing        Start      End  
                                                                            C=cancel  B=both    field     field 
----------------------------------------------------------------------------------------------------------------
Record type.....................  1 Numeric..........  1=Filing             B                        1         1
                                                       2=Cancellation                                           
Insurer number..................  8 Text.............  ICC Assigned         B                        2         9
                                                        Insurer Number                                          
                                                        (Home Office) With                                      
                                                        Suffix (Issuing                                         
                                                        Office), If                                             
                                                        Different, e.g.                                         
                                                        12345-01.                                               
Filing type.....................  1 Numeric..........  1 = BI&PD            B                       10        10
                                                       2 = Cargo                                                
                                                       3 = Bond                                                 
                                                       4 = Trust Fund                                           
ICC docket number...............  8 Text.............  ICC Assigned MC or   B                       11        18
                                                        FF Number, e.g.,                                        
                                                        MC000045.                                               
Insured legal name..............  120 Text...........  Legal Name.........  B                       19       138
Insured d/b/a name..............  60 Text............  Doing Business As    B                      139       198
                                                        Name If Different                                       
                                                        From Legal Name.                                        
Insured address.................  35 Text............  Either street or     B                      199       233
                                                        mailing address.                                        
Insured city....................  30 Text............  ...................  B                      234       263
Insured state...................  2 Text.............  ...................  B                      264       265
Insured zip code................  9 Numeric            (Do not include      B                      266       274
                                                        dash if using 9                                         
                                                        digit code).                                            
Insured country.................  2 Text.............  (Will default to     B                      275       276
                                                        US).                                                    
Form code.......................  10 Text............  BMC-91, BMC-91X,     B                      277       286
                                                        BMC-34, BMC-35,                                         
                                                        etc.                                                    
Full, primary or excess coverage  1 Text.............  If BMC-91X, P or E   F                      287       287
                                                        = indicator of                                          
                                                        primary or excess                                       
                                                        policy; 1 = Full                                        
                                                        under Sec.                                              
                                                        1043.2(b)(1); 2 =                                       
                                                        Full under Sec.                                         
                                                        1043.2(b)(2).                                           
Limit of liability..............  5 Numeric..........  $ in Thousands.....  F                      288       292
Underlying limit of liability...  5 Numeric..........  $ in Thousands       F                      293       297
                                                        (will default to                                        
                                                        $000 if Primary).                                       
Effective date..................  8 Text.............  MM/DD/YY Format for  B                      298       305
                                                        both Filing or                                          
                                                        Cancellation.                                           

[[Page 113]]

                                                                                                                
Policy number...................  25 Text............  Surety companies     B                      306       330
                                                        may enter bond                                          
                                                        number.                                                 
----------------------------------------------------------------------------------------------------------------

    (d) All registered insurers agree to furnish upon request to the 
Commission a duplicate original of any policy (or policies) and all 
endorsements, surety bond, trust fund agreement, or other filing.

[60 FR 16810, Apr. 3, 1995]



PART 1044--DESIGNATION OF PROCESS AGENT--Table of Contents




Sec.
1044.1  Applicability.
1044.2  Form of designation.
1044.3  Eligible persons.
1044.4  Required States.
1044.5  Blanket designations.
1044.6  Cancellation or change.

    Authority: 49 U.S.C. 10329, 10330, and 11705.

    Source: 55 FR 11197, Mar. 27, 1990, unless otherwise noted.



Sec. 1044.1  Applicability.

    These rules, relating to the filing of designations of persons upon 
whom court process may be served, govern motor carriers and brokers and, 
as of the moment of succession, their fiduciaries (as defined at 49 CFR 
1043.10(a)).



Sec. 1044.2  Form of designation.

    Designations shall be made on Form BOC-3, Designation of Agent for 
Service of Process. Only one completed current form may be on file. It 
must include all States for which agent designations are required. One 
copy must be retained by the carrier or broker at its principal place of 
business.



Sec. 1044.3  Eligible persons.

    All persons (as defined at 49 U.S.C. 10102(18)) designated must 
reside or maintain an office in the State for which they are designated. 
If a State official is designated, evidence of his willingness to accept 
service of process must be furnished.



Sec. 1044.4  Required States.

    (a) Motor carriers. Every motor carrier (of property or passengers) 
shall make a designation for each State in which it is authorized to 
operate and for each State traversed during such operations. Every motor 
carrier (including private carriers) operating in the United States in 
the course of transportation between points in a foreign country shall 
file a designation for each State traversed.
    (b) Brokers. Every broker shall make a designation for each State in 
which its offices are located or in which contracts will be written.

[55 FR 11197, Mar. 27, 1990, as amended at 55 FR 47338, Nov. 13, 1990]



Sec. 1044.5  Blanket designations.

    Where an association or corporation has filed with the Commission a 
list of process agents for each State, motor carriers may make the 
required designations by using the following statement:

    Those persons named in the list of process agents on file with the 
Interstate Commerce Commission by ______________________________

_______________________________________________________________________
(Name of association or corporation) and any subsequently filed 
revisions thereof, for the States in which this carrier is or may be 
authorized to operate, including States traversed during such 
operations, except those States for which individual designations are 
named.



Sec. 1044.6  Cancellation or change.

    A designation may be canceled or changed only by a new designation 
except that, where a carrier or broker ceases to be subject to 
Sec. 1044.4 in whole or in part for 1 year, designation is no longer 
required and may be canceled without making another designation.

[[Page 114]]



PART 1045--BROKERS OF PROPERTY--Table of Contents




Sec.
1045.1  Applicability.
1045.2  Definitions.
1045.3  Records to be kept by brokers.
1045.7  Misrepresentation.
1045.9  Rebating and compensation.
1045.10  Duties and obligations of brokers.
1045.13  Accounting.

    Authority: 49 Stat. 544, as amended, 546, as amended, 554, as 
amended; 49 U.S.C. 303, 304, 311; 49 U.S.C. 10321; 5 U.S.C. 553.

    Source: 45 FR 68942, Oct. 17, 1980, unless otherwise noted.



Sec. 1045.1   Applicability.

    This part applies, to the extent provided therein, to all brokers of 
transportation by motor vehicle as defined in Sec. 1045.2.

[32 FR 20034, Dec. 20, 1967]



Sec. 1045.2  Definitions.

    (a) Broker means a person who, for compensation, arranges, or offers 
to arrange, the transportation of property by an authorized motor 
carrier. Motor carriers, or persons who are employees or bona fide 
agents of carriers, are not brokers within the meaning of this section 
when they arrange or offer to arrange the transportation of shipments 
which they are authorized to transport and which they have accepted and 
legally bound themselves to transport.
    (b) Bona fide agents are persons who are part of the normal 
organization of a motor carrier and perform duties under the carrier's 
directions pursuant to a preexisting agreement which provides for a 
continuing relationship, precluding the exercise of discretion on the 
part of the agent in allocating traffic between the carrier and others.
    (c) Brokerage or brokerage service is the arranging of 
transportation or the physical movement of a motor vehicle or of 
property. It can be performed on behalf of a motor carrier, consignor, 
or consignee.
    (d) Non-brokerage service is all other service performed by a broker 
on behalf of a motor carrier, consignor, or consignee.



Sec. 1045.3  Records to be kept by brokers.

    (a) A broker shall keep a record of each transaction. The record 
shall show:
    (1) The name and address of the consignor;
    (2) The name, address, and lead MC-number of the originating motor 
carrier;
    (3) The bill of lading or freight bill number;
    (4) The amount of compensation received by the broker for the 
brokerage service performed and the name of the payer;
    (5) A description of any non-brokerage service performed in 
connection with each shipment or other activity, the amount of 
compensation received for the service, and the name of the payer; and
    (6) The amount of any freight charges collected by the broker and 
the date of payment to the carrier.

For purposes of this subsection, brokers may keep master lists of 
consignors and the address and lead docket number of the carrier, rather 
than repeating this information for each transaction.
    (b) Brokers shall keep the records required by this section for a 
period of three years.
    (c) Each party to a brokered transaction has the right to review the 
record of the transaction required to be kept by these rules.



Sec. 1045.7  Misrepresentation.

    (a) A broker shall not perform or offer to perform any brokerage 
service (including advertising), in any name other than that in which 
its license is issued.
    (b) A broker shall not, directly or indirectly, represent its 
operations to be that of a carrier. Any advertising shall show the 
broker status of the operation.



Sec. 1045.9  Rebating and compensation.

    (a) A broker shall not charge or receive compensation from a motor 
carrier for brokerage service where:
    (1) The broker owns or has a material beneficial interest in the 
shipment or
    (2) The broker is able to exercise control over the shipment because 
the

[[Page 115]]

broker owns the shipper, the shipper owns the broker, or there is common 
ownership of the two.
    (b) A broker shall not give or offer to give anything of value to 
any shipper, consignor or consignee (or their officers or employees) 
except inexpensive advertising items given for promotional purposes.



Sec. 1045.10  Duties and obligations of brokers.

    Where the broker acts on behalf of a person bound by law or a 
Commission regulation as to the transmittal of bills or payments, the 
broker must also abide by the law or regulations which apply to that 
person.

[45 FR 68943, Oct. 17, 1980]



Sec. 1045.13  Accounting.

    Each broker who engages in any other business shall maintain 
accounts so that the revenues and expenses relating to the brokerage 
portion of its business are segregated from its other activities. 
Expenses that are common shall be allocated on an equitable basis; 
however, the broker must be prepared to explain the basis for the 
allocation.

[45 FR 68943, Oct. 17, 1980]



PART 1047--EXEMPTIONS--Table of Contents




Sec.
1047.1  Casual, occasional, or reciprocal transportation of passengers 
          for compensation when such transportation is sold or arranged 
          by anyone for compensation.
1047.2  Motor vehicles employed solely in transporting school children 
          and teachers to or from school.
1047.10  Interstate operations by motor common carriers within a single 
          State.

     Transportation and Notice Thereof by Agricultural Cooperative 
                              Associations

1047.20  Definitions.
1047.21  Computation of tonnage allowable in nonfarm-non-member 
          transportation.
1047.22  Nonmember transportation limitation and record keeping.
1047.23  Notice to the Commission.

   Partial Exemption for Agricultural Commodities, Livestock, and Fish

1047.25  Commodities that are not exempt under 49 U.S.C. 10526(a)(6).

 Partial Exemption for Motor Transportation of Passengers Incidental to 
                       Transportation by Aircraft

1047.45  Motor transportation of passengers incidental to transportation 
          by aircraft.

    Authority: 49 U.S.C. 10525, 10526, 10931.

    Source: 32 FR 20036, Dec. 20, 1967, unless otherwise noted.



Sec. 1047.1   Casual, occasional, or reciprocal transportation of passengers for compensation when such transportation is sold or arranged by anyone for 
          compensation.

    The partial exemption from regulation under the provisions of Part 
II of the Interstate Commerce Act of the casual, occasional, and 
reciprocal transportation of passengers by motor vehicle in interstate 
or foreign commerce for compensation as provided in section 203(b)(9) of 
the act  be, and it is hereby, removed to the extent necessary to make 
applicable all provisions of Part II of the act to such transportation 
when sold or offered for sale, or provided or procured or furnished or 
arranged for, by any person who sells, offers for sale, provides, 
furnishes, contracts, or arranges for such transportation for 
compensation or as a regular occupation or business.



Sec. 1047.2   Motor vehicles employed solely in transporting school children and teachers to or from school.

    The exemption set forth in section 203(b)(1) of the act shall not be 
construed as being inapplicable to motor vehicles being used at the time 
of operation in the transportation of schoolchildren and teachers to or 
from school, even though such motor vehicles are employed at other times 
in transportation beyond the scope of the exemption.

[36 FR 9022, May 18, 1971]



Sec. 1047.10   Interstate operations by motor common carriers within a single State.

    Every common carrier by motor vehicle who proposes to engage in any 
operations in interstate or foreign commerce under the provisions of 
section 206(a)(6) of the Interstate Commerce Act, as amended October 15, 
1962, shall, prior to commencing such operations,

[[Page 116]]

(1) obtain from the Interstate Commerce Commission an appropriate 
Certificate of Registration covering the proposed operations, and (2) 
comply with the provisions of sections 215, 217, and 221(c) of the said 
Act and the Commission's requirements and rules and regulations 
thereunder pertaining to the filing of proper evidence of security for 
the protection of the public, to the filing and posting of appropriate 
tariff or tariffs, and to the designation of agents for service of 
process. Any such common carrier by motor vehicle who proposes to engage 
in any operations in interstate or foreign commerce under section 
206(a)(6) of said Act, other than one seeking to obtain a Certificate of 
Registration by transfer, shall, in order to obtain a Certificate of 
Registration covering such operations, file with the Interstate Commerce 
Commission, Washington, DC 20423, an Application for Motor Carrier 
Certificate of Registration, which application shall be in the form, 
contain the information, and be served in the manner called for in Form 
OP-OR 100 (Sec. 1003.1 of this chapter.)

[32 FR 20036, Dec. 20, 1967, as amended at 39 FR 35367, Oct. 1, 1974]

     Transportation and Notice Thereof by Agricultural Cooperative 
                              Associations



Sec. 1047.20  Definitions.

    As used in the regulations in this part, the following terms shall 
have the meaning shown:
    (a) Cooperative association. The term ``cooperative association'' 
means an association which conforms to the following definition in the 
Agricultural Marketing Act, approved June 15, 1929, as amended (12 
U.S.C. 1141j):

    As used in this Act, the term cooperative association means any 
association in which farmers act together in processing, preparing for 
market, handling, and/or marketing the farm products of persons so 
engaged, and also means any association in which farmers act together in 
purchasing, testing, grading, processing, distributing, and/or 
furnishing farm supplies and/or farm business services. Provided, 
however, That such associations are operated for the mutual benefit of 
the members thereof as such producers or purchasers and conform to one 
or both of the following requirements:
    First. That no member of the association is allowed more than one 
vote because of the amount of stock or membership capital he may own 
therein; and
    Second. That the association does not pay dividends on stock or 
membership capital in excess of 8 per centum per annum.
    And in any case to the following:
    Third. That the association shall not deal in farm products, farm 
supplies and farm business services with or for nonmembers in an amount 
greater in value than the total amount of such business transacted by it 
with or for members. All business transacted by any cooperative 
association for or on behalf of the United States or any agency or 
instrumentality thereof shall be disregarded in determining the volume 
of member and nonmember business transacted by such association.

Associations which do not conform to such definition are not eligible to 
operate under the partial exemption of 49 U.S.C. 10526(a)(5).
    (b) Federation of cooperative associations. The term ``federation of 
cooperative associations'' means a federation composed of either two or 
more cooperative associations, or one or more farmers, which federation 
possesses no greater powers or purposes than a cooperative association 
as defined in paragraph (a) of this section. Federations of cooperative 
associations which do not conform to such definition are not eligible to 
operate under the partial exemption of 49 U.S.C. 10526(a)(5).
    (c) Member. The term ``member'' means any farmer or cooperative 
association which has consented to be, has been accepted as, and is a 
member in good standing in accordance with the constitution, bylaws, or 
rules of the cooperative association or federation of cooperative 
associations.
    (d) Farmer. The term ``farmer'' means any individual, partnership, 
corporation, or other business entity to the extent engaged in farming 
operations either as a producer of agricultural commodities or as a farm 
owner.
    (e) Interstate transportation. The term ``interstate 
transportation'' means transportation by motor vehicle in interstate or 
foreign commerce subject to the Commission's jurisdiction as set forth 
in 49 U.S.C. 10521.
    (f) Member transportation. The term ``member transportation'' means 
transportation performed by a cooperative

[[Page 117]]

association or federation of cooperative associations for itself or for 
its members, but does not include transportation performed in 
furtherance of the nonfarm business of such members.
    (g) Nonmember transportation. The term ``nonmember transportation'' 
means transportation performed by a cooperative association or 
federation of cooperative associations other than member transportation 
as defined in paragraph (f) of this section.
    (h) Fiscal year. The term ``fiscal year'' means the annual 
accounting period adopted by the cooperative association or federation 
of cooperative associations for Federal income tax reporting purposes.

[43 FR 2397, Jan. 17, 1978, as amended at 45 FR 45524, July 3, 1980; 47 
FR 13353, Mar. 30, 1982; 47 FR 15142, Apr. 8, 1982]



Sec. 1047.21  Computation of tonnage allowable in nonfarm-non-member transportation.

    Interstate transportation performed by a cooperative association or 
federation of cooperative associations for nonmembers who are not 
farmers, cooperative associations, or federations of associations or the 
United States Government for compensation, (except transportation 
otherwise exempt under subchapter II, chapter 105, subtitle IV of title 
49 of the United States Code) shall be limited to that which is 
incidental to its primary transportation operation and necessary for its 
effective performance. It shall in no event exceed 25 percent of its 
total interstate transportation services in any fiscal year, measured in 
terms of tonnage. A cooperative association or federation of cooperative 
associations may transport its own property, its members' property, 
property of other farmers and the property of other cooperatives or 
federations in accordance with existing law, except where the provisions 
of Sec. 1047.22 may be applicable to the limit on member/nonmember 
transportation.
    (a) The phrase ``incidental to its primary transportation operation 
and necessary for its effective performance'' means that the interstate 
transportation of the cooperative association or federation of 
cooperation association for nonmembers as described above is performed 
with the same trucks or tractors employed in a prior or subsequent trip 
in the primary transportation operation of the cooperative association 
or federation, that it is not economically feasible to operate the 
trucks or tractors empty on return trips (outbound trips in cases where 
the primary transportation operation is inbound to the association or 
federation), and that the additional income obtained from such 
transportation is necessary to make the primary transportation operation 
financially practicable. Transportation for nonmembers as described 
above performed by a cooperative or federation through the use of trucks 
or tractors trip-leased for one-way movements with the cooperative 
association or federation acting as leasee, is not incidental and 
necessary;
    (b) The base tonnage to which the 25-percent limitation is applied 
is all tonnage of all kinds transported by the cooperative association 
or federation of cooperative associations in interstate or foreign 
commerce, whether for itself, its members or nonmembers, for or on 
behalf of the United States or any agency or instrumentality thereof, 
and that performed within the exemption provided by 49 U.S.C. 
10526(a)(5).

[43 FR 2397, Jan. 17, 1978, as amended at 43 FR 21894, May 22, 1978; 45 
FR 45524, July 3, 1980]



Sec. 1047.22  Nonmember transportation limitation and record keeping.

     (a) Overall limitation of nonmember transportation. No cooperative 
association or federation of cooperative associations which is required 
to give notice to the Commission under Sec. 1047.23 may engage in 
nonmember interstate transportation for compensation in any fiscal year 
which, measured in terms of tonnage, exceeds its total interstate member 
transportation in such fiscal year.
    (b) Records of interstate transportation when nonmember 
transportation is performed. Any cooperative association or federation 
of cooperative associations performing interstate transportation for 
nonmembers and required to give notice to this Commission under 
Sec. 1047.23 shall prepare and retain for a period of at least two years 
written records of all interstate transportation

[[Page 118]]

performed for members and nonmembers. These records shall contain:
    (1) The date of the shipment,
    (2) The names and addresses of the consignor and consignee,
    (3) The origin and destination of the shipment,
    (4) A description of the articles in the shipment,
    (5) The weight or volume of the shipment,
    (6) A description of the equipment used either by unit number or 
license number and, in the event this equipment is nonowned, the name 
and address of its owners and drivers,
    (7) The total charges collected,
    (8) A copy of all leases executed by the cooperative association or 
federation of cooperative associations to obtain equipment to perform 
transportation under 49 U.S.C. 10526(a)(5),
    (9) Whether the transportation performed is:
    (i) Member transportation,
    (ii) Nonmember transportation for nonmembers who are farmers, 
cooperative associations, or federations thereof,
    (iii) Other nonmember transportation, and if of class (iii), how the 
transportation was incidental and necessary as defined in 
Sec. 1047.21(a).

[43 FR 2397, Jan. 17, 1978, as amended at 45 FR 45524, July 3, 1980]



Sec. 1047.23  Notice to the Commission.

    A cooperative association or federation of cooperative associations 
which performs or proposes to perform interstate transportation for 
nonmembers, who are not farmers, cooperative associations, or 
federations of cooperative associations, under 49 U.S.C. 10526(a)(5) and 
(c) (which transportation is not otherwise exempt under Subchapter II, 
Chapter 105, Subtitle IV of Title 49 of the United States Code) shall 
notify the Commission of its intent to perform transportation. 
Notification shall be given prior to the commencement of operations and 
shall be in the form, contain the information, and be served in the 
manner called for in Form BOp 102. Notice must be filed with the 
Commission annually, within 30 days of its annual meeting. Following the 
receipt of a properly completed Form BOp 102, the information will be 
published in the Federal Register and put in a central file at the 
Commission, as public notice of the intent of the agricultural 
cooperative association or federation of cooperative associations to 
conduct interstate for-hire transportation for nonmembers under 49 
U.S.C. 10526(a)(5). The information requested is of a continuing nature, 
and any changes in the information concerning officers, directors, and 
location of transportation records in the notice on file shall be 
brought to the Commission's attention by the filing of a supplemental 
form BOp 102 within 30 days of the change. Forms which are incomplete or 
not properly notarized will be rejected.

[45 FR 45525, July 3, 1980]

   Partial Exemption for Agricultural Commodities, Livestock and Fish



Sec. 1047.25  Commodities that are not exempt under 49 U.S.C. 10526(a)(6).

    Section 10526(a)(6) of the recodified Interstate Commerce Act (49 
U.S.C. 10526(a)(6)) provides an exemption from regulation for motor 
vehicles used in carrying ordinary livestock, fish, and unmanufactured 
agricultural commodities. Certain specific commodities have been 
statutorily determined to be non-exempt. Administrative Ruling No. 133, 
which is reproduced below, is a list of those commodities that are non-
exempt by statute.

                      Administrative Ruling No. 133

   List of Commodities That Are Not Exempt by Statute Under 49 U.S.C. 
                               10526(a)(6)

Animal fats
Butter
Canned fruits and vegetables
Carnauba wax as imported in slabs or chunks
Cattle, slaughtered
Charcoal
Cheese
Coal
Cocoa beans
Coffee, beans, roasted, or instant
Copra meal
Cotton yarn
Cottonseed cake or meal
Diatomaceous earth
Dinners, frozen

Feeds:
    Alfalfa meal
    Alfalfa pellets
    Beet pulp
    Bran shorts

[[Page 119]]

    Copra meal
    Corn gluten
    Distilled corn grain residues, with or without solubles added
    Fish meal
    Hominy feed
    Middlings
    Pelletized ground refuse screenings
    Wheat bran
    Wheat shorts

Fertilizer, commercial

Fish:
    Canned or salted as a treatment for preserving
    Cooked or partially cooked fish or shrimp, frozen or unfrozen
    Hermetically sealed in containers as a treatment for preserving
    Oil from fishes
    Preserved, or treated for preserving, such as smoked, salted, 
pickled, spiced, corned or kippered

Flagstone
Flaxseed meal
Flour

Forest products:
    Resin products, such as turpentine

Fruits and Berries:
    Bananas, fresh, dried, dehydrated, or frozen
    Canned
    Frozen
    Hulls of oranges after juice extractions
    Juice, fruit, plain or concentrated
    Pies, frozen
    Preserved, such as jam
    Purees, strawberry and other, frozen

Grains:
    Oils extracted from grain
    Popcorn, popped
    Rice, precooked
    Wheat germ

Gravel
Hair, hog or other animal, product of slaughter of animal
Hay, sweetened with 3 percent molasses by weight
Hemp fiber
Hides, green and salted
Insecticides
Limestone, agricultural

Livestock:
    Monkeys
    Race horses
    Show horses
    Zoo animals

Lumber, rough sawed or planed
Maple syrup

Meal:
    Alfalfa
    Copra
    Cottonseed
    Fish
    Flaxseed
    Linseed
    Peanut
    Soybean

Meat and meat products, fresh, frozen or canned

Milk and Cream:
    Chocolate
    Condensed
    Sterilized in hermetically sealed cans

Molasses

Nuts (including peanuts):
    Peanut meal
    Roasted or boiled

Oil, mint
Oil, extracted from vegetables, grain, seed, fish or other commodity
Pelts
Pies, frozen
Pigeons, racing
Pulp, beet
Pulp, sugar cane
Rock (except natural crushed, vesicular rock to be used for decorative 
          purposes)
Rubber, crude, in bales
Rubber, latex, natural, liquid, from which water has been extracted and 
          to which ammonia has been added
Sand

Seeds:
    Oil extracted from seeds

Skins, animal
Soil, potting
Soil, top
Soup, frozen
Sugar
Sugar cane pulp
Sugar raw
Syrup, cane
Syrup, maple
Tea

Tobacco:
    Cigars and cigarettes
    Homogenized
    Smoking

Top Soil

Trees:
    Sawed into lumber

Vegetables:
    Candied sweet potatoes, frozen
    Canned
    Cooked
    French fried potatoes
    Oil, extracted from vegetables
    Soup, frozen
    Soybean meal

Wool imported from a foreign country
Wool tops and noils
Wool waste (carded, spun, woven, or knitted)
Wool yarn

    Note 1: Under 49 U.S.C. 10526(a)(6)(D), any listed fish or shellfish 
product that is not intended for human consumption is exempt.

[[Page 120]]

    Note 2: Under 49 U.S.C. 10526(a)(6)(E), any listed livestock feed, 
poultry feed, agricultural seeds, or plants that are transported to a 
site of agricultural production or to a business enterprise engaged in 
the sale to agricultural producers of goods used in agricultural 
production is exempt

[53 FR 17707, May 18, 1988]

 Partial Exemption for Motor Transportation of Passengers Incidental to 
                       Transportation by Aircraft



Sec. 1047.45   Motor transportation of passengers incidental to transportation by aircraft.

    (a) Passengers having an immediately prior or subsequent movement by 
air. The transportation of passengers by motor vehicle is transportation 
incidental to transportation by aircraft provided (1) that it is 
confined to the transportation of passengers who have had or will have 
an immediately prior or immediately subsequent movement by air and (2) 
that the zone within which motor transportation is incidental to 
transportation by aircraft, except as it may be individually determined 
as provided in section (c) herein, shall not exceed in size the area 
encompassed by a 25-mile radius of the boundary of the airport at which 
the passengers arrive or depart and by the boundaries of the commercial 
zones (as defined by the Commission) of any municipalities any part of 
whose commercial zones falls within the 25-mile radius of the pertinent 
airport.
    (b) Substituted motor-for-air transportation due to emergency 
conditions. Transportation of passengers by motor vehicle is 
transportation incidental to transportation by aircraft if it 
constitutes substituted motor-for-air service performed at the expense 
of the air carrier in emergency situations arising from the inability of 
the air carrier to perform air transportation due to adverse weather 
conditions, equipment failure, or other causes beyond the control of the 
air carrier.
    (c) Individual determination of exempt zones. Upon its own motion or 
upon petition filed by any interested person, the Interstate Commerce 
Commission may in an appropriate proceeding, determine whether the area 
within which the transportation by motor vehicle of passengers having an 
immediately prior or subsequent movement by air must be performed, in 
order to come within the provisions of paragraph (a) of this section, 
should be individually determined with respect to any particular airport 
or city served by an airport, and whether there should be established 
therefor appropriate boundaries differing in extent from this defined in 
paragraph (a)(2) of this section.
    (d) Exempt zones and operations--(1) Dulles and Baltimore-Washington 
International Airports. The transportation by motor vehicle, in 
interstate or foreign commerce, of passengers, having an immediately 
prior or subsequent movement by air, between Dulles International 
Airport, near Chantilly, Va., and Baltimore-Washington International 
Airport, near Baltimore, Md., is partially exempt from regulation under 
section 203(b)(7a) of the Interstate Commerce Act.
    (2) Savannah, Ga., Airport. The transportation by motor vehicle, in 
interstate or foreign commerce, of passengers, having an immediately 
prior or subsequent movement by air, between Savannah, Ga., Airport and 
all points on Hilton Head Island, SC, is partially exempt from 
regulation under section 203(b)(7a) of the Interstate Commerce Act (49 
U.S.C. 303).
    (3) Chicago O'Hare International Airport (Chicago, Ill.). The 
transportation by motor vehicle, in interstate or foreign commerce, of 
passengers, having an immediately prior or subsequent movement by air, 
between O'Hare International Airport, at Chicago, Ill., on the one hand, 
and, on the other, points in Indiana on and north of U.S. Highway 30 and 
on and west of Indiana Highway 49, is partially exempt from regulation 
under section 203(b)(7a) of the Interstate Commerce Act (49 U.S.C. 303).

[32 FR 20036, Dec. 20, 1967, as amended at 37 FR 5252, Mar. 11, 1972; 42 
FR 10003, Feb. 18, 1977; 42 FR 15705; Mar. 23, 1977]



PART 1048--COMMERCIAL ZONES--Table of Contents




Sec.
1048.1  Albany, N.Y.
1048.2  Beaumont, Tex.
1048.3  Charleston, S.C.
1048.4  Charleston, W. Va.

[[Page 121]]

1048.5  Lake Charles, La.
1048.6  Pittsburgh, Pa.
1048.7  Pueblo, Colo.
1048.8  Ravenswood, W. Va.
1048.9  Seattle, Wash.
1048.10  Washington, D.C.
1048.11  Twin Cities.
1048.12  Consolidated governments.
1048.13  Lexington-Fayette Urban County, Ky.
1048.14  Syracuse, N.Y.
1048.15  Spokane, Wash.
1048.16  Tacoma, Wash.
1048.17  Chicago, IL
1048.18  New York, NY.
1048.19  Cameron, Hidalgo, Starr, and Willacy Counties, TX.
1048.100  Definitions.
1048.101  Commercial zones determined generally, with exceptions.
1048.102  Controlling distances and population data.

    Authority: 49 U.S.C. 10321 and 10526 and 5 U.S.C. 553.



Sec. 1048.1  Albany, N.Y.

    The zone adjacent to, and commercially a part of Albany, N.Y., 
within which transportation by motor vehicle, in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulations under section 203(b)(8) of the 
Interstate Commerce Act (49 U.S.C. 303(b)(8)) includes and is comprised 
of all points as follows:
    (a) The municipality of Albany, N.Y., itself.
    (b) All points within a line drawn eight miles beyond the municipal 
limits of Albany.
    (c) All points in that area more than eight miles beyond the 
municipal limits of Albany bounded by a line as follows: Beginning at 
that point on the western boundary of Cohoes, N.Y., where it crosses the 
line described in paragraph (b) of this section, thence along the 
western and northern boundary of Cohoes to the Mohawk River thence along 
such river to the northern boundary of the Town of Waterford thence 
along the northern and eastern boundaries of the Town of Waterford to 
the northern boundary of the City of Troy (all of which city is included 
under the next provision).
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Albany or any other 
municipality included under the terms of paragraph (d) of this section.

[41 FR 56653, Dec. 29, 1976]



Sec. 1048.2  Beaumont, Tex.

    The zone adjacent to, and commercially a part of Beaumont, Tex., 
within which transportation by motor vehicle in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulation under section 203(b)(8) of the 
Interstate Commerce Act (49 U.S.C. 303(b)(8)) includes and is comprised 
of all points as follows:
    (a) The municipality of Beaumont, Tex., itself;
    (b) All points within a line drawn 8 miles beyond the municipal 
limits of Beaumont;
    (c) All points in Jefferson County and Orange County, Tex.;
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Beaumont or by any 
other municipality included under the terms of paragraph (d) of this 
section.

[41 FR 56653, Dec. 29, 1976]



Sec. 1048.3  Charleston, S.C.

    The zone adjacent to, and commercially a part of Charleston, S.C., 
within which transportation by motor vehicle in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulation under section 203(b)(8) of the 
Interstate Commerce Act (49 U.S.C. 303(b)(8)) includes and is comprised 
of all points as follows:
    (a) The municipality of Charleston, S.C., itself;

[[Page 122]]

    (b) All points within a line drawn 6 miles beyond the municipal 
limits of Charleston;
    (c) Those points in Charleston County, S.C., which are not within 
the areas described in paragraph (b) of this section; and those points 
in Berkley County, S.C., which are not within the areas described in 
paragraph (b) of this section, and which are west of South Carolina 
Highway 41; and all points in Dorchester County, SC.
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Charleston or by any 
other municipality included under the terms of paragraph (d) of this 
section.

[41 FR 56653, Dec. 29, 1976, as amended at 46 FR 28658, May 28, 1981]



Sec. 1048.4  Charleston, W. Va.

    The zone adjacent to, and commercially a part of Charleston, W. Va., 
within which transportation by motor vehicle in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulation under section 203(b)(8) of the 
Interstate Commerce Act (49 U.S.C. 303(b)(8)) includes and is comprised 
of all points as follows:
    (a) The municipality of Charleston, W. Va., itself;
    (b) All points within a line drawn 6 miles beyond the municipal 
limits of Charleston;
    (c) Those points in Kanawha County, W. Va., which are not within the 
area described in paragraph (b) of this section; and those points in 
Putnam County, W. Va., south of West Virginia Highway 34;
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Charleston or by any 
other municipality included under the terms of paragraph (d) of this 
section.

[41 FR 56653, Dec. 29, 1976]



Sec. 1048.5  Lake Charles, La.

    The zone adjacent to, and commercially a part of Lake Charles, La., 
within which transportation by motor vehicle in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulation under section 203(b)(8) of the 
Interstate Commerce Act (49 U.S.C. 303(b)(8)) includes and is comprised 
of all points as follows:
    (a) The municipality of Lake Charles, La., itself;
    (b) All points within a line drawn 6 miles beyond the municipal 
limits of Lake Charles;
    (c) Those points in Calcasieu Parish, La., which are not within the 
area described in paragraph (b) of this section; and which are east of 
Louisiana Highway 27 (western section);
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Lake Charles or by 
any other municipality included under the terms of paragraph (d) of this 
section.

[41 FR 56653, Dec. 29, 1976]



Sec. 1048.6  Pittsburgh, Pa.

    The zone adjacent to, and commercially a part of Pittsburgh within 
which transportation by motor vehicle in interstate or foreign commerce, 
not under common control, management, or arrangement for a continuous 
carriage or shipment to or from a point beyond such zone, is partially 
exempt from regulation under section 203(b)(8) of the Interstate 
Commerce Act (49 U.S.C. 303(b)(8)) includes and is comprised of all 
points as follows:
    (a) The municipality of Pittsburgh, Pa., itself;
    (b) All points within a line drawn 15 miles beyond the municipal 
limits of Pittsburgh;

[[Page 123]]

    (c) Those points in Allegheny County, Pa., which are not within the 
area described in paragraph (b) of this section;
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Pittsburgh by any 
other municipality included under the terms of paragraph (d) of this 
section.

[41 FR 56654, Dec. 29, 1976]



Sec. 1048.7  Pueblo, Colo.

    The zone adjacent to, and commercially a part of Pueblo, Colo., 
within which transportation by motor vehicle in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulations under section 203(b)(8) of the 
Interstate Commerce Act (49 U.S.C. 303(b)(8)) includes and is comprised 
of all points as follows:
    (a) The municipality of Pueblo, Colo., itself;
    (b) All points within a line drawn 6 miles beyond the municipal 
limits of Pueblo;
    (c) Those points in Pueblo County, Colo., which are not within the 
area described in paragraph (b) of this section;
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality included under the 
terms of paragraph (d) of this section.

[41 FR 56654, Dec. 29, 1976]



Sec. 1048.8  Ravenswood, W. Va.

    The zone adjacent to, and commercially a part of Ravenswood, W. Va., 
within which transportation by motor vehicle in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulation under section 203(b)(8) of the 
Interstate Commerce Act (49 U.S.C. 303(b)(8)) includes and is comprised 
of all points as follows:
    (a) The municipality of Ravenswood, W. Va., itself;
    (b) All points within a line drawn 4 miles beyond the municipal 
limits of Ravenswood;
    (c) Those points in Jackson County, W. Va., which are not within the 
area described in paragraph (b) of this section, and which are north of 
U.S. Highway 33;
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Ravenswood or by any 
other municipality included under the terms of paragraph (d) of this 
section.

[41 FR 56654, Dec. 29, 1976]



Sec. 1048.9  Seattle, Wash.

    The zone adjacent to, and commercially a part of Seattle, Wash., 
within which transportation by motor vehicle in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulation under section 203(b)(8) of the 
Interstate Commerce Act (49 U.S.C. 303(b)(8)) includes and is comprised 
of all points as follows:
    (a) The municipality of Seattle, Wash., itself;
    (b) All points within a line drawn 15 miles beyond the municipal 
limits of Seattle;
    (c) Those points in King County, Wash., which are not within the 
area described in paragraph (b) of this section, and which are west of a 
line beginning at the intersection of the line described in paragraph 
(b) of this section and Washington Highway 18, thence northerly along 
Washington Highway 18 to junction of Interstate Highway 90, thence 
westerly along Interstate Highway 90 to junction Washington Highway 203, 
thence northerly along Washington Highway 203 to the King County line; 
and those points in Snohomish County, Wash., which

[[Page 124]]

are not within the area described in paragraph (b) of this section and 
which are west of Washington Highway 9; and those points in Kitsap 
County, Wash., which are not within the area described in paragraph (b) 
of this section lying within the area bounded by a line beginning at the 
intersection of the line described in paragraph (b) of this section and 
Washington Highway 3 to the boundary of Olympic View Industrial Park/
Bremerton-Kitsap County Airport, thence westerly, southerly, easterly, 
and northerly along the boundary of Olympic View Industrial Park/ 
Bremerton-Kitsap County Airport to its juncture with Washington Highway 
3 to its intersection with the line described in paragraph (b) of this 
section.
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Seattle or by any 
other municipality included under the terms of paragraph (d) of this 
section.

[41 FR 56654, Dec. 29, 1976, as amended at 46 FR 25314, May 6, 1981]



Sec. 1048.10  Washington, DC

    The zone adjacent to, and commercially a part of Washington, D.C., 
within which transportation by motor vehicle in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulation under section 203(b)(8) of the 
Interstate Commerce Act (49 U.S.C. 303(b)(8)) includes and is comprised 
of all points as follows:
    (a) The municipality of Washington, D.C., itself;
    (b) All points within a line drawn 15 miles beyond the municipal 
limits of Washington, DC
    (c) All points in Fairfax and Loudoun Counties, VA, and all points 
in Prince William County, VA, including the City of Manassas, VA, and 
the City of Manassas Park, VA.
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Washington, D.C., or 
by any other municipality included under the terms of paragraph (d) of 
this section.

[41 FR 56654, Dec. 29, 1976, as amended at 46 FR 56424, Nov. 17, 1981]



Sec. 1048.11  Twin Cities.

    For the purpose of determining commercial zones, utilizing the 
general population-mileage formula as set forth in Sec. 1048.101, each 
of the following combinations of cities shall be considered as a single 
municipality:
    (a) Having a population equal to the sum of their combined 
populations, and
    (b) Having boundaries comprised of their combined corporate limits, 
with the common portion thereof disregarded:
    (1) Bluefield, Va.-W. Va.
    (2) Bristol, Va.-Tenn.
    (3) Davenport, Iowa, and Rock Island and Moline, Ill.
    (4) Delmar, Del-Md.
    (5) Harrison, Ohio-West Harrison, Ind.
    (6) Junction City, Ark.-La.
    (7) Kansas City, Mo.-Kansas City, Kans.
    (8) Minneapolis-St. Paul, Minn.
    (9) St. Louis, Mo.-East St. Louis, Ill.
    (10) Texarkana, Ark.-Tex.
    (11) Texhoma, Tex.-Okla.
    (12) Union City, Ind.-Ohio.

[41 FR 56654, Dec. 29, 1976]



Sec. 1048.12  Consolidated governments.

    The zone adjacent to, and commercially a part of a consolidated 
government within which transportation by motor vehicle, in interstate 
or foreign commerce, not under common control, management, or 
arrangement for a continuous carriage or shipment to or from a point 
beyond the zone, is partially exempt from regulation under section 
203(b)(8) of the Interstate Commerce Act (49 U.S.C. 303(b)(8)) includes 
and is comprised of all points as follows:
    (a) All points within the boundaries of the consolidated government.
    (b) All points beyond the boundaries of the consolidated government 
which

[[Page 125]]

were at any time within the commercial zone of the formerly independent 
core municipality.
    (c) When the present population of the formerly independent core 
municipality is identifiable, all points beyond the boundaries of the 
consolidated government which are within the territory determined by the 
most recent population-mileage formula measured from the limits of the 
formerly independent core municipality.
    (d) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the consolidated government or by any 
other municipality included under the terms of paragraphs (a), (b), or 
(c) of this section.

[41 FR 56654, Dec. 29, 1976]



Sec. 1048.13  Lexington-Fayette Urban County, Ky.

    The zone adjacent to and commercially a part of Lexington-Fayette 
Urban County, Ky., within which transportation by motor vehicle, in 
interstate or foreign commerce, not under a common control, management, 
or arrangement for a continuous carriage or shipment to or from a point 
beyond the zone, is partially exempt from regulation under section 
203(b)(8) of the Interstate Commerce Act (49 U.S.C. 303(b)(8)) includes 
and is comprised of all points as follows:
    (a) Lexington-Fayette Urban County, Ky., itself.
    (b) All other municipalities and unincorporated areas within 5 miles 
of the intersection of U.S. Highway 27 (Nicholasville Road) with the 
corporate boundary line between Jessamine County, Ky., and Lexington-
Fayette Urban County, Ky.

[39 FR 18769, May 30, 1974. Redesignated at 41 FR 56655, Dec. 29, 1976. 
Further redesignated at 55 FR 42198, Oct. 18, 1990]



Sec. 1048.14  Syracuse, N.Y.

    The zone adjacent to, and commercially a part of Syracuse, N.Y., 
within which transportation by motor vehicle, in interstate or foreign 
commerce, not under common control, management, or arrangement for 
shipment to or from points beyond such zone, is partially exempt from 
regulation under section 203 (b)(8) of the Interstate Commerce Act (49 
U.S.C. 303(b)(8) includes and is comprised of all points as follows:
    (a) The municipality of Syracuse, N.Y., itself;
    (b) All points within a line drawn 10 miles beyond the municipal 
limits of Syracuse;
    (c) Those points in the towns of Van Buren and Lysander, Onondaga 
County, N.Y., which are not within the area described in paragraph (b) 
of this section, but which are within an area bounded by a line 
beginning at the intersection of new New York Highway 48 with the line 
described in (b) of this sectio, thence northwesterly along new New York 
Highway 48 to junction New York Highway 370, thence westerly along New 
York Highway 370 to junction Emerick Road, thence northerly along 
Emerick Road to junction Dunham Road, thence northerly along Dunham road 
to junction New York Highway 192, thence easterly along New York Highway 
192 to junction new New York Highway 48, thence northerly along new New 
York Highway 48 to junction New York Highway 213, thence easterly along 
New York Highway 213 to junction New York Highway 213A, thence easterly 
along New York Highway 213A to junction New York Highway 37, thence 
southerly along New York Highway 37 to its intersection with the line in 
(b) above;
    (d) All of any municipality any part of which is within the limits 
of the combined area defined in (b) and (c) of this section, and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Syracuse or any 
other municipality included under the terms of (d) of this section.

[42 FR 44816, Sept. 7, 1977. Redesignated at 55 FR 42198, Oct. 18, 1990]



Sec. 1048.15  Spokane, Wash.

    The zone adjacent to, and commercially a part of Spokane, WA, within 
which transportation by motor vehicle, in interstate or foreign 
commerce, not under control, management, or arrangement for shipment to 
or from points beyond such zone, is partially exempt from regulation 
under 49 U.S.C.

[[Page 126]]

10526(b)(1) includes and is comprised of all points as follows:
    (a) The municipality of Spokane, WA, itself,
    (b) All points within a line drawn 8 miles beyond the municipal 
limits of Spokane;
    (c) All points within that area more than 8 miles beyond the 
municipal limits of Spokane bounded by a line as follows: From the 
intersection of the line described in (b) of this section and U.S. 
Highway 2, thence westerly along U.S. Highway 2 to junction Brooks Road, 
thence southerly along Brooks Road to junction Hallett Road, thence 
easterly along Hallett Road to its intersection with the line described 
in (b) of this section;
    (d) All of any municipality any part of which is within the limits 
of the combined areas in (b) and (c) of this section; and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Spokane or any other 
municipality included under the terms of (d) of this section.

[45 FR 62085, Sept. 18, 1980. Redesignated and amended at 55 FR 42198, 
Oct. 18, 1990]



Sec. 1048.16  Tacoma, Wash.

    The zone adjacent to, and commercially a part of Tacoma, WA, within 
which transportation by motor vehicle, in interstate or foreign 
commerce, not under common control, management, or arrangement for 
shipment to or from points beyond such zone, is partially exempt from 
regulation under section 49 U.S.C. 10526(b)(1) of the Interstate 
Commerce Act, includes and is comprised of all points as follows:
    (a) The municipality of Tacoma, WA, itself;
    (b) All points within a line drawn 8 miles beyond the municipal 
limits of Tacoma;
    (c) Those points in Pierce County, WA, which are not within the area 
described in paragraph (b) of this section, but which are on Washington 
Highway 162 beginning at its intersection with the line described in 
paragraph (b) of this section, extending to and including Orting, WA, 
and all points within the Orting commercial zone.
    (d) All of any municipality any part of which is within the limits 
of the combined area defined in (b) and (c) of this section, and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Tacoma or any other 
municipality included under the terms of (d) of this section.

[45 FR 66460, Oct. 7, 1980. Redesignated at 55 FR 42198, Oct. 18, 1990]



Sec. 1048.17  Chicago, IL.

    The zone adjacent to, and commercially a part of Chicago, IL, within 
which transportation by motor vehicle, in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
shipment to or from such zone, is partially exempt from regulation under 
section 10526(b)(1) of the Interstate Commerce Act (49 U.S.C. 
10526(b)(1)), includes and is comprised of all points as follows:
    (a) The municipality of Chicago, IL, itself;
    (b) All points within a line drawn 20 miles beyond the municipal 
limits of Chicago;
    (c) All points in Lake County, IL.
    (d) All of any municipality any part of which is within the limits 
of the combined area defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality included under the 
terms of paragraph (d) of this section.

[46 FR 11286, Feb. 6, 1981. Redesignated at 55 FR 42198, Oct. 18, 1990]



Sec. 1048.18  New York, NY.

    The zone adjacent to, and commercially a part of, New York, NY, 
within which transportation by motor vehicle, in interstate or foreign 
commerce, not under common control, management, or arrangement for 
shipment to or from points beyond such zone is partially exempt from 
regulation under section 49 U.S.C. 10526(b)(1) of the Interstate 
Commerce Act (49 U.S.C. 10526(b)(1)), includes and is comprised of all 
points as follows:
    (a) The municipality of New York, NY, itself;

[[Page 127]]

    (b) All points within a line drawn 20 miles beyond the municipal 
limits of New York, NY;
    (c) All points in Morris County, NJ;
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c); and
    (e) All of any municipality wholly surrounded, or so surrounded 
except by a water boundary, by the municipality of New York or by any 
other municipality included under the terms of paragraph (d) of this 
section.

[50 FR 34478, Aug. 26, 1985. Redesignated at 55 FR 42198, Oct. 18, 1990]



Sec. 1048.19  Cameron, Hidalgo, Starr, and Willacy Counties, TX.

    (a) Transportation within a zone comprised of Cameron, Hidalgo, 
Starr, and Willacy Counties, TX, by motor carriers of property, in 
interstate or foreign commerce, not under common control, management, or 
arrangement for shipment to or from points beyond such zone, is 
partially exempt from regulation under section 10526(b)(1) of the 
Interstate Commerce Act (49 U.S.C. 10526(b)(1)).
    (b) To the extent that commercial zones of municipalities within the 
four counties (as determined under Sec. 1048.101) extend beyond the 
boundaries of this four-county zone, the areas of such commercial zones 
shall be considered to be part of the zone and partially exempt from 
regulation under section 10526(b)(1).

[51 FR 1815, Jan. 15, 1986. Redesignated at 55 FR 42198, Oct. 18, 1990]



Sec. 1048.100   Definitions.

    For the purposes of this part, the following terms are defined:
    (a) Municipality means any city, town, village, or borough which has 
been created by special legislative act or which has been, otherwise, 
individually incorporated or chartered pursuant to general State laws, 
or which is recognized as such, under the Constitution or by the laws of 
the State in which located, and which has a local government. It does 
not include a town of the township or New England type.
    (b) Contiguous municipalities means municipalities, as defined in 
paragraph (a) of this section, which have at some point a common 
municipal or corporate boundary.
    (c) Unincorporated area means any area not within the corporate or 
municipal boundaries of any municipality as defined in paragraph (a) of 
this section.

[32 FR 20048, Dec. 20, 1967]



Sec. 1048.101   Commercial zones determined generally, with exceptions.

    The commercial zone of each municipality in the United States, with 
the exceptions indicated in the note at the end of this section, within 
which the transportation of passengers or property, in interstate or 
foreign commerce, when not under a common control, management, or 
arrangement for a continuous carriage or shipment to or from a point 
without such zone, is exempt from all provisions of part II, Interstate 
Commerce Act, except the provisions of section 204 relative to the 
qualifications and maximum hours of service of employees and safety of 
operation or standards of equipment shall be deemed to consist of:
    (a) The municipality itself, hereinafter called the base 
municipality;
    (b) All municipalities which are contiguous to the base 
municipality;
    (c) All other municipalities and all unincorporated areas within the 
United States which are adjacent to the base municipality as follows:
    (1) When the base municipality has a population less than 2,500 all 
unincorporated areas within 3 miles of its corporate limits and all of 
any other municipality any part of which is within 3 miles of the 
corporate limits of the base municipality,
    (2) When the base municipality has a population of 2,500 but less 
than 25,000 all unincorporated areas within 4 miles of its corporate 
limits and all of any other municipality any part of which is within 4 
miles of the corporate limits of the base municipality.
    (3) When the base municipality has a population of 25,000 but less 
than 100,000 all unincorporated areas within 6 miles of its corporate 
limits and all of any other municipality any part of which is within 6 
miles of the corporate limits of the base municipality, and

[[Page 128]]

    (4) When the base municipality has a population of 100,000 but less 
than 200,000 all unincorporated areas within 8 miles of its corporate 
limits and all of any other municipality any part of which is within 8 
miles of the corporate limits of the base municipality.
    (5) When the base municipality has a population of 200,000 but less 
than 500,000 all unincorporated areas within 10 miles of its corporate 
limits and all of any other municipality any part of which is within 10 
miles of the corporate limits of the base municipality.
    (6) When the base municipality has a population of 500,000 but less 
than 1 million, all unincorporated areas within 15 miles of its 
corporate limits and all of any other municipality any part of which is 
within 15 miles of the corporate limits of the base municipality.
    (7) When the base municipality has a population of 1 million or 
more, all unincorporated areas within 20 miles of its corporate limits 
and all of any other municipality any part of which is within 20 miles 
of the corporate limits of the base municipality, and
    (d) All municipalities wholly surrounded, or so surrounded except 
for a water boundary, by the base municipality, by any municipality 
contiguous thereto, or by any municipality adjacent thereto which is 
included in the commercial zone of such base municipality under the 
provisions of paragraph (c) of this section.

    Note: Except: Municipalities the commercial zones of which have been 
or are hereafter individually or specially determined.

[32 FR 20048, Dec. 20, 1967, as amended at 34 FR 9870, June 26, 1969; 34 
FR 15482, Oct. 4, 1969; 41 FR 56655, Dec. 29, 1976]



Sec. 1048.102   Controlling distances and population data.

    In the application of Sec. 1048.101:
    (a) Air-line distances or mileages about corporate limits of 
municipalities shall be used.
    (b) The population of any municipality shall be deemed to be the 
highest figure shown for that municipality in any decennial census since 
(and including) the 1940 decennial census.
    (c) Contraction of municipal boundaries will not alter the size of 
commercial zones.

[32 FR 20040, Dec. 20, 1967, as amended at 37 FR 15701, Aug. 4, 1972; 50 
FR 10233, Mar. 14, 1985]



PART 1049--TERMINAL AREAS--Table of Contents




    Authority: 49 Stat. 543, 544 and 546, as amended; 49 U.S.C. 302, 
303, 304.

    Note: In the application of this part, distances and population data 
shall be determined in the same manner as provided in Sec. 1048.102 of 
this chapter. See also definitions in Sec. 1048.100 of this chapter.



Sec. 1049.1   Terminal areas of motor carriers and household goods freight forwarders at municipalities served.

    The terminal area within the meaning of section 202(c) of the 
Interstate Commerce Act (49 U.S.C. 302(c)) of any motor carrier of 
property subject to part II or of any household goods freight forwarder 
subject to part IV thereof, at any municipality authorized to be served 
by such motor carrier of property or motor carrier of passengers in the 
transportation of express or household goods freight forwarder, within 
which transportation by motor vehicle in the performance of transfer, 
collection, or delivery services may be performed by, or for, such motor 
carrier of property or household goods freight forwarder without 
compliance with the provisions, other than those in section 204 (49 
U.S.C. 304) relative to qualifications and maximum hours of service of 
employees and safety of operation and equipment, of part II of the act 
consists of and includes all points or places which are:
    (a) Within the commercial zone, as defined by this Commission, of 
that municipality, and
    (b) Not beyond the limits of the operating authority of such motor 
carrier of property or household goods freight forwarder.

[32 FR 20049, Dec. 20, 1967, as amended at 51 FR 44297, Dec. 9, 1986]

[[Page 129]]



Sec. 1049.2   Terminal areas of motor carriers and household goods freight forwarders at unincorporated communities served.

    The terminal area within the meaning of section 202(c) of the 
Interstate Commerce Act (49 U.S.C. 302(c)) of any motor carrier of 
property subject to part II (49 U.S.C. 301 et seq.) or any household 
goods freight forwarder subject to part IV thereof (49 U.S.C. 1001 et 
seq.), at any unincorporated community having a post office of the same 
name which is authorized to be served by such motor carrier of property 
or motor carrier of passengers in the transportation of express or 
household goods freight forwarder, within which transportation by motor 
vehicle in the performance of transfer, collection, or delivery services 
may be performed by, or for, such motor carrier of property or household 
goods freight forwarder without compliance with the provisions, other 
than those in section 204 (49 U.S.C. 304) relating to qualifications and 
maximum hours of service of employees and safety of operations and 
equipment, of part II of the act, consists of:
    (a) All points in the United States which are located within the 
limits of the operating authority of the motor carrier of property or 
household goods freight forwarder involved, and within 3 miles of the 
post office at such authorized unincorporated point if it has a 
population less than 2,500, within 4 miles if it has a population of 
2,500 but less than 25,000, or within 6 miles if it has a population of 
25,000 or more;
    (b) All of any municipality any part of which is included under 
paragraph (a) of this section; and
    (c) Any municipality wholly surrounded by any municipality included 
under paragaph (b) of this section, or so wholly surrounded except for a 
water boundary.

[32 FR 20049, Dec. 20, 1967, as amended at 41 FR 56655, Dec. 29, 1976; 
51 FR 44297, Dec. 9, 1986]



PART 1051--RECEIPTS AND BILLS--Table of Contents




Sec.
1051.1  Bills of lading.
1051.2  Expense bills.
1051.3  Low value packages.

    Authority: 5 U.S.C. 553, 49 U.S.C. 721(a), 13710, 14122.

    Source: 55 FR 11198, Mar. 27, 1990, unless otherwise noted.



Sec. 1051.1  Bills of lading.

    Every motor common carrier shall issue a receipt or bill of lading 
for property tendered for transportation in interstate or foreign 
commerce containing the following information:
    (a) Names of consignor and consignee.
    (b) Origin and destination points.
    (c) Number of packages.
    (d) Description of freight.
    (e) Weight, volume, or measurement of freight (if applicable to the 
rating of the freight).

The carrier shall keep a record of this information as prescribed in 49 
CFR part 1220.

[55 FR 11198, Mar. 27, 1990, as amended at 56 FR 30874, July 8, 1991]



Sec. 1051.2  Expense bills.

    (a) Property. Every motor common carrier shall issue a freight or 
expense bill for each shipment transported containing the following 
information:
    (1) Names of consignor and consignee (except on a reconsigned 
shipment, not the name of the original consignor).
    (2) Date of shipment.
    (3) Origin and destination points (except on a reconsigned shipment, 
not the original shipping point unless the final consignee pays the 
charges from that point).
    (4) Number of packages.
    (5) Description of freight.
    (6) Weight, volume, or measurement of freight (if applicable to the 
rating of the freight).
    (7) Exact rate(s) assessed.
    (8) Total charges due, including the nature and amount of any 
charges for special service and the points at which such service was 
rendered.
    (9) Route of movement and name of each carrier participating in the 
transportation.
    (10) Transfer point(s) through which shipment moved.
    (11) Address where remittance must be made or address of bill 
issuer's principal place of business.

The shipper or receiver owing the charges shall be given the original

[[Page 130]]

freight or expense bill and the carrier shall keep a copy as prescribed 
at 49 CFR part 1220. If the bill is electronically transmitted (when 
agreed to by the carrier and payor), a receipted copy shall be given to 
the payor upon payment.
    (b) Charter service. Every motor passenger common carrier providing 
charter service shall issue an expense bill containing the following 
information:
    (1) Serial number, consisting of one of a series of consecutive 
numbers assigned in advance and imprinted on the bill.
    (2) Name of carrier.
    (3) Names of payor and organization, if any, for which 
transportation is performed.
    (4) Date(s) transportation was performed.
    (5) Origin, destination, and general routing of trip.
    (6) Identification and seating capacity of each vehicle used.
    (7) Number of persons transported.
    (8) Mileage upon which charges are based, including any deadhead 
mileage, separately noted.
    (9) Applicable rates per mile, hour, day, or other unit.
    (10) Itemized charges for transportation, including special services 
and fees.
    (11) Total charges assessed and collected.

The carrier shall keep a copy of all expense bills issued for the period 
prescribed at 49 CFR part 1220. If any expense bill is spoiled, voided, 
or unused for any reason, a copy or written record of its disposition 
shall be retained for a like period.

[55 FR 11198, Mar. 27, 1990, as amended at 59 FR 2303, Jan. 14, 1994; 61 
FR 19860, May 3, 1996]



Sec. 1051.3  Low value packages.

    The carrier and shipper may elect to waive the above provisions and 
use a more streamlined recordkeeping or documentation system for 
distribution of ``low value'' packages. This includes the option of 
shipping such packages under the released rates provisions at 49 U.S.C. 
10730. The shipper is responsible ultimately for determining which 
packages should be designated as low value. A useful guideline for this 
determination is an invoice value less than or equal to the costs of 
preparing a loss or damage claim.



PART 1052--HANDLING OF C.O.D. SHIPMENTS--Table of Contents




Sec.
1052.1  Applicability.
1052.2  Tariff requirements.
1052.3  Collection and remittance.

    Authority: 49 U.S.C. 10101, 10321, 10922, 10762, and 11101, and 5 
U.S.C. 553.

    Source: 32 FR 20050, Dec. 20, 1967, unless otherwise noted.



Sec. 1052.1   Applicability.

    The rules and regulations in this part apply to the transportation 
by motor vehicle of c.o.d. shipments by all common carriers of property 
subject to part II of the Interstate Commerce Act, except such 
transportation which is auxiliary to or supplemental of transportation 
by railroad and performed on railroad bills of lading, and except such 
transportation which is performed for freight forwarders and on freight 
forwarder bills of lading.



Sec. 1052.2   Tariff requirements.

    No common carrier of property subject to the provisions of part II 
of the Interstate Commerce Act, except as otherwise provided in 
Sec. 1052.1, shall render any c.o.d. service unless such carrier has 
published, posted and filed tariffs which contain the rates, charges and 
rules governing such service, which rules shall conform to the 
regulations in this part.



Sec. 1052.3  Collection and remittance.

    Every common carrier of property subject to the Interstate Commerce 
Act, except as otherwise provided in Sec. 1052.1, which chooses to 
provide c.o.d. service may publish and maintain, or cause to be 
published and maintained for its account, a tariff or tariffs which set 
forth nondiscriminatory rules governing c.o.d. service and the 
collection and remittance of c.o.d. funds. Alternatively, any carrier 
that provides c.o.d. service, but does not wish to publish and maintain, 
or cause to be published and maintained, its own nondiscriminatory 
tariff, may adopt a rule

[[Page 131]]

requiring remittance of each c.o.d. collection directly to the consignor 
or other person designated by the consignor as payee within fifteen (15) 
days after delivery of the c.o.d. shipment to the consignee.

[52 FR 45966, Dec. 3, 1987]



PART 1054--INCIDENTAL CHARTER RIGHTS--Table of Contents




Sec.
1054.1  Applicability.
1054.2  Authority.
1054.3  Exceptions.

    Authority: 5 U.S.C. 553 and 559 and 49 U.S.C. 10321, 10922, and 
10932.

    Source: 54 FR 46619, Nov. 6, 1989, unless otherwise noted.



Sec. 1054.1  Applicability.

    The regulations in this part apply to incidental charter rights 
authorized under 49 U.S.C. 10932(c). These regulations do not apply to 
interpreting authority contained in a certificate to transport 
passengers in special and/or charter operations.



Sec. 1054.2  Authority.

    Motor carriers transporting passengers, in interstate or foreign 
commerce, over regular routes authorized in a certificate issued as a 
result of an application filed before January 2, 1967, may transport 
special or chartered parties, in interstate or foreign commerce, between 
any points and places in the United States (including Alaska and 
Hawaii). The term ``special or chartered party'' means a group of 
passengers who, with a common purpose and under a single contract, and 
at a fixed charge for the vehicle in accordance with the carrier's 
tariff, have acquired the exclusive use of a passenger-carrying motor 
vehicle to travel together as a group to a specified destination or for 
a particular itinerary.



Sec. 1054.3  Exceptions.

    (a) Incidental charter rights do not authorize the transportation of 
passengers to whom the carrier has sold individual tickets or with whom 
the carrier has made separate and individual transportation 
arrangements.
    (b) Service provided under incidental charter rights may not be 
operated between the same points or over the same route so frequently as 
to constitute a regular-route service.
    (c) Passenger transportation within the Washington Metropolitan Area 
Transit District (as defined in the Washington Metropolitan Area 
Transportation Regulation Compact, Pub. L. No. 86-794, 74 Stat. 1031 
(1960), as amended by Pub. L. No. 87-767, 76 Stat. (1962) is not 
authorized by these regulations, but is subject to the jurisdiction and 
regulations of the Washington Metropolitan Area Transportation 
Commission.
    (d) A private or public recipient of governmental assistance (within 
the meaning of 49 U.S.C. 10922(c)(1)(F)) may provide service under 
incidental charter rights only for special or chartered parties 
originating in the area in which the private or public recipient 
provides regularly scheduled mass transportation services under the 
specific qualifying certificate that confers its incidental charter 
rights.



PART 1055--DISCRIMINATION IN OPERATIONS OF INTERSTATE MOTOR COMMON CARRIERS OF PASSENGERS--Table of Contents




Sec.
1055.1  Discrimination prohibited.
1055.2  Notice to be printed on tickets.
1055.3  Discrimination in terminal facilities.
1055.4  Notice to be posted at terminal facilities.
1055.5  Carriers not relieved of existing obligations.
1055.6  Reports of interference with regulations.
1055.10  Definitions.

    Authority: 52 Stat. 1237, 49 U.S.C. sec. 304.

    Source: 36 FR 1338, Jan. 28, 1971, unless otherwise noted.



Sec. 1055.1   Discrimination prohibited.

    No motor common carrier of passengers subject to section 216 of the 
Interstate Commerce Act shall operate a motor vehicle in interstate or 
foreign commerce on which the seating of passengers is based upon race, 
color, creed, or national origin.

[[Page 132]]



Sec. 1055.2   Notice to be printed on tickets.

    Every motor common carrier of passengers subject to section 216 of 
the Interstate Commerce Act shall cause to be printed on every ticket 
sold by it for transportation on any vehicle operated in interstate or 
foreign commerce a plainly legible notice as follows: ``Seating aboard 
vehicles operated in interstate or foreign commerce is without regard to 
race, color, creed, or national origin.''

    Note: The following interpretation of the provisions of Sec. 1055.2 
appears at 27 FR 230, Jan. 9, 1962:
    The words, ``Seating aboard vehicles operated in interstate or 
foreign commerce is without regard to race, color, creed, or national 
origin'', should appear on the face of every ticket coming within the 
purview of the section. If the ticket is in parts or consists of 
additional elements, such as coupons, identification stubs, or checks, 
it shall be sufficient for the purposes of Sec. 1055.2 that the notice 
appear only once on the ticket and be placed on the face of that portion 
of the ticket which is held by the passenger.



Sec. 1055.3   Discrimination in terminal facilities.

    No motor common carrier of passengers subject to section 216 of the 
Interstate Commerce Act shall in the operation of vehicles in interstate 
or foreign commerce provide, maintain arrangements for, utilize, make 
available, adhere to any understanding for the availability of, or 
follow any practice which includes the availability of, any terminal 
facilities which are so operated, arranged, or maintained as to involve 
any separation of any portion thereof, or in the use thereof on the 
basis of race, color, creed, or national origin.



Sec. 1055.4   Notice to be posted at terminal facilities.

    No motor common carrier of passengers subject to section 216 of the 
Interstate Commerce Act shall in the operation of vehicles in interstate 
or foreign commerce utilize any terminal facility in which there is not 
conspicuously displayed and maintained so as to be readily visible to 
the public a plainly legible sign or placard containing the full text of 
these regulations. Such sign or placard shall be captioned: ``Public 
Notice: Regulations Applicable to Vehicles and Terminal Facilities of 
Interstate Motor Common Carriers of Passengers, by order of the 
Interstate Commerce Commission.''



Sec. 1055.5   Carriers not relieved of existing obligations.

    Nothing in this regulation shall be construed to relieve any 
interstate motor common carrier of passengers subject to section 216 of 
the Interstate Commerce Act of any of its obligations under the 
Interstate Commerce Act or its certificate(s) of public convenience and 
necessity.



Sec. 1055.6   Reports of interference with regulations.

    Every motor common carrier of passengers subject to section 216 of 
the Interstate Commerce Act operating vehicles in interstate or foreign 
commerce shall report to the Secretary of the Interstate Commerce 
Commission, within fifteen (15) days of its occurrence, any interference 
by any person, municipality, county, parish, State, or body politic with 
its observance of the requirements of these regulations in this part. 
Such report shall include a statement of the action that such carrier 
may have taken to eliminate any such interference.



Sec. 1055.10   Definitions.

    For the purpose of these regulations the following terms and phrases 
are defined:
    (a) Terminal facilities. As used in these regulations the term 
``terminal facilities'' means all facilities, including waiting room, 
rest room, eating, drinking, and ticket sales facilities which a motor 
common carrier makes available to passengers of a motor vehicle operated 
in interstate or foreign commerce as a regular part of their 
transportation.
    (b) Separation. As used in Sec. 1055.3, the term ``separation'' 
includes, among other things, the display of any sign indicating that 
any portion of the terminal facilities are separated, allocated, 
restricted, provided, available, used, or otherwise distinguished on the 
basis of race, color, creed, or national origin.

[[Page 133]]



PART 1056--TRANSPORTATION OF HOUSEHOLD GOODS IN INTERSTATE OR FOREIGN COMMERCE--Table of Contents




Sec.
1056.1  Applicability and definitions.
1056.2  Information for shippers.
1056.3  Estimates of charges.
1056.4  Final charges on shipments subject to minimum weight or volume 
          provisions.
1056.5  Order for service.
1056.6  Receipt or bill of lading.
1056.7  Determination of weights.
1056.8  Reasonable dispatch.
1056.9  Notification of charges.
1056.10  Signed receipt for shipment-release prohibited.
1056.11  Selling of insurance to shippers.
1056.12  Liability of carriers.
1056.13  Complaint and inquiry handling.
1056.14  Agency agreements.
1056.15  Collection of freight charges on household goods shipments 
          involving loss or destruction in transit.
1056.16  Collection of freight charges on shipments transported on more 
          than one vehicle.
1056.17  Advertising by motor common carriers of household goods.
1056.18  Preparation and filing of annual performance report.
1056.19  Use of charge card plans.

    Authority: 49 U.S.C. 10321, 11109, 11110 and 5 U.S.C. 553.

    Source: 46 FR 16218, Mar. 11, 1981, unless otherwise noted.



Sec. 1056.1  Applicability and definitions.

    (a) The regulations in this part are applicable to the operations of 
motor carriers engaged in the transportation of household goods as 
defined in paragraph (b)(1) of this section in interstate or foreign 
commerce.
    (b) Definitions. As used in this part:
    (1) Household Goods. The term ``household goods'' means personal 
effects and property used or to be used in a dwelling when a part of the 
equipment or supply of such dwelling and such other similar property as 
the Commission may provide by regulation; except that this definition 
shall not be construed to include property moving from a factory or 
store except such property as a householder has purchased with intent to 
use in his dwelling and which is transported at the request of, and the 
transportation charges paid to the carrier by the householder. The 
regulations under this part do not apply to the transportation of 
property transportable under 49 U.S.C. 10102(10) (B) and (C).
    (2) Reasonable dispatch. The term ``reasonable dispatch'' means the 
performance of transportation, excluding transportation provided under 
tariff provisions requiring guaranteed service dates, on the dates or 
during the period of time agreed upon by the carrier and the shipper and 
shown on the Order For Service/Bill of Lading, Provided, That the 
defenses of force majeure as construed by the courts shall not be denied 
the carrier.
    (3) Advertisement. The term ``advertisement'' means any 
communication to the public in connection with an offer or sale of any 
interstate or foreign transportation service, but shall not be construed 
to include a listing of a carrier name, address, and telephone number in 
a telephone directory or similar publication.
    (4) Certified Scales. As used in this part, a certified scale is any 
scale designed for weighing motor vehicles, including trailers or semi-
trailers not attached to a tractor, and certified by an authorized scale 
inspection and licensing authority. A certified scale may also be a 
platform or warehouse type scale properly inspected and certified.
    (5) Individual Shipper. As used in this part, ``individual shipper'' 
refers to any person who is the consignor or consignee of a household 
goods shipment and is identified as such in the bill of lading contract 
and owns the goods being transported.
    (6) Commercial Shipper. As used in this part, ``commercial shipper'' 
refers to (a) any person, excluding the federal government, who is named 
as the consignor and/or consignee in a bill of lading contract who is 
not the owner of the goods being transported but who assumes the 
responsibility for payment of the transportation and other tariff 
charges for the account of the beneficial owner of the goods, normally 
an employee of the consignor and/or consignee; or, (b) a freight 
forwarder which tenders a shipment to a carrier in furtherance of 
authorized or exempt freight forwarder operations.
    (7) Government Bill of Lading Shipper. As used in this part, 
``government bill of lading shipper'' refers to any person

[[Page 134]]

whose property is transported under the terms and conditions of a 
government bill of lading issued by any department or agency of the 
federal government to the carrier responsible for the transportation of 
the shipment.
    (8) Other terms. Where any other terms used in the regulations in 
this part are defined in 49 U.S.C. 10102, such definitions shall be 
controlling. Where terms are used in this part which are neither defined 
herein nor in 49 U.S.C. 10102, they shall have the ordinary practical 
meaning of such terms.

[46 FR 16218, Mar. 11, 1981; 46 FR 22594, Apr. 20, 1981]



Sec. 1056.2  Information for shippers.

    (a) Prior to the execution of an order for service of a shipment of 
household goods, as defined in Sec. 1056.1(b)(1), every motor common 
carrier holding out to perform the service shall cause to be furnished 
to the prospective individual shipper the following publications.
    (1) Publication OCE-100, Your Rights and Responsibilities When You 
Move.
    (2) A concise, easy-to-read, accurate summary of any dispute 
settlement program in which the carrier participates, as provided in 49 
U.S.C. 11711 and approved by the Commission.
    (3) A copy of Form OCE-101, Annual Performance Report, most recently 
filed with the Commission, as prescribed in Sec. 1056.18, if the carrier 
is required to complete part B of that form.
    (4) A written description of the customer complaint and inquiry 
handling procedures established and maintained by the carrier. Included 
in this description shall be a telephone number which the shipper may 
use to communicate with the carrier, accompanied by a clear and concise 
statement concerning who shall pay for such calls.
    (b) General Requirements: (1) The text and format of the publication 
shall not be changed without the written approval of the Director, 
Office of Compliance and Enforcement, Interstate Commerce Commission.
    (2) The Director, Office of Compliance and Enforcement, Interstate 
Commerce Commission, shall, within 30 days following the effective date 
of a decision of the Interstate Commerce Commission changing any rule or 
regulation published at 49 CFR part 1056, cause to be published in the 
Federal Register a notice of amendment to Publication OCE-100 reflecting 
such change or changes.
    (3) The dimensions of the publication shall be optional, Provided, 
however, The product of multiplying the length by the width shall be not 
less than 36 square inches.
    (4) The color and design of the front and back cover of the 
publication shall be optional. Provided, the only words printed or 
appearing on the front cover shall be ``Your Rights and Responsibilities 
When You Move.''

[46 FR 16218, Mar. 11, 1981; 46 FR 22594, Apr. 20, 1981, as amended at 
59 FR 2305, Jan. 14, 1994; 59 FR 34392, July 5, 1994]



Sec. 1056.3  Estimates of charges.

    (a) Binding estimates. Motor common carriers engaged in the 
transportation of household goods as defined in Sec. 1056.1(b)(1) may 
provide in their tariffs for the preparation and furnishing to shippers 
of binding estimates of the costs which the shippers will be required to 
pay for the services included in the estimates. Binding estimates must 
be furnished in writing to the shipper or other person responsible for 
payment of the freight charges and a copy of each such estimate must be 
retained by the carrier as an addendum to the bill of lading. All such 
estimates shall have clearly indicated on its face that the estimate is 
binding on the carrier and that the charges shown are the charges which 
will be assessed for the services identified in the estimate. Binding 
estimates must clearly describe the shipment and all services to be 
provided.
    (b) Non-binding estimates. Motor common carriers engaged in the 
transportation of household goods as defined in Sec. 1056.1(b)(1) may 
provide estimates of the approximate costs which will be assessed for 
the transportation of such shipments. Non-binding estimates shall be 
reasonably accurate. Estimates of approximate costs shall not be binding 
on the carriers providing such estimates. The final charges on shipments 
moved on non-binding estimates shall be those appearing in the carriers' 
tariffs applicable to the transportation. Non-binding estimates must be 
furnished without charge and in writing

[[Page 135]]

to the shipper or other person responsible for payment of the freight 
charges and a copy of each such estimate must be retained by the carrier 
as an addendum to the bill of lading. All such estimates shall have 
clearly indicated on the face thereof that the estimate is not binding 
on the carrier and that the charges shown are the approximate charges 
which will be assessed for the services identified in the estimate. Non-
binding estimates must clearly describe the shipment and all services to 
be provided.
    (c) Estimated charges required to be entered on the order for 
service and bill of lading. Motor common carriers furnishing non-binding 
estimates shall enter the estimated charges on the order for service, if 
an order for service is required, and on the bill of lading.
    (d) Maximum charges required to be paid at time of delivery on 
collect on delivery shipments subject to non-binding estimates of 
approximate costs. At time of delivery of a collect on delivery 
shipment, except when such shipment is delivered to a warehouse for 
storage at the request of the shipper, on which a non-binding estimate 
of the approximate costs has been furnished by the carrier under the 
provisions of paragraph (b), the shipper may request delivery of the 
shipment upon payment, in a form acceptable to the carrier, of an amount 
not exceeding 110 percent of the estimated charges. The carrier shall, 
upon request of the shipper, relinquish possession of the shipment upon 
payment of not more than 110 percent of the estimated charges and shall 
defer demand for the payment of the balance of any remaining charges for 
a period of 30 days following the date of delivery.



Sec. 1056.4  Final charges on shipments subject to minimum weight or volume provisions.

    (a) Motor common carriers engaged in the transportation of household 
goods, as defined in Sec. 1056.1(b)(1), providing service for individual 
shippers on rates based on the transportation of a minimum weight or 
volume, must indicate on the order for service the minimum weight or 
volume-based rates, and the the minimum charges applicable to the 
shipment.
    (b) Failure to comply with the requirements of paragraph (a) shall 
require, and the governing tariff shall contain, a rule providing that 
the final charges relating to such a shipment be computed based on the 
actual weight or volume of the shipment.



Sec. 1056.5  Order for service.

    (a) Order for service required. Every motor common carrier shall, 
prior to the receipt of a shipment of household goods as defined in 
Sec. 1056.1(b)(1) to be moved for an individual shipper, prepare an 
order for service which contains the following mimunum information:
    (1) Name and address and ICC docket number of carrier who is 
responsible for performing the service.
    (2) Shipper's name, address and, if available, telephone number.
    (3) Name, address and telephone number of the delivering carrier's 
office or agent located at or nearest to the destination of the 
shipment.
    (4) A telephone number at which the shipper/consignee may contact 
the carrier or its designated agent.
    (5) Agreed pickup date and agreed delivery date, or the agreed 
period or periods of time within which pickup, delivery, or the entire 
move, will be accomplished. If the shipment is to be transported on a 
guaranteed service basis, the guaranteed dates or periods of time for 
pickup, transportation and delivery and any penalty or per diem 
requirements of the agreement shall be entered under this item.
    (6) Complete description of any special or accessorial services 
ordered; and minimum weight or volume charges applicable to the 
shipment.
    (7) Any identification or registration number assigned the shipment 
by the carrier.
    (8) Amount of estimated non-binding charges; method of payment of 
total charges; and, maximum amount required to be paid at time of 
delivery to obtain possession of the shipment or, the amount of charges 
required to be paid based on a binding estimate and the terms of payment 
under that estimate.
    (9) Whether the shipper requests notification of the charges prior 
to delivery and the telephone number or address at

[[Page 136]]

which such communications will be received.
    (10) Signatures required. The order for service shall be signed by 
the shipper who is ordering the service, and by the carrier or its 
agent. A copy of the order for service shall be dated and furnished the 
shipper at the time it is executed.
    (b) Amendments to an order for service. Prior to loading an order 
for service may be amended by agreement of both parties.

[46 FR 16219, Mar. 11, 1981; 46 FR 22594, Apr. 20, 1981]



Sec. 1056.6  Receipt or bill of lading.

    (a) Issuance of a receipt or bill of lading. Every motor common 
carrier engaged in the transportation of household goods as defined in 
Sec. 1056.1(b)(1) shall issue a receipt or bill of lading. The bill of 
lading shall contain the minimum information required by Sec. 1056.6(b) 
and the terms and conditions of the contract. The carrier shall furnish 
a complete copy of the bill of lading to the shipper prior to the 
commencement of the loading of a shipment.
    (b) Minimum information required on a receipt or bill of lading. 
Whenever a receipt or bill of lading is issued in compliance with 
paragraph (a), the carrier shall cause to be included therein the 
following minimum information:
    (1) The name and address of the motor carrier issuing the receipt or 
bill of lading.
    (2) The names and addresses of any other motor carriers, when known, 
which will participate, through interline, in the transportation of the 
shipment.
    (3) The name, address and telephone number of the office of the 
carrier that should be contacted in relation to the transportation of 
shipments.
    (4) When the transportation is to be performed on a collect on 
delivery basis, the name, address and, if furnished, the telephone 
number of a person to whom notification provided for in Sec. 1056.9(b) 
shall be given.
    (5) When the transportation is to be performed for an individual 
shipper, and except when the transportation is to be performed subject 
to tariff provisions providing for guaranteed service dates, the agreed 
date or period of time for pickup of the shipment and the agreed date or 
period of time for the delivery of the shipment. The agreed dates or 
periods of time for pickup and delivery entered on the receipt or bill 
of lading shall conform to the agreed dates or periods of time for 
pickup and delivery entered on the order for service or a proper 
amendment to the order for service.
    (6) When the transportation is to be performed subject to tariff 
provisions providing for guaranteed pickup, transportation and delivery 
service, the dates for pickup and delivery and any penalty or per diem 
entitlements due the shipper under the agreement.
    (7) The actual date of pickup.
    (8) The company or carrier identification number of the vehicle on 
which the shipment is loaded.
    (9) The terms and conditions for payment of the total charges 
including notice of any minimum charges.
    (10) When the transportation is to be performed on a collect on 
delivery basis and if a pre-move estimate of the charges is provided to 
the shipper, the maximum amount required to be paid at the time of 
delivery to obtain delivery of the shipment.
    (11) The required released rates valuation statement.
    (12) Evidence of any insurance coverage sold to or procured for the 
shipper, including the amount of the premium for such insurance.
    (c) Copy of receipt or bill of lading to accompany shipment. A copy 
of the receipt or bill of lading shall accompany a shipment at all times 
while in the possession of a carrier. When the shipment is loaded on a 
vehicle for transportation the receipt or bill of lading shall be in 
possession of the driver responsible for the shipment.

[46 FR 16219, Mar. 11, 1981; 46 FR 22594, Apr. 20, 1981, as amended at 
50 FR 37534, Sept. 16, 1985]



Sec. 1056.7  Determination of weights.

    (a) Every motor common carrier transporting household goods on a 
non-binding estimate shall determine the weight of each shipment 
transported prior to the assessment of any charges dependent on the 
shipment weight. Except as otherwise provided herein the weight shall be 
obtained on a scale

[[Page 137]]

meeting the definition of a certified scale as provided in 
Sec. 1056.1(b)(4).
    (1) Weighing procedure. Except as otherwise provided herein the 
weight of each shipment shall be obtained by determining the difference 
between the tare weight of the vehicle on which the shipment is to be 
loaded prior to the loading and the gross weight of the same vehicle 
after the shipment is loaded; or, the gross weight of the vehicle with 
the shipment loaded and the tare weight of the same vehicle after the 
shipment is unloaded.
    (2) At the time of both weighings the vehicle shall have installed 
or loaded all pads, dollies, handtrucks, ramps and other equipment 
required in the transportation of such shipments. Neither the driver nor 
any other persons shall be on the vehicle at the time of either 
weighing.
    (3) The fuel tanks on the vehicle shall be full at the time of each 
weighing or, in the alternative, no fuel may be added between the two 
weighings when the tare weighing is the first weighing performed.
    (4) The trailer of a tractor-trailer vehicle combination may be 
detached from the tractor and the trailer weighed separately at each 
weighing providing the length of the scale platform is adequate to 
accommodate and support the entire trailer at one time.
    (5) Shipments weighing 1,000 pounds or less may be weighed on a 
certified platform or warehouse scale prior to loading for 
transportation or subsequent to unloading.
    (6) The net weight of shipments transported in containers shall be 
the difference between the tare weight of the container, including all 
pads, blocking and bracing used or to be used in the transportation of 
the shipment and the gross weight of the container with the shipment 
loaded therein.
    (7) The shipper or any other person responsible for the payment of 
the freight charges shall have the right to observe all weighings of the 
shipment. The carrier must advise the shipper or any other person 
entitled to observe the weighings of the time and specific location 
where each weighing will be performed and must give that person a 
reasonable opportunity to be present to observe the weighings. Waiver by 
a shipper of the right to observe any weighing or reweighing is 
permitted and does not affect any rights of the shipper under these 
regulations or otherwise.
    (b) Weight tickets. The carrier shall obtain a separate weight 
ticket for each weighing required under this section except when both 
weighings are performed on the same scale, one weight ticket may be used 
to record both weighings. Every weight ticket must be signed by the 
person performing the weighing and must contain the following minimum 
information:
    (1) The complete name and location of the scale.
    (2) The date of each weighing.
    (3) Identification of the weight entries thereon as being the tare, 
gross and/or net weights.
    (4) The company or carrier identification of the vehicle.
    (5) The last name of the shipper as it appears on the Bill of 
Lading.
    (6) The carrier's shipment registration or Bill of Lading number.
    (7) The original weight ticket or tickets relating to the 
determination of the weight of a shipment must be retained by the 
carrier as part of the file on the shipment. All freight bills presented 
to collect any shipment charges dependent on the weight transported must 
be accompanied by true copies of all weight tickets obtained in the 
determination of the shipment weight.
    (c) Reweighing of shipments. Before the actual commencement of the 
unloading of a shipment weighed at origin and after the shipper is 
informed of the billing weight and total charges, the shipper may 
request a reweigh. The charges shall be based on the reweigh weight.



Sec. 1056.8  Reasonable dispatch.

    (a) Unless accepted for transportation on the basis of guaranteed 
pickup and delivery dates:
    (1) Reasonable dispatch required. Each motor common carrier 
accepting shipments of household goods as defined in Sec. 1056.1(b)(1) 
for transportation for the account of individual shippers shall cause 
such shipments to be transported with reasonable dispatch as defined in 
Sec. 1056.1(b)(2).

[[Page 138]]

    (2) Notification of delay in providing service with reasonable 
dispatch. Whenever a carrier is unable to perform either or both the 
pickup and delivery of a shipment on the dates or during the periods of 
time specified in the order for service, the carrier shall notify the 
shipper by telephone, telegram or in person, at the carrier's expense, 
of the delay. Such notification shall be given as soon as it becomes 
apparent to the carrier that it will be unable to provide the service in 
compliance with the terms of the order for service.
    (3) Carrier notification of delay. At the time of notification of 
delay the carrier shall advise the shipper of the dates or periods of 
time that pickup and/or delivery can be made, which considers the needs 
of the shipper. If the notification of delay occurs prior to the pickup 
of the shipment, the amendment shall be in writing as required by 
Sec. 1056.5(b). If the notification of delay occurs subsequent to the 
pickup of the shipment, the carrier representative notifying the shipper 
of the delay shall prepare a written record of the date, time and manner 
of notification and the amended date or period of time for delivery by 
the carrier which record shall be retained by the carrier as part of its 
file on the shipment and a true copy thereof shall be furnished, by 
first class mail or in person, to the shipper.
    (b) Tendering for delivery. Except upon the request or concurrence 
of the shipper, a shipment being transported for an individual shipper 
shall not be tendered for delivery prior to the agreed delivery date or 
period of time specified on the bill of lading: Provided, That whenever 
a carrier is able to tender such a shipment for final delivery more than 
24 hours prior to such specified date or the first day of such specified 
period of time, and the shipper has not requested or concurred in such 
early delivery, the carrier may, at its option, place the shipment in 
storage for its own account and at its own expense in a warehouse 
located in proximity to the destination of the shipment. Whenever a 
carrier shall exercise such option it shall immediately notify the 
shipper of the name and address of the warehouse in which the shipment 
has been placed, and shall make and keep a record of such notification 
as a part of its record of shipment. The carrier's responsibility for 
the shipment under the terms and conditions of the bill of lading and 
its responsibility for the charges for redelivery, handling and storage 
thereof shall continue until final delivery: Provided, that the 
carrier's responsibility under the bill of lading shall not extend 
beyond the agreed delivery date or the first day of the period within 
which delivery was to have been accomplished as specified in the bill of 
lading.

[46 FR 16220, Mar. 11, 1981; 46 FR 22594, Apr. 20, 1981]



Sec. 1056.9  Notification of charges.

    (a) Whenever an individual shipper of a shipment being transported 
on a collect on delivery basis specifically requests notification of the 
actual weight or volume and charges on a shipment, and supplies the 
carrier with an address or telephone number at which the communication 
will be received, the carrier shall comply with such request upon 
determining the actual weight and charges. Such notification shall be 
made by telephone, telegram, or in person.
    (b) Whenever a shipper requests notification of the weight or volume 
and charges on a shipment as provided in paragraph (a), the notification 
must be received by the shipper, at least one full 24-hour day, 
excluding Saturdays, Sundays and legal holidays, prior to any tender of 
the shipment for delivery. The 24-hour notification requirement shall 
not apply on a shipment to be backweighed or on a shipment which, with 
the agreement of the shipper, is to be picked up and delivered within a 
time period encompassing two consecutive week days, or on a shipment on 
which the charges have been estimated and the maximum amount required to 
be paid at time of delivery is 110 percent of the estimated charges.



Sec. 1056.10  Signed receipt for shipment-release prohibited.

    A shipping document to be signed by the consignee at time of 
delivery shall not contain any language which purports to release or 
discharge the carrier or its agents from liability, but may contain a 
statement that the

[[Page 139]]

property has been received in apparent good condition except as noted on 
the shipping documents.



Sec. 1056.11  Selling of insurance to shippers.

    (a) When a shipment is released for transportation at a value not 
exceeding 60 cents per pound per article, and the shipper does not 
declare a valuation of $1.25 or more per pound and pay or agree to pay 
the carrier for assuming liability for the shipment equal to the 
declared value, any common carrier of household goods as defined in 
Sec. 1056.1(b)(1), or any employee, agent, or representative thereof, 
may sell, or offer to sell or procure for any shipper, any kind of 
insurance, under any type of policy, covering loss or damage in excess 
of the specified carrier liability to a shipment or shipments of 
household goods to be transported in interstate or foreign commerce by 
such carrier; Provided, that the shipper is issued a policy or other 
appropriate evidence of the insurance purchased, and a copy thereof be 
furnished to the shipper at the time the insurance is sold or procured. 
Carrier issued policies shall be written in plain English and shall 
clearly specify the nature and extent of coverage. Failure to issue a 
policy or other appropriate evidence of insurance purchased shall 
subject the carrier to full liability for any claims to recover for loss 
or damage attributed to the carrier.
    (b) Any carrier offering or selling or procuring insurance as 
provided in paragraph (a) of this section shall provide in its tariff 
for the provision of such service. The tariff shall also provide for the 
base transportation charge to include assumption by the carrier for full 
liability for the value of the shipment in the event a policy or other 
appropriate evidence of the insurance purchased by the shipper is not 
issued to the shipper at the time of purchase.



Sec. 1056.12  Liability of carriers.

    (a) Liability restricted. Except as provided in Sec. 1056.11(a), 
common carriers by motor vehicle of household goods as defined in 
Sec. 1056.1(b)(1) shall not assume any liability in excess of that for 
which they are legally liable under their lawful bills of lading and 
published tariffs.
    (b) Limitations of liability. A common carrier by motor vehicle of 
household goods shall be liable for loss of or damage to any articles 
caused by it while being transported or while being held for storage-in-
transit, including incidental pickup or delivery, and including 
liability for loss or damage to any article or appliance resulting from 
the servicing of such article or appliance by a third person engaged by 
the carrier to perform such service, to the extent provided in the 
outstanding released rates order; except that the carrier may exempt its 
liability in the following instances:
    (1) No liability need be assumed for perishable articles included in 
the shipment without the knowledge of the carrier; and a carrier 
accepting for shipment perishable articles may impose reasonable 
conditions necessary to insure the safe transportation of such 
commodities.
    (2) When a shipment is released to a value greater than sixty cents 
(60 cents) per pound, per article, liability for loss or damage may be 
limited to $100 per pound, per article (based upon the actual article 
weight), for any article included in the shipment that exceeds $100 per 
pound, per article in value, unless the shipper specifically notifies 
the carrier in writing that an identified article or articles with a 
value greater than $100 per pound will be included in the shipment. In 
such case, the shipper will be entitled to full recovery up to the 
declared value of the article or articles, not to exceed the declared 
value of the entire shipment.
    (c) Storage-in-transit. A common carrier by motor vehicle of 
household goods holding goods for storage-in-transit (S.I.T.) shall, no 
less than 10 days prior to the expiration of either the specified period 
of time during which the goods are to be held in such storage or the 
maximum period of time provided in the carrier's tariff for storage-in-
transit, notify the shipper in writing (1) of the date of conversion to 
permanent storage, (2) of the existence of a nine-month period 
subsequent to the date of conversion to permanent storage during which 
shipper may file claims against the carrier for loss and/or damage which 
occurred to the goods in transit or during the S.I.T. period,

[[Page 140]]

and, (3) of the fact that on the date of conversion, the liability of 
the carrier shall terminate and the property shall be subject to the 
rules, regulations, and charges of the warehouseman. Notification shall 
be by certified mail, return receipt requested. A common carrier by 
motor vehicle of household goods holding goods for storage-in-transit 
for a period of time less than 10 days shall, no less than one day prior 
to the expiration of the specified time during which the goods are to be 
held in such storage, give notification to the shipper of the 
information specified in paragraph (d) (1), (2), and (3) and maintain a 
record thereof as part of its record of the shipment. Failure or refusal 
of a carrier to notify the shipper in accordance with the foregoing 
shall automatically effect a continuance of carrier liability pursuant 
to the applicable tariff provisions with respect to S.I.T., until the 
end of the day following the date upon which notice is given.

[46 FR 16218, Mar. 11, 1981, as amended at 55 FR 18729, May 9, 1990; 55 
FR 30235, July 25, 1990]



Sec. 1056.13  Complaint and inquiry handling.

    (a) Motor common carriers engaged in the transportation of household 
goods as defined in Sec. 1056.1(a) shall establish and maintain a 
procedure for responding to complaints and inquiries from shippers for 
which such transportation is provided. The procedure shall include a 
means whereby shippers may communicate with the principal office of the 
carrier by telephone.
    (b) The carrier shall retain and make part of the file relating to a 
shipment a written record of all complaints and inquiries received from 
a shipper by any means of communication.



Sec. 1056.14  Agency agreements.

    (a) Household Goods Agents are defined as follows:
    (1) Prime agents are defined as all agents who are permitted or 
required under the terms of any agreement or arrangement with a 
principal carrier to provide any transportation service for or on behalf 
of the principal carrier, including the selling of or arranging for any 
transportation service, and who perform such services on other than an 
emergency or temporary basis.
    (2) Military agents are defined as all agents who are permitted or 
required under the terms of any agreement or arrangement with a 
principal carrier to provide origin and/or destination services only on 
shipments transported on Government bills of lading issued by the 
Department of Defense, and who perform such services on other than an 
emergency or temporary basis.
    (3) Temporary agents are defined as all agents who are permitted or 
required under the terms of any agreement or arrangement with a 
principal carrier to provide origin and/or destination services on 
behalf of the principal carrier, excluding the selling of or arranging 
for any transportation service, and who perform such services on an 
emergency or temporary basis.
    (b) Agreements between principal carriers and their prime or 
military agents must be reduced to writing and signed by the principal 
and the retained agent, and copies of any such agreements must be in the 
files of the principal carrier for a period of not less than 24 months 
following the date of termination of each agreement.

[46 FR 16222, Mar. 11, 1981; 46 FR 22594, Apr. 20, 1981]



Sec. 1056.15  Collection of freight charges on household goods shipments involving loss or destruction in transit.

    (a) No motor common carrier of household goods in interstate or 
foreign commerce shall collect, or shall require a shipper thereof to 
pay, any published freight charges (including any charges for 
accessorial or terminal services) when that shipment is totally lost or 
destroyed in transit. The provisions of this subsection shall apply only 
to the transportation of household goods as defined in Sec. 1056.1(b)(1) 
of these rules. Notwithstanding any other provisions of this subsection, 
a carrier shall collect, and the shipper shall be required to pay, any 
specific valuation charge that may be due. This subsection shall not be 
applicable to the extent that any such loss or destruction is due to the 
act or omission of the shipper.

[[Page 141]]

    (b) In the event that any portion, but less than all, of a shipment 
of household goods is lost or destroyed in transit, a motor common 
carrier of household goods in interstate or foreign commerce shall, at 
the time it disposes of claims for loss, damage, or injury to the 
articles in the shipment as provided in part 1005 of this chapter, 
refund that portion of its published freight charges (including any 
charges for accessorial or terminal services) corresponding to that 
portion of the shipment which is lost or destroyed in transit. To 
calculate the charges applicable to the shipment as delivered, the 
carrier shall multiply the percentage corresponding to the portion of 
the shipment delivered by the total charges (including accessorial and 
terminal charges) applicable to the shipment tendered by the shipper. If 
the charges computed in the manner set forth above exceed the charges 
otherwise applicable to the shipment as delivered, the lesser of those 
charges shall apply. The provisions of this paragraph shall apply only 
to the transportation of household goods as defined in Sec. 1056.1(b)(1) 
of these rules. Notwithstanding any other provisions of this paragraph, 
a carrier shall collect, and the shipper shall be required to pay, that 
proportion of any charges for accessorial or terminal services rendered 
which corresponds to the proportion of the shipment not lost or 
destroyed in transit and any specific valuation charge that may be due. 
The provisions of this paragraph shall not be applicable to the extent 
that any such loss or destruction is due to the act or omission of the 
shipper. Carriers shall determine, at their own expense, the proportion 
of the shipment not lost or destroyed in transit.
    (c) The rights provided by this section are in addition to, and not 
in lieu of, any other rights which the shipper may have with respect to 
a shipment of household goods which is lost or destroyed, or partially 
lost or destroyed, in transit, whether or not that shipper has exercised 
the rights provided in paragraphs (a) and (b) of this section.

[46 FR 16218, Mar. 11, 1981, as amended at 54 FR 36981, Sept. 6, 1989]



Sec. 1056.16  Collection of freight charges on shipments transported on more than one vehicle.

    (a) Whenever a collect on delivery shipment of household goods, as 
defined in Sec. 1056.1(b)(1), is transported on more than one vehicle 
the carrier delivering such split or divided shipment shall observe the 
requirements of paragraphs (a)(1), (2) or (3) of this section in the 
collection of the charges.
    (1) At the option of the carrier, the collection of the charges 
attributable to the transportation of the portion of the shipment 
transported on each vehicle may be deferred until all portions of the 
shipment are delivered; or,
    (2) Providing that the charges for the entire shipment have been 
determined, the carrier may collect at the time of delivery of any 
portion of the shipment that percentage of the charges represented by 
the portion of the shipment tendered for delivery; or,
    (3) In the event that the charges due the carrier for the 
transportation of the entire shipment cannot reasonably be determined at 
the time any portion of the shipment is tendered for delivery, the 
carrier shall determine and collect the charges for the portion of the 
shipment being delivered. The total charges assessed by the carrier for 
the transportation of the separate portions of the shipment shall not 
exceed the charges due for the entire shipment.
    (b) In the event of the loss or destruction of any part of a 
shipment being transported on more than one vehicle, the collection of 
charges as provided in paragraph (a) of this section shall also be in 
conformity with the requirements of Sec. 1056.15.



Sec. 1056.17  Advertising by motor common carriers of household goods.

    (a) Every motor common carrier engaged in the transportation of 
household goods in interstate or foreign commerce, including any 
carriers providing any accessorial service incidental to or part of such 
interstate or foreign transportation, shall include, and shall require 
each of its agents to include, in every advertisement as defined in 
Sec. 1056.1(b)(3), the name or trade name of the motor carrier under 
whose operating authority the advertised

[[Page 142]]

service will originate, and the certificate or docket number assigned to 
such operating authority by the Interstate Commerce Commission.
    (b) Such certificate or docket number shall be in the following form 
in every advertisement: ``I.C.C. No.______'' but shall not include any 
sub numbers which may have been assigned.
    (c) No motor common carrier engaged in the transportation of 
household goods, as defined in Sec. 1056.1(b)(1), or any agent or other 
representative of such a carrier, shall publish or cause to be published 
or use any advertisement as defined in Sec. 1056.1(b)(3), which is 
false, misleading or deceptive.



Sec. 1056.18  Preparation and filing of annual performance report.

    (a) Filing requirement. Each motor common carrier for household 
goods as defined in Sec. 1056.1(b) that delivers interstate shipments to 
individual C.O.D. shippers, during any calendar year shall, on or before 
March 31 of the following year, file with the Office of Compliance and 
Enforcement, Interstate Commerce Commission, Washington, DC 20423-0001, 
a report of the service performed during the report year. The report 
shall be submitted on Form OCE-101, and its accuracy must be verified by 
an official of the carrier. All carriers must complete part A of Form 
OCE-101, and those carriers transporting 100 or more shipments also must 
complete part B.
    (b) Prescribed Annual Performance Report Form OCE-101.

                     Interstate Commerce Commission

                  Office of Compliance and Enforcement

       Annual Performance Report for Year Ended December 31, 19--

Carrier's Name__________________________________________________________
Carrier's Address_______________________________________________________
ICC Number______________________________________________________________

                                 Part A

    During the year, the total number of household goods shipments (1st 
proviso) delivered for each type of shipper was:


1. C.O.D. shipments delivered under your common carrier                 
 authority (excluding all Government, Freight Forwarder,                
 and Interline shipments)..................................   __________
2. All other 1st proviso shipments (including all                       
 Government, Freight Forwarder, and Interline shipments)...   __________
3. Total of Lines 1 and 2 (NOTE: Total must agree with                  
 total 1st proviso shipments reported in your ICC Annual                
 Report, Schedule 600, Line 7, Column d, if you are                     
 required to file that report).............................   __________
                                                                        

                                 Part B

    Complete part B only if the C.O.D. delivered shipments reported in 
part A, Line 1, equals or exceeds 100 shipments. The questions and 
answers below deal only with the shipments reported in part A, Line 1.


4. Number of C.O.D. shipments where the order for service               
 was based upon a written binding estimate (included are so-            
 called hybrid estimates such as Guaranteed Price and Price             
 Protection)...............................................   __________
5. Number of C.O.D. shipments where the charges were based              
 on a written non-binding estimate.........................   __________
6. Number of C.O.D. shipments where the charges were based              
 on other than a written binding or non-binding estimate...   __________
7. Total of Lines 4, 5, and 6 (NOTE: Total should equal the             
 shipment count reported in part A, Line 1)................   __________
8. Percentage of shipments delivered where the final                    
 charges exceeded the initial written binding estimate.....   __________
9. Percentage of shipments delivered where the final                    
 charges exceeded the initial written non-binding estimate              
 by 10% or more............................................   __________
10. Percentage of shipments that were picked up after the               
 last date for pickup listed on the order for service or                
 bill of lading............................................   __________
11. Percentage of shipments that were delivered after the               
 last date of delivery specified on the order for service               
 or bill of lading.........................................   __________
12. Percentage of shipments delivered where there was a                 
 claim filed (in excess of $200) for property damage or                 
 loss......................................................   __________
13. Percentage of shipments delivered where there was a                 
 claim filed (in excess of $200) for damages resulting from             
 late pickup or delivery...................................   __________

[[Page 143]]

                                                                        
14. Average number of days required to settle a claim (in               
 excess of $200)...........................................   __________
15. Percentage of claims (in excess of $200) that were                  
 resolved through the use of an arbitration program........   __________
16. Percentage of claims (in excess of $200) that were                  
 resolved after the carrier received a legal notice of a                
 lawsuit filed by the shipper..............................   __________
                                                                        

        Carrier's Oath (Must be Completed by a Carrier Official)

    I, (name and title of company official), verify under penalty of 
perjury, under the laws of the United States of America, that all 
information supplied on this form or relative to the data contained in 
the form is, to the best of my knowledge and belief, true, correct and 
complete, based on all the information required to be included therein, 
of which I have any knowledge, and these representations are made in 
good faith. Further, I certify that I am qualified and authorized to 
certify the accuracy of the data. I know that willful misstatements or 
omission of material facts constitutes Federal crime violations 
punishable under 18 U.S.C. 1001 by imprisonment up to 5 years and fines 
up to $10,000 for each offense.

_______________________________________________________________________
Signature

_______________________________________________________________________
Title

_______________________________________________________________________
Date

    (c) Instructions for Preparation of Annual Performance Report, Form 
OCE-101.

                      Instructions for Preparation

                          General Instructions

    1. Data for completion of Form OCE-101 may be obtained by random 
sampling providing that in every instance, the universe sampled is all 
shipments delivered under your common carrier authority (excluding 
Government, Freight forwarder, and Interline traffic) during the report 
year or all claims arising out of the transportation of those shipments 
that were received or settled, as appropriate, during the report year.
    2. When random sampling is used, the minimum sample size in every 
instance shall be 400 shipments or claims, as appropriate, in replicates 
of 100 shipments or claims each. All samples must conform to standard 
deviation with a 95% confidence level.
    3. Carriers submitting Form OCE-101 shall retain and make available 
for review by an authorized Commission employee all working papers, 
notes, and other files relating to the preparation of each report for a 
period of not less than 24 months following the date of filing such a 
report.
    4. The data in Form OCE-101 must be verified by a sworn statement 
signed by an official of the company.

                          Specific Instructions

                                 Part A

Line 1: Only report those 1st proviso C.O.D. shipments moved under your 
common carrier authority after excluding all Government, Freight 
forwarder and Interline traffic.
Line 2: Report all other 1st proviso shipments, including those moving 
under contract carriage provisions and all Government, Freight forwarder 
and Interline traffic.
Line 3: Sum lines 1 and 2. The total should agree with total 1st proviso 
shipments reported in your ICC Annual Report, Schedule 600, Line 7, 
Column d, if you are required to file that report.

                                 Part B

    It is not necessary to complete Part B if the total of C.O.D. 
shipments reported on Part A, Line 1, did not equal or exceed 100 
shipments. If completion of Part B is not required, sign the 
Certification and return the form to the Interstate Commerce Commission.

Line 4: Report only those C.O.D. shipments where the order for service 
was signed after the receipt of a written binding estimate. Include in 
this computation all so-called hybrid estimates (e.g., Guaranteed Price 
and Price Protection options).
Line 5: Report the total number of C.O.D. shipments where the order for 
service was signed after the receipt of a written non-binding estimate. 
In the case of non-binding estimates, the actual charges are determined 
after the shipment has been picked up and weighed.
Line 6: Report only those C.O.D. shipments where there was no 
requirement for the preparation of a binding or non-binding written 
estimate by the carrier. As with non-binding estimates, the charges here 
are determined after the shipment has been picked up and weighed.
Line 7: Sum of Lines 4, 5, and 6. The number of shipments reported on 
Line 7 should be the same as those reported in Part A, Line 1.

                 Computation of Percentages or Averages

    You must determine the number of shipments falling into each of the 
categories described in Lines 8 and 9, respectively, and divide these 
shipments by the number of shipments reported on Lines 4 and 5, 
respectively.

[[Page 144]]

    You must determine the number of shipments falling into each of the 
categories described in Lines 10 through 16 and divide these shipments 
by the number of shipments reported on Line 7. (Exception: Line 13 is an 
average, not a percentage.)

Line 8: Compute the percentage of those shipments delivered where the 
final charges exceeded the written estimate initially provided to the 
shipper because of changes agreed to by the carrier and shipper in 
commodities transported and services provided.
Line 9: Compute the percentage of those shipments delivered under a non-
binding written estimate where the final charges exceeded the written 
estimate provided to the shipper by 10% or more. The 10% figure is used 
because every C.O.D. shipper is required to have available 110% of the 
estimate at the time of delivery.
Line 10: Compute the percentage of those shipments where the actual 
pickup date occurred after the last date for pickup promised on the 
order for service or bill of lading.
Line 11: Compute the percentage of those shipments where the actual 
delivery date occurred after the last date for delivery promised on the 
order for service or bill of lading.
Line 12: Compute the percentage of those shipments where there was a 
claim filed within 60 days of the actual date of delivery to the 
residence. Only count those claims where the dollar value of the amount 
claimed by the shipper exceeded $200 and resulted from property damaged 
or lost. This excludes claims for late pickups and deliveries which are 
reported on line 13.
Line 13: Compute the percentage of those shipments where there was a 
claim filed within 60 days of the actual date of delivery to the 
residence. Only count those claims where the dollar value of the amount 
claimed by the shipper exceeded $200 and resulted from a late pickup or 
delivery. Late pickups and deliveries are defined in Instructions 10 and 
11.
Line 14: Enter the average number of days required to pay, decline, or 
make a firm compromise offer of settlement of all claims exceeding $200 
during the report year. For the purpose of this report, a claim shall be 
considered to be a ``claim filed'' if it meets the criteria set forth in 
Lines 11 and 12, and shall be considered as paid, declined, or 
compromised on the date on which a written offer is mailed or delivered 
in person to a claimant.
Line 15: Compute the percentage of the claims exceeding $200 arising out 
of the transportation of shipments which were resolved during the report 
year through the use of a dispute resolution or arbitration procedure 
maintained or participated in by the carrier.
Line 16: Compute the percentage of the claims exceeding $200 arising out 
of the transportation of shipments which were resolved during the report 
year as a result of legal notice of suit to recover being filed by the 
shipper.

[59 FR 2305, Jan. 14, 1994, as amended at 59 FR 34392, July 5, 1994]



Sec. 1056.19  Use of charge card plans.

    Motor common carriers of household goods, as defined in 49 CFR 
1056(b)(1), may provide in their tariffs for the acceptance of charge 
cards for the payment of freight charges whenever shipments are 
transported under agreements and tariffs requiring payment by cash, 
certified check or money order. Payment by charge card shall be 
considered the same as payment by cash, certified check or money order. 
Any tariff rule or item permitting the acceptance of charge cards shall 
identify the charge card plans participated in by the carrier.



PART 1057--LEASE AND INTERCHANGE OF VEHICLES--Table of Contents




            Subpart A--General Applicability and Definitions

Sec.
1057.1  Applicability.
1057.2  Definitions.

                     Subpart B--Leasing Regulations

1057.11  General leasing requirements.
1057.12  Written lease requirements.

            Subpart C--Exemptions for the Leasing Regulations

1057.21  General exemptions.
1057.22  Exemption for private carrier leasing and leasing between 
          authorized carriers.
1057.26  Exemption for leases between authorized carriers and their 
          agents.

                   Subpart D--Interchange Regulations

1057.31  Interchange of equipment.

                Subpart E--Private Carriers and Shippers

1057.42  Lease of equipment by regulated carriers.

    Authority: 49 U.S.C. 11107 and 10321; 5 U.S.C. 553.


[[Page 145]]


    Source: 44 FR 4681, Jan. 23, 1979, unless otherwise noted.



            Subpart A--General Applicability and Definitions



Sec. 1057.1  Applicability.

    The regulations in this part apply to the following actions by motor 
carriers holding permanent or temporary operating authority from the 
Commission to transport property:
    (a) The leasing of equipment with which to perform transportation 
regulated by the Commission.
    (b) The leasing of equipment to motor private carrier or shippers.
    (c) The interchange of equipment between motor common carriers in 
the performance of transportation regulated by the Commission.



Sec. 1057.2  Definitions.

    (a) Authorized carrier. A person or persons authorized to engage in 
the transportation of property as a common or contract carrier under the 
provisions of 49 U.S.C. 10921, 10922, 10923, 10928, 10931, or 10932.
    (b) Equipment. A motor vehicle, straight truck, tractor, 
semitrailer, full trailer, any combination of these and any other type 
of equipment used by authorized carriers in the transportation of 
property for hire.
    (c) Interchange. The receipt of equipment by one motor common 
carrier of property from another such carrier, at a point which both 
carriers are authorized to serve, with which to continue a through 
movement.
    (d) Owner. A person (1) to whom title to equipment has been issued, 
or (2) who, without title, has the right to exclusive use of equipment, 
or (3) who has lawful possession of equipment registered and licensed in 
any State in the name of that person.
    (e) Lease. A contract or arrangement in which the owner grants the 
use of equipment, with or without driver, for a specified period to an 
authorized carrier for use in the regulated transportation of property, 
in exchange for compensation.
    (f) Lessor. In a lease, the party granting the use of equipment, 
with or without driver, to another.
    (g) Lessee. In a lease, the party acquiring the use of equipment 
with or without driver, from another.
    (h) Sublease. A written contract in which the lessee grants the use 
of leased equipment, with or without driver, to another.
    (i) Addendum. A supplement to an existing lease which is not 
effective until signed by the lessor and lessee.
    (j) Private carrier. A person, other than a motor carrier, 
transporting property by motor vehicle in interstate or foreign commerce 
when (1) the person is the owner, lessee, or bailee of the property 
being transported; and (2) the property is being transported for sale, 
lease, rent, or bailment, or to further a commercial enterprise.
    (k) Shipper. A person who sends or receives property which is 
transported in interstate or foreign commerce.
    (l) Escrow fund. Money deposited by the lessor with either a third 
party or the lessee to guarantee performance, to repay advances, to 
cover repair expenses, to handle claims, to handle license and State 
permit costs, and for any other purposes mutually agreed upon by the 
lessor and lessee.
    (m) Detention. The holding by a consignor or consignee of a trailer, 
with or without power unit and driver, beyond the free time allocated 
for the shipment, under circumstances not attributable to the 
performance of the carrier.

[44 FR 4681, Jan. 23, 1979, as amended at 49 FR 47850, Dec. 7, 1984]



                     Subpart B--Leasing Regulations



Sec. 1057.11  General leasing requirements.

    Other than through the interchange of equipment as set forth in 
Sec. 1057.31, and under the exemptions set forth in subpart C of these 
regulations, the authorized carrier may perform authorized 
transportation in equipment it does not own only under the following 
conditions:
    (a) Lease. There shall be a written lease granting the use of the 
equipment and meeting the requirements contained in Sec. 1057.12.
    (b) Receipts for equipment. Receipts, specifically identifying the 
equipment to be leased and stating the date and

[[Page 146]]

time of day possession is transferred, shall be given as follows:
    (1) When possession of the equipment is taken by the authorized 
carrier, it shall give the owner of the equipment a receipt. The receipt 
identified in this section may be transmitted by mail, telegraph, or 
other similar means of communication.
    (2) When possession of the equipment by the authorized carrier ends, 
a receipt shall be given in accordance with the terms of the lease 
agreement if the lease agreement requires a receipt.
    (3) Authorized representatives of the carrier and the owner may take 
possession of leased equipment and give and receive the receipts 
required under this subsection.
    (c) Identification of equipment. The authorized carrier acquiring 
the use of equipment under this section shall identify the equipment as 
being in its service as follows:
    (1) During the period of the lease, the carrier shall identify the 
equipment in accordance with the Commission's requirements in part 1058 
of this chapter (Identification of Vehicles).
    (2) Unless a copy of the lease is carried on the equipment, the 
authorized carrier shall keep a statement with the equipment during the 
period of the lease certifying that the equipment is being operated by 
it. The statement shall also specify the name of the owner, the date and 
length of the lease, any restrictions in the lease relative to the 
commodities to be transported, and the address at which the original 
lease is kept by the authorized carrier. This statement shall be 
prepared by the authorized carrier or its authorized representative.
    (d) Records of equipment. The authorized carrier using equipment 
leased under this section shall keep records of the equipment as 
follows:
    (1) The authorized carrier shall prepare and keep documents covering 
each trip for which the equipment is used in its service. These 
documents shall contain the name and address of the owner of the 
equipment, the point of origin, the time and date of departure, and the 
point of final destination. Also, the authorized carrier shall carry 
papers with the leased equipment during its operation containing this 
information and identifying the lading and clearly indicating that the 
transportation is under its responsibility. These papers shall be 
preserved by the authorized carrier as part of its transportation 
records. Leases which contain the information required by the provisions 
in this paragraph may be used and retained instead of such documents or 
papers. As to lease agreements negotiated under a master lease, this 
provision is complied with by having a copy of a master lease in the 
unit of equipment in question and where the balance of documentation 
called for by this paragraph is included in the freight documents 
prepared for the specific movement.
    (2) [Reserved]

[44 FR 4681, Jan. 23, 1979, as amended at 49 FR 47269, Dec. 3, 1984; 49 
FR 47850, Dec. 7, 1984; 50 FR 24649, June 12, 1985; 51 FR 37406, Oct. 
22, 1986]



Sec. 1057.12  Written lease requirements.

    Except as provided in the exemptions set forth in subpart C of this 
part, the written lease required under Sec. 1057.11(a) shall contain the 
following provisions. The required lease provisions shall be adhered to 
and performed by the authorized carrier.
    (a) Parties. The lease shall be made between the authorized carrier 
and the owner of the equipment. The lease shall be signed by these 
parties or by their authorized representatives.
    (b) Duration to be specific. The lease shall specify the time and 
date or the circumstances on which the lease begins and ends. These 
times or circumstances shall coincide with the times for the giving of 
receipts required by Sec. 1057.11(b).
    (c) Exclusive possession and responsibilities. (1) The lease shall 
provide that the authorized carrier lessee shall have exclusive 
possession, control, and use of the equipment for the duration of the 
lease. The lease shall further provide that the authorized carrier 
lessee shall assume complete responsibility for the operation of the 
equipment for the duration of the lease.
    (2) Provision may be made in the lease for considering the 
authorized carrier lessee as the owner of the equipment for the purpose 
of subleasing it under these regulations to other authorized carriers 
during the lease.

[[Page 147]]

    (3) When an authorized carrier of household goods leases equipment 
for the transportation of household goods, as defined by the Commission, 
the parties may provide in the lease that the provisions required by 
paragraph (c)(1) of this section apply only during the time the 
equipment is operated by or for the authorized carrier lessee.
    (4) Nothing in the provisions required by paragraph (c)(1) of this 
section is intended to affect whether the lessor or driver provided by 
the lessor is an independent contractor or an employee of the authorized 
carrier lessee. An independent contractor relationship may exist when a 
carrier lessee complies with 49 U.S.C. 11107 and attendant 
administrative requirements.
    (d) Compensation to be specified. The amount to be paid by the 
authorized carrier for equipment and driver's services shall be clearly 
stated on the face of the lease or in an addendum which is attached to 
the lease. Such lease or addendum shall be delivered to the lessor prior 
to the commencement of any trip in the service of the authorized 
carrier. An authorized representative of the lessor may accept these 
documents. The amount to be paid may be expressed as a percentage of 
gross revenue, a flat rate per mile, a variable rate depending on the 
direction traveled or the type of commodity transported, or by any other 
method of compensation mutually agreed upon by the parties to the lease. 
The compensation stated on the lease or in the attached addendum may 
apply to equipment and driver's services either separately or as a 
combined amount.
    (e) Items specified in lease. The lease shall clearly specify which 
party is responsible for removing identification devices from the 
equipment upon the termination of the lease and when and how these 
devices, other than those painted directly on the equipment, will be 
returned to the carrier. The lease shall clearly specify the manner in 
which a receipt will be given to the authorized carrier by the equipment 
owner when the latter retakes possession of the equipment upon 
termination of the lease agreement, if a receipt is required at all by 
the lease. The lease shall clearly specify the responsibility of each 
party with respect to the cost of fuel, fuel taxes, empty mileage, 
permits of all types, tolls, ferries, detention and accessorial 
services, base plates and licenses, and any unused portions of such 
items. The lease shall clearly specify who is responsible for loading 
and unloading the property onto and from the motor vehicle, and the 
compensation, if any, to be paid for this service. Except when the 
violation results from the acts or omissions of the lessor, the 
authorized carrier lessee shall assume the risks and costs of fines for 
overweight and oversize trailers when the trailers are pre-loaded, 
sealed, or the load is containerized, or when the trailer or lading is 
otherwise outside of the lessor's control, and for improperly permitted 
overdimension and overweight loads and shall reimburse the lessor for 
any fines paid by the lessor. If the authorized carrier is authorized to 
receive a refund or a credit for base plates purchased by the lessor 
from, and issued in the name of, the authorized carrier, or if the base 
plates are authorized to be sold by the authorized carrier to another 
lessor the authorized carrier shall refund to the initial lessor on 
whose behalf the base plate was first obtained a prorated share of the 
amount received.
    (f) Payment period. The lease shall specify that payment to the 
lessor shall be made within 15 days after submission of the necessary 
delivery documents and other paperwork concerning a trip in the service 
of the authorized carrier. The paperwork required before the lessor can 
receive payment is limited to log books required by the Department of 
Transportation and those documents necessary for the authorized carrier 
to secure payment from the shipper. In addition, the lease may provide 
that, upon termination of the lease agreement, as a condition precedent 
to payment, the lessor shall remove all identification devices of the 
authorized carrier and, except in the case of identification painted 
directly on equipment, return them to the carrier. If the identification 
device has been lost or stolen, a letter certifying its removal will 
satisfy this requirement. Until this requirement is complied with, the 
carrier may withhold final payment. The authorized carrier

[[Page 148]]

may require the submission of additional documents by the lessor but not 
as a prerequisite to payment. Payment to the lessor shall not be made 
contingent upon submission of a bill of lading to which no exceptions 
have been taken. The authorized carrier shall not set time limits for 
the submission by the lessor of required delivery documents and other 
paperwork.
    (g) Copies of freight bill or other form of freight documentation. 
When a lessor's revenue is based on a percentage of the gross revenue 
for a shipment, the lease must specify that the authorized carrier will 
give the lessor, before or at the time of settlement, a copy of the 
rated freight bill or a computer-generated document containing the same 
information, or, in the case of contract carriers, any other form of 
documentation actually used for a shipment containing the same 
information that would appear on a rated freight bill. When a computer-
generated document is provided, the lease will permit lessor to view, 
during normal business hours, a copy of any actual document underlying 
the computer-generated document. Regardless of the method of 
compensation, the lease must permit lessor to examine copies of the 
carrier's tariff or, in the case of contract carriers, other documents 
from which rates and charges are computed, provided that where rates and 
charges are computed from a contract of a contract carrier, only those 
portions of the contract containing the same information that would 
appear on a rated freight bill need be disclosed. The authorized carrier 
may delete the names of shippers and consignees shown on the freight 
bill or other form of documentation.
    (h) Charge-back items. The lease shall clearly specify all items 
that may be initially paid for by the authorized carrier, but ultimately 
deducted from the lessor's compensation at the time of payment or 
settlement, together with a recitation as to how the amount of each item 
is to be computed. The lessor shall be afforded copies of those 
documents which are necessary to determine the validity of the charge.
    (i) Products, equipment, or services from authorized carrier. The 
lease shall specify that the lessor is not required to purchase or rent 
any products, equipment, or services from the authorized carrier as a 
condition of entering into the lease arrangement. The lease shall 
specify the terms of any agreement in which the lessor is a party to an 
equipment purchase or rental contract which gives the authorized carrier 
the right to make deductions from the lessor's compensation for purchase 
or rental payments.
    (j) Insurance. (1) The lease shall clearly specify the legal 
obligation of the authorized carrier to maintain insurance coverage for 
the protection of the public pursuant to Commission regulations under 49 
U.S.C. 10927. The lease shall further specify who is responsible for 
providing any other insurance coverage for the operation of the leased 
equipment, such as bobtail insurance. If the authorized carrier will 
make a charge back to the lessor for any of this insurance, the lease 
shall specify the amount which will be charged-back to the lessor.
    (2) If the lessor purchases any insurance coverage for the operation 
of the leased equipment from or through the authorized carrier, the 
lease shall specify that the authorized carrier will provide the lessor 
with a copy of each policy upon the request of the lessor. Also, where 
the lessor purchases such insurance in this manner, the lease shall 
specify that the authorized carrier will provide the lessor with a 
certificate of insurance for each such policy. Each certificate of 
insurance shall include the name of the insurer, the policy number, the 
effective dates of the policy, the amounts and types of coverage, the 
cost to the lessor for each type of coverage, and the deductible amount 
for each type of coverage for which the lessor may be liable.
    (3) The lease shall clearly specify the conditions under which 
deductions for cargo or property damage may be made from the lessor's 
settlements. The lease shall further specify that the authorized carrier 
must provide the lessor with a written explanation and itemization of 
any deductions for cargo or property damage made from any compensation 
of money owed to the lessor. The written explanation and itemization 
must be delivered to the lessor before any deductions are made.

[[Page 149]]

    (k) Escrow funds. If escrow funds are required, the lease shall 
specify:
    (1) The amount of any escrow fund or performance bond required to be 
paid by the lessor to the authorized carrier or to a third party.
    (2) The specific items to which the escrow fund can be applied.
    (3) That while the escrow fund is under the control of the 
authorized carrier, the authorized carrier shall provide an accounting 
to the lessor of any transactions involving such fund. The carrier shall 
perform this accounting in one of the following ways:
    (i) By clearly indicating in individual settlement sheets the amount 
and description of any deduction or addition made to the escrow fund; or
    (ii) By providing a separate accounting to the lessor of any 
transactions involving the escrow fund. This separate accounting shall 
be done on a monthly basis.
    (4) The right of the lessor to demand to have an accounting for 
transactions involving the escrow fund at any time.
    (5) That while the escrow fund is under the control of the carrier, 
the carrier shall pay interest on the escrow fund on at least a 
quarterly basis. For purposes of calculating the balance of the escrow 
fund on which interest must be paid, the carrier may deduct a sum equal 
to the average advance made to the individual lessor during the period 
of time for which interest is paid. The interest rate shall be 
established on the date the interest period begins and shall be at least 
equal to the average yield or equivalent coupon issue yield on 91-day, 
13-week Treasury bills as established in the weekly auction by the 
Department of Treasury.
    (6) The conditions the lessor must fulfill in order to have the 
escrow fund returned. At the time of the return of the escrow fund, the 
authorized carrier may deduct monies for those obligations incurred by 
the lessor which have been previously specified in the lease, and shall 
provide a final accounting to the lessor of all such final deductions 
made to the escrow fund. The lease shall further specify that in no 
event shall the escrow fund be returned later than 45 days from the date 
of termination.
    (l) Copies of the lease. An original and two copies of each lease 
shall be signed by the parties. The authorized carrier shall keep the 
original and shall place a copy of the lease on the equipment during the 
period of the lease unless a statement as provided for in 
Sec. 1057.11(c)(2) is carried on the equipment instead. The owner of the 
equipment shall keep the other copy of the lease.
    (m) This paragraph applies to owners who are not agents but whose 
equipment is used by an agent of an authorized carrier in providing 
transportation on behalf of that authorized carrier. In this situation, 
the authorized carrier is obligated to ensure that these owners receive 
all the rights and benefits due an owner under the leasing regulations, 
especially those set forth in paragraphs (d)-(k) of this section. This 
is true regardless of whether the lease for the equipment is directly 
between the authorized carrier and its agent rather than directly 
between the authorized carrier and each of these owners. The lease 
between an authorized carrier and its agent shall specify this 
obligation.

[44 FR 4681, Jan. 23, 1979, as amended at 45 FR 13092, Feb. 28, 1980; 47 
FR 28398, June 30, 1982; 47 FR 51140, Nov. 12, 1982; 47 FR 54083, Dec. 
1, 1982; 49 FR 47851, Dec. 7, 1984; 51 FR 37406, 37407, Oct. 22, 1986; 
52 FR 2412, Jan. 22, 1987; 57 FR 32905, July 24, 1992]



            Subpart C--Exemptions for the Leasing Regulations



Sec. 1057.21  General exemptions.

    Except for Sec. 1057.11(c) which requires the identification of 
equipment, the leasing regulations in this part shall not apply to:
    (a) Equipment used in substituted motor-for-rail transportation of 
railroad freight moving between points that are railroad stations and on 
railroad billing.
    (b) Equipment used in transportation performed exclusively within 
any commercial zone as defined by the Commission.
    (c) Equipment leased without drivers from a person who is 
principally engaged in such a business.

[[Page 150]]

    (d) Any type of trailer not drawn by a power unit leased from the 
same lessor.



Sec. 1057.22  Exemption for private carrier leasing and leasing between authorized carriers.

    Regardless of the leasing regulations set forth in this part, an 
authorized carrier may lease equipment to or from another authorized 
carrier, or a private carrier may lease equipment to an authorized 
carrier under the following conditions:
    (a) The identification of equipment requirements in Sec. 1057.11(c) 
must be complied with;
    (b) The lessor must own the equipment or hold it under a lease;
    (c) There must be a written agreement between the authorized 
carriers or between the private carrier and authorized carrier, as the 
case may be, concerning the equipment as follows:
    (1) It must be signed by the parties or their authorized 
representatives.
    (2) It must provide that control and responsibility for the 
operation of the equipment shall be that of the lessee from the time 
possession is taken by the lessee and the receipt required under 
Sec. 1057.11(b) is given to the lessor until: (i) Possession of the 
equipment is returned to the lessor and the receipt required under 
Sec. 1057.11(b) is received by the authorized carrier; or (ii) in the 
event that the agreement is between authorized carriers, possession of 
the equipment is returned to the lessor or given to another authorized 
carrier in an interchange of equipment.
    (3) A copy of the agreement must be carried in the equipment while 
it is in the possession of the lessee.
    (4) Nothing in this section shall prohibit the use, by authorized 
carriers, private carriers, and all other entities conducting lease 
operations pursuant to this section, of a master lease if a copy of that 
master lease is carried in the equipment while it is in the possession 
of the lessee, and if the master lease complies with the provisions of 
this section and receipts are exchanged in accordance with 
Sec. 1057.11(b), and if records of the equipment are prepared and 
maintained in accordance with Sec. 1057.11(d).

[49 FR 9570, Mar. 14, 1984, as amended at 49 FR 47269, Dec. 3, 1984; 49 
FR 47851, Dec. 7, 1984]



Sec. 1057.26  Exemption for leases between authorized carriers and their agents.

    The leasing regulations set forth in Sec. 1057.12(e) through (l) do 
not apply to leases between authorized carriers and their agents.

[47 FR 28398, June 30, 1982]



                   Subpart D--Interchange Regulations



Sec. 1057.31  Interchange of equipment.

    Authorized common carriers may interchange equipment under the 
following conditions:
    (a) Interchange agreement. There shall be a written contract, lease, 
or other arrangement providing for the interchange and specifically 
describing the equipment to be interchanged. This written agreement 
shall set forth the specific points of interchange, how the equipment is 
to be used, and the compensation for such use. The interchange agreement 
shall be signed by the parties or by their authorized representatives.
    (b) Operating authority. The carriers participating in the 
interchange shall hold certificates of public convenience and necessity 
which authorize the transportation of the commodities at the point where 
the physical exchange occurs.
    (c) Through bills of lading. The traffic transported in interchange 
service must move on through bills of lading issued by the originating 
carrier. The rates charged and the revenues collected must be accounted 
for in the same manner as if there had been no interchange. Charges for 
the use of the interchanged equipment shall be kept separate from 
divisions of the joint rates or the proportions of such rates accruing 
to the carriers by the application of local or proportional rates.
    (d) Identification of equipment. The authorized common carrier 
receiving the

[[Page 151]]

equipment shall identify equipment operated by it in interchange service 
as follows:
    (1) The authorized common carrier shall identify power units in 
accordance with the Commission's requirements in part 1058 of this 
chapter (Identification of Vehicles). Before giving up possession of the 
equipment, the carrier shall remove all identification showing it as the 
operating carrier.
    (2) Unless a copy of the interchange agreement is carried on the 
equipment, the authorized common carrier shall carry a statement with 
each vehicle during interchange service certifying that it is operating 
the equipment. The statement shall also identify the equipment by 
company or State registration number and shall show the specific point 
of interchange, the date and time it assumes responsibility for the 
equipment, and the use to be made of the equipment. This statement shall 
be signed by the parties to the interchange agreement or their 
authorized representatives. The requirements of this paragraph shall not 
apply where the equipment to be operated in interchange service consists 
only of trailers or semitrailers.
    (e) Connecting carriers considered as owner--An authorized carrier 
receiving equipment in connection with a through movement shall be 
considered to the owner of the equipment for the purpose of leasing the 
equipment to other authorized carriers in furtherance of the movement to 
destination or the return of the equipment after the movement is 
completed.


                Subpart E--Private Carriers and Shippers


Sec. 1057.42  Lease of equipment by regulated carriers.

    Authorized carriers may lease equipment and drivers from private 
carriers, for periods of less than 30 days, in the manner set forth in 
Sec. 1057.22.

[49 FR 9570, Mar. 14, 1984, as amended at 51 FR 37034, Oct. 17, 1986]


PART 1058--IDENTIFICATION OF VEHICLES--Table of Contents



Sec.
1058.1  Applicability.
1058.2  Method of identification.
1058.3  Size, shape, and color.
1058.4  Driveaway service.

    Authority: 49 U.S.C. 10922, 10530, and 11106; 5 U.S.C. 553.

    Source: 55 FR 11199, Mar. 27, 1990, unless otherwise noted.



Sec. 1058.1  Applicability.

    These rules govern all for-hire motor carriers except those 
providing:
    (a) Joint, through, regular-route passenger service under continuing 
lease or interchange arrangements, if the vehicle owner's name and 
``MC'' number are displayed as prescribed at Sec. 1058.2, and if the 
carriers have filed with the Commission's appropriate Regional 
Director(s) and posted in each terminal and ticket agency on the 
involved routes a published schedule showing the points between which 
each joint carrier assumes control and responsibility for the vehicle's 
operation; and
    (b) Nonscheduled, charter, luxury-type passenger service using 
limousine-type vehicles with a capacity of six or fewer passengers.



Sec. 1058.2  Method of identification.

    Each vehicle operated under its own power shall display on both 
sides the name (or trade name) and ``MC'' number(s) of the carrier under 
whose authority the vehicle is being operated. The ``MC'' number(s) 
shall be in the following form: ``I.C.C. MC-____________'' but shall not 
include any sub numbers. The name of any other person operating the 
vehicle shall appear on the vehicle following the words ``operated by'' 
in addition to the other information required by this section. 
Additional identification may be displayed if consistent with these 
rules.



Sec. 1058.3  Size, shape, and color.

    The name(s) and number(s) prescribed above shall be displayed, by 
removable device if desired, in letters and figures in sharp color 
contrast to their background, and they shall be of a size, shape, and 
color readily legible in daylight from a distance of 50 feet while the 
vehicle is stationary.

[[Page 152]]



Sec. 1058.4  Driveaway service.

    In driveaway service, a removable device may be affixed on both 
sides or at the rear of the single driven vehicle. In a combination 
driveaway operation, the device may be affixed on both sides of any one 
unit or at the rear of the last unit.



PART 1061--LIMITATION OF SMOKING ON INTERSTATE PASSENGER CARRIER VEHICLES--Table of Contents




    Authority: 49 U.S.C. 10101, 10102, 10321, 10922, and 11101, and 5 
U.S.C. 553.



Sec. 1061.1  Prohibition against smoking on interstate passenger-carrying motor vehicles.

    (a) All motor common carriers of passengers subject to subchapter II 
of chapter 105 of title 49, United States Code, shall prohibit smoking 
(including the carrying of lit cigars, cigarettes, and pipes) on 
vehicles transporting passengers in scheduled or special service in 
interstate commerce.
    (b) Each carrier shall take such action as is necessary to ensure 
that smoking by passengers, drivers, and other employees is not 
permitted in violation of this section. This shall include making 
appropriate announcements to passengers, the posting of the 
international no-smoking symbol, and the posting of signs in all 
vehicles transporting passengers in letters in sharp color contrast to 
the background, and of such size, shape, and color as to be readily 
legible. Such signs and symbols shall be kept and maintained in such a 
manner as to remain legible and shall indicate that smoking is 
prohibited by Federal regulation.
    (c) The provisions of paragraph (a) of this section shall not apply 
to charter operations as defined in 49 CFR 1054.2(a).

[56 FR 1745, Jan. 17, 1991]



PART 1063--ADEQUACY OF INTERCITY MOTOR COMMON CARRIER PASSENGER SERVICE--Table of Contents




Sec.
1063.1  Applicability.
1063.2  Definitions.
1063.3  Ticketing and information.
1063.4  Baggage service.
1063.5  Terminal facilities.
1063.6  Service responsibility.
1063.7  Equipment.
1063.8  Transportation of passengers with disabilities.
1063.9  Identification--bus and driver.
1063.10  Relief from provisions.

    Authority: 5 U.S.C. 553 and 559 and 49 U.S.C. 10102, 10321, 10701, 
10702-10705, 10708, 10721, 10722, 10723, 10724, 10730, 10741, 10761, 
10762, 10764, 10922, 11101, 11141-11145, 11701, 11702, 11707, 11708, 
11901, 11904, 11906, 11909, 11910, and 11914.

    Source: 55 FR 11199, Mar. 27, 1990, unless otherwise noted.



Sec. 1063.1  Applicability.

    These rules govern only motor passenger common carriers conducting 
regular-route operations.



Sec. 1063.2  Definitions.

    (a) Carrier means a motor passenger common carriers.
    (b) Bus means a passenger-carrying vehicle, regardless of design or 
seating capacity, used in a carrier's authorized operations.
    (c) Facility means any structure provided by or for a carrier at or 
near which buses pick up or discharge passengers.
    (d) Terminal means a facility operated or used by a carrier chiefly 
to furnish passengers transportation services and accommodations.
    (e) Station means a facility, other than a terminal, operated by or 
for a carrier to accommodate passengers.
    (f) Service means passenger transportation by bus between authorized 
points or over authorized routes.
    (g) Commuter service, notwithstanding 49 CFR 1312.1(b)(33), means 
passenger transportation wholly between points not more than 100 airline 
miles apart and not involving through-bus, connecting, or interline 
services to or from points beyond 100 airline miles. The usual 
characteristics of commuter service include reduced fare, multiple-ride, 
and commutation tickets, and peak morning and evening operations.
    (h) Baggage means property a passenger takes with him for his 
personal use or convenience.

[[Page 153]]

    (i) Restroom means a room in a bus or terminal equipped with a 
toilet, washbowl, soap or a reasonable alternative, mirror, wastebasket, 
and toilet paper.



Sec. 1063.3  Ticketing and information.

    (a) Information service. (1) During business hours at each terminal 
or station, information shall be provided as to schedules, tickets, 
fares, baggage, and other carrier services.
    (2) Carrier agents and personnel who sell or offer to sell tickets, 
or who provide information concerning tickets and carrier services, 
shall be competent and adequately informed.
    (b) Telephone information service. Every facility where tickets are 
sold shall provide telephonic information to the traveling public, 
including current bus schedules and fare information, when open for 
ticket sales.
    (c) Schedules. Printed, regular-route schedules shall be provided to 
the traveling public at all facilities where tickets for such services 
are sold. Each schedule shall show the points along the carrier's 
route(s) where facilities are located or where the bus trips originate 
or terminate, and each schedule shall indicate the arrival or departure 
time for each such point.
    (d) Ticket refunds. Each carrier shall refund unused tickets upon 
request, consistent with its governing tariff, at each place where 
tickets are sold, within 30 days after the request.
    (e) Announcements. No scheduled bus (except in commuter service) 
shall depart from a terminal or station until a public announcement of 
the departure and boarding point has been given. The announcement shall 
be given at least 5 minutes before the initial departure and before 
departures from points where the bus is scheduled to stop for more than 
5 minutes.



Sec. 1063.4  Baggage service.

    (a) Checking procedures. (1) Carriers shall issue receipts, which 
may be in the form of preprinted tickets, for all checked services 
baggage.
    (2)(i) If baggage checking service is not provided at the side of 
the bus, all baggage checked at a baggage checking counter at least 30 
minutes but not more than 1 hour before departure shall be transported 
on the same schedule as the ticketed passenger.
    (ii) If baggage checking service is provided at the side of the bus, 
passengers checking baggage at the baggage checking counter less than 30 
minutes before the scheduled departure shall be notified that their 
baggage may not travel on the same schedule. Such baggage must then be 
placed on the next available bus to its destination. All baggage checked 
at the side of the bus during boarding, or at alternative locations 
provided for such purpose, shall be transported on the same schedule as 
the ticketed passenger.
    (b) Baggage security. All checked baggage shall be placed in a 
secure or attended area prohibited to the public. Baggage being readied 
for loading shall not be left unattended.
    (c) Baggage liability. (1) No carrier may totally exempt its 
liability for articles offered as checked baggage, unless those articles 
have been exempted by the Commission. (Other liability is subject to 49 
CFR part 1064). A notice listing exempted articles shall be prominently 
posted at every location where baggage is accepted for checking.
    (2) Carriers may refuse to accept as checked baggage and, if 
unknowingly accepted, may disclaim liability for loss or damage to the 
following articles:
    (i) Articles whose transportation as checked baggage is prohibited 
by law or regulation;
    (ii) Fragile or perishable articles, articles whose dimensions 
exceed the size limitations in the carrier's tariff, receptacles with 
articles attached or protruding, guns, and materials that have a 
disagreeable odor;
    (iii) Money; and
    (iv) Those other articles that the Commission exempts upon petition 
by the carrier.
    (3) Carriers need not offer excess value coverage on articles of 
extraordinary value (including, but not limited to, negotiable 
instruments, papers, manuscripts, irreplaceable publications, documents, 
jewelry, and watches).
    (d) Express shipments. Passengers and their baggage always take 
precedence over express shipments.

[[Page 154]]

    (e) Baggage at destination. All checked baggage shall be made 
available to the passenger within a reasonable time, not to exceed 30 
minutes, after arrival at the passenger's destination. If not, the 
carrier shall deliver the baggage to the passenger's local address at 
the carrier's expense.
    (f) Lost or delayed baggage. (1) Checked baggage that cannot be 
located within 1 hour after the arrival of the bus upon which it was 
supposed to be transported shall be designated as lost. The carrier 
shall notify the passenger at that time and furnish him with an 
appropriate tracing form.
    (2) Every carrier shall make available at each ticket window and 
baggage counter a single form suitable both for tracing and for filing 
claims for lost or misplaced baggage. The form shall be prepared in 
duplicate and signed by the passenger and carrier representative. The 
carrier or its agent shall receive the signed original, with any 
necessary documentation and additional information, and the claim check, 
for which a receipt shall be given. The passenger shall retain the 
duplicate copy.
    (3) The carrier shall make immediate and diligent efforts to recover 
lost baggage.
    (4) A passenger may fill out a tracing form for lost unchecked 
baggage. The carrier shall forward recovered unchecked baggage to the 
terminal or station nearest the address shown on the tracing form and 
shall notify the passenger that the baggage will be held on a will-call 
basis.
    (g) Settlement of claims. Notwithstanding 49 CFR 1005.5, if lost 
checked baggage cannot be located within 15 days, the carrier shall 
immediately process the matter as a claim. The date on which the carrier 
or its agent received the tracing form shall be considered the first day 
of a 60-day period in which a claim must be resolved by a firm offer of 
settlement or by a written explanation of denial of the claim.



Sec. 1063.5  Terminal facilities.

    (a) Passenger security. All terminals and stations must provide 
adequate security for passengers and their attendants and be regularly 
patrolled.
    (b) Outside facilities. At terminals and stations that are closed 
when buses are scheduled to arrive or depart, there shall be available, 
to the extent possible, a public telephone, outside lighting, posted 
schedule information, overhead shelter, information on local 
accommodations, and telephone numbers for local taxi service and police.
    (c) Maintenance. Terminals shall be clean.



Sec. 1063.6  Service responsibility.

    (a) Schedules. Carriers shall establish schedules that can be 
reasonably met, including connections at junction points, to serve 
adequately all authorized points.
    (b) Continuity of service. No carrier shall change an existing 
regular-route schedule without first filing a written notice with the 
Commission's appropriate Regional Office(s). The carrier shall display 
conspicuously a copy of such notice in each facility and on each bus 
affected. Such notice shall be displayed for a reasonable time before it 
becomes effective and shall contain the carrier's name, a description of 
the proposed schedule change, the effective date thereof, the reasons 
for the change, the availability of alternate service, and the name and 
address of the carrier representative passengers may contact.
    (c) Trip interruptions. A carrier shall mitigate, to the extent 
possible, any passenger inconvenience it causes by disrupting travel 
plans.
    (d) Seating and reservations. A carrier shall provide sufficient 
buses to meet passengers' normal travel demands, including ordinary 
weekend and usual seasonal or holiday demand. Passengers (except 
commuters) shall be guaranteed, to the extent possible, passage and 
seating.
    (e) Inspection of rest stops. Each carrier shall inspect 
periodically all rest stops it uses to ensure that they are clean.



Sec. 1063.7  Equipment.

    (a) Temperature control. A carrier shall maintain a reasonable 
temperature on each bus (except in commuter service).
    (b) Restrooms. Each bus (except in commuter service) seating more 
than

[[Page 155]]

14 passengers (not including the driver) shall have a clean, regularly 
maintained restroom, free of offensive odor. A bus may be operated 
without a restroom if it makes reasonable rest stops.
    (c) Bus servicing. Each bus shall be kept clean, with all required 
items in good working order.



Sec. 1063.8  Transportation of passengers with disabilities.

    Service provided by a carrier to passengers with disabilities is 
governed by the provisions of 42 U.S.C. 11201 et seq., and regulations 
promulgated thereunder by the Secretary of Transportation (49 CFR parts 
27, 37, and 38) and the Attorney General (28 CFR part 36), incorporating 
the guidelines established by the Architectural and Transportation 
Barriers Compliance Board (36 CFR part 1191).

[57 35764, Aug. 11, 1992]



Sec. 1063.9  Identification--bus and driver.

    Each bus and driver providing service shall be identified in a 
manner visible to passengers. The driver may be identified by name or 
company number.



Sec. 1063.10  Relief from provisions.

    (a) Petitions. Where compliance with any rule would impose an undue 
burden on a carrier, it may petition the Commission either to treat it 
as though it were conducting a commuter service or to waive the rule. 
The request for relief must be justified by appropriate verified 
statements.
    (b) Notice to the public. The carrier shall display conspicuously, 
for at least 30 days, in each facility and on each bus affected, a 
notice of the filing of any petition. The notice shall contain the 
carrier's name and address, a concise description of and reasons for the 
relief sought, and a statement that any interested person may file 
written comments with the Commission (with one copy mailed to the 
carrier) on or before a specific date that is at least 30 days later 
than the date the notice is posted.



PART 1064--NOTICE OF AND PROCEDURES FOR BAGGAGE EXCESS VALUE DECLARATION--Table of Contents




Sec.
1064.1  Minimum permissible limitations for baggage liability.
1064.2  Notice of passenger's ability to declare excess value on 
          baggage.
1064.3  Baggage excess value declaration procedures.

    Authority: 49 U.S.C. 1 and 301 et seq. and 5 U.S.C. 553 and 559.



Sec. 1064.1  Minimum permissible limitations for baggage liability.

    (a) Motor common carriers of passengers and baggage subject to 49 
U.S.C. 10521 may not publish tariff provisions limiting their liability 
for loss or damage to baggage checked by a passenger transported in 
regular route or special operations unless:
    (1) The amount for which liability is limited is $250 or greater per 
adult fare, and
    (2) The provisions permit the passenger, for an additional charge, 
to declare a value in excess of the limited amount, and allow the 
passenger to recover the increased amount (but not higher than the 
actual value) in event of loss or damage. The carriers may publish a 
maximum value for which they will be liable, but that maximum value may 
not be less than $1,000. Appropriate identification must be attached 
securely by the passenger to each item of baggage checked, indicating in 
a clear and legible manner the name and address to which the baggage 
should be forwarded if lost and subsequently recovered. Identification 
tags shall be made immediately available by the carriers to passengers 
upon request.
    (3) Carriers need not offer excess value coverage on articles listed 
in Sec. 1063.4(c)(3).

(49 U.S.C. 10321, 5 U.S.C. 553)

[46 FR 22899, Apr. 22, 1981, as amended at 47 FR 21840, May 20, 1982]



Sec. 1064.2   Notice of passenger's ability to declare excess value on baggage.

    (a) All motor common carriers of passengers and baggage subject to 
part II

[[Page 156]]

of the Interstate Commerce Act, which provide in their tariffs for the 
declaration of baggage in excess of a free baggage allowance limitation, 
shall provide clear and adequate notice to the public of the opportunity 
to declare such excess value on baggage.
    (b) The notice referred to in paragraph (a) of this section shall be 
in large and clear print, and shall state as follows:

                        Notice--Baggage Liability

    This motor carrier is not liable for loss or damage to properly 
identified baggage in an amount exceeding $____. If a passenger desires 
additional coverage for the value of his baggage he may, upon checking 
his baggage, declare that his baggage has a value in excess of the above 
limitation and pay a charge as follows:

                          Identify Your Baggage

    Under I.C.C. regulations, all baggage must be properly identified. 
Luggage tags should indicate clearly the name and address to which lost 
baggage should be forwarded. Free luggage tags are available at all 
ticket windows and baggage counters.

The statement of charges for excess value declaration shall be clear, 
and any other pertinent provisions may be added at the bottom in clear 
and readable print.
    (c) The notice referred to in paragraphs (a) and (b) of this section 
shall be (1) placed in a position near the ticket seller, sufficiently 
conspicuous to apprise the public of its provisions, (2) placed on a 
form to be attached to each ticket issued (and the ticket seller shall, 
where possible, provide oral notice to each ticket purchaser to read the 
form attached to the ticket), (3) placed in a position at or near any 
location where baggage may be checked, sufficiently conspicuous to 
apprise each passenger checking baggage of its provisions, and (4) 
placed in a position at each boarding point or waiting area used by the 
carrier at facilities maintained by the carrier or its agents, 
sufficiently conspicuous to apprise each boarding passenger of the 
provisions of the said notice.

[40 FR 1249, Jan. 7, 1975]



Sec. 1064.3   Baggage excess value declaration procedures.

    All motor common carriers of passengers and baggage subject to part 
II of the Interstate Commerce Act, which provide in their tariffs for 
the declaration of baggage value in excess of a free baggage allowance 
limitation, shall provide for the declaration of excess value on baggage 
at any time or place where provision is made for baggage checking, 
including (a) at a baggage checking counter until 15 minutes before 
scheduled boarding time, and (b) at the side of the bus or at a baggage 
checking counter in reasonable proximity to the boarding area during 
boarding at a terminal or any authorized service point.

[40 FR 1249, Jan. 7, 1975]



PART 1067--FITNESS PROCEDURES--Table of Contents




Sec.
1067.1  Definition.
1067.2  Intervention by the Department of Transportation.
1067.3  Effect of adverse fitness finding on subsequent application.

    Authority: 49 U.S.C. 3102, 10922, 10923, and 10927; 5 U.S.C. 552, 
553, and 559.

    Source: 55 FR 11201, Mar. 27, 1990, unless otherwise noted.



Sec. 1067.1  Definition.

    Fitness means an applicant's willingness or ability to conform to 
the Interstate Commerce Act and the regulations of the Interstate 
Commerce Commission and the Department of Transportation (DOT). (See 49 
CFR 1160.5(a)(3).)



Sec. 1067.2  Intervention by the Department of Transportation.

    (a) DOT may participate in application proceedings on the issue of 
fitness (by Memorandum of Agreement between the Commission and DOT, 
dated April 3, 1967, provision 2) by notifying the applicant and by 
filing a petition for leave to intervene setting forth generally the 
nature of the evidence it will present, within 30 days (protest period) 
of publication of a notice of such application in the ICC Register. 
Applicant may reply within 15 days of such

[[Page 157]]

filing. If DOT has not petitioned to intervene, its subsequent 
participation may be authorized at the Commission's discretion.
    (b) This rule does not alter DOT's right to file a formal complaint 
with the Commission or to petition the Commission to institute on its 
own motion a formal investigation proceeding regarding a regulated 
carrier's practices.



Sec. 1067.3  Effect of adverse fitness finding on subsequent application.

    An administratively final adverse fitness determination is not 
necessarily fatal to a subsequent application, which shall be considered 
on the same basis as that of any applicant not found unfit. Prior 
adverse findings may be officially noticed and may be found to bear on 
applicant's fitness.



PARTS 1070-1079--WATER CARRIERS--GENERAL--Table of Contents






PART 1070--HARBORS--Table of Contents




    Authority: 49 U.S.C. 10541, 10543, 10544, and 10929.



Sec. 1070.1   Harbor limits.

    The following harbors, within which transportation in interstate 
commerce by water is not part of a continuous through movement under 
common control, management, or arrangement to or from a place outside 
the limits, are exempt from regulation under 49 U.S.C. 10544(a):
    (a) New York, NY. The waters within the area over which the Port of 
New York Authority has jurisdiction as shown by the heavy black line in 
the following map:

[[Page 158]]

[GRAPHIC] [TIFF OMITTED] TC03MR91.046



[[Page 159]]

    (b) Philadelphia, PA. The waters within the area enclosed by the 
heavy black line in the following map:
[GRAPHIC] [TIFF OMITTED] TC03MR91.047

[32 FR 20060, Dec. 20, 1967, as amended at 55 FR 11201, Mar. 27, 1990]



PART 1071--EXEMPTION OF WATER CARRIER OPERATIONS--Table of Contents




Sec.
1071.1  Vessel leasing.
1071.2  Towage of floating objects.
1071.3  Passenger transportation through foreign ports.
1071.4  Certificate of exemption--transportation of property of a person 
          owning substantially all of the carrier's voting stock.

    Authority: 49 U.S.C. 10101, 10321, and 10544, and 5 U.S.C. 553.

    Source: 53 FR 23401, June 22, 1988, unless otherwise noted.

[[Page 160]]



Sec. 1071.1  Vessel leasing.

    Leases or charters entered into by contract carriers by water and 
persons that are not carriers are exempt from chapter 105, subchapter 
III, of title 49, subtitle IV, U.S. Code, to the extent the lease or 
charter is used to transport the person's own property.



Sec. 1071.2  Towage of floating objects.

    Transportation by contract carriers of empty vessels to and from 
shipyards, floating objects such as derricks, dredges, tanks, caissons, 
pontoons, and other floating objects, other than logs and pilings in 
rafts, of varying shapes, sizes, and drafts which are not designed or 
used for the carrying of passengers and property, is exempt from the 
requirements of chapter 105, subchapter III, of title 49, subtitle IV, 
U.S. Code.



Sec. 1071.3  Passenger transportation through foreign ports.

    Water carriers engaged in transportation of passengers between 
places in the United States through a foreign port are exempt from the 
jurisdiction of the Interstate Commerce Commission under chapter 105, 
subchapter III, of title 49, subtitle IV, U.S. Code.



Sec. 1071.4  Certificate of exemption--transportation of property of a person owning substantially all of the carrier's voting stock.

    A water carrier transporting only the property of a person owning 80 
percent or more of the voting stock of the carrier is exempt from the 
jurisdiction of the Interstate Commerce Commission under chapter 105, 
subchapter III, of title 49, subtitle IV, U.S. Code.



PARTS 1080-1089--FREIGHT FORWARDERS--GENERAL--Table of Contents






PART 1081--BILLS OF LADING--Table of Contents




    Authority: 49 U.S.C. 10701, 10702, 10730, 10741, 10766, 10927, 
11101, and 11707.



Sec. 1081.1  Bills of lading.

    Every household goods freight forwarder (HHGFF) shall issue the 
shipper through bills of lading, covering transportation from origin to 
ultimate destination, on each shipment for which it arranges 
transportation in interstate commerce. Where a motor common carrier 
receives freight at the origin and issues a receipt therefor on its form 
with a notation showing the HHGFF's name, the HHGFF, upon receiving the 
shipment at the ``on line'' or consolidating station, shall issue a 
through bill of lading on its form as of the date the carrier receives 
the shipment.

[55 FR 11201, Mar. 27, 1990]



PART 1084--SURETY BONDS AND POLICIES OF INSURANCE--Table of Contents




Sec.
1084.1  Definitions.
1084.2  General requirements.
1084.3  Limits of liability.
1084.4  Surety bonds and certificates of insurance.
1084.5  Insurance and surety companies.
1084.6  Qualifications as a self-insurer and other securities or 
          agreements.
1084.7  Forms and procedure.
1084.8  Acceptance and revocation by Commission.
1084.9  Fiduciaries.
1084.10  Electronic filing of surety bonds, certificates of insurance 
          and cancellations.

    Authority: 49 U.S.C. 10102, 10321, and 10927; 5 U.S.C. 553.

    Source: 55 FR 11201, Mar. 27, 1990, unless otherwise noted.



Sec. 1084.1  Definitions.

    (a) Freight forwarder means a person holding itself out to the 
general public (other than as an express, pipeline, rail, sleeping car, 
motor, or water carrier) to provide transportation of property for 
compensation in interstate commerce, and in the ordinary course of its 
business:
    (1) Performs or provides for assembling, consolidating, break-bulk, 
and distribution of shipments; and
    (2) Assumes responsibility for transportation from place of receipt 
to destination; and
    (3) Uses for any part of the transportation a carrier subject to 
Commission jurisdiction.
    (b) Household goods freight forwarder (HHGFF) means a freight 
forwarder of household goods, unaccompanied baggage, or used 
automobiles.

[[Page 161]]

    (c) Motor vehicle means any vehicle, machine, tractor, trailer, or 
semitrailer propelled or drawn by mechanical power and used to transport 
property, but does not include any vehicle, locomotive, or car operated 
exclusively on a rail or rails. The following combinations will be 
regarded as one motor vehicle:
    (1) A tractor that draws a trailer or semitrailer; and
    (2) A truck and trailer bearing a single load.



Sec. 1084.2  General requirements.

    (a) Cargo. A freight forwarder (including a HHGFF) may not operate 
until it has filed with the Commission an approriate surety bond, 
certificate of insurance, qualifications as a self-insurer, or other 
securities or agreements, in the amounts prescribed at Sec. 1084.3, for 
loss of or damage to property.
    (b) Public liability. A HHGFF may not perform transfer, collection, 
and delivery service until it has filed with the Commission an 
appropriate surety bond, certificate of insurance, qualifications as a 
self-insurer, or other securities or agreements, in the amounts 
prescribed at Sec. 1084.3, conditioned to pay any final judgment 
recovered against such HHGFF for bodily injury to or the death of any 
person, or loss of or damage to property (except cargo) of others, or, 
in the case of freight vehicles described at 49 CFR 1043.2(b)(2), for 
environmental restoration, resulting from the negligent operation, 
maintenance, or use of motor vehicles operated by or under its control 
in performing such service.



Sec. 1084.3  Limits of liability.

    The minimum amounts for cargo and public liability security are 
identical to those prescribed for motor carriers at 49 CFR 1043.2.



Sec. 1084.4  Surety bonds and certificates of insurance.

    (a) The limits of liability under Sec. 1084.3 may be provided by 
aggregation under the procedures at 49 CFR part 1043.
    (b) Each policy of insurance used in connection with a certificate 
of insurance filed with the Commission shall be amended by attachment of 
the appropriate endorsement prescribed by the Commission (or the 
Department of Transportation, where applicable).



Sec. 1084.5  Insurance and surety companies.

    A certificate of insurance or surety bond will not be accepted by 
the Commission unless issued by an insurance or surety company that is 
authorized (licensed or admitted) to issue bonds or underlying insurance 
policies:
    (a) In each state in which the freight forwarder is authorized by 
the Commission to perform service, or
    (b) In the state in which the freight forwarder has its principal 
place of business or domicile, and will designate in writing upon 
request by the Commission, a person upon whom process, issued by or 
under the authority of a court of competent jurisdiction, may be served 
in any proceeding at law or equity brought in any state in which the 
freight forwarder performs service; or
    (c) In any state, and is eligible as an excess or surplus lines 
insurer in any state in which business is written, and will make the 
designation of process agent prescribed in paragraph (b) of this 
section.

[56 FR 28111, June 19, 1991]



Sec. 1084.6  Qualifications as a self-insurer and other securities or agreements.

    (a) Self-insurer. The Commission will approve the application of a 
freight fowarder to qualify as a self-insurer if it is able to meet its 
obligations for bodily-injury, property-damage, and cargo liability 
without adversely affecting its business.
    (b) Other securities and agreements. The Commission will grant 
applications for approval of other securities and agreements if the 
public will be protected as contemplated by 49 U.S.C. 10927(c).



Sec. 1084.7  Forms and procedure.

    (a) Forms. Endorsements for policies of insurance, surety bonds, 
certificates of insurance, applications to qualify as a self-insurer or 
for approval of other securities or agreements, and notices of 
cancellation must be in the form prescribed at 49 CFR part 1043.

[[Page 162]]

    (b) Procedure. Certificates of insurance, surety bonds, and notices 
of cancellation must be filed with the Commission in triplicate.
    (c) Names. Certificates of insurance and surety bonds shall be 
issued in the full name (including any trade name) of the individual, 
partnership (all partners named), corporation, or other person holding 
or to be issued the permit.
    (d) Cancellation. Except as provided in paragraph (e) of this 
section, certificates of insurance, surety bonds, and other securities 
and agreements shall not be cancelled or withdrawn until 30 days after 
the Commission receives written notice from the insurance company, 
surety, freight forwarder, or other party, as the case may be.
    (e) Termination by replacement. Certificates of insurance or surety 
bonds may be replaced by other certificates of insurance, surety bonds, 
or other security, and the liability of the retiring insurer or surety 
shall be considered as having terminated as of the replacement's 
effective date, if acceptable to the Commission.



Sec. 1084.8  Acceptance and revocation by Commission.

    The Commission may at any time refuse to accept or may revoke its 
acceptance of any surety bond, certificate of insurance, qualifications 
as a self-insurer, or other security or agreement that does not comply 
with these rules or fails to provide adequate public protection.



Sec. 1084.9  Fiduciaries.

    (a) Interpretations. The terms ``insured'' and ``principal'' as used 
in a certificate of insurance, surety bond, and notice of cancellation, 
filed by or for a freight forwarder, include the freight forwarder and 
its fiduciary (as defined at 49 CFR 1043.10(a)) as of the moment of 
succession.
    (b) Span of security coverage. The coverage furnished for a 
fiduciary shall not apply after the effective date of other insurance or 
security, filed with and accepted by the Commission for such fiduciary. 
After the coverage shall have been in effect 30 days, it may be 
cancelled or withdrawn within the succeeding 30 days by the insurer, the 
insured, the surety, or the principal 10 days after the Commission 
receives written notice. After such coverage has been in effect 60 days, 
it may be cancelled or withdrawn only in accordance with Sec. 1084.7(d).



Sec. 1084.10  Electronic filing of surety bonds, certificates of insurance and cancellations.

    Insurers may, at their option and in accordance with the 
requirements and procedures set forth at 49 CFR 1043.12, file 
certificates of insurance, surety bonds, and other securities and 
agreements electronically.

[60 FR 16811, Apr. 3, 1995]



PARTS 1090-1099--INTERMODAL TRANSPORTATION--Table of Contents






PART 1090--PRACTICES OF CARRIERS INVOLVED IN THE INTERMODAL MOVEMENT OF CONTAINERIZED FREIGHT--Table of Contents




Sec.
1090.1  Definition of TOFC/COFC service.
1090.2  Exemption of rail and highway TOFC/COFC service.
1090.3  Use of TOFC/COFC service by motor and water carriers.

    Authority: 49 U.S.C. 10321 and 10505; 5 U.S.C. 553.



Sec. 1090.1  Definition of TOFC/COFC service.

    (a) Rail trailer-on-flatcar/container-on-flatcar (TOFC/COFC) service 
means the transportation by rail, in interstate or foreign commerce, 
of--
    (1) Any freight-laden highway truck, trailer, or semitrailer,
    (2) The freight-laden container portion of any highway truck, 
trailer, or semitrailer having a demountable chassis,
    (3) Any freight-laden multimodal vehicle designed to operate both as 
a highway truck, trailer, or semitrailer and as a rail car,
    (4) Any freight-laden intermodal container comparable in dimensions 
to a highway truck, trailer, or semitrailer and designed to be 
transported by more than one mode of transportation, or
    (5) Any of the foregoing types of equipment when empty and being 
transported incidental to its previous

[[Page 163]]

or subsequent use in TOFC/COFC service.
    (b) Highway TOFC/COFC service means the highway transportation, in 
interstate or foreign commerce, of any of the types of equipment listed 
in paragraph (a) of this section as part of a continuous intermodal 
movement that includes rail TOFC/COFC service, and during which the 
trailer or container is not unloaded.

[52 FR 23660, June 24, 1987]



Sec. 1090.2  Exemption of rail and highway TOFC/COFC service.

    Except as provided in 49 U.S.C. 10505 (e) and (g), 109229(1), and 
10530, rail TOFC/COFC service and highway TOFC/COFC service provided by 
a rail carrier either itself or jointly with a motor carrier as part of 
a continuous intermodal freight movement is exempt from the requirements 
of 49 U.S.C. subtitle IV, regardless of the type, affiliation, or 
ownership of the carrier performing the highway portion of the service. 
Motor carrier TOFC/COFC pickup and delivery services arranged 
independently with the shipper or receiver (or its representative/agent) 
and performed immediately before or after a TOFC/COFC movement provided 
by a rail carrier are similarly exempt. Tariffs heretofore applicable to 
any transportation service exempted by this section shall no longer 
apply to such service. The exemption does not apply to a motor carrier 
service in which a rail carrier participates only as the motor carrier's 
agent (Plan I TOFC/COFC), nor does the exemption operate to relieve any 
carrier of any obligation it would otherwise have, absent the exemption, 
with respect to providing contractual terms for liability and claims.

[54 FR 51746, Dec. 18, 1989]



Sec. 1090.3  Use of TOFC/COFC service by motor and water carriers.

    (a) Except as otherwise prohibited by these rules, motor and water 
common and contract carriers may use rail TOFC/COFC service in the 
preformance of all or any portion of their authorized service.
    (b) Motor and water common carriers may use rail TOFC/COFC service 
only if their tariff publications give notice that such service may be 
used at their option, but that the right is reserved to the user of 
their services to direct that in any particular instance TOFC/COFC 
service not be used.
    (c) Motor and water contract carriers may use rail TOFC/COFC service 
only if their transportation contracts and tariffs (for water carriers) 
make appropriate provisions therefor.
    (d) Tariffs of motor and water common or water contract carriers 
providing for the use of rail TOFC/COFC service shall set forth the 
points between which TOFC/COFC service may be used.

[52 FR 27811, July 24, 1987]



PART 1091--ALASKAN MOTOR-OCEAN-MOTOR (AMOM) SUBSTITUTED SERVICE--Table of Contents




Sec.
1091.1  Definition.
1091.2  Tariff information and election of service method.

    Authority: 49 U.S.C. 10101-10103, 10301, 10306, 10311, 10321, 10502, 
10521, 10561, 10562, 10701-10705, 10708, 10721-10724, 10741-10744, 
10761-10763, 10766, 10921, 10922, 10928, 11101, 11102, 11108, 11349, 
11501, 11502, 11701, 11702, 11705, 11706, 11708, 11904, 11906, 11909, 
11910, and 11914; 5 U.S.C. 553 and 559.



Sec. 1091.1  Definition

    Alaskan Motor-Ocean-Motor (AMOM) Service means the use of a water 
common carrier subject to the Shipping Act, 1916, as amended, by an 
irregular-route motor common carrier authorized by the Interstate 
Commerce Commission to transport property in interstate or foreign 
commerce between points in Alaska, on the one hand, and, on the other, 
any point in the contiguous United States, for the movement of its 
loaded or empty equipment between a seaport in Alaska, on the one hand, 
and, on the other, a seaport on the West Coast of the contiguous United 
States.

[55 FR 11203, Mar. 27, 1990]

[[Page 164]]



Sec. 1091.2  Tariff information and election of service method.

    Motor carriers using AMOM Service may publish tariffs setting forth 
different charges for AMOM and all-highway services. The tariff 
publications must allow the shipper to choose whether AMOM or all-
highway service shall be used, and that, absent an election, the 
shipment will be transported over the lower-cost service. Tariffs 
embracing AMOM Service charges, including substituted service 
directories, if used, shall also set forth the underlying operating 
rights (overhead) relied upon, the service covered by the published 
charges, the points of substitution between modes of transportation, and 
the names of the participating carriers.

[55 FR 11203, Mar. 27, 1990]

[[Page 165]]



                     SUBCHAPTER B--RULES OF PRACTICE





PARTS 1100-1129--RULES OF GENERAL APPLICABILITY--Table of Contents






PART 1100--GENERAL PROVISIONS--Table of Contents




Sec.
1100.1  Scope of rules.
1100.2  Applicability.
1100.3  Liberal construction.
1100.4  Information and inquiries.

    Authority: 49 U.S.C. 10321; 5 U.S.C. 559.

    Source: 47 FR 49548, Nov. 1, 1982, unless otherwise noted.



Sec. 1100.1  Scope of rules.

    These rules govern practice and procedure before the Interstate 
Commerce Commission under title 49, subtitle IV of the United States 
Code (49 U.S.C. 10101 et seq.). This subchapter will be referred to as 
the ``Rules of Practice''.



Sec. 1100.2  Applicability.

    The rules in parts 1100--1129, Rules of General Applicability, 
establish general rules applicable to all types of proceedings. Other 
rules in this subchapter establish special rules applicable to 
particular types of proceedings. When there is a conflict or 
inconsistency between a rule of general applicability and a special 
rule, the special rule will govern.

[47 FR 49548, Nov. 1, 1982, as amended at 50 FR 30275, July 25, 1985]



Sec. 1100.3  Liberal construction.

    The rules will be construed liberally to secure just, speedy and 
inexpensive determination of the issues presented.



Sec. 1100.4  Information and inquiries.

    Persons with questions concerning these rules should either send a 
written inquiry addressed to the Secretary, Interstate Commerce 
Commission, Washington, DC 20423, or should telephone the Secretary's 
Office, (202) 275-7428.



PART 1101--DEFINITIONS AND CONSTRUCTION--Table of Contents




Sec.
1101.1  Statutory definitions.
1101.2  Definitions applicable to this subchapter.
1101.3  Construction.

    Authority: 49 U.S.C. 10321; 5 U.S.C. 559.

    Source: 47 FR 49548, Nov. 1, 1982, unless otherwise noted.



Sec. 1101.1  Statutory definitions.

    The definitions contained in section 10102 of the Act (49 U.S.C. 
10102) apply in this chapter.



Sec. 1101.2  Definitions applicable to this subchapter.

    (a) Act or Interstate Commerce Act means subtitle IV of title 49 of 
the United States Code (49 U.S.C. 10101 et seq.).
    (b) Commission means (1) the Interstate Commerce Commission and (2) 
any body or individual to which or to whom decision making authority is 
assigned by the Commission or the Chairman of the Commission, including 
a division of the Commission, the Chairman, another Commissioner, 
employee board, an individual employee, an administrative law judge, a 
joint board, or other hearing officer entitled to act in a particular 
proceeding. See 49 CFR part 1011, Commission Organization; Delegations 
of Authority.
    (c) Decision means any formal, published action of the Commission, 
including orders and notices.
    (d) Party means a complainant, defendant, applicant, respondent, 
protestant, intervener, or petitioner in any proceeding, or other 
persons permitted or directed by the Commission to participate in a 
proceeding. It will not include persons merely signing certificates of 
support or witnesses at oral hearing or in modified procedure 
proceedings, unless they are otherwise a party to the proceeding. 
Persons on the docket service list merely for the purpose of receiving 
copies of Commission releases are not considered parties to the 
proceeding.
    (e) Proceeding includes:
    (1) An informal complaint filed under Secs. 1130.1, or 1130.3 or a 
formal complaint alleging violation of any provision of

[[Page 166]]

the Act or of any regulation or requirement made pursuant to a power 
granted by such Act, including petitions on special dockets;
    (2) An application for (i) the granting of any right, privilege, 
authority, or relief under or from any provision of the Act or of any 
regulation or requirement made pursuant to a power granted by such Act, 
or (ii) the consideration of any submission required by law to be made 
to the Commission;
    (3) An investigation instituted by the Commission;
    (4) A rulemaking proposal instituted by the Commission; or
    (5) A petition for exemption filed under 49 U.S.C. 10505 requesting 
the Commission to exempt from application all or part of subtitle IV of 
title 49 of the United States Code any person, class of persons, 
transaction, or service related to a rail carrier.

[47 FR 49548, Nov. 1, 1982, as amended at 50 FR 30275, July 25, 1985]



Sec. 1101.3  Construction.

    The rules of construction contained in chapter 1 of title 1 of the 
United States Code (1 U.S.C. 1 et seq.) apply in this chapter. Among 
other things, they provide that the singular includes the plural, and 
vice versa; that the masculine includes the feminine; that the word 
``person'' includes corporations, associations, and the like; that 
``county'' includes parish and similar subdivisions; and that 
``company'' includes successors and assigns.



PART 1102--COMMUNICATIONS--Table of Contents




    Authority: 49 U.S.C. 10321; 5 U.S.C. 559.



Sec. 1102.1  How addressed.

    All communications should be addressed to the Secretary of the 
Commission, Interstate Commerce Commission, Washington, DC 20423 unless 
otherwise specifically directed by another Commission regulation. All 
communications should designate the docket number and title, if any. The 
person communicating shall state his address, and the party he 
represents.

[47 FR 49548, Nov. 1, 1982]



Sec. 1102.2  Ex parte communications prohibited; penalties provided.

    (a) Definitions. (1) ``On-the-record proceeding'' means any matter 
described in Sections 556-557 of the Administrative Procedure Act (5 
U.S.C. 556-557) or any matter required by the Constitution, statute, 
Commission rule, or by decision in the particular case, that is decided 
solely on the record made in a Commission proceeding.
    (2) ``Person who intercedes in any proceeding'' means any person, 
partnership, corporation, or association, private or public, outside of 
the Commission which is neither a party nor party's agent, that 
volunteers a communication that it has reason to know may advance or 
adversely affect the interest of a party or party's agent in any 
proceeding before the Commission.
    (3) Ex Parte communication concerning the merits means an oral or 
written communication by or on the behalf of a party which is made 
without the knowledge or consent of any other party that could or is 
intended to influence anyone who participates or could reasonably be 
expected to participate in the decision.
    (b) Communications that are not prohibited. (1) Any communication to 
which all the parties to the proceeding agree, or on which the 
Commission formally rules, may be made on an ex parte basis;
    (2) Any communication of facts or contention which has general 
significance for a regulated industry if the communicator cannot 
reasonably be expected to have known that the facts or contentions are 
material to a substantive issue in a pending on-the-record proceeding in 
which it is interested;
    (3) Any communication by means of the news media that in the 
ordinary course of business of the publisher is intended to inform the 
general public, members of the organization involved, or subscribers to 
such publication with respect to pending on-the-record proceedings.
    (c) Prohibitions. (1) No party, counsel, agent of a party, or person 
who intercedes in any on-the-record proceeding shall engage in any ex 
parte communication concerning the merits of the proceeding with any 
Commissioner,

[[Page 167]]

hearing officer, joint board member, employee board member or employee 
of the Commission who participates, or who may reasonably be expected to 
participate, in the decision in the proceeding.
    (2) No Commissioner, hearing officer, joint board member, employee 
board member or employee of the Commission who participates, or is 
reasonably expected to participate, in the decision in an on-the-record 
proceeding shall invite or knowingly entertain any ex parte 
communication concerning the merits of a proceeding or engage in any 
such communication to any party, counsel, agent of a party, or person 
reasonably expected to transmit the communication to a party or party's 
agent.
    (d) When prohibitions take effect. The prohibitions against ex parte 
communications concerning the merits of a proceeding apply from the date 
on which a proceeding is noticed for oral hearing or for the taking of 
evidence by modified procedure, or when the person responsible for the 
communication has knowledge that the proceeding will be so noticed, or 
at any time the Commission, by rule or decision, specifies.
    (e) Procedure required of Commission members and employees upon 
receipt of ex parte communications concerning the merits of a 
proceeding. Any person who receives an ex parte communication concerning 
the merits of a proceeding must promptly transmit either the written 
communication, or a written summary of the oral communication with an 
outline of the surrounding circumstances to the Secretary of the 
Commission. The Secretary shall place all of the material in the 
correspondence section of the public docket of the proceeding. A 
recipient of such ex parte communication, who has doubt as to the nature 
of the communication, may request a ruling on the question from the 
Commission's Designated Agency Ethics Official. The Designated Agency 
Ethics Official shall promptly reply to such requests. The Secretary 
shall promptly notify the Chairman of the Commission of such ex parte 
communications sent to the Secretary. The Designated Agency Ethics 
Official shall promptly notify the Chairman of all requests for rulings 
sent to the Designated Agency Ethics Official. The Chairman may require 
that any communication be placed in the correspondence section of the 
docket when fairness requires that it be made public, even if it is not 
a prohibited communication. The Chairman may direct the taking of such 
other action as may be appropriate under the circumstances.
    (f) Sanctions. (1) The Commission may censure, suspend, or revoke 
the privilege of practicing before the agency of any person who 
knowingly and willfully engages in or solicits prohibited ex parte 
communication concerning the merits of a proceeding.
    (2) The relief or benefit sought by a party to a proceeding may be 
denied if the party, or his agent knowingly and willfully violates the 
foregoing rules.
    (3) The Commission may censure, suspend, dismiss, or institute 
proceedings to suspend or dismiss any Commission employee who knowingly 
and willfully violates the foregoing rules.

[47 FR 49548, Nov. 1, 1982, as amended at 58 FR 42027, Aug. 6, 1993]



PART 1103--PRACTITIONERS--Table of Contents




                     Subpart A--General Information

Sec.
1103.1  Register of practitioners.
1103.2  Attorneys-at-law--qualifications and requirements to practice 
          before the Commission.
1103.3  Persons not attorneys-at-law--qualifications and requirements 
          for practice before the Commission.
1103.4  Initial appearances.
1103.5  Discipline.

                       Subpart B--Canons of Ethics

1103.10  Introduction.

  The Practitioner's Duties and Responsibilities Toward the Commission

1103.11  Standards of ethical conduct in courts of the United States to 
          be observed.
1103.12  The practitioner's duty to and attitude toward the Commission.
1103.13  Attempts to exert political or personal influence on the 
          Commission are prohibited.
1103.14  Private communications with the Commission are prohibited.

[[Page 168]]

     The Practitioner's Duties and Responsibilities Toward a Client

1103.15  The practitioner's duty to clients, generally.
1103.16  Adverse influence and conflicting interests.
1103.17  Joint association of practitioners and conflicts of opinion.
1103.18  Withdrawal from employment.
1103.19  Advising upon the merits of a client's cause.
1103.20  Practitioner's fees and related practices.
1103.21  How far a practitioner may go in supporting a client's cause.
1103.22  Restraining clients from improprieties.
1103.23  Confidences of a client.

  The Practitioner's Duties and Responsibilities Regarding Witnesses, 
                     Other Litigants and the Public

1103.24  Use of adverse witnesses.
1103.25  Treatment of witnesses, litigants and other counsel.
1103.26  Discussion of pending litigation in the public press.
1103.27  Candor and fairness in dealing with other litigants.
1103.28  Negotiations with opposing party.
1103.29  Public communication and solicitation.
1103.30  Acceptance of employment.
1103.31  Responsibility for litigation.
1103.32  Discovery of imposition and deception and duty to report 
          corrupt or dishonest conduct.
1103.33  Responsibility when proposing a person for admission to 
          practice before the Commission.
1103.34  Intermediaries.
1103.35  Partnership or professional corporation names and titles.

    Authority: 49 U.S.C. 10308 and 10321; 5 U.S.C. 559; 21 U.S.C. 853a.

    Source: 47 FR 49549, Nov. 1, 1982, unless otherwise noted.



                     Subpart A--General Information



Sec. 1103.1  Register of practitioners.

    The Commission maintains a register containing the names of all non-
attorneys entitled to practice before it. The register is maintained 
according to the individual non-attorney practitioner's name and not by 
corporate or firm name. Corporations and firms are not admitted or 
recognized as practitioners before the Commission.



Sec. 1103.2  Attorneys-at-law--qualifications and requirements to practice before the Commission.

    Any person who is a member in good standing of the bar of the 
highest court of any State, Commonwealth, possession, territory, or the 
District of Columbia may represent persons before the Commission.



Sec. 1103.3  Persons not attorneys-at-law--qualifications and requirements for practice before the Commission.

    (a) In general. Any citizen or resident of the United States, not an 
attorney-at-law, who files an application for admission to practice, 
accompanied by the payment of the fee prescribed by rule or order of the 
Commission, and who successfully completes the practitioners' 
examination, and shows that applicant possesses the necessary legal and 
technical qualifications to enable applicant to render valuable service 
before the Commission and that applicant is competent to advise and 
assist in the presentation of matters before the Commission, may be 
permitted to practice before the Commission.
    (b) Qualifications standards. A non-attorney applicant for admission 
to practice must meet one of the following requirements:
    (1) An applicant must have completed 2 years (60 semester hours or 
90 quarter hours) of post secondary education and must possess technical 
knowledge, training or experience in the field of transportation which 
is regarded by the Commission as the equivalent of 2 additional years of 
college education;
    (2) An applicant must have worked in the field of transportation for 
at least 10 years;
    (3) An applicant must have received a bachelor's degree with at 
least 12 semester hours or 18 quarter hours in transportation or 
business; or
    (4) An applicant must have received a bachelor's degree and worked 
in the field of transportation for at least one year. An applicant's 
statement of college education must be supported by a transcript of 
records attached to the original application. Transcripts from any 
college accredited by the U.S. Department of Education will be accepted 
without question. With all other institutions, the burden of proof is on 
the

[[Page 169]]

applicant to establish that the formal education satisfies the standards 
set forth above. The qualifications standards are intended as general 
guidelines. Individual situations that vary from the standards will 
continue to be evaluated on their own merits.
    (c)(1) Application for admission. An application filed pursuant to 
this rule under oath for admission to practice shall be submitted 
between January and May 1 of the year in which the examination is to be 
taken. The application is to be completed in full on the form provided 
by the Commission, and shall be addressed to the Secretary, Interstate 
Commerce Commission, Washington, DC 20423, to the attention of the room 
number indicated on the form.
    (2) Certification: All applicants must complete the following 
certification:

    I, __________ (Name) __________, certify under penalty of perjury 
under the laws of the United States, that I have not been convicted, 
after September 1, 1989, of any Federal or State offense involving the 
distribution or possession of a controlled substance, or that if I have 
been so convicted, I am not ineligible to receive Federal Benefits, 
either by court order or operation of law, pursuant to 21 U.S.C. 853a.

    (d) Application fee. Each application filed pursuant to this rule 
must be accompanied by the non-refundable fee in the amount set forth in 
49 CFR 1002.2(f)(100). Payment must be made either by check or money 
order payable to the Interstate Commerce Commission. Cash payment will 
not be accepted.
    (e) Additional certification. (1) When an application meets the 
required standards, a copy will be referred to the Association of 
Interstate Commerce Commission Practitioners for a report to the 
Commission as to the reputation and character of the applicant. Inquiry 
also will be made by the Commission of the sponsors as to their 
knowledge of the applicant's legal and technical qualifications as 
contemplated by the Commission's Rules of Practice. If the Commission is 
satisfied as to the applicant's qualifications, reputation and 
character, then applicant will be considered eligible to take the 
examination.
    (2) The Commission may require an applicant's sponsors to provide a 
detailed statement of the nature and extent of their knowledge of 
applicant's qualifications. Upon consideration of this material, if the 
Commission is not satisfied as to the adequacy of applicant's 
qualifications, the applicant will be notified by registered mail. 
Applicant may then request a hearing to prove his qualifications. If 
applicant makes such a request, the Commission will allow a hearing. In 
the absence of a request for a hearing within 20 days after receipt of 
the notice, the application will be considered withdrawn.
    (f) Scope of examination. If applicant meets the educational and 
experience standards, and is found to be of good character, the 
applicant will be permitted to take the examination. The examination 
tests the applicant's experience and knowledge of the principal 
regulations, laws, and economic principles in the field of 
transportation as well as knowledge of the Commission's Rules of 
Practice and Canons of Ethics.
    (g) Time and place of examination. The examination will be conducted 
once a year on the second Tuesday in July. Notice of the time and place 
to appear for the examination will be mailed to qualifying applicants 
approximately 30 days prior to the date of the examination.
    (h) Location of examination. Examinations will ordinarily be 
conducted in selected cities where Commission offices are located. A 
listing of the available sites will be attached to the application form. 
Applicants may select their preferred examination site. If a group of 
prospective applicants (three applicants or more) wishes to take the 
examination at a location not listed, a letter stating the preferred 
test site should be included with the application. The Commission will 
make every effort to administer the test at the requested location.
    (i) Cancellation of examination. If the Commission determines that 
there is an insufficient number of applicants to warrant conducting the 
examination, the Commission will cancel the examination for that year. 
Notice of the cancellation will be mailed to applicants on or before 
June 15 and the application fee will be refunded. The

[[Page 170]]

Commission will conduct the examination the next year following the 
cancellation of the examination.
    (j) Examination results. Results will be released within 90 days 
after the examination. Individual results will be forwarded to the 
applicants at least 1 week before being publicly released. To protect 
the privacy of those taking the examination, individual grades will not 
be released over the telephone to anyone. Requests for grades may, 
however, be submitted in writing to the Office of the Secretary to the 
attention of the address stated in the application form.
    (k) Failure to appear for examination. Applicants who have failed to 
appear for, or postponed taking an examination, a total of three times 
without showing good cause will have any subsequently filed application 
returned.
    (l) Failing or postponing the examination. Applicants who fail the 
examination may reapply by submitting a request in writing with an 
additional filing fee in the amount set forth in 49 CFR 1002.2(f)(100). 
Applicants who postpone taking the examination three times without 
showing good cause will have their applications returned.
    (m) The filing fee in the amount set forth in 49 CFR 1002.2(f)(100) 
is not refundable.
    (n) Any application resubmitted to the Commission after being 
returned must be accompanied by a filing fee in the amount set forth in 
49 CFR 1002.2(f)(100).
    (o) Content and grading of examination. The Employee Board on 
Education and Practice is responsible, under the general supervision of 
the Vice-Chairman, for the examination of non-attorney applicants, for 
the preparation of examination questions, and for grading examinations. 
The Board consists of two attorneys and one non-attorney appointed by 
the Chairman with the approval of the Commission. Under the supervision 
of this Board, a seven-member Committee of Examiners will grade the 
examination questions. The members of this Committee must have at least 
2 years experience with the Commission and are appointed for a 2 year 
term by the Chairman, with the approval of the Commission. Members may 
be reappointed and, to the extent possible, no more than three members 
of the Committee will be replaced at one time.
    (p) Applicant's oath. No applicant shall be admitted to practice 
before the Commission until applicant shall subscribe to an oath or 
affirmation that applicant will conduct practice uprightly and according 
to the law, as a practitioner before the Commission, and that applicant 
will support the Constitution of the United States and laws of the 
United States and will conform to the rules and regulations of the 
Commission.

[47 FR 49549, Nov. 1, 1982, as amended at 49 FR 38614, Oct. 1, 1984; 52 
FR 46483, Dec. 8, 1987; 54 FR 48250, Nov. 22, 1989; 56 FR 1374, Jan. 14, 
1991]



Sec. 1103.4  Initial appearances.

    Practitioners shall file a declaration that they are authorized to 
represent the particular party on whose behalf they appear at the time 
of making an initial appearance, in all proceedings. This requirement 
can be met by:
    (a) Entering the practitioner's name as the representative of an 
applicant in the appropriate space on an application form;
    (b) Signing any complaint, petition, protest, reply or other 
pleading with a designation following the practitioner's signature that 
he is the representative of a party;
    (c) Entering an appearance at any hearing on the form provided; or
    (d) Filing a letter with the Secretary of the Commission stating 
that practitioner is authorized to represent a party. The party 
represented, their address, and the docket number of the proceeding must 
also be identified at the time of the initial appearance.



Sec. 1103.5  Discipline.

    (a) A member of the Commission's bar may be subject to suspension, 
disbarment, or other disciplinary action if it is shown that the 
practitoner:
    (1) Has been suspended or disbarred from practice in any court of 
record;
    (2) Violated any of the Commission's rules including the Canons of 
Ethics set out in Secs. 1103.10 through 1103.35; or
    (3) Engaged in conduct unbecoming a member of the bar of the 
Commission.
    (b) The practitioner will be afforded an opportunity to show why he 
should

[[Page 171]]

not be suspended, disbarred, or otherwise disciplined. Upon the 
practitioner's timely response to the show cause order after any 
requested hearing, or upon failure to make a timely response to the show 
cause order, the Commission shall issue an appropriate decision.



                       Subpart B--Canons of Ethics



Sec. 1103.10  Introduction.

    The following canons of ethics are adopted as a general guide for 
those admitted to practice before the Interstate Commerce Commission. 
The practitioners before the Commission include (a) lawyers, who have 
been regularly admitted to practice law and (b) others who have 
fulfilled the requirements set forth in Sec. 1103.3. The former are 
bound by a broad code of ethics and unwritten rules of professional 
conduct which apply to every activity of a lawyer. The canons do not 
release the lawyer from any of the duties or principles of professional 
conduct by which lawyers are bound. They apply similarly to all 
practitioners before the Commission, but do not negate the applicability 
of other ethical codes. The canons are organized under three headings, 
The Practitioner's Duties and Responsibilities to the Commission, The 
Practitioner's Duties and Responsibilities to the Client, The 
Practitioner's Duties and Responsibilities to Other Litigants, Witnesses 
and the Public.

  The Practitioner's Duties and Responsibilities Toward the Commission



Sec. 1103.11  Standards of ethical conduct in courts of the United States to be observed.

    These canons further the purpose of the Commission's Rules of 
Practice which direct all persons appearing in proceedings before it to 
conform, as nearly as possible, to the standards of ethical conduct 
required of practice before the courts of the United States. Such 
standards are taken as the basis for these specifications and are 
modified as the nature of the practice before the Commission requires.



Sec. 1103.12  The practitioner's duty to and attitude toward the Commission.

    (a) It is the duty of the practitioner to maintain a respectful 
attitude toward the Commission and for the importance of the functions 
it administers. In many respects the Commission functions as a Court, 
and practitioners should regard themselves as officers of that Court and 
uphold its honor and dignity.
    (b) It is the right and duty of the practitioner to submit 
grievances about a member or employee of the Commission to the proper 
authorities when proper grounds for complaint exists. In such cases, 
charges should be encouraged and the person making them should be 
protected.
    (c) It is the duty of the practitioner to be punctual in attendance, 
and to be concise and direct in the trial and disposition of causes.



Sec. 1103.13  Attempts to exert political or personal influence on the Commission are prohibited.

    (a) It is unethical for a practitioner to attempt to influence the 
judgment of the Commission by threats of political or personal reprisal.
    (b) Marked attention and unusual hospitality on the part of a 
practitioner to a Commissioner, administrative law judge, or other 
representative of the Commission, which is unwarranted by the personal 
relationship of the parties, is subject to misconstruction of motive and 
should be avoided.



Sec. 1103.14  Private communications with the Commission are prohibited.

    To the extent that the Commission acts in a quasi-judicial capacity, 
it is improper for litigants, directly or through any counsel or 
representative, to communicate privately with a Commissioner, 
administrative law judge, or other representative of the Commission 
about a pending case, or to argue privately the merits thereof in the 
absence of the adversaries or without notice to them. Practitioners at 
all times shall scrupulously refrain from going beyond ex parte 
representations which are clearly proper in view of the administrative 
work of the Commission in

[[Page 172]]

their communication with the Commission and its staff.

     The Practitioner's Duties and Responsibilities Toward a Client



Sec. 1103.15  The practitioner's duty to clients, generally.

    The practitioner shall be respectful of the law and its official 
ministers, and shall not be involved in corruption of public officials 
or deception of the public. In giving improper service or advice, the 
practitioner invites and deserves stern condemnation. The practitioner 
shall observe and advise all clients to observe the statutory law to the 
best of his knowledge or as interpreted by competent adjudication. The 
practitioner owes a general duty to practice candor toward his client 
with respect to all aspects to his service to the client.



Sec. 1103.16  Adverse influences and conflicting interests.

    (a) At the time of the retainer, the practitioner shall disclose to 
the client all circumstances of his relations to the parties, and any 
interest in or connection with the case.
    (b) It is unethical for a practitioner to represent conflicting 
interests, except by express consent of all concerned given after a full 
disclosure of the facts. Within the meaning of this section, a 
practitioner represents conflicting interest, when on behalf of one 
client, it is his duty to contend for that which duty to another client 
requires him to oppose.
    (c) The obligation to represent the client with undivided fidelity 
and not to divulge secrets or confidence forbids also the subsequent 
acceptance of retainers or employment from others in matters adversely 
affecting any interest of the client with respect to which confidence 
has been reposed.



Sec. 1103.17  Joint association of practitioners and conflicts of opinion.

    (a) A client's offer of the assistance of an additional practitioner 
should not be regarded as evidence of lack of confidence, but the matter 
should be left to the determination of the client. A practitioner shall 
decline association as colleague if it is objectionable to the 
practitioner first retained, but if the client should relieve the 
practitioner first retained, another may come into the case.
    (b) When practitioners jointly associated in a case cannot agree as 
to any matter vital to the interest of the client the conflict of 
opinion should be frankly stated to the client for final determination. 
The client's decision should be accepted by them unless the nature of 
the difference makes it impracticable for the practitioner whose 
judgment has been overruled to cooperate effectively. In that event, it 
is the practitioner's duty to ask the client to relieve him of his 
obligation.
    (c) It is the right of any practitioner to give proper advice to 
those seeking relief against an unfaithful or neglectful practitioner. 
The practitioner against whom the complaint is made should be notified 
of such action.



Sec. 1103.18  Withdrawal from employment.

    The right of a practitioner to withdraw from employment, once begun, 
arises only from good cause. The desire or consent of the client is not 
always sufficient cause for withdrawal. The practitioner shall not 
abandon the unfinished task to the detriment of the client except for 
reasons of honor, or the client's persistence over the practitioner's 
remonstrance in presenting frivolous defenses, or the client's 
deliberate disregard of an obligation as to fees or expenses. In these 
cases, the practitioner may be warranted in withdrawing after due notice 
to the client with time allowed for the employment of another 
practitioner. Other reasons for withdrawal might include instances in 
which a practitioner discovers that his client has no cause and the 
client is determined to continue the cause, or the practitioner's own 
inability to conduct a case effectively. Upon withdrawing from a case, 
the practitioner shall refund any part of a retainer which clearly has 
not been earned.



Sec. 1103.19  Advising upon the merits of a client's cause.

    A practitioner shall try to obtain full knowledge of his client's 
cause before advising thereon. The practitioner

[[Page 173]]

shall give a candid opinion of the merits and probable result of 
bringing the case or of any related pending or contemplated litigation. 
The practitioner shall beware of bold and confident assurances to 
clients, especially where employment may depend upon such assurances. 
Whenever a fair settlement can be reached, the client shall be advised 
to avoid or to end litigation.



Sec. 1103.20  Practitioner's fees and related practices.

    (a) Establishing fees. In establishing fees, a practitioner shall 
avoid charges which overestimate the value of his advice and services. A 
client's ability to pay cannot justify a charge in excess of the value 
of the service although a client's poverty may require a lesser charge 
or even no charge at all. Publicly quoted fees should be adhered to when 
actual charges are made. Practitioners are bound to charge no more than 
the quoted rates for 30 days following the date of their quotations 
unless a different period of time for the effectiveness of such rates is 
clearly specified when quoted, or unless permission to charge a higher 
rate is obtained from the Vice Chairman of the Commission.
    (b) Compensation, commissions and rebates. A practitioner shall 
accept no compensation, commissions, rebates or other advantages from 
the parties in a proceeding other than his client without the knowledge 
and consent of his client after full disclosure.
    (c) Contingent fees. Contingent fees should be only those sanctioned 
by law. In no case, except a charity case, should fees be entirely 
contingent upon success.
    (d) Division of fees. Fees for services should be divided only with 
another member of the bar of practitioners and should be based upon a 
division of service or responsibility. It is unethical for a 
practitioner to retain laymen to solicit his employment in pending or 
prospective cases, and to reward them by a share of the fees. Such a 
practice cannot be too severely condemned.
    (e) Suing clients for fees. Controversies with clients concerning 
compensation are to be entered into only insofar as they are compatible 
with self-respect and with the right to receive reasonable compensation 
for services. Lawsuits against clients should be resorted to only to 
prevent injustice, imposition or fraud.
    (f) Acquiring interest in litigation. The practitioner shall not 
purchase or otherwise acquire any pecuniary interest in the subject 
matter of litigation which the practitioner is conducting.
    (g) Expenses. A practitioner may not properly agree with a client 
that the practitioner shall pay or bear the expenses of litigation. He 
may in good faith advance expenses as a matter of convenience but must 
do so subject to reimbursement by the client. A practitioner shall bill 
and collect from a client, and thereafter retain only such payments and 
reimbursements for expenses as have actually been incurred in behalf of 
the client.
    (h) Witnesses' compensation. Compensation of a witness is not to be 
made contigent on the success of a case in which the witness is called.
    (i) Dealing with trust property. Money of the client or other trust 
property coming into the possession of the practitioner should be 
reported promptly, and, except with the client's knowledge and consent, 
should not be commingled with the practitioner's private property or be 
put to the practitioner's private use.



Sec. 1103.21  How far a practitioner may go in supporting a client's cause.

    A practitioner shall put forth his best effort to maintain and 
defend the rights of his client. Fear of disfavor of the Commission or 
public unpopularity should not cause a practitioner to refrain from the 
full discharge of his duty. The client is entitled to the benefit of any 
and every remedy and defense authorized by law. The client may expect 
his counsel to assert every such remedy or defense. However, the 
practitioner shall act within the bounds of the law. A practitioner 
shall not violate the law or be involved in any manner of fraud or 
chicanery for any client.



Sec. 1103.22  Restraining clients from improprieties.

    A practitioner should see that his clients act with the same 
restraint that

[[Page 174]]

the practitioner himself uses, particularly with reference to the 
client's conduct toward the Commission, fellow practitioners, witnesses 
and other litigants. If a client persists in improper conduct, the 
practitioner should terminate their relationship.



Sec. 1103.23  Confidences of a client.

    (a) The practitioner's duty to preserve his client's confidence 
outlasts the practitioner's employment by the client, and this duty 
extends to the practitioner's employees as well. Neither practitioner 
nor his employees shall accept employment which involves the disclosure 
or use of a client's confidences without knowledge and consent of the 
client even though there are other available sources of information. A 
practitioner shall not continue employment when he discovers that this 
obligation presents a conflict in his duty between the former and the 
new client.
    (b) If a practitioner is falsely accused by his client, he is not 
precluded from disclosing the truth in respect to the false accusation. 
The announced intention of a client to commit a crime is not included in 
the confidence which a practitioner is bound to respect. The 
practitioner may properly make such disclosures to prevent the act or 
protect those against whom that is threatened.

  The Practitioner's Duties and Responsibilities Regarding Witnesses, 
                     Other Litigants and the Public



Sec. 1103.24  Use of adverse witnesses.

    A practitioner shall not be deterred from seeking information from a 
witness connected with or reputed to be biased in favor of an adverse 
party, if the ascertainment of the truth requires that such a person be 
called as a witness in a proceeding.



Sec. 1103.25  Treatment of witnesses, litigants and other counsel.

    (a) A practitioner shall always treat adverse witnesses and other 
litigants with fairness and due consideration. He should never minister 
to the prejudice of a client in a trial or conduct in a cause. The 
client has no right to demand that the practitioner representing him 
abuse the opposing party or indulge in offensive personal attacks.
    (b) A practitioner shall not attempt to obstruct Commission 
investigations or corruptly to influence witnesses and potential 
witnesses during an investigation.
    (c) In conducting a case it is improper for a practitioner to allude 
to the personal history or the personal peculiarities or idiosyncracies 
of practitioners on the other side, or otherwise engage in personal 
abuse of other practitioners.



Sec. 1103.26  Discussion of pending litigation in the public press.

    Attempts to influence the action and attitude of the members and 
administrative law judges of the Commission through propaganda or 
through colored or distorted articles in the public press, should be 
avoided. However, it is not against the public interest or unfair to the 
Commission if the facts of pending litigation are made known to the 
public through the press in a fair and unbiased manner and in 
dispassionate terms. When the circumstances of a particular case appear 
to justify a statement to the public through the press, it is unethical 
to make it anonymously.



Sec. 1103.27  Candor and fairness in dealing with other litigants.

    (a) The conduct of practitioners before the Commission and with 
other practitioners should be characterized by candor and fairness. The 
practitioner shall observe scrupulously the principles of fair dealing 
and just consideration for the rights of others.
    (b) It is not candid or fair for a practitioner knowingly to 
misstate or misquote the contents of a paper, the testimony of a 
witness, the language or the argument of an opposing practitioner, or 
the language or effect of a decision or a text book; or, with knowledge 
of its invalidity to cite as authority a decision which has been 
overruled or otherwise impaired as a precedent or a statute which has 
been repealed; or in argument to assert as a fact that which has not 
been proved, or to mislead his opponent by concealing or withholding 
positions in his opening

[[Page 175]]

argument upon which his side then intends to rely.
    (c) It is dishonorable to deal other than candidly with the facts in 
taking the statements of witnesses, in drawing affidavits and other 
documents, and in the presentation of cases.
    (d) A practitioner shall not offer evidence which he knows the 
Commission should reject, in order to get the same before the Commission 
by argument for its admissibility, or arguments upon any point not 
properly calling for determination. He shall not introduce into an 
argument remarks or statements intended to influence the bystanders.
    (e) A practitioner shall rely on his judgment concerning matters 
incidental to the trial which may, in some cases, affect the proceeding. 
For example, a practitioner should not force a matter to trial when 
there is affliction or bereavement on the part of the opposing 
practitioner if no harm will come from postponing the proceeding.
    (f) A practitioner shall not ignore known customs or practice of the 
Commission, even when the law permits, without giving timely notice to 
the opposing practitioner.
    (g) Insofar as is possible, important agreements affecting the 
rights of the clients should be made in writing. It is, however, 
dishonorable to avoid performance of an agreement fairly made only 
because it is not made in writing.



Sec. 1103.28  Negotiations with opposing party.

    A practitioner shall not in any way communicate upon the subject of 
controversy with a party represented by another practitioner except upon 
express agreement with the practitioner representing such party. He 
shall not negotiate or make compromises with the other party, but shall 
deal only with the opposing practitioner. The practitioner shall avoid 
everything that may tend to mislead a party not represented by a 
practitioner and should not advise that party as to the law.



Sec. 1103.29  Public communication and solicitation.

    (a) A practitioner shall not make any public communication or 
solicitation for employment containing a false, fraudulent, misleading, 
or deceptive statement or claim. This prohibition includes, but is not 
limited to:
    (1) The use of statements containing a material misrepresentation of 
fact or omission of a material fact necessary to keep the statement from 
being misleading;
    (2) Statements intended or likely to create an unjustifiable 
expectation; statements of fee information which are not complete and 
accurate;
    (3) Statements containing information on past performance or 
prediction of future success;
    (4) Statements of prior Commission employment outside the context of 
biographical information; statements containing a testimonial about or 
endorsement of a practitioner;
    (5) Statements containing an opinion as to the quality of a 
practitioner's services, or statements intended or likely to attract 
clients by the use of showmanship, puffery, or self-laudation, including 
the use of slogans, jingles, or sensational language or format.
    (b) A practitioner shall not solicit a potential client who has 
given the practitioner adequate notice that he does not want to receive 
communications from the practitioner, nor shall a practitioner make a 
solicitation which involves the use of undue influence.
    (c) A practitioner shall not solicit a potential client who is 
apparently in a physical or mental condition which would make it 
unlikely that he could exercise reasonable, considered judgment as to 
the selection of a practitioner.
    (d) A practitioner shall not pay or otherwise assist any other 
person who is not also a practitioner and a member or associate of the 
same firm to solicit employment for the practitioner.
    (e) If a public communication is to be made through use of radio or 
television, it must be prerecorded and approved for broadcast by the 
practitioner. A recording of the actual transmission must be retained by 
the practitioner for a period of 1 year after the date of the final 
transmission.
    (f) A paid advertisement must be identified as such unless it is 
apparent

[[Page 176]]

from the context that it is a paid advertisement.
    (g) A practitioner shall not compensate or give anything of value to 
a representative of any communication medium in anticipation of or in 
return for professional publicity in a news item.



Sec. 1103.30  Acceptance of employment.

    (a) The practitioner must decline to conduct a case or to make a 
defense when convinced that it is intended merely to harass or to injure 
the opposing party, or to work oppression or wrong. Otherwise, it is the 
practitioner's right, and having accepted retainer, it becomes the 
practitioner's duty, to insist upon the judgment of the Commission as to 
the merits of the client's claim. The practitioner's acceptance of a 
case is equivalent to the assertion that the client's case is proper for 
determination.
    (b) No practitioner is obliged to act either as adviser or advocate 
for every potential client. The practitioner has the right to decline 
employment. Every practitioner shall decide what employment he will 
accept, what cases he will bring before the Commission for complainants, 
or contest for defendants or respondents.



Sec. 1103.31  Responsibility for litigation.

    The practitioner bears the responsibility for advising as to 
questionable transactions, bringing questionable proceedings, or urging 
questionable defenses. Client's instructions cannot be used as an excuse 
for questionable practices.



Sec. 1103.32  Discovery of imposition and deception and duty to report corrupt or dishonest conduct.

    (a) The practitioner, upon detecting fraud or deception practiced 
against the Commission or a party in a case, shall make every effort to 
rectify the practice by advising his client to forgo any unjustly earned 
advantage. If such advice is refused, the practitioner should inform the 
injured party or that party's practitioner so that appropriate steps may 
be taken.
    (b) Practitioners shall expose without fear or favor before the 
proper tribunals any corrupt or dishonest conduct and should accept 
without hesitation employment against a practitioner who has wronged his 
client. The practitioner upon the trial of a case in which perjury has 
been committed owes it to the Commission and to the public to bring the 
matter to the knowledge of the prosecuting authorities.



Sec. 1103.33  Responsibility when proposing a person for admission to practice before the Commission.

    The practitioner shall aid in guarding the bar of the Commission 
against admission of candidates unfit or unqualified because deficient 
in either moral character or qualification. A practitioner shall propose 
no person for admission to practice before the Commission unless from 
personal knowledge or after reasonable inquiry he sincerely believes and 
is able to vouch that such person possesses the qualifications 
prescribed in Sec. 1103.3.



Sec. 1103.34  Intermediaries.

    (a) The services of a practitioner should not be controlled or 
exploited by any lay agency, personal or corporate, which intervenes 
between client and practitioner. The responsibility and qualifications 
of the practitioner are individual. The practitioner shall avoid all 
relations which direct the performance of his duties in the interest of 
such intermediaries. The practitioner's relationship and responsibility 
to the client should be direct.
    (b) The practitioner may accept employment from any organization 
(such as an association, club or trade organization) authorized by law 
to be a party to proceedings before the Commission, to render services 
in such proceedings in any matter in which the organization, as an 
entity, is interested. This employment should only include the rendering 
of such services to the members of the organization in respect to the 
individual affairs as are consistent with the free and faithful 
performance of his duties to the Commission.
    (c) Nothing in this canon shall be construed as conflicting with 
Sec. 1103.20(d).

[[Page 177]]



Sec. 1103.35  Partnership or professional corporation names and titles.

    In the formation of a partnership or professional corporation among 
practitioners care should be taken to avoid any misleading name or 
representation which would create a false impression as to the position 
or privileges of a member not duly authorized to practice. No person 
should be held as a practitioner who is not duly qualified under 
Sec. 1103.2 or Sec. 1103.3 of these rules. No person who is not duly 
admitted to practice should be held out in a way which will give the 
impression that he is so admitted. No false or assumed or trade name 
should be used to disguise the practitioner or his partnership or 
professional corporation.



PART 1104--FILING WITH THE COMMISSION-COPIES-VERIFICATION-SERVICE-PLEADINGS, GENERALLY--Table of Contents




Sec.
1104.1  Address and identification.
1104.2  Typographical specification generally.
1104.3  Copies.
1104.4  Attestation and verification.
1104.5  Affirmation or delegations under penalty of perjury in 
          accordance with 18 U.S.C. 1621 in lieu of oath.
1104.6  Timely filing required.
1104.7  Computation and extension of time.
1104.8  Objectionable matter.
1104.9  [Reserved]
1104.10  Rejection of a deficient document.
1104.11  Amendments.
1104.12  Service of pleadings and papers.
1104.13  Replies and motions.
1104.14  Protective orders to maintain confidentiality.
1104.15  Certification of eligibility for Federal benefits under 21 
          U.S.C. 853a.

    Authority: 49 U.S.C. 10321; 5 U.S.C. 559; 21 U.S.C. 853a.

    Source: 47 FR 49554, Nov. 1, 1982, unless otherwise noted.



Sec. 1104.1  Address and identification.

    (a) Except as provided in Sec. 1115.7, pleadings should be addressed 
to the ``Secretary, Interstate Commerce Commission, Washington, DC 
20423,'' and should designate the docket number and title of the 
proceeding, if known.
    (b) The address of the person filing the pleading should be included 
on the first page of the pleading.
    (c) All envelopes in which a pleading is being submitted should be 
marked in the lower left hand corner with the docket number, if known, 
(not the full title) and the pleading type.

[47 FR 49554, Nov. 1, 1982, as amended at 48 FR 34475, July 29, 1983; 53 
FR 20854, June 7, 1988]



Sec. 1104.2  Typographical specification generally.

    Requirements. All pleadings should:
    (a) Be on opaque, unglazed, durable paper not exceeding 8\1/2\ by 11 
inches. Printing may appear on both sides of a page.
    (b) Be doubled-spaced except long quotations which must be singled-
spaced and indented.
    (c) Be reproduced by printing, or by any other process that results 
in clear and permanently legible copies. Any print that cannot be 
reproduced by photography is not acceptable.



Sec. 1104.3  Copies.

    (a) The original and 10 copies of every pleading document or paper 
permitted or required to be filed under this subchapter must be 
furnished for the use of the Commission, unless otherwise specifically 
directed by another Commission regulation or notice in an individual 
proceeding.
    (b) The original and 10 copies of all correspondence relating to a 
formal proceeding before the Commission must be furnished for the 
Commission's use, unless otherwise specifically directed by another 
commission regulation or notice in an individual proceeding.

[47 FR 49554, Nov. 1, 1982, as amended at 48 FR 34475, July 29, 1983; 53 
FR 19301, May 27, 1988]



Sec. 1104.4  Attestation and verification.

    (a) Signature of Attorney or Practitioner. If a party is represented 
by a practitioner or an attorney, the original of each paper filed 
should be signed in ink by the practitioner or attorney, whose address 
should be stated. The signature of a practitioner or attorney 
constitutes a certification that the representative:
    (1) Has read the pleading, document or paper;
    (2) Is authorized to file it;

[[Page 178]]

    (3) Believes that there is good ground for the document;
    (4) Has not interposed the document for delay;

A pleading, document or paper thus signed need not be verified or 
accompanied by affidavit unless required elsewhere in these rules.
    (b) Signature by one not authorized to represent others before the 
Commission. The original of each document not signed by a practitioner 
or attorney must be:
    (1) Signed in ink;
    (2) Accompanied by the signer's address; and
    (3) Verified, if it contains allegations of fact, under oath by the 
person, in whose behalf it is filed, or by a duly authorized officer of 
the corporation in whose behalf it is filed. If the pleading is a 
complaint, at least one complainant must sign and verify the pleading.



Sec. 1104.5  Affirmation or declarations under penalty of perjury in accordance with 18 U.S.C. 1621 in lieu of oath.

    (a) An affirmation will be accepted in lieu of an oath.
    (b) Whenever any rule of this Commission requires or permits matter 
to be supported, evidenced, established, or proved by sworn declaration, 
verification, certificate, statement, oath, or affidavit, in writing of 
the person making the same (other than a deposition, oath of office, or 
an oath required to be taken before a special official other than a 
notary public), such matter may, with like force and effect, be 
supported, evidenced, established, or proven by the unsworn declaration, 
certificate, verification, or statement, in writing of such person which 
is subscribed by him, as true under penalty of perjury and dated, in the 
following form:

  I ____________________________, declare (certify, verify, or state) 
          under penalty of perjury (``under the laws of the United 
          States,'' if executed outside of the United States) that the 
          foregoing is true and correct. Further, I certify that I am 
          qualified and authorized to file this (specify type of 
          document). Executed on (date).

    Signature

    (c) Knowing and willful misstatements or omissions of material facts 
constitute federal criminal violations punishable under 18 U.S.C. 1001 
by imprisonment up to 5 years and fines up to $10,000 for each offense. 
Additionally, these misstatements are punishable as perjury under 18 
U.S.C. 1621 which provides for fines up to $2,000 or imprisonment up to 
5 years for each offense.



Sec. 1104.6  Timely filing required.

    Documents must be received for filing at the Commission's offices in 
Washington, DC within the time limits set for filing. The date of 
receipt at the Commission, and not the date of deposit in the mail, 
determines the timeliness of filing. However, if a document is mailed by 
United States express mail, postmarked at least one day prior to the due 
date, it will be accepted as timely. Other express mail, received by the 
private express mail carrier at least one day prior to the due date, 
also will be accepted as timely filed. The term express mail means that 
the carrier or delivery service offers next day delivery to Washington, 
DC.



Sec. 1104.7  Computation and extension of time.

    (a) Computation. In computing any period of time, the day of the 
act, event, or default upon which the designated period of time begins 
to run is not included. The last day of the period is included unless it 
is Saturday, Sunday, or a legal holiday in the District of Columbia, in 
which event the period runs until the end of the next day which is not a 
Saturday, Sunday or holiday. This rule applies to forward and backward 
measurement of time.
    (b) Extensions. Any time period, except those provided by law or 
specified in these rules respecting informal complaints seeking damage 
may be extended by the Commission in its discretion, upon request and 
for good cause. Requests for extensions must be served on all parties of 
record at the same time and by the same means as service is made on the 
Commission, except if service is made on the Commission in person and 
personal service on other parties is not feasible, service on other

[[Page 179]]

parties should be made by first class or express mail. A request for an 
extension must be filed not less than 10 days before the due date. Only 
the original of the request and certificate of service need be filed 
with the Commission. If granted, the party making the request should 
promptly notify all parties to the proceeding of the extension and so 
certify to the Commission, except that this notification is not required 
in rulemaking proceedings.
    (c) Exception to time computation rules. See 49 CFR part 1152 for 
special abandonment rules.



Sec. 1104.8  Objectionable matter.

    The Commission may order that any redundant, irrelevant, immaterial, 
impertinent, or scandalous matter be stricken from any document.
Sec. 1104.9  [Reserved]



Sec. 1104.10  Rejection of a deficient document.

    (a) The Commission may reject a document, submitted for filing if 
the Commission finds that the document does not comply with the rules.
    (b) The Commission may either return the material unfiled or 
tentatively accept the material for filing and advise the person 
tendering it of the deficiency and require that the deficiency be 
corrected.



Sec. 1104.11  Amendments.

    Leave to amend any document is a matter of the Commission's 
discretion.



Sec. 1104.12  Service of pleadings and papers.

    (a) Generally. Every document filed with the Commission should 
include a certificate showing simultaneous service upon all parties to 
the proceeding. Service on the parties should be by the same method and 
class of service used in serving the Commission, with charges, if any, 
prepaid. One copy should be served on each party. If service is made on 
the Commission in person, and personal service on other parties is not 
feasible, service should be made by first-class or express mail. When a 
party is represented by a practitioner or attorney, service upon the 
practitioner is deemed to be service upon the party.
    (b) Exceptions. Copies of letters to the Commission relating to oral 
argument under part 1116, and subpoenas under Sec. 1113.2, need not be 
served on other parties of the proceeding. Service of comments in 
rulemaking proceedings is not required, unless specifically directed by 
the Commission.
    (c) Sample Certificate of Service.

    I certify that I have this day served copies of document upon all 
parties of record in this proceeding, by (here state the method of 
making service which must be consistent with this part).
_______________________________________________________________________
Signature                     Date

(49 U.S.C. 10321, 5 U.S.C. 553)

[47 FR 49554, Nov. 1, 1982, as amended at 48 FR 44827, Sept. 30, 1983]



Sec. 1104.13  Replies and motions.

    (a) Time. A party may file a reply or motion addressed to any 
pleading within 20 days after the pleading is filed with the Commission, 
unless otherwise provided.
    (b) Number of copies. The original of a reply or motion should be 
accompanied by the same number of copies required to be filed with the 
pleading to which the reply or motion is addressed.
    (c) Reply to a Reply. A reply to a reply is not permitted.



Sec. 1104.14  Protective orders to maintain confidentiality.

    (a) Segregation of confidential material. A party submitting 
materials which it believes are entitled to be kept confidential and not 
made part of the public docket should submit these materials as a 
separate package, clearly marked on the outside ``Confidential materials 
subject to a request for a protective order.''
    (b) Requests for protective orders. A request that materials 
submitted to the Commission be kept confidential should be submitted as 
a separate pleading and clearly headed ``Motion for protective order.''

[48 FR 44827, Sept. 30, 1983]

[[Page 180]]



Sec. 1104.15  Certification of eligibility for Federal benefits under 21 U.S.C. 853a.

    (a) An individual who is applying in his or her own name for a 
certificate, license or permit to operate as a motor, water, or rail 
carrier, household goods freight forwarder or property broker must 
complete the certification set forth in paragraph (b) of this section. 
This certification is required if the transferee in a finance 
proceedings under 49 U.S.C. 10926, Sec. 11343, or Sec. 11344 is an 
individual. The certification also is required if an individual applies 
for authorization to acquire, to construct, to extend, or to operate a 
rail line.
    (b) Certification:

    I, __________ (Name) __________, certify under penalty of perjury 
under the laws of the United States, that I have not been convicted, 
after September 1, 1989, of any Federal or State offense involving the 
distribution or possession of a controlled substance, or that if I have 
been so convicted, I am not ineligible to receive Federal Benefits, 
either by court order or by operation of law, pursuant to 21 U.S.C. 
853a.

[54 FR 48250, Nov. 22, 1989]



PART 1105--PROCEDURES FOR IMPLEMENTATION OF ENVIRONMENTAL LAWS--Table of Contents




Sec.
1105.1  Purpose.
1105.2  Responsibility for administration of these rules.
1105.3  Information and assistance.
1105.4  Definitions.
1105.5  Determinative criteria.
1105.6  Classification of actions.
1105.7  Environmental reports.
1105.8  Historic reports.
1105.9  Coastal Zone Management Act requirements.
1105.10  Commission procedures.
1105.11  Transmittal letter for Applicant's Report.
1105.12  Sample newspaper notices for abandonment exemption cases.

    Authority: 49 U.S.C. 10321, 10505, 10901, 10903-10906, and 11343; 16 
U.S.C. 470f, 1451, and 1531; 42 U.S.C. 4332 and 6362(b); and 5 U.S.C. 
553 and 559.

    Source: 56 FR 36105, July 31, 1991, unless otherwise noted.



Sec. 1105.1  Purpose.

    These rules are designed to assure adequate consideration of 
environmental and energy factors in the Commission's decisionmaking 
process pursuant to the National Environmental Policy Act, 42 U.S.C. 
4332; the Energy Policy and Conservation Act, 42 U.S.C. 6362(b); and 
related laws, including the National Historic Preservation Act, 16 
U.S.C. 470f, the Coastal Zone Management Act, 16 U.S.C. 1451, and the 
Endangered Species Act, 16 U.S.C. 1531.



Sec. 1105.2  Responsibility for administration of these rules.

    The Director of the Office of Economics shall have general 
responsibility for the overall management and functioning of the Section 
of Energy and Environment. The Director is delegated the authority to 
sign, on behalf of the Commission, memoranda of agreement entered into 
pursuant to 36 CFR 800.5(e)(4) regarding historic preservation matters. 
The Chief of the Section of Energy and Environment is responsible for 
the preparation of documents under these rules and is delegated the 
authority to provide interpretations of the Commission's NEPA process, 
to render initial decisions on requests for waiver or modification of 
any of these rules for individual proceedings, and to recommend 
rejection of environmental reports not in compliance with these rules. 
This delegated authority shall be used only in a manner consistent with 
Commission policy. The Director may further delegate procedural 
authority to the Chief of the Section of Energy and Environment as 
appropriate. Appeals to the Commission will be available as a matter of 
right.



Sec. 1105.3  Information and assistance.

    Information and assistance regarding the rules and the Commission's 
environmental and historic review process is available from the Section 
of Energy and Environment, Interstate Commerce Commission, 12th & 
Constitution Ave. NW., Washington, DC 20423, telephone: 202-927-6211.

[56 FR 36105, July 31, 1991, as amended at 58 FR 44619, Aug. 24, 1993]

[[Page 181]]



Sec. 1105.4  Definitions.

    In addition to the definitions contained in the regulations of the 
Council on Environmental Quality (40 CFR part 1508), the following 
definitions apply to these regulations:
    (a) Act means the Interstate Commerce Act, Subtitle IV of Title 49, 
U.S. Code, as amended.
    (b) Applicant means any person or entity seeking Commission action, 
whether by application, petition, notice of exemption, or any other 
means that initiates a formal Commission proceeding.
    (c) Commission means the Interstate Commerce Commission.
    (d) Environmental Assessment or ``EA'' means a concise public 
document for which the Commission is responsible that contains 
sufficient information for determining whether to prepare an 
Environmental Impact Statement or to make a finding of no significant 
environmental impact.
    (e) Environmental documentation means either an Environmental Impact 
Statement or an Environmental Assessment.
    (f) Environmental Impact Statement or ``EIS'' means the detailed 
written statement required by the National Environmental Policy Act, 42 
U.S.C. 4332(2)(c), for a major Federal action significantly affecting 
the quality of the human environment.
    (g) Environmental Report means a document filed by the applicant(s) 
that:
    (1) Provides notice of the proposed action; and
    (2) Evaluates its environmental impacts and any reasonable 
alternatives to the action. An environmental report may be in the form 
of a proposed draft Environmental Assessment or proposed draft 
Environmental Impact Statement.
    (h) Filing means any request for ICC authority, whether by 
application, petition, notice of exemption, or any other means that 
initiates a formal Commission proceeding.
    (i) Section of Energy and Environment or ``SEE'' means the Section 
that prepares the Commission's environmental documents and analyses.
    (j) Third-Party Consultant means an independent contractor, utilized 
by the applicant, who works with SEE's approval and under SEE's 
direction to prepare any necessary environmental documentation. The 
third party consultant must act on behalf of the Commission. The 
railroad may participate in the selection process, as well as in the 
subsequent preparation of environmental documents. However, to avoid any 
impermissible conflict of interest (i.e, essentially any financial or 
other interest in the outcome of the railroad-sponsored project), the 
railroad may not be responsible for the selection or control of 
independent contractors.



Sec. 1105.5  Determinative criteria.

    (a) In determining whether a ``major Federal action'' (as that term 
is defined by the Council on Environmental Quality in 40 CFR 1508.18) 
has the potential to affect significantly the quality of the human 
environment, the Commission is guided by the definition of 
``significantly'' at 40 CFR 1508.27.
    (b) A finding that a service or transaction is not within the ICC's 
jurisdiction does not require an environmental analysis under the 
National Environmental Policy Act or historic review under the National 
Historic Preservation Act.
    (c) The environmental laws are not triggered where the ICC's action 
is nothing more than a ministerial act, as in:
    (1) The processing of abandonments proposed under the Northeast Rail 
Services Act (45 U.S.C. 744(b)(3));
    (2) Statutorily-authorized interim trail use arrangements under 16 
U.S.C. 1247(d) [see, 49 CFR 1152.29]; or
    (3) Financial assistance arrangements under 49 U.S.C. 10905 (see 49 
CFR 1152.27).

Finally, no environmental analysis is necessary for abandonments that 
are authorized by a bankruptcy court, or transfers of rail lines under 
plans of reorganization, where our function is merely advisory under 11 
U.S.C. 1166, 1170, and 1172.

[56 FR 36105, July 31, 1991; 56 FR 49821, Oct. 1, 1991]



Sec. 1105.6  Classification of actions.

    (a) Environmental Impact Statements will normally be prepared for 
rail construction proposals other than

[[Page 182]]

those described in paragraph (b)(1) of this section.
    (b) Environmental Assessments will normally be prepared for the 
following proposed actions:
    (1) Construction of connecting track within existing rail rights-of-
way, or on land owned by the connecting railroads;
    (2) Abandonment of a rail line (unless proposed under the Northeast 
Rail Services Act or the Bankruptcy Act);
    (3) Discontinuance of passenger train service or freight service 
(except for discontinuances of freight service under modified 
certificates issued under 49 CFR 1150.21 and discontinuances of trackage 
rights where the affected line will continue to be operated);
    (4) An acquisition, lease or operation under 49 U.S.C. 10901 or 
10910, or consolidation, merger or acquisition of control under 49 
U.S.C. 11343, if it will result in either
    (i) Operational changes that would exceed any of the thresholds 
established in Sec. 1105.7(e) (4) or (5); or
    (ii) An action that would normally require environmental 
documentation (such as a construction or abandonment);
    (5) A rulemaking, policy statement, or legislative proposal that has 
the potential for significant environmental impacts;
    (6) Water carrier licensing under 49 U.S.C. 10922 that:
    (i) Involves a new operation (i.e., one that adds a significant 
number of barges to the inland waterway system requiring the addition of 
towing capacity, or otherwise significantly alters an existing 
operation, or introduces service to a new waterway that has had no 
previous traffic, or involves the commencement of a new service that is 
not statutorily exempt); or
    (ii) Involves the transportation of hazardous materials; and
    (7) Any other proceeding not listed in paragraphs (a) or (c) of this 
section.
    (c) No environmental documentation will normally be prepared 
(although a Historic Report may be required under section 1105.8) for 
the following actions:
    (1) Motor carrier, broker, or freight forwarder licensing and water 
carrier licensing not included in section 1105.6(b)(6);
    (2) Any action that does not result in significant changes in 
carrier operations (i.e., changes that do not exceed the thresholds 
established in section 1105.7(e) (4) or (5)), including (but not limited 
to) all of the following actions that meet this criterion:
    (i) An acquisition, lease, or operation under 49 U.S.C. 10901 or 
10910, or consolidation, merger, or acquisition of control under 49 
U.S.C. 11343 that does not come within subsection (b)(4) of this 
section.
    (ii) Transactions involving corporate changes (such as a change in 
the ownership or the operator, or the issuance of securities or 
reorganization) including grants of authority to hold position as an 
officer or director;
    (iii) Declaratory orders, interpretation or clarification of 
operating authority, substitution of an applicant, name changes, and 
waiver of lease and interchange regulations;
    (iv) Pooling authorizations, approval of rate bureau agreements, and 
approval of shipper antitrust immunity;
    (v) Approval of motor vehicle rental contracts, and self insurance;
    (vi) Determinations of the fact of competition;
    (3) Rate, fare, and tariff actions;
    (4) Common use of rail terminals and trackage rights;
    (5) Discontinuance of rail freight service under a modified 
certificate issued pursuant to 49 CFR 1150.21;
    (6) Discontinuance of trackage rights where the affected line will 
continue to be operated; and
    (7) A rulemaking, policy statement, or legislative proposal that has 
no potential for significant environmental impacts.
    (d) The Commission may reclassify or modify these requirements for 
individual proceedings. For actions that generally require no 
environmental documentation, the Commission may decide that a particular 
action has the potential for significant environmental impacts and that, 
therefore, the applicant should provide an environmental report and 
either an EA or an EIS will be prepared. For actions generally requiring 
an EA, the Commission may

[[Page 183]]

prepare a full EIS where the probability of significant impacts from the 
particular proposal is high enough to warrant an EIS. Alternatively, in 
a rail construction, an applicant can seek to demonstrate (with 
supporting information addressing the pertinent aspects of 
Sec. 1105.7(e)) that an EA, rather than an EIS, will be sufficient 
because the particular proposal is not likely to have a significant 
environmental impact. Any request for reclassification must be in 
writing and, in a rail construction, should be presented with the 
prefiling notice required by Sec. 1105.10(a)(1) (or a request to waive 
that prefiling notice period).
    (e) The classifications in this section apply without regard to 
whether the action is proposed by application, petition, notice of 
exemption, or any other means that initiates a formal Commission 
proceeding.



Sec. 1105.7  Environmental reports.

    (a) Filing. An applicant for an action identified in Sec. 1105.6 (a) 
or (b) must submit (with or prior to its application, petition or notice 
of exemption) an Environmental Report on the proposed action containing 
the information set forth in paragraph (e) of this section.
    (b) Distribution. The applicant must serve copies of the 
Environmental Report on:
    (1) The State Clearinghouse of each State involved (or other State 
equivalent agency if the State has no clearinghouse);
    (2) The State Environmental Protection Agency of each State 
involved;
    (3) The State Coastal Zone Management Agency for any state where the 
proposed activity would affect land or water uses within that State's 
coastal zone;
    (4) The head of each county (or comparable political entity 
including any Indian reservation) through which the line goes;
    (5) The appropriate regional offices of the Environmental Protection 
Agency;
    (6) The U.S. Fish and Wildlife Service;
    (7) The U.S. Army Corps of Engineers;
    (8) The National Park Service;
    (9) The U.S. Soil Conservation Service;
    (10) The National Geodetic Survey (formerly known as the Coast and 
Geodetic Survey) as designated agent for the National Geodetic Survey 
and the U.S. Geological Survey; and
    (11) Any other agencies that have been consulted in preparing the 
report.

For information regarding the names and addresses of the agencies to be 
contacted, interested parties may contact SEE at the address and 
telephone number indicated in Sec. 1105.3. Applicants filing a notice of 
exempt abandonment under 49 CFR 1152.50 must file the information 
required by paragraph (e)(1) of this section with the appropriate State 
clearinghouses at least 20 days prior to filing the notice of exemption.
    (c) Certification. In its Environmental Report, the applicant must 
certify that it has sent copies of the Environmental Report to the 
agencies listed in paragraph (b) of this section and that it has 
consulted with all appropriate agencies in preparing the report. These 
consultations should be made far enough in advance to afford those 
agencies a reasonable opportunity to provide meaningful input. In a 
notice of exempt abandonment, applicant shall also certify that it has 
notified the appropriate State clearinghouses at least 20 days prior to 
filing the notice. Finally, in every abandonment exemption case, 
applicant shall certify that it has published in a newspaper of general 
circulation in each county through which the line passes a notice that 
alerts the public to the proposed abandonment, to available reuse 
alternatives, and to how it may participate in the ICC proceeding.
    (d) Documentation. Any written responses received from agencies that 
were contacted in preparing the Environmental Report shall be attached 
to the report. Oral responses from such agencies shall be briefly 
summarized in the report and the names, titles, and telephone numbers of 
the persons contacted shall be supplied. A copy of, or appropriate 
citation to, any reference materials relied upon also shall be provided.
    (e) Content. The Environmental Report shall include all of the 
information specified in this paragraph, except to the extent that 
applicant explains why any portion(s) are inapplicable. If

[[Page 184]]

an historic report is required under Sec. 1105.8, the Environmental 
Report should also include the Historic Report required by that section.
    (1) Proposed action and alternatives. Describe the proposed action, 
including commodities transported, the planned disposition (if any) of 
any rail line and other structures that may be involved, and any 
possible changes in current operations or maintenance practices. Also 
describe any reasonable alternatives to the proposed action. Include a 
readable, detailed map and drawings clearly delineating the project.
    (2) Transportation system. Describe the effects of the proposed 
action on regional or local transportation systems and patterns. 
Estimate the amount of traffic (passenger or freight) that will be 
diverted to other transportation systems or modes as a result of the 
proposed action.
    (3) Land use. (i) Based on consultation with local and/or regional 
planning agencies and/or a review of the official planning documents 
prepared by such agencies, state whether the proposed action is 
consistent with existing land use plans. Describe any inconsistencies.
    (ii) Based on consultation with the U.S. Soil Conservation Service, 
state the effect of the proposed action on any prime agricultural land.
    (iii) If the action affects land or water uses within a designated 
coastal zone, include the coastal zone information required by 
Sec. 1105.9.
    (iv) If the proposed action is an abandonment, state whether or not 
the right-of-way is suitable for alternative public use under 49 U.S.C. 
10906 and explain why.
    (4) Energy. (i) Describe the effect of the proposed action on 
transportation of energy resources.
    (ii) Describe the effect of the proposed action on recyclable 
commodities.
    (iii) State whether the proposed action will result in an increase 
or decrease in overall energy efficiency and explain why.
    (iv) If the proposed action will cause diversions from rail to motor 
carriage of more than:
    (A) 1,000 rail carloads a year; or
    (B) An average of 50 rail carloads per mile per year for any part of 
the affected line, quantify the resulting net change in energy 
consumption and show the data and methodology used to arrive at the 
figure given. To minimize the production of repetitive data, the 
information on overall energy efficiency in Sec. 1105.7(e)(4)(iii) need 
not be supplied if the more detailed information in 
Sec. 1105.7(e)(4)(iv) is required.
    (5) Air. (i) If the proposed action will result in either:
    (A) An increase in rail traffic of at least 100 percent (measured in 
gross ton miles annually) or an increase of at least eight trains a day 
on any segment of rail line affected by the proposal, or
    (B) An increase in rail yard activity of at least 100 percent 
(measured by carload activity), or
    (C) An average increase in truck traffic of more than 10 percent of 
the average daily traffic or 50 vehicles a day on any affected road 
segment, quantify the anticipated effect on air emissions. For a 
proposal under 49 U.S.C. 10901 (or 10505) to construct a new line or 
reinstitute service over a previously abandoned line, only the eight 
train a day provision in subsection (5)(i)(A) will apply.
    (ii) If the proposed action affects a class I or nonattainment area 
under the Clean Air Act, and will result in either:
    (A) An increase in rail traffic of at least 50 percent (measured in 
gross ton miles annually) or an increase of at least three trains a day 
on any segment of rail line,
    (B) An increase in rail yard activity of at least 20 percent 
(measured by carload activity), or
    (C) An average increase in truck traffic of more than 10 percent of 
the average daily traffic or 50 vehicles a day on a given road segment, 
then state whether any expected increased emissions are within the 
parameters established by the State Implementation Plan. However, for a 
rail construction under 49 U.S.C. 10901 (or 49 U.S.C. 10505), or a case 
involving the reinstitution of service over a previously abandoned line, 
only the three train a day threshold in this item shall apply.
    (iii) If transportation of ozone depleting materials (such as 
nitrogen oxide

[[Page 185]]

and freon) is contemplated, identify: the materials and quantity; the 
frequency of service; safety practices (including any speed 
restrictions); the applicant's safety record (to the extent available) 
on derailments, accidents and spills; contingency plans to deal with 
accidental spills; and the likelihood of an accidental release of ozone 
depleting materials in the event of a collision or derailment.
    (6) Noise. If any of the thresholds identified in item (5)(i) of 
this section are surpassed, state whether the proposed action will 
cause:
    (i) An incremental increase in noise levels of three decibels Ldn or 
more; or
    (ii) An increase to a noise level of 65 decibels Ldn or greater. If 
so, identify sensitive receptors (e.g., schools, libraries, hospitals, 
residences, retirement communities, and nursing homes) in the project 
area, and quantify the noise increase for these receptors if the 
thresholds are surpassed.
    (7) Safety. (i) Describe any effects of the proposed action on 
public health and safety (including vehicle delay time at railroad grade 
crossings).
    (ii) If hazardous materials are expected to be transported, 
identify: the materials and quantity; the frequency of service; whether 
chemicals are being transported that, if mixed, could react to form more 
hazardous compounds; safety practices (including any speed 
restrictions); the applicant's safety record (to the extent available) 
on derailments, accidents and hazardous spills; the contingency plans to 
deal with accidental spills; and the likelihood of an accidental release 
of hazardous materials.
    (iii) If there are any known hazardous waste sites or sites where 
there have been known hazardous materials spills on the right-of-way, 
identify the location of those sites and the types of hazardous 
materials involved.
    (8) Biological resources. (i) Based on consultation with the U.S. 
Fish and Wildlife Service, state whether the proposed action is likely 
to adversely affect endangered or threatened species or areas designated 
as a critical habitat, and if so, describe the effects.
    (ii) State whether wildlife sanctuaries or refuges, National or 
State parks or forests will be affected, and describe any effects.
    (9) Water. (i) Based on consultation with State water quality 
officials, state whether the proposed action is consistent with 
applicable Federal, State or local water quality standards. Describe any 
inconsistencies.
    (ii) Based on consultation with the U.S. Army Corps of Engineers, 
state whether permits under section 404 of the Clean Water Act (33 
U.S.C. 1344) are required for the proposed action and whether any 
designated wetlands or 100-year flood plains will be affected. Describe 
the effects.
    (iii) State whether permits under section 402 of the Clean Water Act 
(33 U.S.C. 1342) are required for the proposed action. (Applicants 
should contact the U.S. Environmental Protection Agency or the state 
environmental protection or equivalent agency if they are unsure whether 
such permits are required.)
    (10) Proposed Mitigation. Describe any actions that are proposed to 
mitigate adverse environmental impacts, indicating why the proposed 
mitigation is appropriate.
    (11) Additional Information for Rail Constructions. The following 
additional information should be included for rail construction 
proposals (including connecting track construction):
    (i) Describe the proposed route(s) by State, county, and 
subdivision, including a plan view, at a scale not to exceed 1:24,000 
(7\1/2\ minute U.S.G.S. quadrangle map), clearly showing the 
relationship to the existing transportation network (including the 
location of all highway and road crossings) and the right-of-way 
according to ownership and land use requirements.
    (ii) Describe any alternative routes considered, and a no-build 
alternative (or why this would not be applicable), and explain why they 
were not selected.
    (iii) Describe the construction plans, including the effect on the 
human environment, labor force requirements, the location of borrow 
pits, if any, and earthwork estimates.
    (iv) Describe in detail the rail operations to be conducted upon the 
line, including estimates of freight (carloads

[[Page 186]]

and tonnage) to be transported, the anticipated daily and annual number 
of train movements, number of cars per train, types of cars, motive 
power requirements, proposed speeds, labor force, and proposed 
maintenance-of-way practices.
    (v) Describe the effects, including indirect or down-line impacts, 
of the new or diverted traffic over the line if the thresholds governing 
energy, noise and air impacts in Secs. 1105.7(e)(4), (5), or (6) are 
met.
    (vi) Describe the effects, including impacts on essential public 
services (e.g., fire, police, ambulance, neighborhood schools), public 
roads, and adjoining properties, in communities to be traversed by the 
line.
    (vii) Discuss societal impacts, including expected change in 
employment during and after construction.
    (f) Additional Information. The Commission may require applicants to 
submit additional information regarding the environmental or energy 
effects of the proposed action.
    (g) Waivers. The Commission may waive or modify, in whole or in 
part, the provisions of this section where a railroad applicant shows 
that the information requested is not necessary for the Commission to 
evaluate the environmental impacts of the proposed action.

[56 FR 36105, July 31, 1991; 56 FR 49821, Oct. 1, 1991, as amended at 58 
FR 44619, Aug. 24, 1993; 60 FR 32277, June 21, 1995]



Sec. 1105.8  Historic Reports.

    (a) Filing. An applicant proposing an action identified in 
Sec. 1105.6 (a) or (b), or an action in Sec. 1105.6(c) that will result 
in the lease, transfer, or sale of a railroad's line, sites or 
structures, must submit (with its application, petition or notice) the 
Historic Report described in paragraph (d) of this section, unless 
excepted under paragraph (b) of this section. This report should be 
combined with the Environmental Report where one is required. The 
purpose of the Historic Report is to provide the Commission with 
sufficient information to conduct the consultation process required by 
the National Historic Preservation Act.
    (b) Exceptions. The following proposals do not require an historic 
report:
    (1) A sale, lease or transfer of a rail line for the purpose of 
continued rail operations where further ICC approval is required to 
abandon any service and there are no plans to dispose of or alter 
properties subject to ICC jurisdiction that are 50 years old or older.
    (2) A sale, lease, or transfer of property between corporate 
affiliates where there will be no significant change in operations.
    (3) Trackage rights, common use of rail terminals, common control 
through stock ownership or similar action which will not substantially 
change the level of maintenance of railroad property.
    (4) A rulemaking, policy statement, petition for declaratory order, 
petition for waiver of procedural requirements, or proceeding involving 
transportation rates or classifications.
    (c) Distribution. The applicant must send the Historic Report to the 
appropriate State Historic Preservation Officer(s), preferably at least 
60 days in advance of filing the application, petition, or notice, but, 
at the latest, with the filing.
    (d) Content. The Historic Report should contain the information 
required by Sec. 1105.7(e)(1) and the following additional historic 
information:
    (1) A U.S.G.S. topographic map (or an alternate map drawn to scale 
and sufficiently detailed to show buildings and other structures in the 
vicinity of the proposed action) showing the location of the proposed 
action, and the locations and approximate dimensions of railroad 
structures that are 50 years old or older and are part of the proposed 
action;
    (2) A written description of the right-of-way (including approximate 
widths, to the extent known), and the topography and urban and/or rural 
characteristics of the surrounding area;
    (3) Good quality photographs (actual photographic prints, not 
photocopies) of railroad structures on the property that are 50 years 
old or older and of the immediately surrounding area;
    (4) The date(s) of construction of the structure(s), and the date(s) 
and extent of any major alterations, to the extent such information is 
known;

[[Page 187]]

    (5) A brief narrative history of carrier operations in the area, and 
an explanation of what, if any, changes are contemplated as a result of 
the proposed action;
    (6) A brief summary of documents in the carrier's possession, such 
as engineering drawings, that might be useful in documenting a structure 
that is found to be historic;
    (7) An opinion (based on readily available information in the 
railroad's possession) as to whether the site and/or structures meet the 
criteria for listing on the National Register of Historic Places (36 CFR 
60.4), and whether there is a likelihood of archeological resources or 
any other previously unknown historic properties in the project area, 
and the basis for these opinions (including any consultations with the 
State Historic Preservation Office, local historical societies or 
universities);
    (8) A description (based on readily available information in the 
railroad's possession) of any known prior subsurface ground disturbance 
or fill, environmental conditions (naturally occurring or manmade) that 
might affect the archeological recovery of resources (such as swampy 
conditions or the presence of toxic wastes), and the surrounding 
terrain.
    (9) Within 30 days of receipt of the historic report, the State 
Historic Preservation Officer may request the following additional 
information regarding specified nonrailroad owned properties or groups 
of properties immediately adjacent to the railroad right-of-way: 
photographs of specified properties that can be readily seen from the 
railroad right-of-way (or other public rights-of-way adjacent to the 
property) and a written description of any previously discovered 
archeological sites, identifying the location and type of the site 
(i.e., prehistoric or native American).
    (e) Any of these requirements may be waived or modified when the 
information is not necessary to determine the presence of historic 
properties and the effect of the proposed action on them.
    (f) Historic preservation conditions imposed by the Commission in 
rail abandonment cases generally will not extend beyond the 330-day 
statutory time period in 49 U.S.C. 10904 for abandonment proceedings.



Sec. 1105.9  Coastal Zone Management Act requirements.

    (a) If the proposed action affects land or water uses within a State 
coastal zone designated pursuant to the Coastal Zone Management Act (16 
U.S.C. 1451 et seq.) applicant must comply with the following 
procedures:
    (1) If the proposed action is listed as subject to review in the 
State's coastal zone management plan, applicant (with, or prior to its 
filing) must certify (pursuant to 15 CFR 930.57 and 930.58) that the 
proposed action is consistent with the coastal zone management plan.
    (2) If the activity is not listed, applicant (with, or prior to its 
filing) must certify that actual notice of the proposal was given to the 
State coastal zone manager at least 40 days before the effective date of 
the requested action.
    (b) If there is consistency review under 15 CFR 930.54, the 
Commission and the applicant will comply with the consistency 
certification procedures of 15 CFR 930. Also, the Commission will 
withhold a decision, stay the effective date of a decision, or impose a 
condition delaying consummation of the action, until the applicant has 
submitted a consistency certification and either the state has concurred 
in the consistency certification, or an appeal to the Secretary of 
Commerce (under 15 CFR 930.64(e)) is successful.



Sec. 1105.10  Commission procedures.

    (a) Environmental Impact Statements. (1) Prefiling Notice. Where an 
environmental impact statement is required or contemplated, the 
prospective applicant must provide the Section of Energy and Environment 
with written notice of its forthcoming proposal at least 6 months prior 
to filing its application.
    (2) Notice and Scope of EIS. When an Environmental Impact Statement 
is prepared for a proposed action, the Commission will publish in the 
Federal Register a notice of its intent to prepare an EIS, with a 
description of the proposed action and a request for written comments on 
the scope of the

[[Page 188]]

EIS. Where appropriate, the scoping process may include a meeting open 
to interested parties and the public. After considering the comments, 
the Commission will publish a notice of the final scope of the EIS. If 
the Environmental Impact Statement is to be prepared in cooperation with 
other agencies, this notice will also indicate which agencies will be 
responsible for the various parts of the Statement.
    (3) Notice of Availability. The Commission will serve copies of both 
the draft Environmental Impact Statement (or an appropriate summary) and 
the full final Environmental Impact Statement (or an appropriate 
summary) on all parties to the proceeding and on appropriate Federal, 
State, and local agencies. A notice that these documents are available 
to the public will be published (normally by the Environmental 
Protection Agency) in the Federal Register. (Interested persons may 
obtain copies of the documents by contacting the Section of Energy and 
Environment.)
    (4) Comments. The notice of availability of the draft Environmental 
Impact Statement will establish the time for submitting written 
comments, which will normally be 45 days following service of the 
document. When the Commission decides to hold an oral hearing on the 
merits of a proposal, the draft Environmental Impact Statement will be 
made available to the public in advance, normally at least 15 days prior 
to the portion of the hearing relating to the environmental issues. The 
draft EIS will discuss relevant environmental and historic preservation 
issues. The final Environmental Impact Statement will discuss the 
comments received and any changes made in response to them.
    (5) Supplements. An Environmental Impact Statement may be 
supplemented where necessary and appropriate to address substantial 
changes in the proposed action or significant new and relevant 
circumstances or information. If so, the notice and comment procedures 
outlined above will be followed to the extent practical.
    (b) Environmental Assessments. In preparing an Environmental 
Assessment, the Section of Energy and Environment will verify and 
independently analyze the Environmental Report and/or Historic Report 
and related material submitted by an applicant pursuant to sections 
1105.7 and 1105.8. The Environmental Assessment will discuss relevant 
environmental and historic preservation issues. SEE will serve copies of 
the Environmental Assessment on all parties to the proceeding and 
appropriate federal, state, and local agencies, and will announce its 
availability to the public through a notice in the Federal Register. In 
the case of abandonment applications processed under 49 U.S.C. 10903, 
the availability of the Environmental Assessment must be announced in 
the applicant's Notice of Intent filed under 49 CFR 1152.21. The 
deadline for submission of comments on the Environmental Assessment will 
generally be within 30 days of its service (15 days in the case of a 
notice of abandonment under 49 CFR 1152.50). The comments received will 
be addressed in the Commission's decision. A supplemental Environmental 
Assessment may be issued where appropriate.
    (c) Waivers. (1) The provisions of paragraphs (a)(1) or (a)(4) of 
this section or any ICC-established time frames in paragraph (b) of this 
section may be waived or modified where appropriate.
    (2) Requests for waiver of Sec. 1105.10(a)(1) must describe as 
completely as possible the anticipated environmental effects of the 
proposed action, and the timing of the proposed action, and show that 
all or part of the six month lead period is not appropriate.
    (d) Third-Party Consultants. Applicants may utilize independent 
third-party consultants to prepare any necessary environmental 
documentation, if approved by SEE. The environmental reporting 
requirements that would otherwise apply will be waived if a railroad 
hires a consultant, SEE approves the scope of the consultant's work, and 
the consultant works under SEE's supervision. In such a case, the 
consultant acts on behalf of the Commission, working under SEE's 
direction to collect the needed environmental information and compile it 
into a draft EA or draft EIS, which is then submitted to SEE for its 
review, verification, and

[[Page 189]]

approval. We encourage the use of third-party consultants.
    (e) Service of Environmental Pleadings. Agencies and interested 
parties sending material on environmental and historic preservation 
issues directly to the Commission should send copies to the applicant. 
Copies of Commission communications to third-parties involving 
environmental and historic preservation issues also will be sent to the 
applicant where appropriate.
    (f) Consideration in Decisionmaking. The environmental documentation 
(generally an EA or an EIS) and the comments and responses thereto 
concerning environmental, historic preservation, CZMA, and endangered 
species issues will be part of the record considered by the Commission 
in the proceeding involved. The Commission will decide what, if any, 
environmental or historic preservation conditions to impose upon the 
authority it issues based on the environmental record and its 
substantive responsibilities under the Interstate Commerce Act. The 
Commission will withhold a decision, stay the effective date of an 
exemption, or impose appropriate conditions upon any authority granted, 
when an environmental or historic preservation issue has not yet been 
resolved.
    (g) Finding of No Significant Impact. In all exemption cases, if no 
environmental or historic preservation issues are raised by any party or 
identified by SEE in its independent investigation, the Commission will 
issue a separate decision making a Finding of No Significant Impact 
(``FONSI'') to show that it has formally considered the environmental 
record.

[56 FR 36105, July 31, 1991; 56 FR 49821, Oct. 1, 1991]



Sec. 1105.11  Transmittal letter for Applicant's Report.

    A carrier shall send a copy of its Environmental and/or Historic 
Report to the agencies identified in section 1105.7(b) and/or the 
appropriate State Historic Preservation Officer(s) and certify to the 
Commission that it has done this. The form letter contained in the 
Appendix to this section should be used in transmitting the 
Environmental and/or Historic Reports.

   Appendix to Sec. 1105.11--Transmittal Letter for Applicant's Report

(Carrier Letterhead)
(Addresses)
Re: (Brief description of proposed action with ICC docket number, if 
available)
(Date)

    On (date), we are (or expect to be) filing with the Interstate 
Commerce Commission a (type of proceeding) seeking authority to (   ) 
located in (state) (city or town) and (mileposts, if applicable). 
Attached is an Environmental Report (and/or Historic Report) describing 
the proposed action and any expected environmental (and/or historic) 
effects, as well as a map of the affected area.
    We are providing this report so that you may review the information 
that will form the basis for the ICC's independent environmental 
analysis of this proceeding. If any of the information is misleading or 
incorrect, if you believe that pertinent information is missing, or if 
you have any questions about the Commission's environmental review 
process, please contact the Section of Energy and Environment (SEE), 
room 3219, Interstate Commerce Commission, Washington, DC 20423, 
telephone (202) 927-6211 and refer to the above Docket No. (if 
available). Because the applicable statutes and regulations impose 
stringent deadlines for processing this action, your written comments to 
SEE (with a copy to our representative) would be appreciated within 3 
weeks.
    Your comments will be considered by the Commission in evaluating the 
environmental and/or historic preservation impacts of the contemplated 
action. If there are any questions concerning this proposal, please 
contact our representative directly. Our representative in this matter 
is (name) who may be contacted by telephone at (telephone number) or by 
mail at (address).
      (Complimentary close)
      (Name and title of author of letter)

[56 FR 36105, July 31, 1991, as amended at 58 FR 44619, Aug. 24, 1993]



Sec. 1105.12  Sample newspaper notices for abandonment exemption cases.

    In every abandonment exemption case, the applicant shall publish a 
notice in a newspaper of general circulation in each county in which the 
line is located and certify to the Commission that it has done this by 
the date its notice of (or petition for) exemption is filed. The notice 
shall alert the public to the proposed abandonment, to available reuse 
alternatives, such as trail use and public use, and to how it may

[[Page 190]]

participate in a Commission proceeding. Sample newspaper notices are 
provided in the Appendix to this section for guidance to the railroads.

           Appendix to Sec. 1105.12--Sample Newspaper Notices

Sample Local Newspaper Notice For Out-Of-Service Abandonment Exemptions 
       Notice of Intent to Abandon or to Discontinue Rail Service

    (Name of railroad) gives notice that on or about (insert date notice 
of exemption will be filed with the Interstate Commerce Commission), it 
intends to file with the Interstate Commerce Commission, Washington, DC 
20423, a notice of exemption under 49 CFR 1152 Subpart F--Exempt 
Abandonments permitting the (abandonment of or discontinuance of service 
on) a ______ mile line of railroad between railroad milepost ______, 
near (station name), and railroad milepost ______, near (station name) 
in ______ County(ies), (State). The proceeding will be docketed as No. 
AB ______ (Sub-No. ______ X).
    The Commission's Section of Energy and Environment (SEE) will 
generally prepare an Environmental Assessment (EA), which will normally 
be available 25 days after the filing of the notice of exemption. 
Comments on environmental and energy matters should be filed no later 
than 15 days after the EA becomes available to the public and will be 
addressed in a Commission decision. Interested persons may obtain a copy 
of the EA or make inquiries regarding environmental matters by writing 
to the Section of Energy and Environment, Interstate Commerce 
Commission, Washington, DC 20423 or by calling that office at 202-927-
6211.
    Appropriate offers of financial assistance to continue rail service 
can be filed with the Commission. Requests for environmental conditions, 
public use conditions, or rail banking/trails use also can be filed with 
the Commission. An original and 10 copies of any pleading that raises 
matters other than environmental issues (such as trails use, public use, 
and offers of financial assistance) must be filed directly with the 
Commission's Office of the Secretary, 12th and Constitution Avenue NW., 
Washington, DC 20423 [See 49 CFR 1104.1(a) and 1104.3(a)], and one copy 
must be served on applicants' representative [See 49 CFR 1104.12(a)]. 
Questions regarding offers of financial assistance, public use or trails 
use may be directed to the Commission's Office of Public Assistance at 
202-927-7597. Copies of any comments or requests for conditions should 
be served on the applicant's representative: (name, address and phone 
number).

 Sample Local Newspaper Notice for Petitions for Abandonment Exemptions 
       Notice of Intent to Abandon or to Discontinue Rail Service

    (Name of railroad) gives notice that on or about (insert date 
petition for abandonment exemption will be filed with the Interstate 
Commerce Commission) it intends to file with the Interstate Commerce 
Commission, Washington, DC 20423, a petition for exemption under 49 
U.S.C. 10505 from the prior approval requirements of 49 U.S.C. 10903, et 
seq., permitting the (abandonment of or discontinuance of service on) a 
______ mile line of railroad between railroad milepost ______, near 
(station name), and railroad milepost ______, near (station name) in 
______ County(ies), (State). The proceeding has been docketed as No. AB 
______ (Sub-No. ______ X).
    The Commission's Section of Energy and Environment (SEE) will 
generally prepare an Environmental Assessment (EA), which will normally 
be available 60 days after the filing of the petition for abandonment 
exemption. Comments on environmental and energy matters should be filed 
no later than 30 days after the EA becomes available to the public and 
will be addressed in a Commission decision. Interested persons may 
obtain a copy of the EA or make inquiries regarding environmental 
matters by writing to SEE, Interstate Commerce Commission, Washington, 
DC 20423 or by calling SEE at 202-927-6211.
    Appropriate offers of financial assistance to continue rail service 
can be filed with the Commission. Requests for environmental conditions, 
public use conditions, or rail banking/trails use also can be filed with 
the Commission. An original and 10 copies of any pleading that raises 
matters other than environmental issues (such as trails use, public use, 
and offers of financial assistance) must be filed directly with the 
Commission's Office of the Secretary, 12th and Constitution Avenue NW., 
Washington, DC 20423 [See 49 CFR 1104.1(a) and 1104.3(a)], and one copy 
must be served on applicants' representative [See 49 CFR 1104.12(a)]. 
Questions regarding offers of financial assistance, public use or trails 
use may be directed to the Commission's Office of Public Assistance at 
202-927-7597. Copies of any comments or requests for conditions should 
be served on the applicant's representative (name and address).

[56 FR 36105, July 31, 1991, as amended at 56 FR 49821, Oct. 1, 1991; 58 
FR 44619, Aug. 24, 1993]

[[Page 191]]



PARTS 1106-1108--[RESERVED]






PART 1109--USE OF ALTERNATIVE DISPUTE RESOLUTION IN COMMISSION PROCEEDINGS AND THOSE IN WHICH THE COMMISSION IS A PARTY--Table of Contents




Sec.
1109.1  Invoking ADR in Commission proceedings.
1109.2  Appeals from arbitration decisions.
1109.3  Confidentiality in ADR matters.

    Authority: 5 U.S.C. 553, 559, and 582.

    Source: 57 FR 32451, July 22, 1992, unless otherwise noted.



Sec. 1109.1  Invoking ADR in Commission proceedings.

    Any proceeding may be held in abeyance for 90 days while 
administrative dispute resolution (ADR) procedures (such as arbitration 
and mediation) are pursued. (Additional 90 day periods can be 
requested.) The period while any proceeding is held in abeyance to 
facilitate ADR will not be counted towards the statutory deadlines. All 
parties are required to indicate their written consent for ADR 
treatment. Requests that a proceeding be held in abeyance while ADR 
procedures are pursued should be submitted to the Office of the 
Secretary. The Secretary shall promptly issue an order in response to 
such requests. Unless arbitration or some other binding process 
involving a neutral has been undertaken, any party believing that ADR 
procedures are not yielding the intended results shall inform the 
Secretary and all parties in writing, and normal agency procedures will 
be reactivated by the Secretary by notice served on all the parties.



Sec. 1109.2  Appeals from arbitration decisions.

    Appeals are limited to clear errors of general transportation 
importance, and not issues of causation or fact. Arbitration awards can 
be challenged on the basis that they do not take their essence from the 
Interstate Commerce Act, or are not limited to the matters the parties 
have referred for arbitration. Appeals are limited to 10 typewritten 
pages. Parties will have 20 days from the service date of the decision 
to file, and opposing parties 20 days to answer. Arbitration decisions 
will become effective in 30 days unless a party seeks a stay of the 
decision within 10 days of its issuance, and we grant the stay. Appeals 
and stay petitions should be limited to extraordinary circumstances.

[57 FR 32451, July 22, 1992; 57 FR 35628, Aug. 10, 1992]



Sec. 1109.3  Confidentiality in ADR matters.

    In all ADR matters involving the Commission, whether under the 
Administrative Dispute Resolution Act or not, the confidentiality 
provisions of ADRA (5 U.S.C. 584) shall bind the Commission and all 
parties and neutrals in those ADR matters.



PART 1110--PROCEDURES GOVERNING INFORMAL RULEMAKING PROCEEDINGS--Table of Contents




Sec.
1110.1  Applicability.
1110.2  Opening of proceeding.
1110.3  Publication of notices.
1110.4  Participation.
1110.5  Consideration of comments received.
1110.6  Petitions for extension of time to comment.
1110.7  Availability of dockets.
1110.8  Adoption of final rules.
1110.9  Petition for waiver.
1110.10  Petitions for reconsideration.

    Authority: 49 U.S.C. 10321; 5 U.S.C. 552, 553, and 559.

    Source: 47 FR 49556, Nov. 1, 1982, unless otherwise noted.



Sec. 1110.1  Applicability.

    This part contains general rulemaking procedures that apply to the 
issuance, amendment, and repeal of rules, general policy statement, or 
other interpretation of rules or law of the Interstate Commerce 
Commission, adopted under the procedures of section 553 of title 5 of 
the United States Code (the Administrative Procedure Act).



Sec. 1110.2  Opening of proceeding.

    (a) The Commission may open a rulemaking proceeding on its own 
motion.

[[Page 192]]

In doing so, it may consider the recommendations of other agencies of 
the United States and of other persons.
    (b) Any person may petition the Commission to issue, amend, or 
repeal a rule.
    (c) Each petition seeking the institution of a proceeding, filed 
under this section must:
    (1) Be submitted, along with 15 copies if possible, to the 
Secretary, Interstate Commerce Commission, Washington, DC 20423;
    (2) Set forth the text or substance of the rule or amendment 
proposed or specify the rule that the petitioner wants to have repealed 
or modified;
    (3) Explain the interest of the petitioner in the action requested; 
and
    (4) Contain any information and arguments available to the 
petitioner to support the action sought and may detail any 
environmental, energy, or small business considerations.
    (d) In rail cases, the Commission will grant or deny a petition 
within 120 days of its receipt.
    (e) If the Commission determines that a petition contains adequate 
justification, it will open a rulemaking proceeding pursuant to 
Sec. 1110.3 and will notify the petitioner of its action.
    (f) If the Commission determines that the petition does not contain 
adequate justification for opening a rulemaking proceeding, the petition 
will be denied, with a brief statement of the grounds for denial, and 
the petitioner will be notified of the Commission's action.
    (g) If a petition under this section concerning a common carrier by 
railroad is granted, the Commission will proceed as soon as it is 
practicable. If the petition is denied, the Commission will publish a 
statement of the reasons for the denial in the Federal Register.



Sec. 1110.3  Publication of notices.

    (a) Interpretive rules, general statements of policy, and rules 
relating to organization, procedure, or practice may be issued as final 
without notice or other public rulemaking proceedings.
    (b) General rulemaking proceedings will be opened by the issuance of 
either a notice of intent to institute a rulemaking proceeding, an 
advance notice of proposed rulemaking, or a notice of proposed rules. 
The Commission will publish the notice in the Federal Register, and it 
will invite the public to participate in the rulemaking proceeding. No 
notice will be issued when the Commission finds for good cause, that 
notice is impractical or unnecessary or contrary to the public interest.
    (c) Notices of proposed rulemakings will include:
    (1) The proposed rules, if prepared;
    (2) A discussion of why the rulemakings are needed and what they are 
intended to accomplish;
    (3) Identification of significant dates in the proceedings, such as 
dates by which comments must be filed or on which the rules are proposed 
to take effect;
    (4) Any relevant addresses;
    (5) The name and phone number of an individual within the Commission 
who can provide further information concerning the proceedings;
    (6) Any supplementary information required; and
    (7) Reference to the legal authority under which the rules are 
proposed.
    (d) In addition to being published in the Federal Register, notices 
of proposed rulemaking and subsequent notices and decisions in 
rulemaking proceedings, will be served on the parties and made available 
to the public through the Office of the Secretary. To the extent 
possible, the date of service will be the same as the date of 
publication in the Federal Register. When the service and publication 
dates are not the same, the date of publication in the Federal Register 
is controlling for the purpose of determining time periods set by these 
procedures or by notices issued in individual proceedings.



Sec. 1110.4  Participation.

    Any person may participate in rulemaking proceedings by submitting 
written information or views. In addition, the Commission may invite 
persons to present oral arguments, participate in informal conferences, 
appear at informal fact-finding hearings, or participate in any other 
proceedings. Information contained in written submissions will be given 
the same consideration.

[[Page 193]]



Sec. 1110.5  Consideration of comments received.

    All timely comments will be considered before final action is taken 
on a rulemaking proposal. Comments which are filed late will be 
considered so far as possible without incurring additional expense, 
delay, or prejudice to other parties.



Sec. 1110.6  Petitions for extension of time to comment.

    (a) Any person may petition the Commission for an extension of time 
to submit comments in response to a notice of proposed rulemaking. The 
petition and one copy must be submitted at least 10 days prior to the 
deadline for filing comments. The filing of the petition does not 
automatically extend the time for the filing of petitioner's comments.
    (b) The Commission will grant the petition only if the petitioner 
shows a substantive interest in the proposed rule and good cause for the 
extension, and if the extension is in the public interest. If an 
extension is granted, notice of it will be published in the Federal 
Register, and it will apply to all persons.



Sec. 1110.7  Availability of dockets.

    Dockets of pending rulemaking proceedings are maintained in the 
Office of the Secretary. These dockets are available for inspection by 
any person, and copies may be obtained upon payment of the prescribed 
fee.



Sec. 1110.8  Adoption of final rules.

    If, after consideration of all comments received, final rules are 
adopted, notice will be published in the Federal Register.



Sec. 1110.9  Petition for waiver.

    Any person may petition the Commission for a permanent or temporary 
waiver of any rule. Petitions should be filed with the Secretary, 
Interstate Commerce Commission, Washington, DC 20423, and should 
identify the rule involved and the arguments in favor of granting the 
waiver.

[48 FR 44827, Sept. 30, 1983]



Sec. 1110.10  Petitions for reconsideration.

    Any person may file a petition for reconsideration of the 
Commission's decision in a rulemaking proceeding. Petitions should be 
filed within 20 days of the date that the final decision is published in 
the Federal Register and should identify the interest of the petitioner, 
the specific action sought, and the arguments favoring that action.



PART 1111--COMPLAINT AND INVESTIGATION PROCEDURES--Table of Contents




Sec.
1111.1  Content of formal complaints; joinder.
1111.2  Amended and supplemental complaints.
1111.3  Copies; service.
1111.4  Answers and cross complaints.
1111.5  Motions to dismiss or to make more definite.
1111.6  Satisfaction of complaint.
1111.7  Investigations on the Commission's own motion.

    Authority: 49 U.S.C. 10321; 5 U.S.C. 559.

    Source: 47 FR 49557, Nov. 1, 1982, unless otherwise noted.



Sec. 1111.1  Content of formal complaints; joinder.

    (a) General. A formal complaint must contain the correct, 
unabbreviated names and addresses of each complainant and defendant. It 
should set forth briefly and in plain language the facts upon which it 
is based. It should include specific reference to pertinent statutory 
provisions and Commission regulations, and should advise the Commission 
and the defendant fully in what respects these provisions or regulations 
have been violated. The complaint should contain a detailed statement of 
the relief requested. Relief in the alternative or of several different 
types may be demanded, but the issue raised in the formal complaint 
should not be broader than those to which complainant's evidence is to 
be directed at the hearing.
    (b) Requests for Oral Hearing. A formal complaint should include a 
request that the proceeding be handled either under the modified 
procedure or at oral hearing, and a request for oral hearing

[[Page 194]]

should detail why oral hearing is required and should include at least 
two alternative hearing sites.
    (c) Multiple causes of action. Two or more grounds of complaint 
concerning the same principle, subject, or statement of facts may be 
included in one complaint, but should be stated and numbered separately.
    (d) Joinder. Two or more complainants may join in one complaint 
against one or more defendants if their respective causes of action 
concern substantially the same alleged violations and like facts.



Sec. 1111.2  Amended and supplemental complaints.

    An amended or supplemental complaint may be tendered for filing by a 
complainant against a defendant or defendants named in the original 
complaint, stating a cause of action alleged to have accrued within the 
statutory period immediately preceding the date of such tender, in favor 
of complainant and against the defendant or defendants. The time limits 
for responding to an amended or supplemental complaint are computed 
pursuant to Secs. 1111.4 and 1111.5, as if the amended or supplemental 
complaint was an original complaint.



Sec. 1111.3  Copies; service.

    Formal complaints, amended or supplemental complaints, and cross 
complaints will be served by the Commission. The original of each formal 
complaint, or cross complaint must be accompanied by a sufficient number 
of copies to enable the Commission to serve one upon each defendant and 
to retain 10 copies in addition to the original.

[47 FR 49557, Nov. 1, 1982, as amended at 53 FR 19301, May 27, 1988]



Sec. 1111.4  Answers and cross complaints.

    (a) Generally. An answer may be filed within the time provided in 
paragraph (b) of this section. Whether or not an answer is filed and 
served, the issue is joined at the conclusion of the time for filing 
answers, and the Commission may then proceed to a decision. In the 
alternative, the Commission may provide for the taking of evidence under 
the modified or oral hearing procedures, and in such a case the failure 
to answer a complaint will not bar a party from further participation in 
a proceeding or from the presentation of its evidence. An answer should 
be responsive to the complaint and should fully advise the Commission 
and the parties of the nature of the defense.
    (b) Time for filing; copies; service. An answer must be filed within 
20 days after the service of the complaint or within such additional 
time as the Commission may provide. The original and 10 copies of an 
answer must be filed with the Commission. The defendant must serve 
copies of the answer upon the complaint and any other defendants.
    (c) Cross complaints. A cross complaint alleging violations by other 
parties to the proceeding or seeking relief against them may be filed 
with the answer. An answer to a cross complaint may be filed within 20 
days after the service date of the cross complaint. The party shall 
serve copies of answer to a cross complaint upon the other parties.

[47 FR 49557, Nov. 1, 1982, as amended at 53 FR 19301, May 27, 1988]



Sec. 1111.5  Motions to dismiss or to make more definite.

    An answer to a complaint or cross complaint may be accompanied by a 
motion to dismiss the complaint or cross complaint or a motion to make 
the complaint or cross complaint more definite. A motion to dismiss can 
be filed at anytime during a proceeding. A complainant or cross 
complainant may, within 10 days after an answer is filed, file a motion 
to make the answer more definite. Any motion to make more definite must 
specify the defects in the particular pleading and must describe fully 
the additional information or details thought to be necessary.



Sec. 1111.6  Satisfaction of complaint.

    If a defendant satisfies a formal complaint, either before or after 
answering, a statement to that effect signed by the complainant must be 
filed (original only need be filed), setting forth when and how the 
complaint has been satisfied.

[[Page 195]]



Sec. 1111.7  Investigations on the Commission's own motion.

    (a) Service of decision. A decision instituting an investigation on 
the Commission's own motion will be served by the Commission upon 
respondents.
    (b) Default. If within the time period stated in the decision 
instituting an investigation, a respondent fails to comply with any 
requirement specified in the decision, the respondent will be deemed in 
default and to have waived any further proceedings, and the 
investigation may be decided forthwith.



PART 1112--MODIFIED PROCEDURES--Table of Contents




Sec.
1112.1  When modified procedure is used.
1112.2  Decisions directing modified procedure.
1112.3  Default for failure to comply with schedule; effect of default.
1112.4  Petitions to intervene.
1112.5  Joint pleadings.
1112.6  Verified statements; contents.
1112.7  Records in other Commission proceedings.
1112.8  Verification.
1112.9  Sample verification for statement of fact under modified 
          procedure.
1112.10  Requests for oral hearings and cross examination.
1112.11  Authority of officers.

    Authority: 49 U.S.C. 10321; 5 U.S.C. 559.

    Source: 47 FR 49558, Nov. 1, 1982, unless otherwise noted.



Sec. 1112.1  When modified procedure is used.

    The Commission may decide that a proceeding be heard under modified 
procedure when it appears that substantially all material issues of fact 
can be resolved through submission of written statements, and efficient 
disposition of the proceeding can be accomplished without oral 
testimony. Modified procedure may be ordered on the Commission's 
initiative, or upon approval of a request by any party.



Sec. 1112.2  Decisions directing modified procedure.

    A decision directing that modified procedure be used will set out 
the schedule for filing verified statements by all parties and will list 
the names and addresses of all persons who at that time are on the 
service list in the proceeding. In this part, a statement responding to 
an opening statement is referred to as a ``reply'', and a statement 
responding to a reply is referred to as a ``rebuttal''. Replies to 
rebuttal material are not permitted.



Sec. 1112.3  Default for failure to comply with schedule; effect of default.

    If a party fails to comply with the schedule for submission of 
verified statements, or any other requirements established by the 
modified procedure decision, that party will be deemed to be in default 
and to have waived any further participation in the proceeding. 
Thereafter, the proceeding may be disposed of without notice to and 
without participation by parties in default.



Sec. 1112.4  Petitions to intervene.

    (a) The Commission may grant a petition to intervene in a proceeding 
set for modified procedure if intervention:
    (1) Will not unduly disrupt the schedule for filing verified 
statements, except for good cause shown; and
    (2) Would not unduly broaden the issues raised in the proceeding.
    (b) The petition to intervene shall set out:
    (1) The petitioner's interest in the proceeding;
    (2) Whether the petitioner supports or opposes the relief sought or 
the action proposed or is otherwise concerned with the issues presented 
in the proceeding; and
    (3) The petitioner's request, if any, for relief.
    (c) Petitions to intervene are not required in investigation 
proceedings under the modified procedure involving rate-related matters, 
provided that the substantive requirements of (a) and (b) are met.



Sec. 1112.5  Joint pleadings.

    Parties with common interests are encouraged to prepare joint 
pleadings whenever possible.



Sec. 1112.6  Verified statements; contents.

    A verified statement should contain all the facts upon which the 
witness relies, and to the extent that it contains arguments, they 
should be based only on those facts. Parties filing reply and

[[Page 196]]

rebuttal verified statements will be considered to have admitted the 
truth of material allegations of fact contained in their opponents' 
statements unless those allegations are specifically challenged. 
Rebuttal statements shall be confined to issues raised in the reply 
statements to which they are directed.



Sec. 1112.7  Records in other Commission proceedings.

    If any portion of the record before the Commission in any proceeding 
other than the proceeding at issue is offered in evidence, a true copy 
should be presented for the record.



Sec. 1112.8  Verification.

    The original of any pleading filed must show the signature, 
capacity, and seal, if any, of the person administering the oath, and 
the date thereof.



Sec. 1112.9  Sample verification for statement of fact under modified procedure.

State of ____________________,
County of ____________________,
SS:
____________________ being duly sworn, deposes and says that he has read 
the foregoing statement, knows the facts asserted there are true and 
that the same are true as stated.
Signed ____________________.
Subscribed and sworn to before me this __________ day of 
____________________.
Notary Public of ____________________.
My Commission expires ____________________.



Sec. 1112.10  Requests for oral hearings and cross examination.

    (a) Requests. Requests for oral hearings in matters originally 
assigned for handling under modified procedure should be included in the 
reply or rebuttal statement. The reasons why the matter cannot be 
properly resolved under modified procedure must be set out in full. 
Requests for cross examination of witnesses must include the name of the 
witness and the subject matter of the desired cross examination.
    (b) Disposition. Unless material facts are in dispute, oral hearings 
will not be held. If held, oral hearings will normally be confined to 
material issues upon which the parties disagree. The decision setting a 
matter for oral hearing will define the scope of the hearing.



Sec. 1112.11  Authority of officers.

    Except to the extent that they apply only to the conduct of a public 
hearing, the officer assigned to handle a proceeding under the modified 
procedure shall have the same authority as officers assigned to conduct 
oral hearings as described in Sec. 1113.3(a) and (b).



PART 1113--ORAL HEARING--Table of Contents




Sec.
1113.1  Scheduling hearings; continued hearings.
1113.2  Subpoenas.
1113.3  Authority of officers.
1113.4  Prehearing conferences.
1113.5  Stipulations.
1113.6  Appearances; withdrawal or absence from hearing.
1113.7  Intervention; petitions.
1113.8  Witness examination; order of procedure.
1113.9  Prepared statements.
1113.10  Records in other Commission proceedings.
1113.11  Abstracts of documents.
1113.12  Exhibits.
1113.13  Filing evidence subsequent to hearing; copies.
1113.14  Objections to rulings.
1113.15  Interlocutory appeals.
1113.16  Oral argument before the hearing officer.
1113.17  Transcript of record.
1113.18  Briefs.
1113.19  Pleadings: part of the record.
1113.20--1113.30  [Reserved]
1113.31  Joint boards.

    Authority: 49 U.S.C. 10321; 5 U.S.C. 559.

    Source: 47 FR 49559, Nov. 1, 1982, unless otherwise noted.



Sec. 1113.1  Scheduling hearings; continued hearings.

    (a) Assignment; service and posting of notice. In those proceedings 
in which an oral hearing is to be held, the Commission will assign a 
time and place for hearing. Notice of hearings will be posted in the 
Office of the Secretary of the Commission and will be served upon the 
parties and such other persons as may be entitled to receive notice 
under the Act.
    (b) Requests for changes in assignment. Requests for postponements 
of date of hearing will be granted only in exceptional circumstances.

[[Page 197]]

    (c) Continuances. (1) A continuance may be granted at the descretion 
of the presiding officer.
    (2) If the presiding officer announces the time and place of a 
continued hearing on the record, no further notice need be given.
    (3) A joint board shall not set a date and place for a continued 
hearing without first consulting the Commission. If consultation with 
the Commission is impractical, the hearing shall be adjourned by the 
joint board to such time and place as the Commission subsequently shall 
determine.



Sec. 1113.2  Subpoenas.

    (a) Issuance. A subpoena may be issued upon the direction of the 
Commission on its own motion or upon request. A subpoena may be issued 
by the Commission or by the officer presiding at a hearing and must be 
signed by the Secretary or a member of the Commission.
    (b) Requests. (1) A request for a subpoena to compel the appearance 
of a person at a hearing to give oral testimony, but not to produce 
documents, may be made either by letter (only the original need be filed 
with the Commission) or orally upon the record at the hearing. A showing 
of general relevance and reasonable scope of the evidence sought to be 
introduced through the subpoenaed person may be required.
    (2) A request for a subpoena to compel a witness to produce 
documentary evidence should be made in writing by petition. The petition 
should specify with particularity the books, papers, or documents 
desired and facts expected to be proved, and should show the general 
relevance and reasonable scope of the evidence sought. The officer 
presiding at a hearing may grant a request for such a subpoena made 
orally upon the record.
    (c) Service. The original subpoena should be exhibited to the person 
served, should be read to him if he is unable to read, and a copy should 
be delivered to him by the officer or person making service.
    (d) Return. If service of subpoena is made by a United States 
marshal or his deputy, service should be evidenced by his return on the 
subpoena. If made by any other person, such person shall make an 
affidavit stating the date, time and manner of service; and return such 
affidavit on, or with, the original subpoena in accordance with the form 
thereon. In case of failure to make service the reasons for the failure 
should be stated on the original subpoena. The written acceptance of 
service of a subpoena by the person subpoenaed will be sufficient 
without other evidence of return. The original subpoena bearing or 
accompanied by the required return, affidavit, statement, or acceptance 
of service, should be returned forthwith to the Secretary of the 
Commission, unless otherwise directed.
    (e) Witness fees. A witness who is summoned and responds to the 
summons is entitled to the same fee as is paid for like service in the 
courts of the United States. Such fee is to be paid by the party at 
whose instance the testimony is taken at the time the subpoena is 
served, except that when the subpoena is issued on behalf of the United 
States or an officer or agency thereof, fees and mileage need not be 
tendered at the time of service.



Sec. 1113.3  Authority of officers.

    (a) General. (1) The presiding officer has the authority to regulate 
the procedure in the hearing before him, and has authority to take all 
measures necessary or proper for the efficient performance of the duties 
assigned him. These include authority: (i) To hold hearings; (ii) to 
administer oaths and affirmations; (iii) to grant intervention; (iv) to 
accept any pleading; (v) to establish special rules of procedure 
appropriate to the effective handling of the particular proceeding; (vi) 
to examine witnesses; (vii) to issue subpoenas at the hearing; (viii) to 
dispose of requests for discovery; (ix) to hold conferences for the 
settlement and simplification of issues; (x) to rule on motions and 
dispose of procedural requests; (xi) to make initial decisions; (xii) to 
exclude any person from the hearing for contemptuous conduct; and (xiii) 
to take any other action authorized by this part, by the Administrative 
Procedure Act, or by the Interstate Commerce Act and related acts.
    (2) The presiding officer has the authority: (i) To terminate 
examination

[[Page 198]]

or cross-examination of repetitious or cumulative nature; (ii) to limit 
direct examination to material matters; (iii) to limit cross-examination 
to disputed material facts; (iv) to require that principal examination 
or cross-examination be conducted by one or more counsel representing 
similar interests in proceedings where several parties are involved; (v) 
to set reasonable schedules for the presentation of witnesses; (vi) and 
to set reasonable time limits for the examination or cross-examination 
of witnesses. In order to enforce this paragraph, the officer may 
require a clear statement on the record of the nature of the testimony 
to be given by any witness.
    (b) Motions to dismiss; amendments. (1) The presiding officer shall 
have power to decide any motion to dismiss the proceeding or other 
motion which involves final determination of the merits of the 
proceeding.
    (2) The presiding officer may grant leave to amend any application 
or complaint except where the tendered amendment would result in such a 
change in the geographical scope of the proceeding that it would have to 
be reassigned from an administrative law judge to a joint board, or vice 
versa.
    (c) Preparation of the decision by the prevailing party. Any 
proceeding in which an oral hearing is held and in which the officer is 
able to announce his decision either:
    (1) On the record after the close of the taking of testimony and the 
hearing of arguments by the officer, or
    (2) By appropriate notification to the parties after the close of 
hearing, may be made the subject of an initial decision prepared by a 
party or parties in whose favor the officer decides, within a period 
specified by the officer, and subject to such changes as the officer 
considers appropriate in the draft prepared for him.
    (d) Recording; media coverage. The presiding officer shall have 
authority to permit or to refuse to permit the recording of the hearing 
by means of live or delayed television or radio broadcast, or the use of 
a tape recorder or other electronic or photographic equipment by any 
person other than the official reporter.



Sec. 1113.4  Prehearing conferences.

    (a) Purposes. Upon written notice by the Commission in any 
proceeding, or upon written or oral instruction of an officer, parties 
or their representatives may be directed to appear before an officer at 
a specified time and place for a conference, prior to or during the 
course of a hearing, or in lieu of personally appearing, to submit 
suggestions in writing, for the purpose of formulating issues and 
considering:
    (1) The simplification of issues;
    (2) The necessity or desirability of amending the pleadings either 
for the purpose of clarification, amplification, or limitation;
    (3) The possibility of making admissions of certain averments of 
fact or stipulations concerning the use by any or all parties of matters 
of public record, such as annual reports and the like, to avoid the 
unnecessary introduction of proof;
    (4) The procedure at the hearing;
    (5) The limitation of the number of witnesses;
    (6) The propriety of prior mutual exchange between or among the 
parties of prepared testimony and exhibits; and
    (7) Such other matters, including disposition of requests for 
discovery, as may aid in the simplification of the evidence and 
disposition of the proceeding. Parties may request a prehearing 
conference.
    (b) Facts disclosed privileged. Facts disclosed in the course of the 
prehearing conference are privileged and, except by agreement, will not 
be used against participating parties either before the Commission or 
elsewhere unless fully corroborated by other evidence.
    (c) Recordation and decision. Action taken at the conference, 
including a recitation of the amendments allowed to the pleadings, the 
agreements made by the parties as to any of the matters considered, and 
defining the issues, will be recorded in an appropriate decision unless 
the parties enter into a written stipulation as to such matters, or 
agree to a statement thereof made on the record by the officer.
    (d) Objection to the decision; subsequent proceedings. If a decision 
is entered, the parties may, within 20 days of the date

[[Page 199]]

of service, or within such lesser time as is set by the officer, present 
objections on the grounds that the decision does not fully or correctly 
embody the agreements reached at the conference. Thereafter the terms of 
the written stipulation or statement of the officer, as the case may be, 
will determine the subsequent course of the proceedings, unless modified 
to prevent manifest injustice.



Sec. 1113.5  Stipulations.

    Apart from the procedure contemplated by the prehearing provisions, 
the parties may, by stipulation in writing filed with the Commission at 
any stage of the proceeding, or orally made at the hearing, agree upon 
any pertinent facts in the proceeding. The parties should agree to facts 
in this manner whenever practicable.



Sec. 1113.6  Appearances; withdrawal or absence from hearing.

    (a) Who may appear. Any individual may appear for himself. Any 
member of a partnership which is a party to any proceeding may appear 
for such partnerships upon adequate identification. A bona fide officer 
or a full-time employee of a corporation, association, or of an 
individual may appear for such corporation, association, or individual 
by permission of the officer presiding at the hearing. A party also may 
be represented by a practitioner.
    (b) Withdrawal or absence from hearing. A practitioner who has 
entered his appearance at the hearing shall not be permitted to withdraw 
from the hearing, or willfully be absent therefrom, except for good 
cause and, wherever practicable, only with the permission of the 
presiding officer. If a person who has entered an appearance withdraws 
from the hearing in a manner other than that specified, the Commission 
or the Officer may take such action as, in the interest of justice and 
the protection of the lawful rights of all parties to the proceeding, 
the circumstances of the case may warrant, including the striking out of 
all or any part of any pleading of the offending party, and including 
the possible dismissal of the action or proceeding, or any part thereof, 
the entry of an order of default against that party, or if the 
withdrawal is without the permission of the presiding officer, 
disciplining of the practitioner concerned.



Sec. 1113.7  Intervention; petitions.

    (a) How requested. Intervention will normally be granted only upon 
petition. In exceptional circumstances, where the issues would not be 
broadened or the proceeding delayed, an officer may, at his or her 
discretion, allow intervention upon motion made orally at the hearing.
    (b) Content generally. A petition for leave to intervene must set 
forth the grounds for the proposed intervention, the position and 
interest of the petitioner in the proceeding, and whether petitioner's 
position is in support of or in opposition to the relief sought. If the 
proceeding is by formal complaint and affirmative relief is sought by 
petitioner, the petition should conform to the requirements for a formal 
complaint.
    (c) When filed. A petition for leave to intervene in any proceeding 
should be filed prior to or at the time the proceeding is called for 
hearing, but not after, except for good cause shown.
    (d) Broadening issues; filing. If the petition seeks a broadening of 
the issues and shows that they would not thereby be unduly broadened, 
and in respect thereof seeks affirmative relief, the petition should be 
filed in time to permit service upon and answer by the parties in 
advance of the hearing.
    (e) Copies; service; replies. When a petition for leave to intervene 
is tendered at the hearing, sufficient copies of the petition must be 
provided for distribution to the parties represented at the hearing. If 
leave is granted at the hearing, 10 copies of the petition must be 
furnished for the use of the Commission. When a petition for leave to 
intervene is not tendered at the hearing, the original and 10 copies of 
the petition should be submitted to the Commission together with a 
certificate that service has been made by petitioner. Any reply in 
opposition to a petition for leave to intervene not tendered at the 
hearing must be filed within 20 days after service of the petition to 
intervene. At the discretion of the Commission leave to

[[Page 200]]

intervene may be granted or denied before the expiration of the time 
allowed for replies.
    (f) Disposition. Leave to intervene will be granted only when the 
petitioner addresses issues reasonably pertinent to the issues already 
presented and which do not unduly broaden them. If leave is granted the 
petitioner becomes an intervener and a party to the proceeding.

[47 FR 49559, Nov. 1, 1982, as amended at 53 FR 19301, May 27, 1988]



Sec. 1113.8  Witness examination; order of procedure.

    Witnesses will be orally examined under oath before the officer 
unless the facts are presented to the Commission in the manner provided 
under modified procedure. In formal complaint, application, and 
investigation proceedings, complainant, applicant, and respondent, 
respectively, shall open and close at the hearing. In the event of 
further hearings granted on petition, the petitioners requesting further 
hearing shall open and close the proceeding. Instances exist in which 
parties other than the respondent may open and close in investigations 
where the burden of proof is not upon the respondent. Interveners shall 
follow the party in whose behalf the intervention is made. The foregoing 
order of presentation may be varied by the officer.



Sec. 1113.9  Prepared statements.

    With the approval of the officer, a witness may read into the 
record, as his testimony, statements of fact or expressions of opinion 
prepared by the witness, or written answers to interrogatories of 
counsel. A prepared statement of a witness who is present at the hearing 
may be received as an exhibit, provided that the statement does not 
include argument. Before any such statement is read or admitted in 
evidence, the witness shall deliver to the officer, the reporter, and to 
opposing counsel, as may be directed by the officer, a copy of such 
statement or of such interrogatories and the written answers thereto. 
The admissibility of the evidence contained in such statement will be 
subject to the same rules as if such testimony was produced orally, 
including the right of cross-examination of the witness. The officer may 
require that the witness testify orally if, in the officer's opinion, 
the memory or demeanor of the witness may be of importance.



Sec. 1113.10  Records in other Commission proceedings.

    A portion of the record before the Commission in another proceeding 
may be offered in evidence at an oral hearing. A party making such an 
offer must provide, as an exhibit, a certified copy of the material 
sought to be introduced. A hearing officer may waive the requirement 
that a copy be provided, subject to such conditions as he or she may 
impose to assure that a copy will be available later, if needed, at no 
expense to the Commission and to assure that the interests of other 
parties are not prejudiced. An offer of evidence under this section will 
be subject to objection by other parties.



Sec. 1113.11  Abstracts of documents.

    When documents, such as freight bills or bills of lading, are 
numerous, the officer may refuse to receive all the documents and in 
evidence instead admit only a limited number of representative 
documents. He may instruct, if the proffer be for the purpose of proving 
damage, that introduction be deferred until there is opportunity to 
comply with Sec. 1133.2. If the proffer be for another purpose the 
officer may require the party in orderly fashion to abstract the 
relevant data from the documents, affording other parties reasonable 
opportunity to examine both the documents and the abstract, and 
thereupon offer such abstract in evidence in exhibit form.



Sec. 1113.12  Exhibits.

    (a) Copies. Unless the officer otherwise directs, the original and 
10 copies of each exhibit of a documentary character should be furnished 
for the use of the Commission. The original will be delivered to the 
reporter, and the copy to the officer. If the hearing is before a board, 
a copy of the exhibit should be furnished to each member of the board, 
unless the board otherwise directs. Unless the officer for cause directs 
otherwise, a reasonable number of copies

[[Page 201]]

should be furnished to counsel in attendance at the hearing.
    (b) Interchange prior to hearing. Whenever practicable, the parties 
should interchange copies of exhibits or other pertinent material or 
matter before or at the commencement of the hearing; and the Commission 
or presiding officer may so direct.
    (c) When excluded how treated. When exhibit has been identified, 
objected to, and excluded, the officer will develop whether the party 
offering the exhibit withdraws the offer, and if so, permit the return 
of the exhibit to him. If the excluded exhibit is not withdrawn, it 
should be given an exhibit number for identification and be incorporated 
in the record. Exhibit numbers once used for identification will not be 
duplicated thereafter.

[47 FR 49559, Nov. 1, 1982, as amended at 53 FR 19301, May 27, 1988]



Sec. 1113.13  Filing evidence subsequent to hearing; copies.

    Except as provided in this section or as expressly may be permitted 
in a particular instance, the Commission will not receive in evidence or 
consider as part of the record any documents, letters, or other writings 
submitted for consideration in connection with any proceeding after 
close of the hearing, and may return any such documents to the sender. 
Before the close of a hearing the officer may, at the request of a party 
or upon his own motion, or upon agreement of the parties, require that a 
party furnish additional documentary evidence that supplements the 
existing record, within a stated period of time. Documentary evidence to 
be furnished in this way will be given an exhibit number at the time of 
filing and the parties advised accordingly. Unless otherwise directed by 
the officer, the original and 10 copies of such submission should be 
filed with the Commission.

[47 FR 49559, Nov. 1, 1982, as amended at 53 FR 19301, May 27, 1988]



Sec. 1113.14  Objections to rulings.

    It is sufficient that a party, at the time the ruling is made or 
sought, make known to the officer on the record the action which he 
desires the officer to take or his objection to the action of the 
officer and his grounds for that objection. An objection not pressed in 
brief will be considered as waived. Where no brief is filed an objection 
will be considered as waived if not pressed in an appeal or reply to an 
appeal, if filed, or in a separate petition dealing only with that 
objection.



Sec. 1113.15  Interlocutory appeals.

    Rulings of the presiding officer may be appealed prior to service of 
the initial decision only if:
    (a) The ruling denies or terminates any person's participation,
    (b) The ruling grants a request for the inspection of documents not 
ordinarily available for public inspection,
    (c) The ruling overrules an objection based on privilege, the result 
of which ruling is to require the presentation of testimony or 
documents, or
    (d) The presiding officer finds that the ruling may result in 
substantial irreparable harm, substantial detriment to the public 
interest, or undue prejudice to a party.



Sec. 1113.16  Oral argument before the hearing officer.

    At the discretion of the hearing officer and upon reasonable notice 
to the parties, oral argument may be made at the close of testimony 
before him as an alternative to the filing of written briefs. Such 
argument, which should include requested findings and conclusions, will 
be recorded and made a part of the transcript of testimony, and will be 
available to the Commission for consideration in deciding the case. The 
making of such argument will not preclude oral argument before the 
Commission.



Sec. 1113.17  Transcript of record.

    (a) Filing. After the close of the hearing, the complete transcript 
of the testimony taken and the exhibits shall be part of the record in 
the proceeding.
    (b) Corrections. A suggested correction in a transcript ordinarily 
will be considered only if offered not later than 20 days after the date 
each transcript is filed with the Commission. A copy of the letter 
(original only need be filed with the Commission) requesting the 
suggested corrections should be

[[Page 202]]

served upon all parties of record and with 2 copies to the official 
reporter.
    (c) Objections to corrections. Parties disagreeing with corrections 
suggested pursuant to paragraph (b) of this section should file written 
objections in the same manner as suggested corrections are to be filed. 
Objections to suggested corrections should be filed not later than 15 
days after the filing with the Commission of suggested corrections. If 
no objections are timely filed, the Secretary of the Commission shall 
make the suggested corrections to the transcript. If objections are 
timely filed, the officer who presided at the hearing shall determine 
the merits of the suggested correction and enter an appropriate decision 
in the proceeding.
    (d) No free copies. The Commission will not furnish free copies of 
the transcript to any party to any proceeding.



Sec. 1113.18  Briefs.

    (a) When filed. In a proceeding which has been the subject of oral 
hearing, and in which briefs are to be filed, that fact will be stated 
by the officer on the record. The officer shall fix the time for filing 
briefs. Simultaneous filing will normally be required, and reply briefs 
will not normally be permitted.
    (b) Evidence abstract. A brief filed after a hearing may contain an 
abstract of the evidence relied upon by the party filing it, preferably 
assembled by subjects, with reference to the pages of the record, if 
written, or exhibit where the evidence appears. In the event the party 
elects not to include a separate abstract in his brief, he should give 
specific reference to the portions of the record, whether transcript or 
otherwise, relied upon in support of the respective statements of fact 
made throughout the brief.
    (c) Requested findings. Each brief should include such requests for 
specific findings, separately stated and numbered, as the party desires 
the Commission to make.
    (d) Exhibit reproduction. Exhibits should not be reproduced in the 
brief, but may be shown, within reasonable limits, in an appendix to the 
brief. Analysis of such exhibits should be included in the brief where 
pertinent.



Sec. 1113.19  Pleadings: part of the record.

    Matters of fact that are verified and filed prior to oral hearing 
and that are not specifically denied constitute evidence and are part of 
the record. A witness, who would present such evidence, must be made 
available for cross-examination if a request is reasonably made. This 
rule does not apply to protest against tariffs or schedules.
Secs. 1113.20--1113.30  [Reserved]



Sec. 1113.31  Joint boards.

    (a) Organization. After a joint board has been established according 
to 49 U.S.C. 10342 et seq., it will select one of its members to act as 
chairman. If the person selected as chairman is absent from a meeting, 
the members attending shall select a temporary substitute chairman for 
that meeting.
    (b) Waiver of action by absence of a joint board. If a joint board 
member fails to participate in a hearing after notice of the hearing, 
the failure to participate acts as a waiver of action on the part of the 
State from which the member was appointed.
    (c) Procedural ruling by chairman in case of disagreement. If the 
members of a joint board or a majority of the board attending a hearing 
cannot agree upon the disposition of a procedural question arising at 
the hearing, the chairman, or acting chairman, shall decide the 
question.
    (d) Form of joint board's decision; service. The board's decision 
will conform as nearly as possible to the form of decisions issued by 
the Commission. The board's decision will be served by the Commission.
    (e) Termination of joint board jurisdiction and subsequent 
procedure. The jurisdiction of a joint board over a referred matter will 
terminate when the decision of the joint board is served by the 
Commission. Joint board jurisdiction also may be terminated by 
Commission decision, and it will terminate if:
    (1) The board's conclusions are submitted without a written 
decision;
    (2) Each state entitled to appoint a member waives action in writing 
from the appropriate state authority;
    (3) All of the members of the board fail to appear at the hearing;

[[Page 203]]

    (4) A majority of the board fails to agree on substantive matters; 
or
    (5) The board fails to act in accordance with 49 U.S.C. 10343(d)(2).

When jurisdiction of the joint board has been terminated without a 
decision by the board due to the reasons stated in paragraphs (e)(1) 
through (4) of this section, the Commission or a designated officer will 
enter a decision based upon the record, if any, made before the board or 
after further hearings, if required.



PART 1114--EVIDENCE; DISCOVERY--Table of Contents




                  Subpart A--General Rules of Evidence

Sec.
1114.1  Admissibility.
1114.2  Official records.
1114.3  Admissibility of business records.
1114.4  Documents in Commission's files.
1114.5  Records in other Commission proceedings.
1114.6  Official notice of corroborative material.
1114.7  Exhibits.

                          Subpart B--Discovery

1114.21  Applicability; general provisions.
1114.22  Deposition.
1114.23  Depositions; location, officer, time, fees, absence, 
          disqualification.
1114.24  Depositions; procedures.
1114.25  Effect of errors and irregularities in depositions.
1114.26  Written interrogatories to parties.
1114.27  Request for admission.
1114.28  Depositions, requests for admission, written interrogatories, 
          and responses thereto: inclusion in record.
1114.29  Supplementation of responses.
1114.30  Production of documents and records and entry upon land for 
          inspection and other purposes.
1114.31  Failure to respond to discovery.

    Authority: 49 U.S.C. 10321; 5 U.S.C. 559.

    Source: 47 FR 49562, Nov. 1, 1982, unless otherwise noted.



                  Subpart A--General Rules of Evidence



Sec. 1114.1  Admissibility.

    Any evidence which is sufficiently reliable and probative to support 
a decision under the provisions of the Administrative Procedure Act, or 
which would be admissible under the general statutes of the United 
States, or under the rules of evidence governing proceedings in matters 
not involving trial by jury in the courts of the United States, will be 
admissible in hearings before the Commission. The rules of evidence will 
be applied in any proceeding to the end that necessary and proper 
evidence will be conveniently, inexpensively, and speedily produced, 
while preserving the substantial rights of the parties.



Sec. 1114.2  Official records.

    An official record or an entry therein, when admissible for any 
purpose, may be evidenced by an official publication thereof or by a 
copy attested by the officer having the legal custody of the record, or 
by a deputy, and accompanied with a certificate that such officer has 
the custody. If the office in which the record is kept is within the 
United States or within a territory or insular possession subject to the 
dominion of the United States, the certificate may be made by a judge of 
a court of record of the district or political subdivision in which the 
record is kept, authenticated by the seal of the court, or may be made 
by any public officer having a seal of office and having official duties 
in the district or political subdivision in which the record is kept, 
authenticated by the seal of his office. If the office in which the 
record is kept is in a foreign state or country, the certificate may be 
made by a secretary of embassy or legation, consul general, consul, vice 
consul, or consular agent or by officer in the foreign service of the 
United States stationed in the foreign state or country in which the 
record is kept, and authenticated by the seal of his office. A written 
statement signed by an officer having the custody of an official record 
or by his deputy that after diligent search no record or entry of a 
specified tenor is found to exist in the records of his office, 
accompanied by a certificate as above provided, is admissible as 
evidence that the records of this office contain no such record or 
entry. This section does not prevent the proof of official records or of 
entry or lack of entry therein or official notice thereof by a method 
authorized by any applicable statute or by the rules of evidence.

[[Page 204]]



Sec. 1114.3  Admissibility of business records.

    Any writing or record, whether in the form of an entry in a book or 
otherwise, made as a memorandum or record of any act, transaction, 
occurrence, or event, will be admissible as evidence thereof if it 
appears that it was made in the regular course of business, and that it 
was the regular course of business to make such memorandum or record at 
the time such record was made, or within a reasonable time thereafter.



Sec. 1114.4  Documents in Commission's files.

    If a party offers in evidence any matter contained in a report or 
other document open to public inspection in the files of the Commission, 
such report or other document need not be made available at the hearing.



Sec. 1114.5  Records in other Commission proceedings.

    If any portion of the record before the Commission in any proceeding 
other than the proceeding at issue is offered in evidence, a true copy 
will be presented for the record.



Sec. 1114.6  Official notice of corroborative material.

    The Commission or a hearing officer may take notice of official 
records, records in other Commission proceedings, or other materials 
which are otherwise subject to specific rules governing admissibility 
regardless of compliance with the full technical provisions of such 
rules, where the admissibility of the evidence is for purposes of 
corroboration of testimony presented or to evaluate the credibility of 
testimony or allegations made in proceedings where the public interest 
is not otherwise adequately represented by counsel capable of fully 
complying with such rules.



Sec. 1114.7  Exhibits.

    (a) Generally. Whenever practical the sheets of each exhibit and the 
lines of each sheet should be numbered. If the exhibit consists of five 
or more sheets, the first sheet or title-page should be confined to a 
brief statement of what the exhibit purports to show with reference by 
sheet and line to illustrative or typical examples contained therein. 
The exhibit should bear an identifying number, letter, or short title 
which will readily distinguish it from other exhibits offered by the 
same party. It is desirable that, whenever practicable, evidence should 
be condensed into tables. Whenever practicable, especially in 
proceedings in which it is likely that many documents will be offered, 
all the documents produced by a single witness should be assembled and 
bound together, suitably arranged and indexed, so that they may be 
identified and offered as one exhibit. Exhibits should not be 
argumentative and should be limited to statements of facts, and be 
relevant and material to the issue, which can better be shown in that 
form than by oral testimony.
    (b) Reference to tariff authority, routes, and distances. All 
exhibits showing rates, fares, charges, or other tariff or schedule 
provisions must, by appropriate Interstate Commerce Commission number 
reference, indicate the tariff or schedule authority therefor. If 
distances are shown, they must also show the authority therefor, and, by 
lines, highways, or waterways, and junction points, the routes over 
which the distances are computed. The routes over which the distances 
are computed need not be shown when such distances are specifically 
published in a tariff or schedule lawfully on file with the Commission, 
or definitely ascertainable from a tariff or schedule on file with the 
Commission showing rates prescribed by the Commission and based on short 
line distances, or short-highway distances, provided the exhibit makes 
specific reference to such tariff or schedules as provided by this 
section.



                          Subpart B--Discovery



Sec. 1114.21  Applicability; general provisions.

    (a) When discovery is available. (1) Parties may obtain discovery 
under this subpart regarding any matter, not privileged, which is 
relevant to the subject matter involved in a proceeding other than an 
informal proceeding.

[[Page 205]]

For the purpose of this subchapter, informal proceedings are those not 
required to be determined on the record after hearing and include 
informal complaints and all proceedings assigned for initial disposition 
to employee boards (except the review boards) under Sec. 1011.6.
    (2) It is not grounds for objection that the information sought will 
be inadmissible as evidence if the information sought appears reasonably 
calculated to lead to the discovery of admissible evidence.
    (b) How discovery is obtained. (1) In non-rail licensing proceedings 
governed by 49 CFR part 1160, no discovery procedures may be used unless 
the Commission, upon its own motion or upon verified petition of a 
party, shall have entered a decision approving discovery.
    (2) In other proceedings other than those governed by 49 CFR part 
1160, those discovery procedures providing for the service of written 
interrogatories and requests for admissions (Secs. 1114.26 and 1114.27) 
may be used by parties without filing a petition and obtaining prior 
Commission approval. The other discovery procedures may be used only 
when the Commission, upon its own motion or upon verified petition of a 
party, has entered a decision approving discovery.
    (3) Whenever possible a petition for discovery must be filed in 
sufficient time to allow for the filing of replies and for consideration 
by the Commission without requiring the postponement of any hearing or 
the submission of initial statements under modified procedure. Use of 
discovery in those circumstances where no petition is required must also 
be accomplished whenever possible without requiring any such 
postponement.
    (c) Protective conditions. Upon motion by any party, by the person 
from whom discovery is sought, or by any person with a reasonable 
interest in the data, information, or material sought to be discovered 
and for good cause shown, any order which justice requires may be 
entered to protect a party or person from annoyance, embarrassment, 
oppression, or undue burden or expense, or to prevent the raising of 
issues untimely or inappropriate to the proceeding. Relief through a 
protective order may include one or more of the following:
    (1) That the discovery not be had;
    (2) That the discovery may be had only on specified terms and 
conditions, including a designation of the time and place;
    (3) That the discovery may be had only upon such terms and 
conditions as the Commission may impose to insure financial 
responsibility indemnifying the party or person against whom discovery 
is sought to cover the reasonable expenses incurred;
    (4) That the discovery may be had only by a method other than that 
selected by the party seeking discovery;
    (5) That certain matters not be inquired into or that the scope of 
discovery be limited to certain matters;
    (6) That discovery be conducted with no one present except persons 
designated in the protective order;
    (7) That a deposition after being sealed be opened only by order of 
the Commission;
    (8) That a trade secret or other confidential research development 
or commercial information not be disclosed or be disclosed only in a 
designated way; and
    (9) That the parties simultaneously file specified documents or 
information enclosed in sealed envelopes to be opened only upon 
direction or order of the Commission.

If the motion for a protective order is denied in whole or in part, the 
Commission may, on such terms and conditions as it deems just, enter an 
order requiring any party or person to provide or permit discovery. A 
protective order under this paragraph may only be sought after, or in 
conjunction with, an effort by any party to obtain relief under 
Secs. 1114.24(a), 1114.26(a), or 1114.31.
    (d) Sequence and timing of discovery. Unless the Commission upon 
motion, for the convenience of parties and witnesses and in the interest 
of justice, orders otherwise, methods of discovery may be used in any 
sequence and the fact that a party is conducting discovery, whether by 
deposition or otherwise, should not operate to delay any party's 
discovery.
    (e) Stipulations regarding discovery. Unless otherwise ordered, a 
written

[[Page 206]]

stipulation entered into by all the parties and filed with the 
Commission may:
    (1) Provide that depositions be taken before any person, at any time 
or place, upon sufficient notice, and in any manner and when so taken 
may be used like other depositions; and
    (2) Modify the procedures provided by these rules for other methods 
of discovery.



Sec. 1114.22  Deposition.

    (a) Purpose. The testimony of any person, including a party, may be 
taken by deposition upon oral examination.
    (b) Petition. The petition requesting an order to take a deposition 
and perpetuate testimony or to produce documents and materials:
    (1) Should set forth the facts it desires to establish and the 
substance it expects to elicit;
    (2) Should be served upon all parties to the proceeding and upon the 
person sought to be deposed and/or the custodian of the documents or 
materials sought to be produced;
    (3) Should set forth the name and address of the witness, the place 
where, the time when, the name and office of the officer before whom, 
and the cause or reason why such deposition should be taken; and
    (4) Should specify with particularity the documents and materials 
which the deponent is requested to produce.
    (c) Order. If the Commission is convinced on its own initiative or 
by the petition requesting an order to take a deposition that the 
deposition will prevent a failure or delay of justice, it will serve an 
order upon the parties and the witness, naming the witness whose 
deposition is to be taken, specifying the time when, the place where, 
and the officer before whom the deposition is to be taken, and 
specifying the subject matter of the examination and whether the 
depositions shall be taken upon oral examination or written 
interrogatories. The provisions for the taking of the deposition 
specified in the Commission's order may or may not be the same as 
requested in the petition. The deposition may then be taken in 
accordance with these rules, and the Commission may make orders of the 
character provided by Sec. 1114.31.



Sec. 1114.23  Depositions; location, officer, time, fees, absence, disqualification.

    (a) Where deposition should be taken. Unless otherwise ordered or 
agreed to by stipulation, depositions should be taken in the city or 
municipality where the deponent is located.
    (b) Officer before whom taken. Within the United States or within a 
territory or insular possession subject to the dominion of the United 
States, depositions should be taken before an officer authorized to 
administer oaths by the laws of the United States or of the place where 
the examination is held. Within a foreign country, depositions may be 
taken before an officer or person designated by the Commission or agreed 
upon by the parties by stipulation in writing to be filed with the 
Commission.
    (c) Fees. A witness whose deposition is taken pursuant to these 
rules and the officer taking same, unless he be employed by the 
Commission, shall be entitled to the same fee paid for like service in 
the courts of the United States, which fee should be paid by the party 
at whose instance the deposition is taken.
    (d) Failure to attend or to serve subpoena; expenses. (1) If the 
party who filed a petition for discovery fails to attend and proceed 
with the taking of the deposition and another party attends in person or 
by representative pursuant to an order of the Commission granting 
discovery the Commission may order the party who filed the petition to 
pay to such other party the reasonable expenses incurred by him and his 
representative in so attending, including reasonable attorney's fees.
    (2) If the party who filed a petition for discovery fails to serve a 
subpoena upon the witness and the witness because of such failure does 
not attend, and if another party attends in person or by representative 
because he expects the deposition of the witness to be taken, the 
Commission may order the party who filed the petition to pay to such 
other party the reasonable expenses incurred by him and his 
representative in so attending, including reasonable attorney's fees.

[[Page 207]]

    (e) Disqualification for interest. No deposition should be taken 
before a person who is a relative or employee or representative or 
counsel of any of the parties, or is a relative or employee of such 
representative or counsel or is financially interested in the 
proceeding.



Sec. 1114.24  Depositions; procedures.

    (a) Examination. Examination and cross-examination of witnesses 
should proceed as permitted at a hearing and should be limited to the 
subject matter specified in the order granting discovery. All objections 
made at the time of the examination to the qualifications of the officer 
taking the deposition, or to the manner of taking it, or to the evidence 
presented, or to the conduct of any party, and any other objection to 
the proceedings, should be noted by the officer upon the deposition. 
Evidence objected to should be taken subject to the objections. In lieu 
of participating in the oral examination, parties may serve written 
questions in a sealed envelope on the party taking the deposition, and 
shall transmit them to the officer, who shall open the sealed envelope, 
propound the questions to the witness, and record the answers verbatim.
    (b) Use of depositions. At the hearings, any part or all of a 
deposition, so far as admissible under the rules of evidence, may be 
used against any party who was present or represented at the taking of 
the deposition or who had due notice thereof, in accordance with any one 
of the following provisions:
    (1) Any deposition may be used by any party for the purpose of 
contradicting or impeaching the testimony of the deponent as a witness.
    (2) The deposition of a party or of anyone who at the time of taking 
the deposition was an officer, director, or managing agent, or a person 
designated to testify on behalf of a public or private corporation, 
partnership, association or governmental agency (other than this 
Commission, except in those instances where the Commission itself is a 
party to the proceeding) which is a party, may be used by an adverse 
party for any purpose.
    (3) The deposition of a witness, whether or not a party, may be used 
by any party for any purpose if the presiding officer or Commission 
finds:
    (i) That the witness is dead; or
    (ii) That the witness is at a greater distance than 100 miles from 
the place of hearing or is out of the United States, unless it appears 
that the absence of the witness was procured by the party offering the 
deposition; or
    (iii) That the witness is unable to attend or testify because of 
age, illness, infirmity, or imprisonment; or
    (iv) That the party offering the deposition has been unable to 
procure the attendance of the witness by subpoena; or
    (v) Upon application and notice, that such exceptional circumstances 
exist as to make it desirable, in the interest of justice and with due 
regard to the importance of presenting the testimony of witness orally 
at public hearing, to allow the deposition to be used.
    (4) If only part of a deposition is offered in evidence by a party, 
an adverse party may require him to introduce any other part which ought 
in fairness to be considered with the part introduced, and any party may 
introduce any other parts. Substitution of parties does not affect the 
right to use depositions previously taken.
    (c) Effect of taking or using depositions. A party should not be 
deemed to make a person his own witness for any purpose by taking his 
deposition. The introduction in evidence of the deposition or any part 
thereof for any purpose other than that of contradicting or impeaching 
the deponent makes the deponent the witness of the party introducing the 
deposition, but this should not apply to the use of an adverse party of 
a deposition under paragraph (b)(2) of this section. At the hearing any 
party may rebut any relevant evidence contained in a deposition whether 
introduced by him or by any other party.
    (d) Motions to protect. At any time during the taking of the 
deposition, on motion of any party or of the deponent and upon a showing 
that the examination is being conducted in bad faith or in such manner 
as unreasonably to annoy, embarrass, or oppress the deponent or party, 
the Commission may order the officer conducting the examination to cease 
forthwith from taking

[[Page 208]]

the deposition, or may limit the scope and manner of the taking of the 
deposition as provided in Sec. 1114.21(c). If the order made terminates 
the examination, it should be resumed thereafter only if so ordered. 
Upon demand of the objecting party or deponent, the taking of the 
deposition should be suspended for the time necessary to make a motion 
for an order.
    (e) Recordation. The officer before whom the deposition is to be 
taken shall observe the provisions of Sec. 1113.6 respecting appearances 
and typographical specifications, shall put the witness under oath, and 
shall personally, or by someone acting under his direction and in his 
presence, record and transcribe the testimony of the witness as required 
by these rules.
    (f) Signing. When the testimony is fully transcribed or otherwise 
recorded, the deposition should be submitted to the witness for 
examination and should be read to or by him unless such examination and 
reading are waived by the witness and the parties. Any changes in form 
or substance which the witness desires to make should be entered upon 
the deposition by the officer with a statement of the reasons given by 
the witness for making them. The witness shall then sign the deposition, 
unless the parties by stipulation waive the signing or the witness is 
ill or cannot be found or refuses to sign. If the deposition is not 
signed by the witness within 15 days of its submission to him, the 
officer shall sign it and state on the record the fact of the waiver or 
of the illness or absence of the witness or the fact of the refusal to 
sign together with the reason, if any, given therefor; and the 
deposition may then be used fully as though signed, unless, on a motion 
to suppress, it is found that the reasons given for refusal to sign 
require rejection of the deposition in whole or in part.
    (g) Attestation. The officer shall certify on the deposition that 
the witness was duly sworn by him and that the deposition is a true 
record of the testimony given by the witness, and that the officer is: 
(1) Not a relative, employee, representative or counsel of any of the 
parties, (2) not a relative or employee of such representative or 
counsel, and (3) not financially interested in the proceeding.
    (h) Return. The officer shall securely seal the deposition in an 
envelope endorsed with sufficient information to identify the proceeding 
and marked ``Deposition of (here insert name of witness)'' and shall 
either personally deliver or promptly send the original and one copy of 
all exhibits by registered mail to the Secretary of the Commission. A 
deposition to be offered in evidence must reach the Commission not later 
than 5 days before the date it is to be so offered.
    (i) Notice. The party taking the deposition shall give prompt notice 
of its filing to all other parties.
    (j) Copies. Upon payment of reasonable charges, the officer before 
whom the deposition is taken shall furnish a copy of it to any 
interested party or to the deponent.



Sec. 1114.25  Effect of errors and irregularities in depositions.

    (a) As to disqualification of officer. Objection to taking a 
deposition because of disqualification of the officer before whom it is 
to be taken is waived unless made before the taking of the deposition 
begins or as soon thereafter as the disqualification becomes known or 
could be discovered with reasonable diligence.
    (b) As to taking of deposition. (1) Objections to the competency of 
a witness or to the competency, relevancy, or materiality of testimony 
are not waived by failure to make them before or during the taking of 
the deposition, unless the ground of the objection is one which might 
have been obviated or removed if presented at that time.
    (2) Errors and irregularities occurring at the oral examination in 
the manner of taking the deposition, in the form of the questions or 
answers in the oath or affirmation, or in the conduct of parties, and 
errors of any kind which might be obviated, removed, or cured if 
promptly presented, are waived unless seasonable objection thereto is 
made at the taking of the deposition.
    (c) As to completion and return of deposition. Errors and 
irregularities in the manner in which the testimony is transcribed or 
the deposition is prepared, signed, certified, sealed, endorsed,

[[Page 209]]

transmitted, filed, or otherwise dealt with by the officer under 
Sec. 1114.23 and 1114.24 are waived unless a motion to suppress the 
deposition or some part thereof is made with reasonable promptness after 
such defect is, or with due diligence might have been, ascertained.



Sec. 1114.26  Written interrogatories to parties.

    (a) Availability; procedures for use. Subject to the provisions of 
Sec. 1114.21(b)(2), any party may serve upon any other party written 
interrogatories to be answered by the party served, or if the party 
served is a public or private corporation, partnership, association, or 
Governmental agency (other than this Commission, except in those 
instances where the Commission itself is a party to the proceeding), by 
any officer or agent, who shall furnish such information as is available 
to the party. Copies of any interrogatories served, and answers thereto, 
should also be filed with the Commission. Each interrogatory should be 
answered separately and fully in writing, unless it is objected to, in 
which event the reasons for objection should be stated in lieu of an 
answer. The answers are to be signed by the person making them and 
subscribed by an appropriate verification generally in the form 
prescribed in Sec. 1112.9. Objections are to be signed by the 
representative or counsel making them. The person upon whom the 
interrogatories have been served shall serve a copy of the answers and 
objections within the time period designated by the party submitting the 
interrogatories, but not less than 15 days after the service thereof.
    (b) Option to produce business records. Where the answer to an 
interrogatory may be derived or ascertained from the business records of 
the party upon whom the interrogatory has been served or from an 
examination, audit, or inspection of such business records or from a 
compilation, abstract, or summary based thereon, and the burden of 
deriving or ascertaining the answer is substantially the same for the 
party serving the interrogatory as for the party served, it is a 
sufficient answer to such interrogatory to specify the records from 
which the answer may be derived or ascertained and to afford to the 
party serving the interrogatory reasonable opportunity to examine, 
audit, or inspect such records and to make copies thereof, or 
compilation, abstracts, or summaries therefrom. If information sought is 
contained in computer runs, punchcards, or tapes which also contain 
privileged or proprietary information or information the disclosure of 
which is proscribed by the act, it will be sufficient response under 
these rules that the person upon whom the interrogatory has been served 
is willing to make available to and permit an independent professional 
organization not interested in the proceeding and paid by the party 
serving the interrogatory to extract from such runs, punchcards, or 
tapes the information sought in the interrogatory that is not privileged 
or proprietary information or information the disclosure of which is 
proscribed by the act.
    (c) Service of interrogatories in those proceedings not requiring a 
petition. In those proceedings not requiring a petition for 
interrogatories, and unless under special circumstances and for good 
cause, no written interrogatories shall be served within 20 days prior 
to the date assigned for commencement of hearing or the filing of 
opening statements of fact and argument under the modified procedure, 
and when the written interrogatories are to be served in a foreign 
country, they shall not be served within 40 days prior to such date.



Sec. 1114.27  Request for admission.

    (a) Availability; procedures for use. Subject to the provisions of 
Sec. 1114.21(b)(2), a party may serve upon any other party a written 
request for the admission, for purposes of the pending proceeding only, 
of the truth of any matters within the scope of Sec. 1114.21 set forth 
in the request, including the genuineness of any documents described in 
the request for admission. Copies of documents should be served with the 
request unless they have been or are otherwise furnished or made 
available for inspection and copying. Copies of any requests for 
admission served, and answers thereto, should also be filed with the 
Commission. Each matter of which an admission is

[[Page 210]]

requested should be separately set forth. The matter is admitted unless, 
within a period designated in the request, not less than 15 days after 
service thereof, the party to whom the request is directed serves upon 
the party requesting the admission a written answer or objection 
addressed to the matter, signed by the party or his representative or 
counsel. If objection is made, the reasons therefor should be stated. 
The answer should specifically deny the matter or set forth in detail 
the reasons why the answering party cannot truthfully admit or deny the 
matter. A denial should fairly meet the substance of the requested 
admission, and when good faith requires that a party qualify his answer 
or deny only a part of the matter of which an admission is requested, he 
shall specify so much of it as is true and qualify or deny the 
remainder. An answering party may not give lack of information or 
knowledge as a reason for failure to admit or deny unless he states that 
he has made reasonable inquiry and that the information known or readily 
obtainable by him is insufficient to enable him to admit or deny. A 
party who considers that a matter of which an admission has been 
requested presents a genuine issue for hearing may not, on that ground 
alone, object to the request; he may, subject to the provisions of 
Sec. 1114.31, deny the matter or set forth reasons why he cannot admit 
or deny it. Copies of any answers or objections should be filed with the 
Commission.
    (b) Effect of admission. Any matter admitted under this rule is 
conclusively established unless upon petition and a showing of good 
cause the Commission enters an order permitting withdrawal or amendment 
of the admission. Any admission made by a party under this rule is for 
the purpose of the pending proceeding only and is not an admission by 
him for any other purpose nor may it be used against him in any other 
proceeding.
    (c) Service of written requests for admission in those proceedings 
not requiring a petition. In those proceedings not requiring a petition 
for requests for admission, and unless under special circumstances and 
for good cause shown, no requests for admission should be served within 
20 days prior to the date assigned for commencement of hearing or the 
filing of opening statements of fact and argument under the modified 
procedure, and when requests for admission are to be served in a foreign 
country they should not be served within 40 days prior to such date.



Sec. 1114.28  Depositions, requests for admission, written interrogatories, and responses thereto: inclusion in record.

    At the oral hearing, or upon the submission of statements under the 
modified procedure, depositions, requests for admission and written 
interrogatories, and respective responses may be offered in evidence by 
the party at whose instance they were taken. If not offered by such 
party, they may be offered in whole or in part by any other party. If 
only part of a deposition, request for admission or written 
interrogatory, or response thereto is offered in evidence by a party, 
any other party (where the matter is being heard orally) may require him 
to introduce all of it which is relevant to the part introduced, and any 
party may introduce any other parts. Such depositions, requests for 
admission and written interrogatories, and responses thereto should be 
admissible in evidence subject to such objections as to competency of 
the witness, or competency, relevancy, or materiality of the testimony 
as were noted at the time of their taking or are made at the time they 
are offered in evidence.



Sec. 1114.29  Supplementation of responses.

    A party who has responded to a request for discovery with a response 
that was complete when made is under a duty to supplement his response 
to include information thereafter acquired in the following instances:
    (a) A party is under a duty seasonably to supplement his response 
with respect to any question directly addressed to:
    (1) The identity and locations of persons having knowledge of 
discoverable matters, and
    (2) The identity of each person expected to be called as an expert 
witness at the hearing, the subject matter on

[[Page 211]]

which he is expected to testify, and the substance of his testimony.
    (b) A party who knows or later learns that his response is incorrect 
is under a duty seasonably to correct his response.
    (c) A duty to supplement responses may be imposed by order, 
agreement of the parties, or at any time prior to the hearing or the 
submission of verified statements under the modified procedure through 
new requests for supplementation of prior responses.



Sec. 1114.30  Production of documents and records and entry upon land for inspection and other purposes.

    (a) Scope. Any party may be ordered and directed:
    (1) To produce and permit the petitioning party to inspect any 
designated documents (including writings, drawings, graphs, charts, 
photographs, phonograph records, tapes, and other data compilations from 
which information can be obtained, translated, if necessary, with or 
without the use of detection devices into reasonably usable form), or to 
inspect and copy, test, or sample any tangible things which are in the 
possession, custody, or control of the party upon whom the order is 
served, but if the writings or data compilations (including computer 
runs, punchcards, and tapes) include privileged or proprietary 
information or information the disclosure of which is proscribed by the 
act, such writings or data compilations need not be produced under this 
rule but may be provided pursuant to Sec. 1114.26(b); or
    (2) To permit, subject to appropriate liability releases and safety 
and operating considerations, entry upon designated land or other 
property in the possession or control of the party upon whom the order 
is served for the purpose of inspecting and measuring, surveying, 
photographing, testing, or sampling the property or any designated 
object or operation thereon.
    (b) Procedure. Any petition filed pursuant to this rule should set 
forth the items to be inspected either by individual item or by category 
and describe each item and category with reasonable particularity. The 
petition should specify a reasonable time, place, and manner of making 
the inspection and performing the related acts.



Sec. 1114.31  Failure to respond to discovery.

    (a) Failure to answer. If a deponent fails to answer or gives an 
evasive answer or incomplete answer to a question propounded under 
Sec. 1114.24(a), or a party fails to answer or gives evasive or 
incomplete answers to written interrogatories served pursuant to 
Sec. 1114.26(a), the party seeking discovery may apply for an order 
compelling an answer by motion filed with the Commission and served on 
all parties and deponents. Such motion to compel an answer must be filed 
with the Commission and served on all parties and deponents. Such motion 
to compel an answer must be filed with the Commission within 10 days 
after the failure to obtain a responsive answer upon deposition, or 
within 10 days after expiration of the period allowed for submission of 
answers to interrogatories. On matters relating to a deposition on oral 
examination, the proponent of the question may complete or adjourn the 
examination before he applies for an order.
    (b) Failure to comply with order. (1) If a party or other witness 
refuses to be sworn or refuses to answer any question after being 
directed to do so by the Commission, such refusal may subject the 
refusing party or person to action by the Commission under 49 U.S.C. 
10321(c)(3) and (d)(4) to compel appearance and compliance with the 
Commission's order.
    (2) If any party or an officer, director, managing agent, or 
employee of a party or person refuses to obey an order made under 
paragraph (a) of this section requiring him to answer designated 
questions, or an order made under Sec. 1114.30 requiring him to produce 
any document or other thing for inspection, copying, testing, sampling, 
or photographing or to permit it to be done, or to permit entry upon 
land or other property, the Commission may make such orders in regard to 
the refusal as are just, and among others the following:
    (i) An order that the matters regarding which questions were asked, 
or the character or description of the thing or

[[Page 212]]

land, or the contents of the paper, or any other designated facts should 
be taken to be established for the purposes of the proceeding in 
accordance with the claim of the party obtaining the order:
    (ii) An order refusing to allow the disobedient party to support or 
oppose designated claims or defenses, or prohibiting him from 
introducing in evidence designated documents or things or items of 
testimony:
    (iii) An order striking out pleadings or parts thereof, or staying 
further proceedings until the order is obeyed, or dismissing the 
proceedings or any party thereof.
    (c) Expenses on refusal to admit. If a party, after being served 
with a request under Sec. 1114.27 to admit the genuineness of any 
document or the truth of any matter of fact, serves a sworn denial 
thereof, and if the party requesting the admission thereafter proves the 
genuineness of any such document or the truth of any such matter of fact 
the Commission may order the party making such denial to pay to such 
other party the reasonable expenses incurred in making that proof, 
including reasonable attorney's fees.
    (d) Failure of party to attend or serve answers. If a party or a 
person or an officer, director, managing agent, or employee of a party 
or person willfully fails to appear before the officer who is to take 
his deposition, after being served with a proper notice, or fails to 
serve answers to interrogatories submitted under Sec. 1114.26, after 
proper service of such interrogatories, the Commission on motion and 
notice may strike out all or any part of any pleading of that party or 
person, or dismiss the proceeding or any part thereof.
    (e) Expenses against United States. Expenses and attorney's fees are 
not to be imposed upon the United States under this rule.



PART 1115--APPELLATE PROCEDURES--Table of Contents




Sec.
1115.1  Scope of rule.
1115.2  Initial decisions.
1115.3  Commission actions other than initial decisions.
1115.4  Petitions to reopen administratively final actions.
1115.5  Petitions for other relief.
1115.6  Exhaustion of remedies and judicial review.
1115.7  Petitions for judicial review; mailing address.
1115.8  Petitions to review arbitration decisions.

    Authority: 49 U.S.C. 10321, 10322, and 10377; 5 U.S.C. 559.

    Source: 47 FR 49568, Nov. 1, 1982, unless otherwise noted.



Sec. 1115.1  Scope of rule.

    (a) These appellate procedures apply in cases where a hearing is 
required by law or Commission action. They do not apply to informal 
matters such as car service, temporary authority, suspension, special 
permission actions, or to other matters of an interlocutory nature 
except as specifically provided below. Except as provided in paragraph 
(c) of this section, these procedures do not apply to appeals from 
decisions of individual Commission employees in purely procedural 
matters made pursuant to authority delegated to them by the Chairman of 
the Commission. (See 49 CFR part 1152) Abandonment and discontinuance 
proceedings instituted under 49 U.S.C. 10903 are governed by separate 
appellate procedures exclusive to those proceedings. (See 49 CFR part 
1152)
    (b) Requests for appellate relief may relate either to initial 
decisions or to Commission actions other than initial decisions. For 
each category, this rule describes the types of appeal permitted, the 
requirements to be observed in filing an appeal, provisions for stay of 
the action, and the status of the action in the absence of a stay.
    (c) Appeals from the decisions of employees acting under authority 
delegated to them by the Chairman of the Commission pursuant to 
Sec. 1011.7 will be acted upon by the Chairman of the Commission. 
Appeals must be filed within 10 days of the date of the action taken by 
the employee, and responses to appeals must be filed within 10 days 
thereafter. Such appeals are not favored; they will be granted only in 
exceptional circumstances to correct a clear error of judgment or to 
prevent manifest injustice.

[[Page 213]]



Sec. 1115.2  Initial decisions.

    This category includes the initial decision of an administrative law 
judge, individual Commissioner, employee board, or joint board.
    (a) An appeal of right is permitted.
    (b) Appeals must be based on one or more of the following grounds:
    (1) That a necessary finding of fact is omitted, erroneous, or 
unsupported by substantial evidence of record;
    (2) That a necessary legal conclusion, or finding is contrary to 
law, Commission precedent, or policy;
    (3) That an important question of law, policy, or discretion is 
involved which is without governing precedent;
    (4) That prejudicial procedural error has occurred.
    (c) Appeals must detail the assailed findings with supporting 
citations to the record and authorities.
    (d) Appeals and replies shall not exceed 30 pages in length, 
including argument, and appendices or other attachments, but excluding a 
table of cases and an index of subject matter.
    (e) Appeals must be filed within 20 days after the service date of 
the decision or within any further period (not to exceed 20 days) the 
Commission may authorize. In proceedings seeking motor carrier operating 
authority replies must be filed within 15 days of the date the appeal is 
due. In all other proceedings covered by these rules, replies must be 
filed within 20 days of the date the appeal is due.
    (f) The timely filing of an appeal to an initial decision will stay 
the effect of the action pending determination of the appeal.
    (g) If an appeal of an initial decision is not timely filed or the 
Commission does not stay the effectiveness on its own motion, the order 
set forth in the initial decision shall become the action of the 
Commission and be effective at the expiration of the time for filing, 
unless otherwise provided.

[47 FR 49568, Nov. 1, 1982, as amended at 54 FR 19894, May 9, 1989]



Sec. 1115.3  Commission actions other than initial decisions.

    This category includes: a decision of a division in the first 
instance, where the requirement for an initial decision was voided (for 
rail proceedings pursuant to 49 U.S.C. 10327(c)) or waive (for nonrail 
proceedings pursuant to 49 U.S.C. 10322(c)); an action of the entire 
Commission in the first instance; and an action taken by a division on 
an appeal filed under Sec. 1115.2.
    (a) A discretionary appeal is permitted. It will be designated a 
``petition for administrative review,'' except that, when it is related 
to an action of the entire Commission in the first instance, it must be 
designated a ``petition to reopen.''
    (b) The petition will be granted only upon a showing of one or more 
of the following points:
    (1) The prior action (all categories) will be affected materially 
because of new evidence or changed circumstances.
    (2) The prior action was taken by a division in the first instance 
or by a division in an appellant capacity, and involves a matter of 
general transportation importance.
    (3) The prior action was taken by the entire Commission in the first 
instance, and involves material error.
    (c) To the extent the petition requests further hearing, rehearing, 
reargument, or reconsideration, the petition must state in detail the 
nature of and reasons for the relief requested. When in a petition filed 
under this section, a party seeks an opportunity to introduce evidence, 
the evidence must be stated briefly, must not appear to be cumulative, 
and explanation must be given why it was not previously adduced.
    (d) The petition and any reply must not exceed 20 pages in length. A 
separate preface and summary of argument, not exceeding 3 pages, may 
accompany petitions and replies and must accompany those that exceed 10 
pages in length.
    (e) Petitions must be filed within 20 days after the service of the 
action or within any further period (not to exceed 20 days) as a 
division or the Commission may authorize. In proceedings seeking motor 
carrier authority replies must be filed within 15 days of the date the 
appeal is due. In all other proceedings covered by these rules, replies 
must be filed within 20 days of the date the appeal is due.

[[Page 214]]

    (f) The filing of a petition will not automatically stay the effect 
of a prior action, but the Commission may stay the effect of the action 
on its own motion or on petition. A petition to stay may be filed in 
advance of the petition for administrative review or petition to reopen 
and shall be filed within 10 days of service of the action. No reply 
need be filed. However, if a party elects to file a reply, it must reach 
the Commission no later than 16 days after service of the action.
    (1) In a rail proceeding, the action, if not stayed, will become 
effective 30 days after it is served, unless the acting body provides 
for the action to become effective at a different date. On the day the 
action is served parties may initiate judicial review.
    (2) In a nonrail proceeding, the action, if not stayed, will be 
effective on the date it is served, and parties may initiate judicial 
review.
    (3) In all final actions, the provisions of the action will take 
effect on the date of service, unless otherwise provided. On this date 
parties must comply with the terms, conditions, or orders of the 
effective decision.

(49 U.S.C. 10321, 5 U.S.C. 553; 5 U.S.C. 553 and 49 U.S.C. 10305)

[47 FR 49568, Nov. 1, 1982, as amended at 48 FR 44827, Sept. 30, 1983; 
49 FR 31071, Aug. 3, 1984]



Sec. 1115.4  Petitions to reopen administratively final actions.

    A person at any time may file a petition to reopen any 
administratively final action of the Commission pursuant to the 
requirements of Sec. 1115.3(c) and (d) of this part. A petition to 
reopen an operating rights application proceeding must state in detail 
information sufficient to establish either fraud or ministerial mistake 
in the earlier decision. A petition to reopen all other proceedings must 
state in detail the respects in which the proceeding involves material 
error, new evidence, or substantially changed circumstances and must 
include a request that the Commission make such a determination.



Sec. 1115.5  Petitions for other relief.

    (a) A party may petition for a stay of an action pending a request 
for judicial review, for extension of the compliance date, or for 
modification of the date the terms of the decision take effect. The 
reasons for the desired relief must be stated in the petition, and the 
petition must be filed not less than 10 days prior to the date the terms 
of the action take effect. No reply need be filed. If a party elects to 
file a reply, the reply must reach the Commission no later than 5 days 
after the petition is filed.
    (b) When the terms of a Commission action take effect on less than 
15 days' notice, a petition for stay pending a request for judicial 
review must be filed prior to the institution of court action and as 
close to the service date as practicable. No reply need be filed. Where 
time permits, a party may elect to file a reply.
    (c) A petition or reply must not exceed 10 pages in length.



Sec. 1115.6  Exhaustion of remedies and judicial review.

    These rules do not relieve the requirement that a party exhaust its 
administrative remedies before going to court. Any action appealable as 
of right must be timely appealed. If an appeal, discretionary appeal, or 
petition seeking reopening is filed under Sec. 1115.2 or Sec. 1115.3 of 
this part, before or after a petition seeking judicial review is filed 
with the courts, the Commission will act upon the appeal or petition 
after advising the court of its pendency unless action might interfere 
with the court's jurisdiction.



Sec. 1115.7  Petitions for judicial review; mailing address.

    Petitions for judicial review of final agency orders may be served 
on the Commission pursuant to 28 U.S.C. 2112(a) and be addressed to 
``General Counsel, Office of the General Counsel, Interstate Commerce 
Commission, Washington, DC 20423.''

[53 FR 20854, June 7, 1988]



Sec. 1115.8  Petitions to review arbitration decisions.

    An appeal of right is permitted. The appeal must be filed within 20 
days of a final arbitration decision, unless a

[[Page 215]]

later date is authorized by the Commission, and is subject to the page 
limitations of Sec. 1115.2(d). Standards for Commission review of 
arbitration decisions are set forth in Chicago and North Western Transp. 
Co.--Abandonment, 3 I.C.C.2d 729 (1987), aff'd sub nom. International 
Brotherhood of Electrical Workers v. ICC, No. 87-1629 (D.C. Cir. 
November 25, 1988). The timely filing of a petition will not 
automatically stay the effect of the arbitration decision. A stay may be 
requested under Sec. 1115.5.

[54 FR 19894, May 9, 1989]



PART 1116--ORAL ARGUMENT BEFORE THE COMMISSION--Table of Contents




    Authority: 49 U.S.C. 10321; 5 U.S.C. 559.



Sec. 1116.1  Requests.

    (a) Addressee. Requests for oral argument should be addressed to the 
Secretary, Interstate Commerce Commission, Washington, DC 20423.
    (b) Who may request? Any party may submit a written request for oral 
argument and state the reasons for the request. No replies from other 
parties to the request shall be made.
    (c) When to file a request. Requests for oral argument should be 
filed within 20 days after the date of service of the decision, order, 
or requirement being appealed, unless the Commission by order prescribes 
a different time period.
    (d) Granting of request. The Commission will rule upon requests by 
decision, and the granting of requests is entirely at the discretion of 
the Commission.

[47 FR 49569, Nov. 1, 1982]



Sec. 1116.2  Manner of presentation.

    Proponents of a rule or order will be heard first, and opponents 
will be heard second. One counsel only will usually be heard for each of 
the opposing interests, unless additional presentations are specifically 
authorized.

[47 FR 49569, Nov. 1, 1982]



PART 1117--PETITIONS (FOR RELIEF) NOT OTHERWISE COVERED--Table of Contents




    Authority: 49 U.S.C. 10321; 5 U.S.C. 559.



Sec. 1117.1  Petitions.

    A party seeking relief not provided for in any other rule may file a 
petition for such relief. The petition should contain (a) a short, plain 
statement of the grounds upon which the Commission's jurisdiction is 
based; (b) a short plain statement of the claim showing that the 
petitioner is entitled to relief; and (c) a demand for the relief the 
petitioner believes is appropriate.

[47 FR 49569, Nov. 1, 1982]



PART 1118--PROCEDURES IN INFORMAL PROCEEDINGS BEFORE EMPLOYEE BOARDS--Table of Contents




Sec.
1118.1  Scope.
1118.2  Proceedings to be informal.
1118.3  Service of special permission applications.
1118.4  Appeals.

    Authority: 49 U.S.C. 10321; 5 U.S.C. 559.

    Source: 47 FR 49569, Nov. 1, 1982, unless otherwise noted.



Sec. 1118.1  Scope.

    The rules in this part govern proceedings before all employee 
boards. Special rules, located elsewhere in this part should also be 
consulted.

[57 FR 9213, Mar. 17, 1992]



Sec. 1118.2   Proceedings to be informal.

    The proceedings in all matters governed by this part will be 
informal. No transcript of these proceedings will be made. Subpoenas 
will not be issued and, except when applications, petitions, or 
statements are required to be attested, oaths will not be administered.



Sec. 1118.3   Service of special permission applications.

    A special permission application requesting authority to change, 
cancel, or reissue tariff matter under suspension or continued in effect 
as a result of suspension should be simultaneously served on all parties 
to the investigation and suspension proceeding, and should include a 
certificate of service to that effect.

[[Page 216]]



Sec. 1118.4   Appeals.

    (a) Standing to appeal. Appeals of the decisions of the employee 
boards subject to this part and replies to appeals may be filed by any 
person.
    (b) Number of copies. The original and 10 copies of each pleading or 
paper permitted or required to be filed under this section should be 
furnished for the use of the Commission.
    (c) Time for filing. Except as provided in paragraph (e) of this 
section with respect to matters involving emergency temporary authority, 
appeals in proceedings governed by this part must be filed within 20 
days after the date of service of the decision.
    (d) Where filed. Appeals and replies to appeals of Regional Motor 
Carrier Board temporary authority (TA) and emergency temporary authority 
(ETA) application decisions must be filed with the Regional Office in 
which the application was filed [see Secs. 1162.6 (d) and (e)]. Appeals 
and replies to appeals of all other decisions issued by employee boards 
must be filed with the Secretary, Interstate Commerce Commission, 
Washington, DC 20423.
    (e) Appeals in emergency temporary authority proceedings. An 
applicant seeking reconsideration of a decision concerning emergency 
temporary authority must file a petition within 20 days after it is 
notified of the decision on the application. Any other interested person 
seeking reconsideration of a decision granting emergency temporary 
authority may file a petition at any time during the life of the 
authority. Replies may be filed within 15 days after the filing of the 
petition. Pleadings must be served on all parties of record.
    (f) Appeals in valuation proceedings. An appeal of a tentative 
valuation must contain precise references to the matters objected to and 
must include a statement of the changes in the valuation desired by the 
appellant. When practicable, each object of appeal should be set up as a 
separately numbered item. An appeal against land values or areas must 
state the valuation section and zone on the Commission's maps in which 
the land is located. When appellant claims that property owned or used 
has been omitted, a full description of the property and its location 
must be included.
    (g) Decisions on appeal. An appeal from an employee board's initial 
decision in a matter subject to this part will be reviewed by the board 
which may elect to modify its decision in light of new facts or 
arguments presented on appeal. If the board elects not to modify its 
prior decision, the appeal will be forwarded to the appropriate 
appellate body for determination. If a modified decision is issued by 
the board, a further appeal lies under this part. A decision on appeal 
by an appellate body is administratively final.

(49 U.S.C. 10321 and 10928; 5 U.S.C. 559)

[47 FR 49569, Nov. 1, 1982, as amended at 48 FR 13047, Mar. 29, 1983; 48 
FR 51628, Nov. 10, 1983; 53 FR 19301, May 27, 1988; 57 FR 9213, Mar. 17, 
1992]



PART 1119--COMPLIANCE WITH COMMISSION DECISIONS--Table of Contents




    Authority: 49 U.S.C. 10321; 5 U.S.C. 559.



Sec. 1119.1   Compliance.

    A defendant or respondent directed by the Commission to do or desist 
from doing a particular thing must notify the Commission on or before 
the compliance date specified in the decision of the manner of 
compliance. Notification should be by verified affidavit showing 
simultaneous service upon all parties to the proceeding. Where a change 
in rates or schedules is directed, notification specifying the 
Interstate Commerce Commission tariff or schedule numbers must be given 
in addition to the filing of proper tariffs or schedules.

[47 FR 49570, Nov. 1, 1982]



PART 1120--USE OF 1977-1978 STUDY OF MOTOR CARRIER PLATFORM HANDLING FACTORS--Table of Contents




    Authority: 49 U.S.C. 10321, 10701, and 10706.



Sec. 1120.1  Scope.

    The provisions of this part apply only to Class I and II motor 
common carriers of general freight subject to accounting instruction 
number 27 of the

[[Page 217]]

Commission's Uniform System of Accounts (49 CFR Part 1207).

[47 FR 36184, Aug. 19, 1982. Redesignated at 47 FR 49570, Nov. 1, 1982]



Sec. 1120.2  Purpose.

    In any proceeding requiring the development of platform handling 
times for distribution of platform expense, carriers may use the results 
of the national weight formula contained in the Commission's study, 
entitled 1977-1978 Motor Carrier Platform Study, Statement 2S1-79.

[47 FR 36184, Aug. 19, 1982. Redesignated at 47 FR 49570, Nov. 1, 1982]



PART 1121--RAIL EXEMPTION PROCEDURES--Table of Contents




Sec.
1121.1  Scope.
1121.2  Criteria.
1121.3  Petitions for exemption.
1121.4  Procedures.

    Authority: 49 U.S.C. 10505; 5 U.S.C. 553.

    Source: 56 FR 46391, Sept. 12, 1991, unless otherwise noted.



Sec. 1121.1  Scope.

    These procedures govern petitions filed under 49 U.S.C. 10505 to 
exempt a transaction or service from 49 U.S.C. subtitle IV, or any 
provision of 49 U.S.C. subtitle IV.



Sec. 1121.2  Criteria.

    Under 49 U.S.C. 10505, the Commission must exempt a person, class of 
persons or a transaction or service from regulation when it finds that:
    (a) Regulation is not necessary to carry out the rail transportation 
policy of 49 U.S.C. 10101a; and
    (b) Either:
    (1) The transaction is of limited scope; or
    (2) Regulation is not necessary to protect shipppers from the abuse 
of market power.



Sec. 1121.3  Petitions for exemption.

    (a) A petition must comply with environmental or historic reporting 
and notice requirements of 49 CFR Part 1105, if applicable.
    (b) If the exemption proposal involves the acquisition of a motor 
carrier by a rail carrier (or person who controls or is affiliated with 
a rail carrier) under 49 U.S.C. 11344(c), the petition must include 
sufficient information to show that the transaction:
    (1) Is consistent with the public interest;
    (2) Will enable the rail carrier to use motor carrier transportation 
to public advantage in its operations; and
    (3) Will not unreasonably restrain competition.



Sec. 1121.4  Procedures.

    (a) Proposals contained in a petition for exemption under 49 U.S.C. 
10505 are considered on their own merit.
    (b) Exemption proceedings are informal, and public comments are not 
sought during consideration of exemption petition proposals. However, 
the Commission may consider during its deliberation any public comments 
filed in response to a petition for exemption.
    (c) If the Commission determines that the criteria in 49 U.S.C. 
10505 are met for the proposed exemption, it will issue the exemption 
and publish a notice of the exemption in the Federal Register.
    (d) If the impact of the proposed exemption cannot readily be 
ascertained from the information contained in the petition or 
accompanying submissions or if significant adverse impacts might occur 
if the proposed exemption were granted, the Commission, in its 
discretion, may:
    (1) Direct that additional information be filed; or
    (2) Publish a notice in the Federal Register requesting public 
comments.
    (e) Exemption petitions containing proposals that are directly 
related to and concurrently filed with a primary application will be 
considered along with that primary application.
    (f) Under 49 U.S.C. 10505(g), the Commission may not relieve a 
carrier from the statutory obligation to protect the interests of 
employees. Accordingly, the Commission will impose appropriate employee 
protective conditions in decisions involving transactions subject to 
mandatory labor protection. Where labor protection is not mandatory, the 
Commission will exercise its discretion and impose labor protection

[[Page 218]]

when protection is found to be warranted under the circumstances.
    (g) An exemption generally will be effective 30 days from the 
service date of the decision granting the exemption. Unless otherwise 
provided in the decision, petitions to stay must be filed within 10 days 
of the service date, and petitions to reopen under 49 CFR part 1115 or 
1152.25(e) must be filed within 20 days of the service date. A petition 
to reopen may include comments on the proposal, requests for employee 
protection, or other conditions.
    (h) For good cause shown, an exemption may become effective at a 
time earlier than 30 days from the date of service. In such cases, the 
decision will specify the time for filing petitions to stay or reopen 
the exemption.
    (i) Under 49 U.S.C. 10505(d) or 49 CFR 1152.25(e), the Commission 
may revoke an exemption in whole or in part. Petitions to revoke may be 
filed any time after the exemption becomes effective. The person seeking 
revocation has the burden of showing that the revocation criterion of 
section 10505(d) is met.
    (j) In abandonment exemptions, petitions to revoke in part to impose 
public use conditions under 49 CFR 1152.28, or to invoke the Trails Act, 
16 U.S.C. 1247(d), may be filed at any time prior to consummation of the 
abandonment.

[56 FR 46391, Sept. 12, 1991, as amended at 57 FR 5237, Feb. 13, 1992]



PARTS 1122-1129--[RESERVED]






PARTS 1130-1149--RATE PROCEDURES--Table of Contents






PART 1130--INFORMAL COMPLAINTS--Table of Contents




    Authority: 5 U.S.C. 553 and 559; 49 U.S.C. 10321, 10707 and 11712.



Sec. 1130.1  When no damages sought.

    (a) Form and content; copies. Informal complaint may be by letter or 
other writing and will be serially numbered as filed. The complaint must 
contain the essential elements of a formal complaint as specified at 49 
CFR 1131.1 and may embrace supporting papers. The original and one copy 
must be filed with the Commission.
    (b) Correspondence handling. When an informal complaint appears 
susceptible of informal adjustment, the Commission will send a copy or 
statement of the complaint to each subject of the complaint in an 
attempt to have it satisfied by correspondence, thereby avoiding the 
filing of a formal complaint.
    (c) Discontinuance of informal proceeding. The filing of an informal 
complaint does not preclude complainant from filing a formal complaint. 
If a formal complaint is filed, the informal proceeding will be 
discontinued.

[47 FR 49570, Nov. 1, 1982, as amended at 48 FR 44827, Sept. 30, 1983]



Sec. 1130.2  When damages sought.

    (a) Actual filing required.  Notification to the Commission that an 
informal complaint may or will be filed later seeking damages is not a 
filing within the meaning of the statute except as provided in paragraph 
(e) of this section.
    (b) Content. An informal complaint seeking damages must be filed 
within the statutory period, and should identify with reasonable 
definiteness the involved shipments or transportation services. The 
complaint should include:
    (1) A statement that complainant seeks to recover damages;
    (2) The names of each individual seeking damages;
    (3) The names and addresses of defendants against which claim is 
made;
    (4) The commodities, the rate applied, the date on which the charges 
were paid, the names of the parties paying the charges, and, if 
different, the names of the parties bearing the charges;
    (5) The period of time within which or the specific dates upon which 
the shipments were made, and the dates when they were delivered or 
tendered for delivery;
    (6) The specific origin and destination points or, where they are 
numerous, the territorial or rate group of the origin and destination 
points and, if known, the routes of movement; and
    (7) The nature and amount of the injury sustained by each claimant.

[[Page 219]]

    (c) Statement of prior claim. A complaint filed under paragraph (b) 
or (e) of this section containing a claim which has been the subject of 
a previous informal or formal complaint must specifically refer to the 
previous complaint.
    (d) Copies. The original of an informal complaint seeking damages 
must be accompanied by a sufficient number of copies to enable the 
Commission to send one to each defendant named.
    (e) Special-docket proceedings--(1) Petitions based on damages. 
Where the Act provides for an award of damages for a violation, and a 
carrier is willing to pay them, or to waive collection of undercharges, 
and the amount involved is more than $25,000.00, petitions for 
appropriate authority should be filed by the carrier on the special 
docket by submitting either a Letter of Intent to Pay Reparations, a 
Letter of Intent to Pay Reparations and Waive Undercharges, or a Letter 
of Intent to Waive Undercharges. Such petitions, when not filed in 
connection with an Informal Complaint pending before the Commission, 
must be filed within the statutory period and will be deemed the 
equivalent of an informal complaint and an answer admitting the matters 
stated in the petition. These petitions shall contain, as a minimum, the 
following information:
    (i) The names and addresses of the complainants seeking damages.
    (ii) The names of the defendants against which the claim is filed.
    (iii) The amount of the claim.
    (iv) The tariff authority for both the assailed and the sought rate.
    (v) The dates on which, or within which, the shipments moved and, 
when necessary to show compliance with the statute of limitations, the 
dates when the shipments were delivered or tendered for delivery.
    (vi) The points of origin and destination of the shipments and the 
routes of movement.
    (vii) The commodity.
    (viii) An admission by the carrier that the assailed rate was 
unreasonable, and a showing, where appropriate, that it has been removed 
from the tariff.
    (ix) A statement certifying that all defendants against which the 
claim is lodged concur in the intent to pay reparations or waive 
undercharges.
    (x) Evidence to show compliance with the statute of limitations.
    (xi) A brief explanation of the circumstances causing the claim for 
damages and the precedent relied upon by the carrier in agreeing to 
honor it.

If a carrier is unable to file such petition within the statutory period 
and the claim is not already protected from the operation of the statute 
by informal complaint, a Letter of Registration setting forth the facts 
may be submitted by the carrier within the statutory period. This letter 
will also be deemed the equivalent of an informal complaint filed on 
behalf of the shipper or consignee and sufficient to stay the operation 
of the statute. However, an appropriate Letter of Intent must be filed 
within one year following receipt by the Commission of the Letter of 
Registration. If an amount to be waived or refunded is $25,000.00 or 
less, no petition (Letter-of-Intent) need be filed prior to waiver or 
reparation. However, a Letter of Disposition informing the Commission of 
the action taken, the date of the action, the amount waived or refunded, 
and the date or dates shipments moved shall be submitted to the Special 
Docket Board, Interstate Commerce Commission, Washington, DC 20423, 
within 30 days of the waiver or refund. The Letter of Disposition is 
deemed to be Commission action on a complaint for payment of reparations 
or waiver of undercharges. Letters of Disposition will be kept in a 
public file at the Commission for three years. Interested persons may 
see the file by inquiring at the Special Docket Board, Bureau of 
Traffic, during normal working hours of the Commission.
    (2) Petitions to waive collection of insignificant amounts. If a 
rail carrier wishes to waive the collection of amounts due under 49 
U.S.C. 10707(d)(2), when such amounts are more than $25,000.00, a 
petition for appropriate authority should be filed by the carrier on the 
special docket by submitting a Letter of Intent to Waive Insignificant 
Amounts. These petitions should contain the following information:
    (i) The name and address of the customer for whom the carrier wishes 
to waive collection.

[[Page 220]]

    (ii) The name and addresses of the carriers involved in the intended 
waiver and a statement certifying that all carriers concur in the 
action.
    (iii) The amount intended to be waived.
    (iv) The number of the investigation and suspension case involved, 
the beginning and ending dates of the suspension period, and any other 
pertinent tariff information.
    (v) The points of origin and destination of the shipments and the 
routes of movement, if relevant.
    (vi) A brief statement of justification for the intended waiver, 
including the anticipated costs of billing, collecting and/or litigating 
if the waiver is not permitted.

If the amount to be waived is $25,000.00 or less, no petition need be 
filed prior to waiver, provided that this exemption may be invoked by a 
carrier only once for any person (as defined at 49 U.S.C. 10102(16)) who 
uses the suspended rate during the suspension period. However, a Letter 
of Disposition informing the Commission of the action taken, the date of 
the action, and the amount waived shall be submitted to the Special 
Docket Board, Interstate Commerce Commission, Washington, DC 20423, 
within 30 days of the waiver.
    (3) Public Notice and Protest. Petitions on the Special Docket to 
pay reparations, waive the collection of undercharges or waive the 
collection of insignificant amounts shall be made available by the 
Commission for public inspection five (5) days after receipt, in the 
Board of Suspension Public File Room, Room 4339, 12th & Constitution 
Avenue, NW., Washington, DC 20423 and remain available for 25 days. Any 
interested person may protest the granting of a petition by filing a 
Letter of Objection with the Special Docket Board within 30 days of 
Commission receipt of the petition. Letters of Objection shall identify 
the Special Docket number, shall clearly state the reasons for the 
objection, and shall certify that a copy of the Letter of Objection has 
been served on all parties named in the petition. A period of 15 days 
will be allowed for reply.
    (4) Uncontested petitions. A petition which is not contested will be 
considered an order of the Commission authorizing the action 
contemplated in the petition 45 days after Commission receipt of the 
petition. Within 30 days after the expiration of the 45-day period the 
carrier filing the petition shall file a Letter of Disposition informing 
the Special Docket Board of the action taken, the date of the action, 
and the amount paid or waived.
    (f) Notification to the parties; six month's rule. If an informal 
complaint seeking damages (other than a contested Special-docket 
petition or tariff reconciliation petition) cannot be disposed of 
informally or is denied or withdrawn by complainant, the parties 
affected will be so notified in writing by the Commission. Contested 
Special-docket or tariff reconciliation petitions either will be granted 
or denied by the entry of a decision. Unless within six months after the 
date on which a notice is mailed or a decision is served, a party either 
files a formal complaint or resubmits its informal complaint on an 
additional-fact basis, the matter in the complaint or petition will not 
be reconsidered. The claim will be considered abandoned and no complaint 
seeking damages on the same cause of action will be accepted unless 
filed within the statutory period. Any filing or resubmission satisfying 
the six months' requirement will be considered filed as of the date of 
the original filing and must specifically refer to that date and to the 
Commission's file number. An original and 10 copies of a petition for 
reconsideration should be filed.
    (g) Tariff reconciliation proceedings for motor common carriers--(1) 
Petitions to waive collection or permit payment. Pursuant to 49 U.S.C. 
11712, subject to Commission review and approval, motor common carriers 
(other than household goods carriers) and shippers may resolve, by 
mutual consent, overcharge and undercharge claims resulting from 
incorrect tariff provisions or billing errors arising from the 
inadvertent failure to properly and timely file and maintain agreed-upon 
rates, rules or classifications in compliance with 49 U.S.C. 10761 and 
10762. Under section 11712, the Commission may approve any departure 
from the filed rate when the shipper and carrier agree, and the 
departure is needed for the reason(s) stated in section 11712. Petitions

[[Page 221]]

for appropriate authority may be filed by either the carrier, shipper or 
consignee on the Commission's tariff reconciliation docket by submitting 
a letter of intent to depart from the filed rate. The petitions will be 
deemed the equivalent of an informal complaint and answer admitting the 
matters stated in the petition. Petitions shall be sent to the Special 
Docket Board, Interstate Commerce Commission, Washington, DC 20423. The 
petitions shall contain, at a minimum, the following information:
    (i) The name(s) and address(es) of the payer(s) of the freight 
charges;
    (ii) The name(s) of the carrier(s) involved in the traffic;
    (iii) An estimate of the amount(s) involved;
    (iv) The time period when the shipment(s) involved were delivered or 
tendered for delivery;
    (v) A general description of the point(s) of origin and destination 
of the shipment(s);
    (vi) A general description of the commodity(ies) transported;
    (vii) A statement certifying that the carrier(s) and shipper(s) 
participating in the shipment(s) or the payer(s) of the freight charges 
concur(s) with the intent to depart from the filed rate; and
    (viii) A brief explanation of the incorrect tariff provision(s) or 
billing error(s) causing the request to depart from the filed rate.
    (2) Public notice and protest. Tariff reconciliation petitions 
(letters of intent) shall be served on all parties named in the petition 
by the party who files the petition and will be made available by the 
Commission for public inspection in the Special Docket Board Public 
File, Interstate Commerce Commission, Washington, DC 20423. Any 
interested person may protest the granting of a petition by filing a 
letter of objection with the Special Docket Board within 30 days of 
Commission receipt of the petition. Letters of objection shall identify 
the tariff reconciliation proceeding, shall clearly state the reasons 
for the objection, and shall certify that a copy of the letter of 
objection has been served on all parties named in the petition. The 
Commission may initiate an investigation of the petition on its own 
motion.
    (3) Uncontested petitions. If a petition is not contested, and if 
the Commission does not initiate an investigation of the petition on its 
own motion, approval is deemed granted without further action by the 
Commission, effective 45 days after Commission receipt of the petition.
    (4) Contested petitions. If a petition is contested or the 
Commission initiates an investigation of the petition on its own motion, 
15 days will be allowed for reply. The 15-day period will commence on 
the date of service of the objections or, if the Commission initiates an 
investigation on its own motion, on the date of service of the decision 
initiating the investigation. After the period for reply has expired, 
the Commission will issue a decision approving or disapproving the 
petition, or requesting further submissions from the parties, and then 
will issue a decision based on the further submissions.

[47 FR 49570, Nov. 1, 1982, as amended at 50 FR 15901, Apr. 23, 1985; 51 
FR 5713, Feb. 18, 1986; 52 FR 26479, July 15, 1987; 53 FR 19301, May 27, 
1988; 60 FR 2544, Jan. 10, 1995]



PART 1131--FORMAL RATE COMPLAINTS, RAIL INTRASTATE PETITIONS AND INVESTIGATIONS--Table of Contents




Sec.
1131.1  Content.
1131.2  When damages sought.
1131.3  [Reserved]
1131.4  Railroad allegations of unlawful intrastate rates.
1131.5  Other specifications.
1131.6  Multiple causes of action; joinder.
1131.7  Amended and supplemental formal complaints.
1131.8  Copies; service.
1131.9  Answers and cross complaints.
1131.10  Motions to dismiss or to make more definite.
1131.11  Satisfaction of complaint.

    Authority: 49 U.S.C. 10321 and 11701; 5 U.S.C. 559.

    Source: 47 FR 49572, Nov. 1, 1982, unless otherwise noted.



Sec. 1131.1  Content.

    (a) General. A formal complaint must contain the correct, 
unabbreviated names and addresses of each complainant and defendant. It 
should set forth

[[Page 222]]

briefly and in plain language the facts upon which it is based. It 
should include specific reference to pertinent statutory provisions and 
Commission regulations, and should advise the Commission and the 
defendant fully in what respects these provisions or regulations have 
been or are violated or will be violated. The complaint should contain a 
detailed statement of the relief requested. Relief in the alternative or 
of several different types may be demanded, but the issues raised in the 
formal complaint should not be broader than those to which complainant's 
evidence is to be directed at the hearing.
    (b) Requests for oral hearing. A formal complaint should include a 
request that the proceeding be handled either under the modified 
procedure or at oral hearing, and a request for oral hearing should 
include at least two alternative hearing sites.



Sec. 1131.2  When damages sought.

    (a) Content. A formal complaint that includes a request for an award 
of damages should set forth the information required to be contained in 
an informal complaint seeking damages (Sec. 1130.2(b) and (c)).
    (b) Specific request for damages. Except under unusual 
circumstances, and for good cause shown, damages will not be awarded 
upon a complaint unless specifically requested or upon a new complaint 
by or for the same complainant which is based upon any finding in the 
original proceeding.

(49 U.S.C. 10321; 5 U.S.C. 553)

[47 FR 49572, Nov. 1, 1982, as amended at 48 FR 44827, Sept. 30, 1983]
Sec. 1131.3  [Reserved]



Sec. 1131.4  Railroad allegations of unlawful intrastate rates.

    (a) Actions under 49 U.S.C. 11501(c). A rail carrier may file a 
petition with the Commission to review the decision of any certified 
State authority in any administrative proceeding in which the lawfulness 
of an intrastate rate, classification, rule, or practice is determined. 
The petition must show in what way the standards and procedures applied 
by the State were not in accordance with Subtitle IV of Title 49 of the 
United States Code, and it must be served on the State authority and all 
parties to the proceedings before the State authority consistent with 
Sec. 1104.12. Replies must be filed within 10 days after a carrier 
petition is filed, and must also be served. The Commission will act on 
the petition within 30 days.
    (b) Actions under 49 U.S.C. 11501(d). A rail carrier may file an 
application with the Commission to prescribe an intrastate rate if the 
appropriate State authority fails to act within 120 days after the rail 
carrier filed with it a change in an intrastate rate, or a change in a 
classification, rule or practice that has the effect of changing an 
intrastate rate, to the level charged on similar traffic moving in 
interstate or foreign commerce. The application must include a copy of 
the change as filed with the State authority, the comparable interstate 
rate items, and a showing that the State authority failed to act within 
120 days. The petition must be served on the State authority and all 
parties to the proceeding before the State authority consistent with 
Sec. 1104.12.



Sec. 1131.5  Other specifications.

    (a) Tariff or schedule references. A formal complaint that brings in 
issue any rate, fare, charge, schedule, classification, regulation or 
practice should specifically identify the pertinent tariff or schedule.
    (b) References to States in which transportation occurs. A formal 
complaint under subchapter II of chapter 105 of 49 U.S.C. should 
specifically name the States in and through which the transportation 
which gives rise to the complaint is performed.



Sec. 1131.6  Multiple causes of action; joinder.

    (a) Multiple causes of action. Two or more grounds of complaint 
concerning the same principle, subject, or facts may be included in one 
complaint, but should be stated and numbered separately.
    (b) Multiple complainants. Two or more complainants may join in one 
complaint against one or more defendants if their respective causes of 
action concern substantially the same alleged violation of the Act and 
like facts.

[[Page 223]]

    (c) Defendants. If complaint is made with respect to through 
transportation by continuous carriage or shipment, all persons subject 
to the Act participating therein, and against which a decision is 
sought, should be made defendants. If complaint is made regarding a 
classification or any of its provisions, ordinarily it will suffice to 
make defendants the persons operating one or more through routes between 
representative points of origin and destination, and serve notice of 
filing the complaint upon the tariff agent for the railroads which are 
subscribers to the tariff containing the challenged classification.



Sec. 1131.7  Amended and supplemental formal complaints.

    An amended or supplemental complaint may be tendered for filing by a 
complainant against a defendant or defendants named in the original 
complaint, stating a cause of action alleged to have accrued within the 
statutory period immediately preceding the date of such tender, in favor 
of complainant and against the defendant or defendants. The time limits 
for responding to an amended or supplemental complaint are computed 
pursuant to Secs. 1111.4 and 1111.5, as if the amended or supplemental 
complaint was an original complaint.



Sec. 1131.8  Copies; service.

    Formal complaints amended or supplemental complaints, and cross 
complaints will be served by the Commission. The original of each 
complaint or cross complaint must be accompanied by a sufficient number 
of copies to enable the Commission to serve one upon each defendant and 
to retain 10 copies in addition to the original.

[47 FR 49572, Nov. 1, 1982, as amended at 53 FR 19302, May 27, 1988]



Sec. 1131.9  Answers and cross complaints.

    (a) Generally. An answer may be filed within the time provided in 
paragraph (b) of this section. Whether or not an answer is filed and 
served, issue is joined at the conclusion of the time for filing 
answers, and the Commission may than proceed to a decision. In the 
alternative, the Commission may then proceed to a decision. In the 
alternative, the Commission may provide for the taking of evidence under 
the modified or oral hearing procedures, and in such a case the failure 
to answer a complaint will not bar a party from further participating in 
a proceeding or from the presentation of its evidence. An answer should 
be responsive to the complaint and should fully advise the Commission 
and the parties of the nature of the defense.
    (b) Time for filing; copies; service. An answer must be filed within 
20 days after the service of the complaint or within such additional 
time as the Commission may provide. The original and 10 copies of an 
answer must be filed with the Commission. The defendant must serve 
copies of the answer upon the complainant and any other defendants.
    (c) Cross complaints. A cross complaint alleging violations by 
parties to the proceeding or seeking relief against them may be filed 
with the answer. An answer to a cross complaint may be filed within 20 
days after the service date of the cross complaint. The party shall 
serve copies of answer to a cross complaint upon the other parties.

[47 FR 49572, Nov. 1, 1982, as amended at 53 FR 19302, May 27, 1988]



Sec. 1131.10  Motions to dismiss or to make more definite.

    An answer to a complaint or cross complaint may be accompanied by a 
motion to dismiss the complaint or cross complaint or a motion to make 
the complaint or cross complaint more definite. A motion to dismiss can 
be filed at anytime during a proceeding. A complainant or a cross 
complainant may, within 10 days after an answer is filed, file a motion 
to make the answer more definite. Any motion to make more definite must 
specify the defects in the particular pleading and must describe fully 
the additional information or details thought to be necessary.



Sec. 1131.11  Satisfaction of complaint.

    If a defendant satisfies a formal complaint, either before or after 
answering, a statement to that effect signed by the opposing parties 
must be filed (original only need be filed), setting forth when and how 
the complaint has

[[Page 224]]

been satisfied. This action should be taken as expeditiously as 
possible.



PART 1132--PROTESTS AGAINST TARIFFS; PROCEDURES IN CERTAIN SUSPENSION AND LONG AND SHORT HAUL RESTRICTION MATTERS--Table of Contents




    Authority: 49 U.S.C. 10321, 10707, 10708, and 10726; 5 U.S.C. 553 
and 559.



Sec. 1132.1  Protests against tariffs.

    (a) Content. The protested tariff or schedule sought to be suspended 
should be identified by making reference to: The name of the publishing 
carrier, household goods freight forwarder, or agent; the Interstate 
Commerce Commission number; the specific items or particular provisions 
protested; and the effective date of the tariff or schedule. Reference 
should also be made to the tariff or schedule, and the specific 
provisions proposed to be superseded. The protest should state the 
grounds in support thereof, indicate in what respect the protested 
tariff or schedule is considered to be unlawful. Such protests will be 
considered as addressed to the discretion of the Commission. Should a 
protestant desire to proceed further against a tariff or schedule which 
is not suspended, or which has been suspended and the suspension 
vacated, a separate later formal complaint or petition should be filed.
    (b) When filed. Protests against, and requests for suspension of, 
tariffs, or schedules filed under the Act will not be considered unless 
made in writing and filed with the Commission at Washington, DC. 
Protests and requests for suspension shall reach the Commission at least 
12 days (except as provided in paragraphs (c), (g), and (j) of this 
section) before the effective dates of the tariffs, schedules, or parts 
thereof to which they refer, unless the protested publications were 
filed on less than 30 days' notice in which even the protests (except as 
provided in paragraph (g) of this section) must reach the Commission not 
less than 5 days before the effective dates. Protests or petitions for 
investigation and suspension of tariffs filed on less than 10 days' 
notice will be accepted, Provided That they reach the Suspension/Special 
Permission Board not later than 9:00 a.m. on the last workday before the 
tariffs' scheduled effective date. Appeals from decisions by the 
Suspension/Special Permission Board not to suspend or not to investigate 
matters in which the protests reached the Board later than 9 a.m. on the 
second working day before the protested tariffs' scheduled effective 
date will not be accepted. In an emergency, telegraphic protests will be 
acceptable if received within the time limits herein specified, provided 
they also fully comply with paragraphs (a) and (g) of this section and 
copies are immediately telegraphed by protestants to the proponent 
carriers or their publishing agents. However, protests against and 
requests for suspension of tariffs applicable on household goods as 
defined in 49 CFR 1056.1(b)(1), when published for the account of 
household goods carriers as defined in 49 CFR 1056.1(b)(1), when 
published for the account of househould goods carriers as defined in 49 
CFR 1056.1(b)(1) on not less than 45 days' notice, must reach the 
Commission no later than 27 days before the effective dates of the 
tariffs, schedules, or parts thereof to which they refer. Six copies of 
such telegrams should immediately be mailed by the protestants to the 
Commission at Washington.
    (c) Motor carrier tariff bureau filings. When motor common carrier 
tariff bureaus file schedules of proposed general increases in rates and 
charges, or of proposed rate restructurings subject to the special 
procedures adopted in Ex Parte No. MC-82, New Procedures in Motor 
Carrier Rev. Proc. 340 I.C.C. 1 (1971), and set forth at 49 CFR part 
1139, protests thereto must reach the Commission at least 22 days before 
the published effective dates of those schedules. All statements should 
be served by express mail or an equivalent expedited delivery service 
upon any party undertaking to bear the cost. Written request for this 
expedited service must be made no less than 5 days before the statement 
is due to be filed with the Commission.
    (d) Copies; service. In connection with proceedings involving 
proposals subject to the special procedures in Ex Parte No. MC-82, New 
Procedures in Motor Carrier Rev. Proc. 339 I.C.C. 324, and set

[[Page 225]]

forth at 49 CFR part 1139, an original and 10 copies of every protest or 
reply filed under this section should be furnished for the use of the 
Commission. Except as provided for proposals subject to the special 
procedures in Ex Parte No. MC-82, the original and 10 copies of each 
protest, except as provided in paragraph (e) of this section, or of each 
reply filed under this section, must be filed with the Commission, and 
one copy of the protest simultaneously must be served upon the 
publishing carrier, household goods freight forwarder, or agent, and 
upon other persons known by protestants to be interested. If in the 
publication of an agency tariff, the proponent carrier elects to list 
itself with its full address on the cover page of the supplement or new 
tariff, service shall be made on such carrier simultaneously with 
service upon the Commission. These pleadings should be directed to the 
attention of the Suspension/Special Permission Board.
    (e) Passenger fare increases. The original only of each protest or 
request for investigation and suspension of increased passenger fares 
need be filed with the Commission. Requests for suspension of charges in 
rail passenger fares must include a verified (notarized) complaint.
    (f) Reply to protest. A reply to a protest filed under this section 
must reach the Commission not later than the fourth working day prior to 
the scheduled effective date of the protested schedules unless otherwise 
provided. Replies to protests against motor carrier rate bureau 
proposals other than proposals affecting tariffs for the transportation 
of household goods as defined in Sec. 1056.1(a) subject to Ex Parte No. 
MC-82 procedures to be assured of consideration, must reach the 
Commission no later than 14 days before the scheduled effective date of 
the protested schedules. Replies to protests against tariffs applicable 
on household goods (as defined in Sec. 1056.1(a)), published for the 
account of household goods carriers (as defined in Sec. 1040.2(b)) on 
not less than 45 days' notice shall be filed with the Commission not 
more than 5 days after the protest is filed. Replies to protests against 
motor common carrier of passengers general increase proposals subject to 
Ex Parte No. MC-82 procedures filed on not less than 30 days' notice 
must reach the Commission not later than the second working day prior to 
the effective date of the protested schedules.
    (g) Special requirements for protests against revisions to rail 
rates and charges and replies thereto. (1) Protests against, and 
requests for suspension of, tariffs or schedules filed by rail carriers, 
or their publishing agents on 20 days' notice under the provisions of 49 
U.S.C. 10762(c)(3) must reach the Commission at least 10 days before the 
proposed effective date of the protested matter. When the protested 
matter is filed on 10 days' notice under the provisions of 49 U.S.C. 
10762(c)(3), the protest or requests for suspension must reach the 
Commission at least 5 days before the proposed effective date of the 
protested matter.
    (2) Protests against and requests for suspension of, tariffs or 
schedules containing proposed rates, classifications, rules, or 
practices filed by rail carriers or their publishing agents shall also 
include a verified statement containing specific facts showing:
    (i) It is substantially likely that the protestant will prevail on 
the merits pursuant to any applicable provisions of the law;
    (ii) Without suspension, the proposed rate change will cause 
substantial injury to the protestants or the party represented by the 
protestants; and
    (iii) Because of the peculiar economic circumstances of the 
protestant, investigation of the rate (subject to a refund by the 
carrier should the rate subsequently be found unlawful) will not protect 
the protestant. The burden is on the protestant to prove the matters 
described in paragraphs (g)(2), (i), (ii) and (iii) of this section.
    (3) Where protestants allege that a rate is unreasonably high in 
violation of 49 U.S.C. 10701, they must submit evidence relating to 
market dominance pursuant to guidelines established in Ex Parte No. 320 
(Sub-No. 2), 365 I.C.C. 118.
    (4) Replies to verified statements filed under this section shall be 
verified.
    (h) Except in extraordinary circumstances, the Suspension/Special

[[Page 226]]

Permission Board will act on protests against or requests for suspension 
of tariffs applicable on household goods as defined in 49 CFR 1056.1(a), 
when published for the account of household goods carriers as defined in 
Sec. 1040.2(b) on not less than 45 days' notice, no later than 18 days 
before the effective dates of the tariffs, schedules, or parts thereof 
to which they refer. When the Commission acts initially on questions of 
investigation and suspension of tariffs applicable on household goods 
published for the account of household goods carriers and filed on not 
less than 45 days' notice, the Commission will act not later than 12 
days before the tariffs' scheduled effective date. If the Commission 
concludes: Not to investigate and suspend; to investigate, but not to 
suspend; or not to investigate (without suspension), its decision will 
not be subject to petitions for reconsideration, except at the 
Commission's discretion. (A petition to discontinue an investigation 
will be accepted if filed within 20 days of the service date of the 
decision ordering the investigation.) No petition other than a petition 
for discontinuance of an investigation will be accepted that does not 
reach the Commission by 4:00 p.m. as provided in paragraph (i) of this 
section.
    (i) Except in extraordinary circumstances, the Commission will act 
on protests or requests for suspension of tariffs filed under paragraph 
(c) of this section no later than 5 days before the effective date of 
the tariffs, schedules, or parts thereof to which the protests refer. A 
decision at the suspension level by the entire Commission on the 
protests will not be subject to petitions for reconsideration, except at 
the Commission's discretion. No petition will be accepted that does not 
reach the Commission by 4:00 p.m. (United States Standard Time or local 
Daylight Saving Time, whichever is in effect in Washington, DC) on the 
work-day following the Commission's action.
    (j) Motor carriers of passengers filings. When motor common carriers 
of passengers file schedules of proposed general increases in rates and 
charges subject to the special procedures adopted in Ex Parte No. MC-82 
(Sub-No. 1), Procedures in Motor Carrier Revenue Proceedings--Intercity 
Bus Industry, 357 I.C.C. 35 (1977) and set forth at 49 CFR Part 1139, 
protests thereto must reach the Commission at least 8 days before the 
proposed effective date of the protested matter.

[47 FR 49573, Nov. 1, 1982, as amended at 51 FR 6237, Feb. 21, 1986; 51 
FR 44297, Dec. 9, 1986; 52 FR 32800, Aug. 31, 1987; 53 FR 19302, May 27, 
1988; 55 FR 47337, Nov. 13, 1990]



Sec. 1132.2  Procedures in certain suspension and long and short haul restriction matters.

    (a) The proceedings of the Suspension/Special Permission Board will 
be informal. No transcriptions of such proceedings will be made. 
Subpoenas will not be issued and, except when applications or petitions 
are required to be attested, oaths will not be administered.
    (b) Petitions for reconsideration of the following may be filed by 
any interested person within 20 days after the date of service:
    (1) Decisions by the Suspension/Special Permission Board which 
result in orders for:
    (i) Investigation and suspension of tariff schedules;
    (ii) Investigation (without suspension) of tariff schedules;
    (iii) Granting, withholding, or denying relief from the long and 
short haul restriction provisions of 49 U.S.C. 10726;
    (2) Decisions by an Appellate Division reversing, changing or 
modifying previous determinations by the Suspension/Special Permission 
Board and which result in orders for:
    (i) Investigation and suspension of tariff schedules;
    (ii) Investigation (without suspension) of tariff schedules;
    (iii) Granting, withholding, or rescinding relief from the long and 
short haul restriction provisions of 49 U.S.C. 10726;
    (3) Decisions by the Commission or a Division which result in orders 
for:
    (i) Investigation and suspension of tariff schedules;
    (ii) Investigation (without suspension) of tariff schedules;
    (iii) Granting, modifying, or rescinding relief from the long and 
short haul restriction provisions of 49 U.S.C. 10726;

[[Page 227]]

See also Sec. 1115.5. In connection with proceedings involving proposals 
subject to the special procedures in Ex Parte No. MC-82, New Procedures 
in Motor Carrier Rev. Proc. 339 I.C.C. 324, and set forth at 49 CFR Part 
1139, and original and 10 copies of every protest or reply filed under 
this section should be furnished for the use of the Commission. Except 
as provided for proposals subject to the special procedures in Ex Parte 
No. MC-82, the original and 10 copies of every pleading, document or 
paper filed under this section must be furnished for the use of the 
Commission. Any interested person may file and serve a reply to any 
petition for reconsideration permitted under this paragraph within 20 
days after the filing of such petition with the Commission but if the 
facts stated in any such petition discloses a need for accelerated 
action, such action may be taken before expiration of the time allowed 
for reply. In all other respects, such petitions and replies thereto 
will be governed by the rules of general applicability of the Rules of 
Practice.
    (c) When the Suspension/Special Permission Board has declined to 
suspend a proposed tariff or schedule, or any part thereof, a petition 
in writing by any protestant or protestants may be filed with the 
Commission for reconsideration provided it reaches the Commission at 
least two work-days prior to the effective date of the tariff or 
schedule in question. However, when the Suspension/Special Permission 
Board has declined to suspend a protested change in rail rates filed on 
10 days' notice under the provisions of 49 U.S.C. 10762(c)(3), the 
petition must be in the hands of the Suspension/Special Permission Board 
not later than 9 a.m., United States Standard or local Daylight Saving, 
whichever is in effect in Washington, D.C., on the work-day before the 
proposed effective date of the protested matter. Further, when the 
Suspension/Special Permission Board has declined to suspend a proposed 
tariff or schedule applicable on household goods as defined in 
Sec. 1056.1(a) published for the account of a household goods carrier as 
defined in Sec. 1040.2(b) on not less than 45 days' notice, the petition 
must be filed within 2 work-days after the Suspension/Special Permission 
Board has acted. For the purpose of this section, a work day shall be 
considered as any day except Saturday, Sunday or a legal holiday in the 
District of Columbia. (A legal holiday of less than one day shall be 
considered a work-day within the meaning of this section). Petitions 
submitted under this section shall (except as provided in the case of a 
protested change in rail rates filed under the provisions of 49 U.S.C. 
10762(c)(3) be filed with the Secretary of the Commission by 4 p.m. 
United States Standard Time or local Daylight Saving Time whichever is 
in effect in Washington, D.C. Telegraphic notice or the equivalent 
thereof must be given by the petitioners to the respondent or 
respondents. As no replies to the petitions for reconsideration are 
contemplated under this rule, petitioners will be expected, except in 
unusual circumstances, to rely wholly on the information previously 
filed with the Suspension/Special Permission Board. Written or 
telegraphic communication in intelligible form requesting 
reconsideration will be sufficient. Such request should contain the 
following prefatory statement: ``This matter requires expedited handling 
under Sec. 1132.2''. A petition not timely filed may be rejected by the 
Secretary.
    (d) When the Suspension/Special Permission Board has declined to 
suspend a proposed tariff or schedule applicable on household goods as 
defined in Sec. 1056.1(a) published for the account of a household goods 
carrier as defined in Sec. 1040.2(b) on not less than 45 days' notice, 
the Commission will, except in extraordinary circumstances, act on 
petitions for reconsideration no later than 2 work-days after the 
petition is filed.

[47 FR 49573, Nov. 1, 1982; 47 FR 54081, Dec. 1, 1982, as amended at 52 
FR 30165, Aug. 13, 1987; 53 FR 19302, May 27, 1988; 55 FR 47337, Nov. 
13, 1990]



PART 1133--RECOVERY OF DAMAGES--Table of Contents




    Authority: 49 U.S.C. 10321; 5 U.S.C. 559.

[[Page 228]]



Sec. 1133.1  Freight bill filing requirement under modified procedure.

    If, under modified procedure (for general rules governing modified 
procedure, see part 1112), an award of damages is sought, complainant 
should submit the paid freight bills or properly certified copies with 
its statement when there are not more than 10 shipments; if more than 10 
shipments are involved, complainant should retain the documents.

[47 FR 49575, Nov. 1, 1982]



Sec. 1133.2  Statement of claimed damages based on Commission findings.

    (a) When the Commission finds that damages are due, but that the 
amount connot be ascertained upon the record before it, the complainant 
should immediately prepare a statement showing details of the shipments 
on which damages are claimed, in accordance with the following form:

    Claim of ______ under decision of the Interstate Commerce Commission 
in Docket No. ______.
    ______ Date of shipment.
    ______ Date of delivery or tender of delivery.
    ______ Date charges were paid.
    ______ Car (or vessel) initials.
    ______ Car (or voyage) number.
    ______ Origin.
    ______ Destination.
    ______ Route.
    ______ Commodity.
    ______ Weight.
    ______ Rate.
    ______ Amount.
    ______ Rate.
    ______ Amount.
    ______ Reparation on basis of Commission's decision.
    ______ Charges paid by.\1\
---------------------------------------------------------------------------

    \1\ Here insert name of person paying charges in the first instance, 
and state whether as consignor, consignee, or in what other capacity.
---------------------------------------------------------------------------

    Claimant hereby certifies that this statement includes claims only 
on shipments covered by the findings in the docket above described and 
contains no claim for reparation previously filed with the Commission by 
or on behalf of claimant or, so far as claimant knows, by or on behalf 
of any person, in any other proceedings, except as follows: (Here 
indicate any exceptions, and explanation thereof).

_______________________________________________________________________
        (Claimant)

By______________________________________________________________________
        (Practitioner)

_______________________________________________________________________
          (Address)

_______________________________________________________________________
          (Date)

    Total amount of reparation $______. The undersigned hereby certifies 
that this statement has been checked against the records of this company 
and found correct.
    Date ______ Concurred\2\ in: ______ Company ______ Company, 
Defendant Collecting Carrier, Defendant\3\. ______
---------------------------------------------------------------------------

    \2\ For concurring certificate in case collecting carrier is not a 
defendant.
    \3\ If not a defendant, strike out the word ``defendant.''
---------------------------------------------------------------------------

    By ______, Auditor. By ______, Auditor.

    (b) The statement should not include any shipment not covered by the 
Commission's findings, or any shipment on which complaint was not filed 
with the Commission within the statutory period. The filing of a 
statement will not stop the running of the statute of limitations as to 
shipments not covered by complaint or supplemental complaint. If the 
shipments moved over more than one route, a separate statement should be 
prepared for each route, and separately numbered, except that shipments 
as to which the collecting carrier is in each instance the same may be 
listed in a single statement if grouped according to routes. The 
statement, together with the paid freight bills on the shipments, or 
true copies thereof, should then be forwarded to the carrier which 
collected the charges, for verification and certification as to its 
accuracy. If the statement is not forwarded immediately to the 
collecting carrier for certification, a letter request from defendants 
that forwarding be expedited will be considered to the end that steps be 
taken to have the statement forwarded immediately. All discrepancies, 
duplications, or other errors in the statements should be adjusted by 
the parties and corrected agreed statements submitted to the Commission. 
The certificate must be signed in ink by a general accounting officer of 
the carrier and should cover all of the information shown in the

[[Page 229]]

statement. If the carrier which collected the charges is not a defendant 
in the case, its certificate must be concurred in by like signature on 
behalf of a carrier defendant. Statements so prepared and certified 
shall be filed with the Commission whereupon it will consider entry of a 
decision awarding damages.

[47 FR 49575, Nov. 1, 1982]



PART 1135--RAILROAD COST RECOVERY PROCEDURES--Table of Contents




    Authority:: 5 U.S.C. 553 and 49 U.S.C. 721 and 10708.



Sec. 1135.1  Quarterly adjustment of rates.

    (a) Rail carriers may adjust rates and charges quarterly in order to 
compensate for inflationary cost increases. The quarterly adjustment 
shall not exceed the percentage change in the all inclusive index of 
railroad costs as proposed by the Association of American Railroads and 
modified by the Commission. The Commission will make modifications of 
the revisions to the index as necessary.
    (b) The allowable increase will be based on a projection of the 
index to the midpoint of the quarter to which the index will apply. The 
percentage change must be calculated from a comparison of the forecast 
index for the midpoint of the quarter during which the rates will be in 
effect with the forecast index for the midpoint of the previous quarter. 
Each quarterly index will be adjusted for forecast error in the index 
issued six months earlier. The adjustments will be made by adding or 
subtracting, as appropriate, the difference between the index using 
actual data for the second prior quarter and the index using forecasted 
data for that quarter. Additionally, AAR shall file an index adjusted 
for productivity changes. The adjustment will be made by applying the 
multi-year average annual growth in productivity spread evenly over four 
quarters, compounded each quarter. Productivity adjustments shall 
compound in the same manner as rate changes.
    (c) The Association of American Railroads must file its calculations 
with the Commission on the fifth day of the last month of the prior 
quarter (or the closest business day if the fifth is a Saturday, Sunday 
or holiday). The calculations are to be for the mid-point of the next 
quarter.
    (d) Tariffs containing adjustments under the provisions of this rule 
may be filed to become effective on not less than ten days notice when 
the Rail Cost Adjustment Factor adopted by the Commission does not 
differ from that proposed by the Association of American Railroads. When 
the Rail Cost Adjustment Factor adopted by the Commission differs from 
that proposed by the Association of American Railroads the notice period 
shall be not less than five days. Reductions to rates published in the 
initial RCCR tariff may be published on one day's notice during the 
period between the publication of the tariff and the first day of the 
calendar quarter for which that tariff applies.
    (e) Increases in rates consistent with these standards will not be 
investigated or suspended by the Commission unless the filing results in 
a double recovery of inflation-based cost increases.
    (f) All cost recovery tariffs filed with the Commission shall state 
that they are being filed in conformity with the rules in 49 CFR 1135.1 
and 1312.17(k), and shall be amended under the same timetable applicable 
to rate increases, to reflect declines in the cost index. Any declines 
in the index below the level in effect on December 31, 1985, will be 
addressed by postponing authorizations for future cost recovery rate 
increases pursuant to a ``banking'' procedure described more fully in Ex 
Parte No. 290 (Sub-No. 2), Railroad Cost Recovery Procedures, served 
October 17, 1986.
    (g) In accordance with the procedures outlined in Sec. 1312.17(k), 
each carrier shall timely file (either directly or through a duly 
authorized tariff-publishing agent) with the regulatory authority of 
each State in which it operates, all tariffs filed with the Commission 
in accordance with these procedures. The carrier will file with the

[[Page 230]]

State at the same time that it files with the Commission.

[46 FR 22599, Apr. 20, 1981; 46 FR 51255, Oct. 19, 1981, as amended at 
46 FR 55270, Nov. 9, 1981. Redesignated and amended at 47 FR 49576, Nov. 
1, 1982; 50 FR 88, Jan. 2, 1985; 50 FR 37534, Sept. 16, 1985; 50 FR 
43396, Oct. 25, 1985; 51 FR 37035, Oct. 17, 1986; 54 FR 12920, Mar. 29, 
1989; 61 FR 7427, Feb. 28, 1996]



PART 1136--RAIL PASSENGER CARRIER COMMUTATION OR SUBURBAN FARE INCREASES--Table of Contents




    Authority: 49 U.S.C. 10321, 10707, and 10708; 5 U.S.C. 559.



Sec. 1136.1  Filing and service requirements.

    A rail passenger carrier proposing commutation or suburban fare 
increases shall concurrently file appropriate tariffs with the 
Commission and serve supporting verified statements on the Commission 
(at its headquarters office and at each Commission office in States 
affected by the proposal) and on the Governor and appropriate State or 
County regulatory agency in each affected State, certifying that the 
notice requirements of 49 CFR 1312.5 have been met.

[55 FR 11203, Mar. 27, 1990]



PART 1137--PROCEDURES RELATING TO RAILROAD REVITALIZATION AND REGULATORY REFORM ACT OF 1976--Table of Contents




    Authority: 49 U.S.C. 10321, 10705, and 10728; 5 U.S.C. 553, 559.



Sec. 1137.1  Divisions of revenue cases.

    (a) Notice of intent to file complaint.
    (1) An original and 10 copies shall be filed for Commission use. 
Complainant shall serve copies of the notice upon each party (each 
receiver or trustee if a bankrupt line) to the joint rate.
    (2) The notice of intent shall state generally: The involved traffic 
and applicable joint rates, the territorial scope, the participating 
railroads, and the present and proposed divisions.
    (3) The notice shall include a statement indicating when filing of 
the formal complaint is expected. The formal complaint may not be filed 
more than one year after the filing of the notice of intent, unless the 
Commission approves an extension of time. Lack of diligence in filing of 
the formal complaint may result in dismissal of the action.
    (b) Notice of intent to file cross complaint. These notices shall be 
filed within 30 days from service of the original notice and are subject 
to the requirements in paragraph (a) of this section.
    (c) Formal complaint (and cross complaint). The formal complaint 
(and cross complaint) shall be filed no sooner than 120 days after the 
filing of the notice of intent unless good cause is shown either for not 
filing a notice or for a shorter notice period. The request to waive the 
notice time requirement may be included in the formal complaint or in a 
separate petition. The formal complaint (or cross complaint) shall 
contain the case-in-chief. All supporting papers shall be made available 
to opposing parties for inspection and copying. Complaints (and cross 
complaints) are subject to the same copy requirements as in paragraph 
(a) of this section. Complainant (or cross complainant) shall serve 
copies on each party of record. If circumstances permit, the cross 
complaint will be consolidated for disposition.
    (d) Answer. The answer to the formal complaint shall contain the 
entire case-in-rebuttal. Supporting papers shall be made available to 
opposing parties for inspection and copying. If the notice of intent 
procedure was used, the case-in-rebuttal shall be filed within 30 days 
from service of the complaint. If the notice procedure is waived, the 
case-in-rebuttal shall be filed within 5 months of the filing of the 
complaint. Answers shall be served on each party of record. An original 
and 10 copies shall be submitted to the Commission.
    (e) Further proceedings. Following submission of defendant's 
evidence, complainant may, within 2 months, submit reply evidence which 
shall be served on each party of record. Unless otherwise ordered, no 
further filing shall be accepted. Divisions cases shall be handled under 
the modified procedure, unless oral hearing is shown to be necessary.

[[Page 231]]

    (f) Discovery. If the notice of intent procedure was used, discovery 
shall be available to all parties only prior to the filing of the 
complaint. If the notice procedure was not used, discovery shall be 
available to defendants only and must be exercised under the time 
restrictions contained in paragraph (d) of this section. Prehearing 
conferences may be requested to adjudicate discovery requests, or they 
may be resolved by written pleadings.
    (g) Evidentiary guidelines. (1) Traffic and cost studies, either 
individual or joint, may be submitted. Studies shall be accepted for 
consideration as long as they do not delay the process or conflict with 
other applicable deadlines. Cost studies should be developed, absent a 
more specific method, in accordance with Rail Form A (or URCS, if 
implemented), adjusted to reflect the specific traffic and updated to a 
current level. Studies may include the types of evidence discussed in 
appendix D of Expeditious Handling of Divisions of Revenue Cases, 353 
I.C.C. 349, 388 (1976).
    (2) The following evidentiary standards apply:
    (i) Costs associated with exempt or contract traffic shall not be 
included, except that allocation of certain common costs to regulated 
traffic may be acceptable if adequately explained.
    (ii) Elements of profit, income tax, and passenger, commuter, and 
LCL deficits are not proper expense items for developing fully allocated 
cost [See Rules to Govern Assembling and Presenting Cost Evidence, 337 
I.C.C. 298 (1970)], but will be treated under the issue of revenue need.
    (iii) Passenger and commuter service costs shall be considered only 
in relation to the carrier's revenue need.
    (iv) All subsidies shall be disclosed and explained.
    (v) The same divisional basis shall apply on ``border point'' 
traffic.
    (h) Time periods for completion of proceedings. In accordance with 
section 10705(f)(1)(A)(ii), a party, for good cause, may seek extension 
of any applicable filing deadline. If a requested extension will result 
in an evidentiary period in excess of 9 months and the proceeding does 
not involve Class III carriers, the request shall contain sufficient 
information to allow the required report to Congress and set forth the 
reasons why the extension is necessary. When the proceeding involves a 
railroad in reorganization or a contention that the divisions do not 
cover the variable costs of handling the traffic, requests for extension 
of filing deadlines shall be viewed with disfavor. The Act directs us to 
give these proceedings preference and to take final action at the 
earliest practicable time. 49 U.S.C. 10705(f)(1)(A)(i).

[48 FR 12105, Mar. 23, 1983, as amended at 53 FR 19302, May 27, 1988]



Sec. 1137.2   Expeditious procedures for publication of separate rates for distinct services.

    (a) Purpose. These regulations are designed to facilitate the 
publication of and thus encourage the use of separate rates for distinct 
rail services. Increased utilization of such rates will also increase 
the attractiveness of investing in railroads and rail service related 
enterprises by creating a keener competition among rail carriers and 
other modes of transportation. Encouraging these goals, the Commission 
also seeks to promote experimentation and innovative ratemaking through 
the initiation of rail carriers and the requests of their customers. 
Special permission requests for publication on short notice will be 
granted whenever feasible, and any proceedings involving separate rates 
for distinct services will be expedited.
    (b) Definitions. (1) Distinct rail services are those railroad 
transportation services, which are separate from line-haul 
transportation services necessary for the movement of freight, and for 
which a specific tariff item is published by the railroads either upon 
their own initiative or upon the request of any shipper or receiver of 
freight.

The following definitions refer to those factors included in 
Sec. 1137.2(h) in the determination of reasonableness:
    (2) The term ``cash-outlays'' as used in 49 U.S.C. 10728 shall 
consist of the following:
    (i) The annualized operating expenses, rents and taxes (including 
labor, materials and supplies, fuel and utilities, but excluding 
depreciation, amortization, and Federal income taxes) which change 
directly with the

[[Page 232]]

carrier's production of a distinct rail service.
    (ii) The annualized cash-outlays equivalent to the carrier's capital 
investment, including the cost of providing such capital, which change 
directly with the carrier's production of a distinct rail service. These 
cash-outlays may be determined based on either the cost of sunk and new 
investment combined or the cost of new investment only.
    (3) Demand is the willingness of a shipper to purchase a distinct 
rail service (as that term is defined in Sec. 1137.2(b)(1)) at a 
specified price under the prevailing circumstances.
    (c) Title page. In addition to requirements of Sec. 1312.12, a 
tariff title page must also state whether the tariff or supplement 
contains new or changed rates for distinct rail services as defined in 
Sec. 1137.2(b) and bear the following notation:

    This tariff (or supplement or loose leaf amendment) contains 
separate rates for distinct rail services (see item(s)______) within the 
meaning of Sec. 1137.2(b).

    (d) Letters of transmittal. In connection with separate rates for 
distinct rail services filed with the Commission, the letter of 
transmittal (required in Sec. 1312.4) must also bear the notation found 
in Sec. 1137.2(c).
    (e) Justification statements. Justification statements in support of 
the publication of a separate rate or charge for a distinct rail service 
may be filed concurrently with the filing of the tariff. Information of 
the type specified in Sec. 1137.2(h), if included in the justification 
statement, would assist the Commission in its initial evaluation of the 
proposal.
    (f) Protest(s) and investigation. Protests to a tariff (or 
supplement) making reference on the title page to Sec. 1137.2(b) must be 
verified and filed in accordance with Sec. 1132.1(g). In the event of 
investigation or suspension, these proceedings will be accorded 
priority, and modified procedure (49 CFR Part 1112), to the extent 
feasible, will be followed.
    (g) Reply to protest. Replies to protests of rates proposals under 
this section must be verified and should be filed and served promptly in 
accordance with Sec. 1132.1(f). Respondents are urged to submit the 
information specified in Sec. 1137.2(h) unless previously furnished.
    (h) Initial statement. In order to expedite the proceedings in the 
event of the suspension of tariff schedules setting forth separate rates 
for distinct rail services or in the event that investigation without 
suspension of such schedules is ordered, respondent railroad or 
railroads shall submit in writing, under verfication, support of the 
tariff in issue. Such data should consist of the following:
    (1) Cash-outlays. The dollars of ``cash-outlays'' as that term is 
defined in Sec. 1137.2(b)(2). A full explanation of the methods, 
procedures and data used to determine ``cash-outlays'' should be 
supplied.
    (2) Demand. Evidence supporting existence of a ``demand'' for the 
proposed service as that term is defined in Sec. 1137.2(b)(3).
    (3) Market dominance. If the proposal involves a new or increased 
charge for a distinct service, evidence prepared in accordance with the 
guidelines established in Ex Parte No. 320 (Sub-No. 2), 365 ICC 118 
should be supplied. However, if such data has been previously submitted 
in the same proceeding, a notation to that effect will suffice.
    (4) Revenues. The annualized dollars of revenue to be obtained from 
the rate or charge associated with providing the distinct rail service.
    (5) Outputs. The annualized number of service outputs associated 
with the rate or charge per service unit. For example, if the proposed 
rate is stated in cents per hundredweight, per car switched, or per 
stop, then the number of service outputs should be expressed as x number 
of hundredweight, cars switched, or stops made.
    (6) Ratios. The revenue-to-cost ratio (percentage) for the distinct 
rail service, based on the revenues to be obtained, and the carrier's 
``cash-outlays.''
    (7) Effect. A statement as to how the proposed rate on the distinct 
rail service will encourage competition; promote increased reinvestment 
by the railroad; or encourage and facilitate increased non-railroad 
investment in the production of rail services.

[[Page 233]]

    (8) Alternative data. The submission of the above evidence, 
paragraphs (h)(1) through (7) of this section, represents data which the 
Commission believes would provide a basis for meaningful analysis of the 
lawfulness of such rates. However, in lieu thereof or in addition 
thereto, respondents may justify their proposal on the basis of other 
relevant evidence or cost levels. A full explanation of the methods and 
procedures used shall be provided.
    (i) Reporting requirements. For the 6-month period beginning 
February 5, 1977, all common carriers by rail, subject to 49 U.S.C. 
11145; shall submit information showing those distinct rail service 
rates published in accordance with 49 U.S.C. 10728, showing actual or 
estimated revenues derived therefrom during the 6-month period. In 
addition, these reports, which shall be filed with the Commission by 
July 30, 1977, shall state whether the rates accomplished their intended 
purpose, and if not whether they intend any change in the level of 
charge or other change.

[42 FR 9024, Feb. 14, 1977; 42 FR 36265, July 14, 1977, as amended at 42 
FR 62139, Dec. 9, 1977. Redesignated and amended at 47 FR 49576, Nov. 1, 
1982; 48 FR 44827, Sept. 30, 1983; 50 FR 37534, Sept. 16, 1985]



PART 1139--PROCEDURES IN MOTOR CARRIER REVENUE PROCEEDINGS--Table of Contents




            Subpart A--Common Carriers of General Commodities

Sec.
1139.1  Application.
1139.2  Traffic study.
1139.3  Cost study.
1139.4  Revenue need.
1139.5  Affiliate data.
1139.6  Official notice.
1139.7  Service.
1139.8  Availability of underlying data.

Appendix I to Subpart A
Appendix II to Subpart A

                    Subpart B--Intercity Bus Industry

1139.20  Application.
1139.21  Study carriers.
1139.22  Revenue data for study carriers.
1139.23  Revenue need.
1139.24  Offical notice.
1139.25  Service.
1139.26  Availability of underlying data.

                         Schedules to Subpart B

Schedule A
Schedule B
Schedule C
Schedule D
Schedule E
Schedule F
Schedule G

Appendix I to Subpart B

    Authority: 49 U.S.C. 10321 and 10708; 5 U.S.C. 553 and 559.



            Subpart A--Common Carriers of General Commodities

    Source: 47 FR 49577, Nov. 1, 1982, unless otherwise noted.



Sec. 1139.1  Application.

    (a) Upon the filing by the tariff publishing agencies named 
hereinafter on behalf of their motor common carrier members, or by such 
other agencies as the Commission may by order otherwise designate, of 
agency tariff schedules which contain (1) proposed general increases in 
rates or charges on general freight where such proposal would result in 
an increase of $1 million or more in the annual operating revenues on 
the tariff affected by the proposal, or (2) a proposed general 
adjustment with the objective of restructuring the rates on a wide range 
of traffic, involving both increases and reductions in rates and 
charges, where such proposal would result in a net increase of $1 
million or more in annual operating revenues, the motor common carriers 
of general freight on whose behalf such schedules are filed shall, 
concurrently with the filing of those tariff schedules, file and serve, 
as provided hereinafter, a verified statement presenting and comprising 
the entire evidential case which is relied upon to support the proposed 
general increase or rate restructuring. Carriers thus required to submit 
their evidence when they file their schedules are hereby notified that 
special permission to file those schedules shall be conditioned upon the 
publishing of an effective date at least 45 days later than the date of 
filing, to enable proper evaluation of the evidence presented. Data to 
be submitted in accordance with Secs. 1139.2 through 1139.5 of this part 
represent the minimum data required to be filed and served, and in no

[[Page 234]]

way shall be considered as limiting the type of evidence that may be 
presented at the time of filing of the schedules. If a formal proceeding 
is instituted, the carriers are not precluded from updating the evidence 
submitted at the time of filing of the schedules to reflect the 
contemporary situation.
    (b) The motor common carriers of general freight which are subject 
to the provisions of this section are those which are members of the 
following tariff publishing agencies:

Central and Southern Motor Freight Tariff Association, Inc.
Central States Motor Freight Bureau, Inc.
The Eastern Central Motor Carriers Association, Inc.
Middle Atlantic Conference
Middlewest Motor Freight Bureau
The New England Motor Rate Bureau, Inc.
Pacific Inland Tariff Bureau, Inc.
Rocky Mountain Motor Tariff Bureau, Inc.
Southern Motor Carriers Rate Conference

    (c) Upon the filing of tariff schedules other than those described 
hereinabove, the carriers or their tariff publishing agencies shall be 
required to comply with such procedures as the Commission may direct in 
the event an investigation is instituted. In any proceeding involving a 
proposed rate restructuring which would produce additional net revenue 
of less than $1 million the carriers will be required to submit only the 
data sought in Secs. 1139.2 and 1139.3. Nothing stated in this part 
shall relieve the carriers of their burden of proof imposed under the 
Interstate Commerce Act.



Sec. 1139.2  Traffic study.

    (a) The respondents shall submit a traffic study for the most 
current 12-month calendar year available, which shall be referred to as 
the ``base-calendar year--actual.'' This year shall be the calendar year 
that has ended at least 7 months prior to the published effective date 
of the tariff schedules. If the effective date is less than 7 months 
following the end of the preceding calendar year, than the second 
preceding calendar year shall be considered at the ``base-calendar 
year--actual.'' The study shall include a probability sampling of the 
actual traffic handled during identical time periods for each study 
carrier.
    (b) The study carriers shall consist of those carriers subject to 
the requirements for allocation of expenses between line-haul and pickup 
and delivery services, as provided in Part 1207 of this chapter, 
Instructions 27 and 9002, which participate in one of the motor carrier 
industry's Continuous Traffic Studies, and which derive either $1 
million or more in annual operating revenues from this issue traffic or 
1 percent or more of the total annual operating revenues of all carriers 
from the issue traffic. A list of such carriers and the appropriate 
revenue data shall be submitted to corroborate the selection of the 
study carriers. ``Issue traffic'' consists of those shipments on which 
the freight rates or charges would be affected by the rate proposal.
    (c) Respondents shall take a sample of the traffic handled by the 
study carriers according to acceptable standards of probability sampling 
principles and practices, and shall explain and evaluate the probability 
sample from the standpoint of: Purpose, sample design (including 
explanation of estimation procedure and disclosure of sampling errors 
for derived characteristics), quality control aspects involved in 
processing and tabulating data and any statistical analysis performed on 
the sampled data.4
---------------------------------------------------------------------------

    \4\ Although not adopted by the Commission, attention is called to a 
staff report, ``Guidelines for the Presentation of the Results of Sample 
Studies,'' February 1, 1971, available from the Superintendent of 
Documents.
---------------------------------------------------------------------------

    (d) For cost and revenue purposes, the ``carried'' tariff basis 
shall be used. ``Carried'' tariff means the issue traffic handled solely 
by the study carriers, either single-line or interline. Estimates of 
current revenues applicable to the issue traffic should reflect all 
rates and charges in effect no later than 45 days prior to the date of 
tariff filing.



Sec. 1139.3  Cost study.

    (a) The respondents shall submit a cost study. Highway Form B may be 
used for this purpose. Service unit-costs shall be developed for each 
individual study carrier, adjusted by size of shipment and length of 
haul, and shall be applied to respective individual carrier's traffic 
service units as developed

[[Page 235]]

from its traffic study. Operating ratios shall be determined for the 
issue traffic handled by the study carriers on the ``carried'' basis by 
individual weight brackets included within the rate proposal, for: (1) 
The traffic study year, that is, the ``base-calendar year--actual,'' as 
hereinbefore defined, (2) a ``present proforma year'' reflecting 
conditions prevailing on a date no later than 45 days prior to the date 
of the tariff filing, and (3) a ``restated proforma year'' based on 
conditions anticipated on the effective date of the proposed rates, with 
a separation indicating projected operating ratios on two bases, namely, 
``based on current revenues,'' and ``based on proposed revenues''. 
Operating ratios shall also be shown for all other traffic not affected 
by the rate proposal for the same weight brackets as shown for the issue 
traffic, but only for the period indicated in paragraph (a)(1) of this 
section.
    (b) In addition to the operating ratios, the cost study shall also 
be used to develop and provide the revenue-to-cost comparisons required 
in Appendix I hereto for the same time periods indicated for the 
operating ratios plus a ``restated proforma year'' based on constructed 
revenue need.
    (c) For both the operating ratios and the revenue-to-cost 
comparisons in Appendix I, the ``each-to-each'' costing method, i.e., 
the application of each individual study carrier's unit-cost to its 
traffic service units, applies only to the ``base calendar year--
actual.'' The application of possible labor and nonlabor cost increases 
for the purpose of updating the ``base calendar year--actual'' cost data 
may be accomplished by the use of either individual carrier data for 
each of the study carriers, or the composite carrier data for those 
study carriers whose revenue from the issue traffic amount to 50 percent 
or more of their total system revenues for the ``base calendar year--
actual.'' The sample values for expenses and revenues shall be expanded 
to full year values without adjustments to known annual report figures 
of any carrier.
    (d) Where cost studies are developed through the use of computer 
processing techniques, there shall be submitted a manual application of 
the costing procedures used for one traffic and cost study carrier 
(study carrier) in order to demonstrate the procedures by which the 
computer program distributes the annual report statistics, and applies 
service unit-costs to each shipment. An illustration of the application 
of service unit-costs to the applicable traffic service units generated 
by one single-line sample shipment and by one interline sample shipment 
shall also be submitted. These sample shipments shall be on the 
``Carried'' basis.



Sec. 1139.4  Revenue need.

    Traffic and cost study carrier, i.e., the study carriers, shall 
submit evidence of the sum of money, in addition to operating expenses, 
including that needed to attract debt and equity capital, which they 
require to insure financial stability and the capacity to render 
service. This evidence shall include data required by Appendix I, parts 
I and II, and Appendix II.



Sec. 1139.5  Affiliate data.

    Each individual traffic and cost study carrier having transactions 
with affiliates, subject to the reporting requirements of schedules 
9009-A and 9009-B in the annual report for class I motor carriers, shall 
submit appropriate data and analyses reflecting the effect on the parent 
carrier's profits of transactions with affiliates. Such data and 
analyses shall be adequately supported, and there shall be submitted 
such underlying data as will permit a reconciliation of these data to 
the data supplied in the appropriate schedules of each carrier's annual 
report.

[47 FR 49577, Nov. 1, 1982; 47 FR 54082, Dec. 1, 1982]



Sec. 1139.6  Official notice.

    The Commission will take official notice of all of the proponent 
carriers' annual and quarterly reports on file with the Commission.



Sec. 1139.7  Service.

    The detailed information called for herein shall be in writing and 
shall be verified by a person or persons having knowledge thereof. The 
original and 10 copies of each verified statement for the use of the 
Commission shall be

[[Page 236]]

filed with the Secretary, Interstate Commerce Commission, Washington, DC 
20423. One copy of each statement shall be sent by first-class mail to 
each of the regional offices of the Commission in the area affected by 
the proposed increase, where it will be open to public inspection. A 
copy of each statement shall be mailed by first-class mail to each party 
of record in the last formal proceeding concerning a general rate 
increase in the affected area or territory. However, one copy of each 
statement shall be sent by express mail to any person undertaking to 
bear the cost. Written request for this expedited service must be made 
no less than 5 days before the statement is due to be filed with the 
Commission. Otherwise, the service requirements of 49 CFR 1104.12 should 
be observed. Information with respect to carrier affiliates may be 
served on the parties in summary form, if so desired. A copy of each 
statement shall be furnished to any interested person on request.

[47 FR 49577, Nov. 1, 1982, as amended at 53 FR 19302, May 27, 1988]



Sec. 1139.8  Availability of underlying data.

    All underlying data used in preparation of the material outlined 
above shall be made available in the office of the party serving such 
verified matter during usual office hours for inspection by any party of 
record desiring to do so, and shall be made available to the Commission 
upon request therefor. The underlying data shall be made available also 
at the hearing, but only if and to the extent specifically requested in 
writing and required by any party for the purpose of cross-examination. 
Since appendix I data are to be submitted on a combined carrier basis, 
any underlying individual carrier data used to complete appendix I 
should be furnished to the Commission for its use as well as for the use 
of parties opposing the sought increases.


                           Appendix I--Revenue Need and Allocation to Traffic at Issue                          
             [Cost allocation--see part II, line 13,  Method A,  Method B; check one; provide both]             
----------------------------------------------------------------------------------------------------------------
                                                                                    Restated proforma year \4\  
                                                                                --------------------------------
Line                                                   Base calendar    Present                        Based on 
 No.           Item                  Source\1\        year--actual\2\  proforma  Based on  Based on  constructed
                                                                        year\3\   current  proposed    revenue  
                                                                                 revenues  revenues    need\5\  
----------------------------------------------------------------------------------------------------------------
      (1)...................  (2)...................          (3)           (4)       (5)       (6)         (7) 
----------------------------------------------------------------------------------------------------------------
                                                                                                                
                                              Part I. Revenue Need                                              
                                                                                                                
----------------------------------------------------------------------------------------------------------------
1...  Operating revenue.....  A.R. Sch. 2998, L. 3..      $             $         $         $           $       
2...  Operating expenses....  A.R. Sch. 2998, L. 10.                                                            
3...  Lease of distinct       A.R. Sch. 2998, Net of                                                            
       operating unit (net).   Ls. 12 and 13.                                                                   
4...  Miscellaneous           A.R. Sch. 2998 (L. 27                                                             
       deductions less other   minus L. 20).                                                                    
       income.                                                                                                  
5...  Interest included in    A.R. Sch. 2998, L. 23.                                                            
       miscellaneous                                                                                            
       deductions.                                                                                              
6...  Income taxes on         A.R. Sch. 2998, L. 29.                                                            
       ordinary income\6\.                                                                                      
7...  Extraordinary and       A.R. Sch. 2998, L. 34.                                                            
       prior period items.                                                                                      
8...  Net income or loss\7\.  A.R. Sch. 2998, L. 35.                                                            
9...  Sum of money above      Sum of Ls. 4, 6 and 8.                                                            
       operating expenses.                                                                                      
10..  Percent owned and       A.R. Sch. 100, Col.               %             %         %         %           % 
       leased property to      (c) (L. 21+L.                                                                    
       net tangible property   23)L. 26.                                                                
       (3 decimals).                                                                                            
11..  Sum of money related    (L. 9 x --% in L. 10)                                                             
       to transportation.      plus L. 3.                                                                       
12..  System revenue need     L. 2 plus L. 11.......                                                            
       items and projected                                                                                      
       revenue need.                                                                                            
----------------------------------------------------------------------------------------------------------------
                                                                                                                

[[Page 237]]

                                                                                                                
                                     Part II. Allocation to Traffic at Issue                                    
                                                                                                                
----------------------------------------------------------------------------------------------------------------
13..  Constant costs and sum  See Method A (  ) and                                                             
       of money allocated to   Method B (  ), check                                                             
       issue traffic.          one; provide both.                                                               
14..  Variable expenses from  From traffic and cost                                                             
       traffic at issue (90%   study.                                                                           
       variable excluding                                                                                       
       return on                                                                                                
       investment)\8\.                                                                                          
15..  Operating revenues      From traffic study....                                                            
       from traffic at                                                                                          
       issue\8\.                                                                                                
16..  Constant costs and sum  L. 13 plus L. 14......      $             $         $         $           $       
       of money allocated to                                                                                    
       issue traffic plus                                                                                       
       variable expenses.                                                                                       
17..  Revenue to cost         L. 15L. 16....            %             %         %         %           % 
       comparison (1                                                                                            
       decimal).                                                                                                
----------------------------------------------------------------------------------------------------------------
See Methods A and B and footnotes on following pages.                                                           


 Method A--Constant Costs and Sum of Money Allocated To Issue Traffic Based on Ton and Ton-Mile Method (See Note
                                                       A)                                                       
----------------------------------------------------------------------------------------------------------------
                                                                                      Restated proforma year    
                                                                                --------------------------------
Line                              Source for columns 3       Base       Present                        Based on 
 No.            Item                     and 4             calendar    proforma  Based on  Based on  constructed
                                                         year--actual    year     current  proposed    revenue  
                                                                                 revenues  revenues      need   
----------------------------------------------------------------------------------------------------------------
      (1).....................  (2)....................         (3)         (4)       (5)       (6)         (7) 
                                                                                                                
(a).  System constant costs...  L. (b)+L. (c)..........     $           $         $         $           $       
(b).    Not related to          (See Note B)...........                                                         
       distance.                                                                                                
(c).    Related to distance...  (See Note B)...........     $           $         $         $           $       
(d).    Percent not related to  L. (b)L. (a)...           %           %         %         %           % 
       distance (3 decimals).                                                                                   
(e).    Percent related to      L. (c)L. (a)...           %           %         %         %           % 
       distance (3 decimals).                                                                                   
(f).  System sum of money.....  Appendix I, part I, L.      $           $         $         $           $       
                                 11.                                                                            
(g).    Not related to          L. (f) x L. (d)........                                                         
       distance.                                                                                                
(h).    Related to distance...  L. (f) x L. (e)........                                                         
(i).  Total system constant     L. (a)+L. (f)..........                                                         
       costs plus sum of money.                                                                                 
(j).    Not related to          L. (b)+L. (g)..........                                                         
       distance.                                                                                                
(k).    Related to distance...  L. (c)+L. (h)..........     $           $         $         $           $       
(l).  Tons carried on issue     From traffic study (see                                                         
       and nonissue traffic      Note C).                                                                       
       combined.                                                                                                
(m).  Ton-miles...............  ......do...............                                                         
(n).  Issue traffic tons        ......do...............                                                         
       carried.                                                                                                 
(o).  Issue traffic ton-miles.  ......do...............                                                         
(p).  Percent of issue traffic  L. (n)L. (l)...           %           %         %         %           % 
       tons to system tons (3                                                                                   
       decimals).                                                                                               
(q).  Percent of issue traffic  L. (o)L. (m)...           %           %         %         %           % 
       ton-miles to system ton-                                                                                 
       miles (3 decimals).                                                                                      
----------------------------------------------------------------------------------------------------------------
                                                                                                                
                           Constant Costs and Sum of Money Allocated To Issue Traffic                           
                                                                                                                
----------------------------------------------------------------------------------------------------------------
(r).    Not related to          L. (p) x L. (j)........     $           $         $         $           $       
       distance.                                                                                                
(s).    Related to distance...  L. (q) x L. (k)........                                                         
(t).    Total (enter amount in  L. (r)+L. (s)..........     $           $         $         $           $       
       Appendix I, part II,                                                                                     
       line 13).                                                                                                
----------------------------------------------------------------------------------------------------------------
Note A: This procedure allocates constant costs and the sum of money based on the ton and ton-mile method and   
  should be submitted for the information of the Commission. How much of the constant and sum of money costs may
  or should be recovered by any specific segment of traffic rest on (1) considerations including value of       
  service, demand, and ability to pay, and (2) considerations which involve matters relating to regulatory      
  policy.                                                                                                       

[[Page 238]]

                                                                                                                
Note B: Separate the amount of constant costs, including unrelated, by using Statement No. 6-68, Highway Form B,
  Schedule A, Line III. Assign the dollars in columns (6), (7), (8), and (9) times 10 percent to line (b), and  
  the dollars in columns (4) and (5) times 10 percent to line (c).                                              
Note C: Show tons and ton-miles on issue and nonissue traffic based on an expansion of the sample to a full     
  year.                                                                                                         


 Method B--Constant Costs and Sum of Money Allocated To Issue Traffic Based on Dollar (Expense) Method (See Note
                                                       A)                                                       
----------------------------------------------------------------------------------------------------------------
                                                                                      Restated proforma year    
                                                                                --------------------------------
Line                              Source for columns 3       Base       Present                        Based on 
 No.            Item                     and 4             calendar    proforma  Based on  Based on  constructed
                                                         year--actual    year     current  proposed    revenue  
                                                                                 revenues  revenues      need   
----------------------------------------------------------------------------------------------------------------
      (1).....................  (2)....................         (3)         (4)       (5)       (6)         (7) 
                                                                                                                
(a).  System constant cost      Note B.................   $            $         $         $          $         
       (excluding.                                                                                              
(b).  System sum of money.....  Appendix I, part I,                                                             
                                 line II.                                                                       
(c).  Total system constant     Line (a) plus line (b).                                                         
       costs plus sum of money.                                                                                 
(d).  Variable expenses on      From traffic and cost                                                           
       issue traffic.            study; Note C-.                                                                
(e).  Variable expenses on      From traffic and cost                                                           
       issue and nonissue        study; Note D-.                                                                
       traffic combined.                                                                                        
(f).  Percent relationship (3   Line (d)  line            %           %         %         %           % 
       decimals).                (e).                                                                           
(g).  Constant costs and sum    Line (c)  x  line (f)..   $            $         $         $          $         
       of money allocated to                                                                                    
       issue traffic (enter                                                                                     
       amount in Appendix I,                                                                                    
       part II, line 13).                                                                                       
----------------------------------------------------------------------------------------------------------------
Note A: This procedure allocates constant costs and the sum of money based on the dollar (expense) method and   
  should be submitted for the information of the Commission. How much of the constant and sum of money costs may
  or should be recovered by any specific segment of traffic rests on (1) considerations including value of      
  service, demand, and ability to pay, and (2) consideration which invlove matters relating to regulatory       
  policy.                                                                                                       
Note B: Determine the amount of constant costs, including unrelated, by using Statement No. 6-68, Highway Form  
  B, Schedule A, Line 111, column (3) multiplied by 10 percent; insert this amount on line (a).                 
Note C: Determine the amount of variable costs, including unrelated, by using Statement No. 6-68, Highway Form  
  B, Schedule A, line 111, column (3) multiplied by 90 percent to obtain the variable portion.                  
Note D: Show variable expenses allocated to the issue traffic based on an expansion of a sample to a full year. 
                                                                                                                
Footnotes to Appendix I:                                                                                        
                                                                                                                
Explanatory: The Purpose of Appendix I is twofold, namely: (1) to obtain, through part 1, Revenue Need,  an     
  indication of the past actual, present, and restated system revenue needs of the traffic and cost study       
  carriers, which, along with the financial data required in appendix B, will facilitate an analysis of the     
  financial stability of these carriers, and (2) to allocate a part of these system revenue needs to the traffic
  at issue as provided for in part II, line 13. It is that portion of constant and sum of money costs resulting 
  from this allocation plus the related variable expenses (line 14) which produces the total costs assigned to  
  the issue traffic (line 16) which is then compared to the issue traffic revenues in the revenue-to-cost       
  comparison shown on line 17. This comparison provides some indication of how much the total issue traffic is  
  contributing to the carriers' overall revenue needs; and serves as a reference point for the consideration of 
  ratemaking factors, other than costs, which may influence the appropriateness of the issue traffic's          
  contribution.                                                                                                 
Appendix I data should be completed and submitted for all traffic and cost study carriers combined. However,    
  data for the ``base calendar year--actual,'' column (3), should be developed and completed for each traffic   
  and cost study carrier and the results combined for all such carriers. The data in part I, columns (4) through
  (7), which reflect an updating of revenue need data for the ``base calendar year--actual'' to present and     
  restated levels, should be developed on either an individual carrier basis, or on a composite carrier basis   
  comprised of all traffic and cost study carriers. Data in part II, line 14 columns (4) through (7), which     
  reflect an updating of the cost and traffic study data for the ``base calendar year--actual'' to present and  
  restated levels, should be developed by the use of either individual carrier data for each of the study       
  carriers, or the composite carrier data for those study carriers whose revenues from the issue traffic amount 
  to 50 percent or more of their total system revenues for the ``base calendar year--actual.'' However, for line
  14, the method selected should be the same as that used to update the operating ratios to present and restated
  levels as required in .3 Cost study. As indicated above, appendix I data should be completed and submitted    
  only for all traffic and cost study carriers combined. Since appendix I are to be submitted on a combined     
  carrier basis, any underlying individual carrier data used to complete this appendix should be furnished to   
  the Commission for its use as well as for the use of parties opposing the sought increases. Data in columns   
  (4) through (7) must be appropriately explained and supported. Each of the dollar figures called for in these 
  columns shall be accompanied by an explanation of the bases or methods of restatement, including explicit     
  identification of all projected or assumed changes in revenues, in wage rates, in price levels of other       
  expenses and property items, and in productivity, as compared with the preceeding (actual) year results. Note 
  that the time periods referred to in appendix I, that is, ``Base calendar year--actual,'' ``Present proforma  
  year'' and ``Restated proforma year'' are the same time periods indicated in Sec.  1139.3, Cost study.        
\1\ Sources in this column apply to column (3) ``Base calendar year--actual.'' Data for columns (4) through (7) 
  should rely on column (3) as a base in order to reflect data for the ``Present proforma year'' and the        
  ``Restated proforma year.'' Annual report sources apply to class I motor carriers for class II carriers use   
  comparable sources.                                                                                           
\2\ The data in column (3) should reflect the revenue need data (part 1), and the traffic and cost study data   
  (part II), for the traffic study year. That is, the ``Base calendar year--actual,'' which should coincide with
  the ``Base calendar year--actual'' referred to in the Cost study (Sec.  1139.3). Parts I and II should be     
  completed for each individual study carrier--the purpose being to allocate a portion of each carrier's system 
  revenue need to the traffic at issue as provided for in part II. The results for all study carriers should    
  then be aggregated and submitted on a combined carrier basis.                                                 
\3\ The data in column (4) should be based on present wage, price and productivity levels and reflect conditions
  prevailing on a date no later than the 45 days prior to the date of the tariff filing.                        
\4\ The data in columns (5), (6), and (7) should be based on wage, price, and productivity levels anticipated on
  the effective date of the proposed rates.                                                                     
\5\ The purpose of this column is to obtain data on what system revenue needs of the study carriers should be at
  a giving time. Part I should consider the sum of money in addition to operating expenses (including that      
  needed to attract debt and equity capital) which the carriers feel they require to insure financial stability 
  and the capacity to render service.                                                                           

[[Page 239]]

                                                                                                                
\6\ In columns (4) through (7), show income taxes based on estimated taxable income reduced by the taxes        
  applicable to other income such as, for example, capital gains transactions.                                  
\7\ In columns (4) through (7), determine the net income based on data shown for lines 1 though 7. In column    
  (7), the estimate of the net income needed should be supported by evidence that it is a just and reasonable   
  amount.                                                                                                       
\8\ Show expenses and revenues allocated to the total issue traffic based on an expansion of the sample to a    
  full year. The amount shown on line 14 for variable expenses should agree with that shown in Method B, line   
  (d).                                                                                                          

[47 FR 49579, Nov. 1, 1982; 47 FR 54081, Dec. 1, 1982]

                    Appendix II--Financial Ratios (Traffic and Cost Study Carrier __________)                   
        [Complete appendix II for each traffic and cost study carrier and for all such carriers combined]       
----------------------------------------------------------------------------------------------------------------
                                                                                                        First   
                                                                              Third        Second     preceding 
Line                                                                        preceding    preceding     calendar 
 No.                 Item                           Source \1\               calendar     calendar       year   
                                                                               year         year      (actual or
                                                                             (actual)     (actual)    estimated)
----------------------------------------------------------------------------------------------------------------
      (1)..............................  (2).............................          (3)          (4)          (5)
                                                                                                                
----------------------------------------------------------------------------------------------------------------
1...  Current assets \2\...............  A.R. Sch. 100, L. 18............      $            $            $      
2...  Net carrier operating property     A.R. Sch. 100, L. 21............                                       
       (owned)\2\.                                                                                              
3...  Net carrier operating property     A.R. Sch. 100, L. 21+L. 23......                                       
       (owned plus leased to others)                                                                            
       \2\.                                                                                                     
4...  Net tangible property \2\........  A.R. Sch. 100, L. 26............                                       
5...  Intangibles \2\..................  A.R. Sch. 100, L. 32............                                       
6...  Current liabilities \2\..........  A.R. Sch. 101, L. 13............                                       
7...  Long-term debt \2\...............  A.R. Sch. 101, L. 15+L. 25......                                       
8...  Shareholders' equity \2\.........  A.R. Sch. 101, L. 55............                                       
9...  Operating revenues...............  A.R. Sch. 2998, L. 3............                                       
10..  Depreciation plus or minus         A.R. Sch. 2998, L. 6+ or-L. 7...                                       
       depreciation adjustment.                                                                                 
11..  Operating expenses...............  A.R. Sch. 2998, L. 10...........                                       
12..  Net carrier operating income.....  A.R. Sch. 2998, L. 14...........                                       
13..  Ordinary income before income      A.R. Sch. 2998, L. 28...........                                       
       taxes.                                                                                                   
14..  Net income or loss...............  A.R. Sch. 2998, L. 35...........                                       
15..  Net income or loss plus or minus   L. 10 Plus L. 14................      $            $            $      
       depreciation \3\.                                                                                        
16..  Percent owned and leased property  L. 3L. 4................            %            %            %
       to net tangible property (3                                                                              
       decimals).                                                                                               
17..  Investment in owned and leased     ................................      $            $            $      
       property plus working capital                                                                            
       \4\.                                                                                                     
18..  Shareholders' equity less          L. 8-L. 5.......................      $            $            $      
       intangibles.                                                                                             
19..  Long-term debt plus shareholders'  L. 7+L. 18......................      $            $            $      
       equity less intangibles.                                                                                 
20..  Operating ratio (2 decimals).....  L. 11L. 9...............            %            %            %
21..  Current ratio (2 decimals).......  L. 1L. 6................                                       
22..  Ratio net income or loss to        L. 14L. 9...............            %            %            %
       operating revenue (2 decimals).                                                                          
23..  Rate of return on owned and        L. 12L. 17..............            %            %            %
       leased operating property plus                                                                           
       working capital (2 decimals).                                                                            
24..  Rate of return on shareholders'    L. 14L. 18..............            %            %            %
       equity less intangibles (2                                                                               
       decimals).                                                                                               
25..  Capital structure ratio (2         L. 7L. 19...............            %            %            %
       decimals).                                                                                               
26..  Throwoff to debt ratio (2          L. 15L. 7...............            %            %            %
       decimals).                                                                                               
27..  Ratio long-term debt to            L. 7L. 18...............            %            %            %
       shareholders' equity less                                                                                
       intangibles (2 decimals).                                                                                
                                                                                                                
----------------------------------------------------------------------------------------------------------------
\1\ Annual report sources refer to 1970 Motor Carrier Annual Report Form A for Class I Motor Carriers of        
  Property. For class II carriers use the comparable sources. For years prior to 1970 use the comparable annual 
  report sources.                                                                                               
\2\ Show average of beginning and end of year figures.                                                          
\3\ If carrier shows a net income, the amount shown for depreciation should be added to it; if a net loss, then 
  the net loss and the amount for depreciation should be netted and the appropriate figure shown.               
\4\ Multiply the percent on line 16 by the difference between line 1 and line 6. Add the resulting amount to    
  line 3.                                                                                                       

[47 FR 49580, Nov. 1, 1982; 47 FR 54081, Dec. 1, 1982]



                    Subpart B--Intercity Bus Industry

    Source: 42 FR 32541, June 27, 1977, unless otherwise noted. 
Redesignated at 47 FR 49571, Nov. 1, 1982.



Sec. 1139.20  Application.

    (a) Upon the filing by the National Bus Traffic Association, Inc., 
(NBTA) on behalf of its carrier members, or by such other agencies as 
the Commission

[[Page 240]]

may by order otherwise designate, of agency tariff schedules which 
contain proposed general increases in fares or charges where such 
proposal would result in an increase of $1 million or more in the annual 
operating revenues on the traffic affected by the proposal, the motor 
common carriers of passengers on whose behalf such schedules are filed 
shall, concurrently with the filing of those schedules, file and serve, 
as provided hereinafter, a verified statement presenting and comprising 
the entire evidential case which is relied upon to support the proposed 
general increase. Carriers thus required to submit their evidence when 
they file their schedules are hereby notified that special permission to 
file those schedules shall be conditioned upon the publishing of an 
effective date at least 30 days later than the date of filing, to enable 
proper evaluation of the evidence presented. Data to be submitted in 
accordance with Secs. 1139.21 through 1139.23 represent the minimum data 
required to be filed and served, and in no way shall be considered as 
limiting the type of evidence that may be presented at the time of 
filing of the schedules. If a formal proceeding is instituted, the 
carriers are not precluded from updating the evidence submitted at the 
time of filing of the schedules to reflect the current situation.
    (b) When filing tariff schedules other than those described 
hereinabove, the carriers or their tariff publishing agencies shall be 
required to comply with such procedures as the Commission may direct in 
the event an investigation is instituted. Nothing stated in this part 
shall relieve the carriers of their burden of proof imposed under the 
Interstate Commerce Act.

[42 FR 40860, Aug. 12, 1977. Redesignated at 47 FR 49577, Nov. 1, 1982, 
and amended at 51 FR 6238, Feb. 21, 1986]



Sec. 1139.21   Study carriers.

    (a) For the purposes of this proceeding the ``study carriers'' shall 
consist of those Class I motor common carriers of passengers which are 
members of NBTA and which, during the latest calendar year available 
preceding the filing date of the proposed increase in fares and/or 
charges, derived $500,000 or more in annual operating revenues from the 
issue traffic, or 1 percent or more of the total annual operating 
revenues received by all Class I carriers from the issue traffic. Issue 
traffic is defined as that traffic (services) directly affected by the 
proposed increases in fares and/or charges.
    (b) To corroborate the selection of the above study carriers, and to 
provide a data base for a continuing evaluation of the validity and 
usefulness of those carriers as a study group, respondents shall submit, 
as a part of their verified statement (justification), a list of all 
Class I motor common carriers of passengers participating in the issue 
traffic (services). For the above specified calendar year, the dollar 
amounts of total system operating revenues for each such carrier shall 
be arrayed in descending order; and, there shall be shown the amount of 
annual operating revenues received by each carrier from the total 
traffic at issue. Also, to be shown is the percent that each such 
carrier's total issue traffic revenue is to its total system revenues, 
and the percent that each carrier's total issue traffic revenue is to 
the total issue traffic revenues for all Class I carriers indicated in 
the above list. This list of carriers and the carrier's applicable 
revenues shall be referred to as Schedule A, Class I Participating 
Carriers' Revenue Data.

[42 FR 40860, Aug. 12, 1977. Redesignated at 47 FR 49577, Nov. 1, 1982]



Sec. 1139.22   Revenue data for study carriers.

    The study carriers, as identified above, shall submit the revenue 
data called for in Schedule B herein, the purpose of which is to 
determine the amount of increased revenues which might be expected under 
the proposed increase in fares and/or charges on the issue traffic, and 
to evaluate the revenue aspects of the non-issue traffic, including that 
traffic subject to Interstate Commerce Commission rate regulation but 
not here at issue, and that traffic which is intrastate in character and 
under the jurisdiction of state public commissions.

[42 FR 40860, Aug. 12, 1977, as amended at 42 FR 56333, Oct. 25, 1977. 
Redesignated at 47 FR 49577, Nov. 1, 1982]

[[Page 241]]



Sec. 1139.23   Revenue need.

    The ``study carriers'' shall submit evidence of the sum of money, in 
addition to operating expenses, including that needed to attract debt 
and equity capital, which they require to insure financial stability and 
the capability to render service. This evidence shall include data 
required by Schedules C through G.



Sec. 1139.24   Official notice.

    The Commission will take official notice of all of the proponent 
carriers' annual and quarterly reports on file with the Commission.



Sec. 1139.25   Service.

    The detailed information called for herein shall be in writing and 
shall be verified by a person or persons having knowledge thereof. The 
original and 16 copies of each verified statement for the use of the 
Commission shall be filed with the Secretary, Interstate Commerce 
Commission, Washington, DC 20423. One copy of each statement shall be 
sent first-class mail to each of the regional offices of the Commission 
in the area affected by the proposed increase, where it will be open to 
public inspection. A copy of each statement shall be mailed by first-
class mail to each party of record in the last formal proceeding 
concerning a general increase in bus passenger fares in the affected 
area or territory. Otherwise, the service requirements of Sec. 1130.1 
shall be observed.



Sec. 1139.26   Availability of underlying data.

    All underlying data used in preparation of the material outlined 
above shall be made available in the office of the party serving such 
verified matter during usual office hours for inspection by any party of 
record desiring to do so, and shall be made available to the Commission 
upon request therefor. The underlying data shall be made available also 
at the hearing, but only if, and to the extent, specifically requested 
in writing and required by any party for the purpose of cross-
examination.

                            Schedule A--Class I Participating Carriers' Revenue Data                            
                                             [Dollars in thousands]                                             
----------------------------------------------------------------------------------------------------------------
                                                                                     Percent of carrier's issue 
                                                                                        traffic revenue to--    
                                                                                   -----------------------------
                                                               Total       Total                     Total issue
Line No. and carrier annual report    Carrier   Study code    system       issue      Total system     traffic  
              No. (a)                   (b)         (c)      operating    traffic    revenues, col,    revenues 
                                                              revenue     revenue   (e)col.    (percent 
                                                                (d)         (e)       (d) (2 Dec.)     dist. of 
                                                                                          (f)        col. (e) (2
                                                                                                      Dec.) (g) 
----------------------------------------------------------------------------------------------------------------
1.................................  ..........  ..........  ..........  ..........  ...............  ...........
2.................................  ..........  ..........  ..........  ..........  ...............  ...........
3.................................  ..........  ..........  ..........  ..........  ...............  ...........
4.................................  ..........  ..........  ..........  ..........  ...............  ...........
5.................................  ..........  ..........  ..........  ..........  ...............  ...........
6.................................  ..........  ..........  ..........  ..........  ...............  ...........
7.................................  ..........  ..........  ..........  ..........  ...............  ...........
9.................................  ..........  ..........  ..........  ..........  ...............  ...........
10................................  ..........  ..........  ..........  ..........  ...............  ...........
11................................  ..........  ..........  ..........  ..........  ...............  ...........
12................................  ..........  ..........  ..........  ..........  ...............  ...........
13................................  ..........  ..........  ..........  ..........  ...............  ...........
14................................  ..........  ..........  ..........  ..........  ...............  ...........
15................................  ..........  ..........  ..........  ..........  ...............  ...........
16................................  ..........  ..........  ..........  ..........  ...............  ...........
17................................  ..........  ..........  ..........  ..........  ...............  ...........
18................................  ..........  ..........  ..........  ..........  ...............  ...........
19................................  ..........  ..........  ..........  ..........  ...............  ...........
20................................  ..........  ..........  ..........  ..........  ...............  ...........
21................................  ..........  ..........  ..........  ..........  ...............  ...........
22................................  ..........  ..........  ..........  ..........  ...............  ...........
23................................  ..........  ..........  ..........  ..........  ...............  ...........
24................................  ..........  ..........  ..........  ..........  ...............  ...........
25................................  ..........  ..........  ..........  ..........  ...............  ...........
----------------------------------------------------------------------------------------------------------------


[[Page 242]]

                         Explanatory--Schedule A

    Purpose. The purpose of Schedule A is to corroborate the selection 
of the ``study carriers'', as defined in Sec. 1139.21 of the prescribed 
procedures, and to provide a data base for the continuing evaluation of 
the validity and usefulness of the ``study carrier'' group.
    Calendar Year. For the purpose of this schedule use the latest 
calendar year available preceding the filing date of the proposed 
increased fares and/or charges.
    Column (a). The annual report number is that number assigned to the 
carrier by the Bureau of Accounts, Interstate Commerce Commission, for 
identification purposes.
    Column (b). List Class I carrier members of national Bus Traffic 
Association and other interested Class I carriers participating in the 
tariffs of NBTA which will be affected by the proposal, in descending 
order of total system operating revenues.
    Column (c). Use the following code for this column. For study 
carriers (as defined in Sec. 1139.21) insert ``S''. For non-study 
carriers insert ``NS''.
    Column (d). Use amount shown in carrier's Annual Report, Schedule 
2998, Line 9.
    Column (e). Issue traffic is defined as that traffic (services) 
directly affected by the proposed increase in fares and/or charges.
    Columns (f) and (g). These columns are self-explanatory and are 
obtained by calculations using columns (d) and (e).

                                    Schedule B--Study Carriers' Revenue Data                                    
                                             [Dollars in thousands]                                             
----------------------------------------------------------------------------------------------------------------
                                                        Issue traffic         Total       Total    Miscellaneous
                                          Total      (services) revenue       issue     nonissue    station and 
    Line No. and study carrier (a)      operating ------------------------   traffic     traffic       other    
                                         revenue                             revenue     revenue     operating  
                                           (b)        (C-1)       (C-2)        (d)         (e)      revenues (f)
----------------------------------------------------------------------------------------------------------------
                         Base year actual: 4-quarter period ending ____________________                         
                                                                                                                
----------------------------------------------------------------------------------------------------------------
1....................................  ..........  ..........  ..........  ..........  ..........  .............
2....................................  ..........  ..........  ..........  ..........  ..........  .............
3....................................  ..........  ..........  ..........  ..........  ..........  .............
4....................................  ..........  ..........  ..........  ..........  ..........  .............
5....................................  ..........  ..........  ..........  ..........  ..........  .............
6....................................  ..........  ..........  ..........  ..........  ..........  .............
7....................................  ..........  ..........  ..........  ..........  ..........  .............
9....................................  ..........  ..........  ..........  ..........  ..........  .............
10...................................  ..........  ..........  ..........  ..........  ..........  .............
11...................................  ..........  ..........  ..........  ..........  ..........  .............
12...................................  ..........  ..........  ..........  ..........  ..........  .............
13...................................  ..........  ..........  ..........  ..........  ..........  .............
14...................................  ..........  ..........  ..........  ..........  ..........  .............
15...................................  ..........  ..........  ..........  ..........  ..........  .............
16...................................  ..........  ..........  ..........  ..........  ..........  .............
17...................................  ..........  ..........  ..........  ..........  ..........  .............
18...................................  ..........  ..........  ..........  ..........  ..........  .............
19...................................  ..........  ..........  ..........  ..........  ..........  .............
20...................................  ..........  ..........  ..........  ..........  ..........  .............
21...................................  ..........  ..........  ..........  ..........  ..........  .............
22...................................  ..........  ..........  ..........  ..........  ..........  .............
23...................................  ..........  ..........  ..........  ..........  ..........  .............
24...................................  ..........  ..........  ..........  ..........  ..........  .............
25...................................  ..........  ..........  ..........  ..........  ..........  .............
      Total, all study carriers......                                                                           
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                    Pro forma year based on proposed revenues                                   
                                                                                                                
----------------------------------------------------------------------------------------------------------------
1....................................  ..........  ..........  ..........  ..........  ..........  .............
2....................................  ..........  ..........  ..........  ..........  ..........  .............
3....................................  ..........  ..........  ..........  ..........  ..........  .............
4....................................  ..........  ..........  ..........  ..........  ..........  .............
5....................................  ..........  ..........  ..........  ..........  ..........  .............
6....................................  ..........  ..........  ..........  ..........  ..........  .............
7....................................  ..........  ..........  ..........  ..........  ..........  .............
9....................................  ..........  ..........  ..........  ..........  ..........  .............
10...................................  ..........  ..........  ..........  ..........  ..........  .............
11...................................  ..........  ..........  ..........  ..........  ..........  .............
12...................................  ..........  ..........  ..........  ..........  ..........  .............
13...................................  ..........  ..........  ..........  ..........  ..........  .............
14...................................  ..........  ..........  ..........  ..........  ..........  .............
15...................................  ..........  ..........  ..........  ..........  ..........  .............
16...................................  ..........  ..........  ..........  ..........  ..........  .............

[[Page 243]]

                                                                                                                
17...................................  ..........  ..........  ..........  ..........  ..........  .............
18...................................  ..........  ..........  ..........  ..........  ..........  .............
19...................................  ..........  ..........  ..........  ..........  ..........  .............
20...................................  ..........  ..........  ..........  ..........  ..........  .............
21...................................  ..........  ..........  ..........  ..........  ..........  .............
22...................................  ..........  ..........  ..........  ..........  ..........  .............
23...................................  ..........  ..........  ..........  ..........  ..........  .............
24...................................  ..........  ..........  ..........  ..........  ..........  .............
25...................................  ..........  ..........  ..........  ..........  ..........  .............
      Total, all study carriers......                                                                           
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                    Pro forma year based on current revenues                                    
                                                                                                                
----------------------------------------------------------------------------------------------------------------
1....................................  ..........  ..........  ..........  ..........  ..........  .............
2....................................  ..........  ..........  ..........  ..........  ..........  .............
3....................................  ..........  ..........  ..........  ..........  ..........  .............
4....................................  ..........  ..........  ..........  ..........  ..........  .............
5....................................  ..........  ..........  ..........  ..........  ..........  .............
6....................................  ..........  ..........  ..........  ..........  ..........  .............
7....................................  ..........  ..........  ..........  ..........  ..........  .............
9....................................  ..........  ..........  ..........  ..........  ..........  .............
10...................................  ..........  ..........  ..........  ..........  ..........  .............
11...................................  ..........  ..........  ..........  ..........  ..........  .............
12...................................  ..........  ..........  ..........  ..........  ..........  .............
13...................................  ..........  ..........  ..........  ..........  ..........  .............
14...................................  ..........  ..........  ..........  ..........  ..........  .............
15...................................  ..........  ..........  ..........  ..........  ..........  .............
16...................................  ..........  ..........  ..........  ..........  ..........  .............
17...................................  ..........  ..........  ..........  ..........  ..........  .............
18...................................  ..........  ..........  ..........  ..........  ..........  .............
19...................................  ..........  ..........  ..........  ..........  ..........  .............
20...................................  ..........  ..........  ..........  ..........  ..........  .............
21...................................  ..........  ..........  ..........  ..........  ..........  .............
22...................................  ..........  ..........  ..........  ..........  ..........  .............
23...................................  ..........  ..........  ..........  ..........  ..........  .............
24...................................  ..........  ..........  ..........  ..........  ..........  .............
25...................................  ..........  ..........  ..........  ..........  ..........  .............
      Total, all study carriers......                                                                           
----------------------------------------------------------------------------------------------------------------

                         Explanatory--Schedule B

    Purpose. The purpose of this schedule is to obtain--for each study 
carrier and by totals for all study carriers--(1) total operating 
revenue, (2) revenues attributable to the various types of traffic at 
issue, (3) revenue attributable to the total non-issue traffic, and (4) 
miscellaneous station and other operating revenues. These data shall be 
provided for the specified study periods, namely: Base year actual, pro 
forma year based on current revenues, and pro forma year based on 
proposed revenues.
    The pro forma year based on proposed revenues for the traffic at 
issue will be compared to the issue traffic revenues for the pro forma 
year based on current revenues and for the base year actual to determine 
the amount of the proposed revenue increase being sought over these two 
periods. In addition, the revenue data for the total issue traffic 
(column (d)), will be used in Schedule C, Part III as a basis for 
allocating increased costs, i.e., the increased operating expenses and 
the increased ``sum of money'' costs.
    Base Year Actual. Data to be reported in this and other schedules 
herein for the base year actual shall be based on the 4-quarter calendar 
year periods identified below:

                   Filing Month of Verified Statement                   
January...............................  Sept. 30, preceding year.       
February..............................      Do.                         
March.................................      Do.                         
April.................................  Dec. 31, preceding year.        
May...................................      Do.                         
June..................................      Do.                         
July..................................  Mar. 31, filing-month year.     
August................................      Do.                         
September.............................      Do.                         
October...............................  June 30, filing-month year.     
November..............................      Do.                         
December..............................  June 30, filing-month year.     
                                                                        


[[Page 244]]

    The 4-quarter calendar year periods identified above represent the 
minimum requirement. However, in event a proposed fare/charge increase 
is filed at a time when data for a more current quarter than that 
specified are obtainable then that more current quarter may be used in 
the base year actual. For example, if an increase is filed in late March 
and data for the 4th quarter of the preceding year are obtainable, then 
the base year actual ending December 31 may be used in lieu of the base 
year actual ending September 30.
    Pro forma year data. Revenue data for the pro forma year shall be 
reported in two ways, namely: Based on current revenues and based on 
proposed revenues. Separate schedules are required for each pro forma 
year. These data do not represent a forecast but reflect the results of 
12 months of operation at particular rate levels. Thus, data for the pro 
forma year based on current revenues should be based on a restatement of 
the revenue data for the base year actual to reflect fares and/or 
charges which are currently in effect. Similarly data for the pro forma 
year based on proposed revenues should reflect a restatement of the base 
year actual data but at levels reflecting the proposed fares and/or 
charges.
    Column (a). Insert in this column the company name of each ``study 
carrier'' as defined in Sec. 1139.21 of the prescribed procedures.
    Column (b). Use carrier's Annual Report, Schedule 2998, Line 9. The 
dollar amount in this column, for each study carrier, should equal the 
total of columns (d), (e), and (f).
    Columns (c-1), (c-2), etc. As defined in Sec. 1139.21, ``issue 
traffic'' means that traffic (service) affected by the proposed increase 
in fares and/or charges, and is limited to the fares and/or charges 
published in schedules and tariffs filed with the Interstate Commerce 
Commission. For the purpose of the proposed increases filed under the 
prescribed procedures of this proceeding, column (c) should be 
subdivided into columns (c-1), (c-2), etc. to show separately the 
revenue for each type of traffic in issue and each column should be 
appropriately headed. For instance, a proposal to increase passenger 
fares and express rates would call for Intercity Passenger Revenue in 
column (c-1), and Express Revenue in column (c-2). If a third basic 
service is included in the proposed increase, column (c-3) should show 
revenue from that traffic with an appropriate identification in this 
column heading.
    Column (d). The total issue traffic revenues in this column should 
equal the sum of columns (c-1), (c-2), etc.
    Column (e). The revenues to be reported in this column shall consist 
of those revenues other than ``total issue traffic revenue'' (Column 
(d)), and ``miscellaneous station and other operating revenues'' (Column 
(f)). Thus, ``non-issue traffic revenue'' means those revenues accruing 
from providing the types of services indicated in columns (c-1), etc., 
but which may be ``intrastate'' in nature, are ``exempt'' as provided 
under 49 U.S.C. 10721, 10722, 10723 and 10724, or which are otherwise 
not at issue in a proposed fare and/or charge increase. Such non-issue 
traffic may also include a commuter or mass transportation service, 
which is the transportation of passengers generally performed within a 
city or town and the suburban areas contiguous thereto. However, in some 
instances this service may also be intercity in character where the 
cities involved are within relatively short distances of each other and 
the primary purpose is the mass transportation of commuter passengers to 
and from these cities.
    Column (f). For the purpose of this schedule the revenues to be 
reported in this column shall consist of those in Account 3600, 
Miscellaneous Station Revenue, and in Account 3900, Other Operating 
Revenue. (See 49 CFR Part 1206.)
    Presentation of statement on revenue sample studies. Historically, 
in order to separate interstate from intrastate revenues, it has not 
been necessary for annual report purposes for each carrier to conduct 
studies of its traffic operations, whether based upon sampling or 
otherwise, however, many of the Class I carriers make such studies for 
managerial purposes. In order to permit the evaluation of such studies, 
and the evidence derived therefrom, each study carrier, as defined in 
section 1139.21, shall submit an affidavit explaining how its study was 
conducted and how it appraises the reliability of the results. Carriers 
having studies based upon sampling should conform with the staff report 
entitled ``Guidelines for the Presentation of the Results of Sample 
Studies,'' February 1, 1971.

[42 FR 32541, June 27, 1977. Redesignated and amended at 47 FR 49577, 
Nov. 1, 1982]

[[Page 245]]

Pt. 1139, Subpt. B, Sch. C

                                                                                          Attachment 1                                                                                          
                                                                                           Schedule C                                                                                           
                                                                               Part I--Condensed Income Statement                                                                               
                                                                                     [Dollars in thousands]                                                                                     
                                                           (  ) Greyhound Lines, Inc.  (  )Trailways combined  (  ) All study carriers                                                          
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                Pro forma year                                  
                                                                                                            ------------------------------------------------------------------------------------
                                                                                                 Base year-                       Proposed         Proposed       Constructed      Constructed  
             Line No. and Item (a)                         Source A.R. schedule 250(b)           actual (c)  Current revenue    revenue and      revenue and      revenue need     revenue need 
                                                                                                              and projected      projected      future expense     projected      future expense
                                                                                                               expense (d)      expense (e)          (f)          expense (g)          (h)      
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1. Passenger revenue...........................  L. 1..........................................  ..........  ...............  ...............  ...............  ...............  ...............
2. Special bus revenue.........................  L. 2..........................................  ..........  ...............  ...............  ...............  ...............  ...............
3. Baggage revenue.............................  L. 3..........................................  ..........  ...............  ...............  ...............  ...............  ...............
4. Mail revenue................................  L. 4..........................................  ..........  ...............  ...............  ...............  ...............  ...............
5. Express revenue.............................  L. 5..........................................  ..........  ...............  ...............  ...............  ...............  ...............
6. Newspaper revenue...........................  L. 6..........................................  ..........  ...............  ...............  ...............  ...............  ...............
7. Miscellaneous station revenue...............  L. 7..........................................  ..........  ...............  ...............  ...............  ...............  ...............
8. Other operating revenue.....................  L. 8..........................................  ..........  ...............  ...............  ...............  ...............  ...............
9. Total revenues..............................  L. 12.........................................  ..........  ...............  ...............  ...............  ...............  ...............
10. Total expenses.............................  L. 18.........................................  ..........  ...............  ...............  ...............  ...............  ...............
11. Net operating revenue......................  L. 19.........................................  ..........  ...............  ...............  ...............  ...............  ...............
12. Rent for lease of carrier property-debt....  L. 20.........................................  ..........  ...............  ...............  ...............  ...............  ...............
13. Income from lease of carrier property-       L. 21.........................................  ..........  ...............  ...............  ...............  ...............  ...............
 credit.                                                                                                                                                                                        
14. Net carrier operating income...............  L. 22.........................................  ..........  ...............  ...............  ...............  ...............  ...............
15. Total other income.........................  L. 33.........................................  ..........  ...............  ...............  ...............  ...............  ...............
16. Gross income...............................  L. 34.........................................  ..........  ...............  ...............  ...............  ...............  ...............
17. Interest and amortization of debt discount   Sums of lines 35, 38, and 39..................  ..........  ...............  ...............  ...............  ...............  ...............
 expenses and premium.                                                                                                                                                                          
18. Total income deductions....................  L. 42.........................................  ..........  ...............  ...............  ...............  ...............  ...............
19. Income (loss) from continuing operations     L. 43.........................................  ..........  ...............  ...............  ...............  ...............  ...............
 before income taxes.                                                                                                                                                                           
20. Income taxes on income from continuing       L. 44.........................................  ..........  ...............  ...............  ...............  ...............  ...............
 operations.                                                                                                                                                                                    
21. Provision for deferred taxes...............  L. 45.........................................  ..........  ...............  ...............  ...............  ...............  ...............
22. Income (loss) from continuing operations...  L. 46.........................................  ..........  ...............  ...............  ...............  ...............  ...............
23. Total income (loss) from discontinued        L. 49.........................................  ..........  ...............  ...............  ...............  ...............  ...............
 operations.                                                                                                                                                                                    
24. Total extraordinary items and accounting     L. 56.........................................  ..........  ...............  ...............  ...............  ...............  ...............
 changes (debit) credit.                                                                                                                                                                        
25. Net income (loss) transferred to retained    L. 57.........................................  ..........  ...............  ...............  ...............  ...............  ...............
 income-unappropriated.                                                                                                                                                                         
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 246]]


                                                     Part II--System Operating Expenses and Sum of Money Assigned to Transportation Service                                                     
                                                                                     [Dollars in thousands]                                                                                     
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                Pro-forma year                                  
                                                                                                            ------------------------------------------------------------------------------------
                                                                                                 Base year-                       Proposed         Proposed       Constructed      Constructed  
             Line No. and Item (a)                                 Source (b)                    actual (c)  Current revenue    revenue and      revenue and      revenue need     revenue need 
                                                                                                              and projected      projected      future expense     projected      future expense
                                                                                                               expense (d)      expense (e)          (f)          expense (g)          (h)      
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1. Operating expenses ``Sum of money'' items...  Pt. I, L. 10..................................  ..........  ...............  ...............  ...............  ...............  ...............
2. Rent for, and from, lease of carrier          Pt. I, net of ls. 12 and 13...................  ..........  ...............  ...............  ...............  ...............  ...............
 property (net).                                                                                                                                                                                
3. Interest and amortization of debt discount    Pt. I, L. 17..................................  ..........  ...............  ...............  ...............  ...............  ...............
 and expense and premium on debt.                                                                                                                                                               
4. Percent of carrier operating property to      A. R. Sch. 200 col. (b) (ls. 19 and             ..........  ...............  ...............  ...............  ...............  ...............
 total tangible property.                         21)(L. 26) (2 dec.).                                                                                                                  
5. Interest and related expenses assigned to     L. 3xl, 4, above..............................  ..........  ...............  ...............  ...............  ...............  ...............
 transportation service.                                                                                                                                                                        
6. Taxable income assigned to transportation     (Pt. I, L. 14) minus (pt. II, L. 5)...........  ..........  ...............  ...............  ...............  ...............  ...............
 service.                                                                                                                                                                                       
7. Taxable income from continuing operations...  Pt. I, L. 19..................................  ..........  ...............  ...............  ...............  ...............  ...............
8. Percent of taxable income assigned to         L. 6L. 7, above (2 dec.)..............  ..........  ...............  ...............  ...............  ...............  ...............
 transportation service to taxable income from                                                                                                                                                  
 continuing operations.                                                                                                                                                                         
9. Total income taxes..........................  Pt. I, L. 20..................................  ..........  ...............  ...............  ...............  ...............  ...............
10. Income taxes assigned to transportation      L. 8xL. 9, above..............................  ..........  ...............  ...............  ...............  ...............  ...............
 service.                                                                                                                                                                                       
11. Income (loss) assigned to transportation     L. 6 minus L. 10 above........................  ..........  ...............  ...............  ...............  ...............  ...............
 service.                                                                                                                                                                                       
12. Total ``sum of money'' items assigned to     Ls. 2, 5, 10 and 11...........................  ..........  ...............  ...............  ...............  ...............  ...............
 transportation service.                                                                                                                                                                        
13. Operating expenses and ``sum of money''      Ls. 1 and 12, above...........................  ..........  ...............  ...............  ...............  ...............  ...............
 assigned to transportation service.                                                                                                                                                            
14. Ratio of income (loss) assigned to           Pt. II, L. 11Pt. I, L. 22.............  ..........  ...............  ...............  ...............  ...............  ...............
 transportation to income (loss) from                                                                                                                                                           
 continuing operations (1 det.).                                                                                                                                                                
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 247]]


                                                Part III--Allocation of Increased System Operating Expenses and Sum of Money to Traffic at Issue                                                
                                                                                     [Dollars in thousands]                                                                                     
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                Pro-forma year                                  
                                                                                                            ------------------------------------------------------------------------------------
                                                                                                 Base year-                       Proposed         Proposed       Constructed      Constructed  
             Line No. and Item (a)                                 Source (b)                    actual (c)  Current revenue    revenue and      revenue and      revenue need     revenue need 
                                                                                                              and projected      projected      future expense     projected      future expense
                                                                                                               expense (d)      expense (e)          (f)          expense (g)          (h)      
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
            A.--Revenue distribution                                                                                                                                                            
1. Revenues applicable to traffic at issue.....  From revenue study............................  ..........  ...............  ...............  ...............  ...............  ...............
2. System operating revenues, less               Sch. C, pt. I, L. 9Ls. 7 and 8........  ..........  ...............  ...............  ...............  ...............  ...............
 miscellaneous station revenues (3600) and                                                                                                                                                      
 other operating revenues (2900).                                                                                                                                                               
3. Percent of total issue traffic revenues to    L. 1L. 2 (percent to 2 dec.)..........  ..........  ...............  ...............  ...............  ...............  ...............
 L. 2 revenues.                                                                                                                                                                                 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               B.--Allocation to traffic at issue                                                                               
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
4. Increased system operating expenses.........  Pt. II, line 1................................  ..........  ...............  ...............  ...............  ...............  ...............
5. Increased system ``sum of money''...........  Pt. II, line 12...............................  ..........  ...............  ...............  ...............  ...............  ...............
6. Total increased system operating expenses     L. 4L. 5, above.......................  ..........  ...............  ...............  ...............  ...............  ...............
 and ``sum of money''.                                                                                                                                                                          
7. Allocation of line 6 to traffic at issue....  L. 3 x L. 6 above.............................  ..........  ...............  ...............  ...............  ...............  ...............
8. Increased revenues on traffic at issue......  L. 1, above...................................  ..........  ...............  ...............  ...............  ...............  ...............
9. Ratio of increased revenues to increased      L. 8L. 7, above (2 dec.)..............  ..........  ...............  ...............  ...............  ...............  ...............
 costs on traffic at issue.                                                                                                                                                                     
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 248]]

             Explanatory--Schedule C (Parts I, II, and III)

    Columns (d) through (h). These columns shall contain the pro forma 
year data.
    The data reported in column (d) shall be the base year actual 
(column (c)) restated to reflect conditions (wage, price, and 
productivity, etc.) prevailing on or near the effective date of the 
proposed increase. Revenues in column (d) shall be based on fares and 
charges which are currently in effect.
    The data reported in column (e) shall also be the base year actual 
(column (c)) restated to reflect conditions (wage, price, and 
productivity, etc.) prevailing on or near the effective date of the 
proposed increase. Unlike column (d), however, revenues in column (e) 
shall be based on the proposed fares and charges.
    The data reported in column (f) shall also be the base year actual 
(column (c)) restated to reflect conditions (wage, price, and 
productivity, etc.) prevailing on or near the effective date of the 
proposed increase plus allowable foreseeable future costs. Revenues 
shall be based on the proposed fares and charges.
    The data reported in columns (g) and (h) shall be based on what the 
system revenue needs of the study carriers should be at a given time, 
including the constructed projected and future operating expenses and 
the constructed ``sum of money'' above these expenses. The constructed 
``sum of money'' should be supported by evidence that it is a just and 
reasonable amount and is that needed to attract debt and equity capital 
and to insure financial stability and the capacity to render service. 
Such evidence should include an analysis of the adequacy of the 
carriers' earnings, the carriers' cost of debt and equity capital, the 
various kinds of risk attending their operations and the financing 
thereof, and the carriers' ongoing needs for working capital, new 
equipment and facilities.

[47 FR 53281, Nov. 24, 1982]

                                                   Schedule D                                                   
                                             [Dollars in thousands]                                             
                   (  ) Greyhound Lines, Inc. (  ) Trailways combined (  ) All study carriers                   
----------------------------------------------------------------------------------------------------------------
                                                                               Calendar    Calendar             
            Line No. and Item (a)                       Source (b)             year 19--   year 19--   Base year
                                                                                  (c)         (d)     actual (e)
----------------------------------------------------------------------------------------------------------------
                                        Part I.--Selected financial data                                        
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Income statement data:                                                                                          
  1  Total revenues.........................  Sch. 2998, L. 9...............  ..........  ..........  ..........
  2  Total expenses.........................  Sch. 2998, L. 15..............  ..........  ..........  ..........
  3  Depreciation expense and amortization    Sch. 2998, L. 11 + L. 12......  ..........  ..........  ..........
   of carrier operating property.                                                                               
  4  Lease of carrier property (net)........  Sch. 2998, L. 17 + L. 18......  ..........  ..........  ..........
  5  Net carrier operating income...........  Sch. 2998, L. 19..............  ..........  ..........  ..........
  6  Equity in earnings (losses) of           Sch. 2998, L. 29..............  ..........  ..........  ..........
   associated companys.                                                                                         
  7  Interest on long-term obligations......  Sch. 2998, L. 32..............  ..........  ..........  ..........
  8  Amortization of debt discount and        Sch. 2998, L. 35 + L. 36......  ..........  ..........  ..........
   expense and premium on debt (net).                                                                           
  9  Pretax income (loss)...................  Sch. 2998, L. 40..............  ..........  ..........  ..........
  10  Tax on income from continuing           Sch. 2998, L. 41..............  ..........  ..........  ..........
   operations.                                                                                                  
  11  Provision for deferred taxes..........  Sch. 2998, L. 42..............  ..........  ..........  ..........
  12  Income (loss) from continuing           Sch. 2998, L. 43..............  ..........  ..........  ..........
   operations.                                                                                                  
  13  Total income (loss) from discontinued   Sch. 2998, L. 46..............  ..........  ..........  ..........
   operations.                                                                                                  
  14  Total extraordinary items and           Sch. 2998, L. 53..............  ..........  ..........  ..........
   accounting changes--(debit) credit.                                                                          
  15  Net income (loss).....................  Sch. 2998, L. 54..............  ..........  ..........  ..........
Balance sheet data:                                                                                             
  16  Current assets........................  Sch. 100, L. 17, col. (b).....  ..........  ..........  ..........
  17  Current liabilities...................  Sch. 101, L. 14, col. (b).....  ..........  ..........  ..........
  18  Current assets\1\.....................  Sch. 100, L. 17...............  ..........  ..........  ..........
  19  Current liabilities\1\................  Sch. 101, L. 14...............  ..........  ..........  ..........
  20  Long-term debt due within 1 yr........  Sch. 101, L. 15, col. (b).....  ..........  ..........  ..........
  21  Long-term debt due after 1 yr.........  Sch. 101, L. 24, col. (b).....  ..........  ..........  ..........
  22  Long-term debt due within 1 yr\1\.....  Sch. 101, L. 15...............  ..........  ..........  ..........
  23  Long-term debt due after 1 yr\1\......  Sch. 101, L. 24...............  ..........  ..........  ..........
  24  Owners' equity........................  Sch. 101, L. 38 + L. 41 + L.    ..........  ..........  ..........
                                               44 -- L. 45, col. (b).                                           
  25  Owners' equity\1\.....................  Sch. 101, L. 38 + L. 41 + L.    ..........  ..........  ..........
                                               44 -- L. 45.                                                     
  26  Total intangible property\1\..........  Sch. 100, L. 31...............  ..........  ..........  ..........

[[Page 249]]

                                                                                                                
  27  Net carrier operating property (owned   Sch. 100, L. 19 + L. 21.......  ..........  ..........  ..........
   plus leased to others)\1\.                                                                                   
  28  Investment in owned and leased          L. 27 + L. 18 -- L. 19........  ..........  ..........  ..........
   property plus working capital.                                                                               
Miscellaneous and financial ratios:                                                                             
  29  Cash dividend appropriations..........  Sch. 2930, L. 16..............  ..........  ..........  ..........
  30  Operating ratio (percent).............  L. 2  L. 1............  ..........  ..........  ..........
  31  Current ratio.........................  L. 16  L. 17..........  ..........  ..........  ..........
  32  Dividend payout ratio (percent).......  L. 29  L. 15..........  ..........  ..........  ..........
  33  Throwoff to debt ratio (percent)......  (L. 3 + L. 15)  (L. 20  ..........  ..........  ..........
                                               + L. 21).                                                        
  34  Capital structure ratio (percent).....  (L. 20 + L. 21)  (L.    ..........  ..........  ..........
                                               20 + L. 21 + L. 24).                                             
  35  Working capital.......................  L. 18 -- L. 19................  ..........  ..........  ..........
  36  Rate of return on owned and leased      L. 5  L. 28...........  ..........  ..........  ..........
   operating property plus working capital                                                                      
   (percent).                                                                                                   
  37  Rate of return on owners' equity, less  L. 15  (L. 25 -- L.     ..........  ..........  ..........
   intangibles (percent).                      26).                                                             
  38  Rate of return on total capitalization  (L. 7 + L. 8 + L. 15)   ..........  ..........  ..........
   (percent).                                  (L. 22 + L. 23 + L. 25).                                         
                                                                                                                
----------------------------------------------------------------------------------------------------------------
   Part II. Accounts giving effect to interperiod tax allocation (deferred taxes) and impact of investment tax  
                                                     credit                                                     
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Balance sheets accounts:                                                                                        
  1  Deferred income tax charges............  Sch. 100, L. 16, col. (b).....  ..........  ..........  ..........
  2  Accumulated deferred income tax charges  Sch. 100, L. 44, col. (b).....  ..........  ..........  ..........
  3  Deferred income tax credits............  Sch. 101, L. 13, col. (b).....  ..........  ..........  ..........
  4  Accumulated deferred income tax credits  Sch. 101, L. 27, col. (b).....  ..........  ..........  ..........
Income statement accounts:                                                                                      
  5  Provision for deferred taxes...........  Sch. 2998, L. 42..............  ..........  ..........  ..........
  6  Provision for deferred taxes--           Sch. 2998, L. 50..............  ..........  ..........  ..........
   Extraordinary items.                                                                                         
  7  Impact of investment tax credit on       See explanatory...............  ..........  ..........  ..........
   continuing operations.                                                                                       
----------------------------------------------------------------------------------------------------------------
\1\Show average of beginning and end-of-year figures.                                                           

                    Explanatory--Schedule D (Part I)

    Purpose. The purpose of Schedule D (Part I) is to ascertain the 
financial posture of Greyhound Lines, Inc. and all the study carrier 
carriers by an analysis of certain key financial data, with a view to 
determining revenue needs.
    Study Carrier Groupings. Schedule D (Part I) shall be prepared on 
the following two bases:
    1. Greyhound Lines, Inc.
    2. Trailways Combined (study carriers, only)
    3. All Study Carriers
    Column (b). The annual report sources in this column refer to the 
1976 Annual Report Form MP-1. For years prior or subsequent to 1976, use 
comparable sources.
    Column (c). If the fare/charge increase is filed during the first 
six months of the calendar year, the data reported in column (c) shall 
be based on the 3rd calendar year preceding the filing year. For 
example, if the rate increase is filed on May 15, 1977, column (c) shall 
report data for calendar year 1974.
    If the fare/charge increase is filed during the last six months of 
the calendar year, the data reported in column (c) shall be based on the 
2nd calendar year preceding the filing year. For example, if the rate 
increase is filed on Nov. 15, 1977, column (c) should report data for 
calendar year 1975.
    Column (d). If the fare/charge increase is filed during the first 
six months of the calendar year, the data reported in column (d) should 
be based on the 2nd calendar year preceding the filing year. For 
example, if the rate increase is filed on May 15, 1977, column (d) 
should report data for calendar year 1975.
    If the rate increase is filed during the last six months of the 
calendar year, the data reported in column (d) shall be based on the 1st 
calendar year preceding the filing year. If, for example, the fare/
charge increase is filed on November 15, 1977, column (d) should report 
data for calendar year 1976.
    Column (e). Data to be reported in this column for the base year 
actual shall be based on the 4-quarter calendar year periods identified 
below:

[[Page 250]]



------------------------------------------------------------------------
                                           Four-quarter calendar year   
  Filing month of verified statement              period ending         
------------------------------------------------------------------------
January...............................  Sept. 30, preceding year.       
February..............................      Do.                         
March.................................      Do.                         
April.................................  Dec. 31, preceding year.        
May...................................      Do.                         
June..................................      Do.                         
July..................................  Mar. 31, filing-month year.     
August................................      Do.                         
September.............................      Do.                         
October...............................  June 30, filing-month year.     
November..............................      Do.                         
December..............................      Do.                         
------------------------------------------------------------------------

    The 4-quarter calendar year periods identified above represent the 
minimum requirement. However, in event a proposed fare/charge increase 
is filed at a time when data for a more current quarter than that 
specified are obtainable, the more current quarter may be used in the 
base year-actual. For example, if an increase is filed in late March and 
data for the 4th quarter of the preceding year is obtainable, the base 
year-actual ending December 31, may be used in lieu of the base year-
actual ending September 30.

                    Explanatory--Schedule D (Part II)

    Purpose. Schedule D (Part II) is designed to segregate the impacts 
of: (1) The Commission's deferred tax accounting rule change; and (2) 
the impact of the investment tax credit on continuing operations.
    Study Carrier Groupings. The study carrier groups for Part II shall 
be the same as those designated for Part I.
    Column (b). The annual report sources in this column refer to the 
1976 Annual Report Form MP-1. For years prior or subsequent to 1976, use 
comparable sources.
    Columns (c), (d) and (e). The reporting periods for Part II shall 
correspond to those in Part I.
    Investment Tax Credit Impact. This impact is: (1) The amount by 
which Account 8000, Income Taxes on Income from Continuing Operations, 
was credited for the investment tax credit if the flow-through 
accounting method was elected or (2) the amount by which Account 8040, 
Provision for Deferred Taxes, was credited for the amortization of the 
investment tax credit if the deferral accounting method was elected.

[42 FR 32541, June 27, 1977; 42 FR 40861, Aug. 12, 1977. Redesignated at 
47 FR 49577, Nov. 1, 1982]

                             Schedule E--Statement of Changes in Financial Position                             
                                             [Dollars in thousands]                                             
                   (  ) Greyhound Lines, Inc. (  ) Trailways combined (  ) All study carriers                   
----------------------------------------------------------------------------------------------------------------
                                                                               Calendar    Calendar             
            Line No. and item (a)                       Source (b)             year 19--   year 19--  Base year-
                                                                                  (c)         (d)     actual (e)
----------------------------------------------------------------------------------------------------------------
         sources of working capital                                                                             
                                                                                                                
Working capital provided by operations:                                                                         
  1  Net income (loss) before extraordinary   Sch. 2998, L. 47, col. (b)....  ..........  ..........  ..........
   items.                                                                                                       
Add expenses not requiring outlay of working                                                                    
 capital (subtract) credits not generating                                                                      
 working capital:                                                                                               
  2  Loss (gain) on sale or disposal of       Sch. 5091, L. 7, col. (b).....  ..........  ..........  ..........
   tangible property.                                                                                           
  3  Add depreciation and amortization        Sch. 2998, Ls. 11+12+35+36,     ..........  ..........  ..........
   expense.                                    col. (b).                                                        
  4  Net increase (decrease) in deferred      Sch. 2998, L. 42, col. (b)....  ..........  ..........  ..........
   income taxes.                                                                                                
  5  Net decrease (increase) in parent's      Sch. 2998, L. 28..............  ..........  ..........  ..........
   share of subsidiary's undistributed                                                                          
   income for the year.                                                                                         
  6  Net increase (decrease) in noncurrent    Sch. 101, L. 31, cols. (b)-(c)  ..........  ..........  ..........
   portion of estimated liabilities.                                                                            
  7  Other (specify):                                                                                           
  8.........................................  ..............................  ..........  ..........  ..........
  9.........................................  ..............................  ..........  ..........  ..........
  10........................................  ..............................  ..........  ..........  ..........
  11........................................  ..............................  ..........  ..........  ..........
  12........................................  ..............................  ..........  ..........  ..........
  13........................................  ..............................  ..........  ..........  ..........
  14........................................  ..............................  ..........  ..........  ..........
  15........................................  ..............................  ..........  ..........  ..........
  16........................................  ..............................  ..........  ..........  ..........
  17........................................  ..............................  ..........  ..........  ..........
  18  Total working capital from operations   ..............................  ..........  ..........  ..........
   before extraordinary items.                                                                                  
  19  Extraordinary items and accounting      Sch. 2998, L. 53, col. (b)....  ..........  ..........  ..........
   changes.                                                                                                     
Add expenses not requiring outlay of working                                                                    
 capital (subtract) credits not generating                                                                      
 working capital.                                                                                               
  20  Loss (gain) on extraordinary items....  Sch. 2998, L. 48, col. (b)....  ..........  ..........  ..........

[[Page 251]]

                                                                                                                
  21  Net increase (decrease) in deferred     Sch. 2998, L. 50, col (b).....  ..........  ..........  ..........
   income taxes.                                                                                                
  22  Cumulative effect of changes in         Sch. 2998, L. 52, col. (b)....  ..........  ..........  ..........
   accounting principles.                                                                                       
Other (specify):                                                                                                
  23........................................  ..............................  ..........  ..........  ..........
  24........................................  ..............................  ..........  ..........  ..........
  25........................................  ..............................  ..........  ..........  ..........
  26........................................  ..............................  ..........  ..........  ..........
  27........................................  ..............................  ..........  ..........  ..........
  28  Total working capital from              ..............................  ..........  ..........  ..........
   extraordinary items and accounting                                                                           
   changes.                                                                                                     
  29  Total working capital from operations   ..............................  ..........  ..........  ..........
   (lines 18 and 28).                                                                                           
Working capital from sources other than                                                                         
 operating:                                                                                                     
  30  Proceeds from issuance of long-term     ..............................  ..........  ..........  ..........
   liabilities.                                                                                                 
  31  Proceeds from sale/disposition of       Sch. 1200-A, L. 9.............  ..........  ..........  ..........
   carrier operating property.                                                                                  
  32  Proceeds from sale/disposition of       ..............................  ..........  ..........  ..........
   other tangible property.                                                                                     
  33  Proceeds from sale/repayment of         Sch. 1600/1650, ls. 23+47.....  ..........  ..........  ..........
   investments advances.                                                                                        
  34  Net decrease in sinking and other       Sch. 1700, ls. 15+31+50, cols.  ..........  ..........  ..........
   special funds.                              (d)-(j).                                                         
  35  Proceeds from issue of capital stock..  Sch. 2700A/2710A, L. 12, cols.  ..........  ..........  ..........
                                               (e)+(f)--(i).                                                    
Other (specify):                                                                                                
  36........................................  ..............................  ..........  ..........  ..........
  37........................................  ..............................  ..........  ..........  ..........
  38........................................  ..............................  ..........  ..........  ..........
  39........................................  ..............................  ..........  ..........  ..........
  40........................................  ..............................  ..........  ..........  ..........
  41  Total working capital from sources      ..............................  ..........  ..........  ..........
   other than operating.                                                                                        
  42  Total sources of working capital                                                                          
   (lines 29 and 41).                                                                                           
                                                                                                                
       Application of Working Capital                                                                           
                                                                                                                
  43  Amount paid to acquire/retire long-     ..............................  ..........  ..........  ..........
   term liabilities.                                                                                            
  44  Cash dividends........................  Sch. 2930, L. 16..............  ..........  ..........  ..........
  45  Purchase price of carrier operating     Sch. 1200, L. 11, col. (c)....  ..........  ..........  ..........
   property.                                                                                                    
  46  Purchase price of other tangible        ..............................  ..........  ..........  ..........
   property.                                                                                                    
  47  Purchase price of long-term             Sch. 1600/1650, ls. 23+47,      ..........  ..........  ..........
   investments and advances.                   col. (e).                                                        
  48  Net increase in sinking or other        Sch. 1700, ls. 15+31+50, cols.  ..........  ..........  ..........
   special funds.                              (j)-(d).                                                         
  49  Purchase price of acquiring treasury    Sch. 2700B/2710B, L. 12, col.   ..........  ..........  ..........
   stock.                                      (c).                                                             
Other (specify):                                                                                                
  50........................................  ..............................  ..........  ..........  ..........
  51........................................  ..............................  ..........  ..........  ..........
  52........................................  ..............................  ..........  ..........  ..........
  53........................................  ..............................  ..........  ..........  ..........
  54........................................  ..............................  ..........  ..........  ..........
  55  Total application of working capital..  ..............................  ..........  ..........  ..........
  56  Net increase (decrease) in working      ..............................  ..........  ..........  ..........
   capital (line 42 less line 55).                                                                              
----------------------------------------------------------------------------------------------------------------

                         Explanatory--Schedule E

    Purpose. Schedule E is designed to provide the Commission with an 
indication of the carrier's sources and uses of funds over the recent 
past.
    Study Carrier Groupings. Schedule E shall be prepared on the 
following two bases:
    1. Greyhound Lines, Inc.
    2. Trailways Combined (study carriers, only)
    3. All Study Carriers

[[Page 252]]

    ``Funds''. The term ``Funds'' for the purpose of this schedule shall 
include all assets or financial resources even though a transaction may 
not directly affect cash or working capital. For example, the purchase 
of property in exchange for bonds or shares of stock would be an 
application of funds for investment in property provided by the issue of 
securities.
    Sources and uses of funds should be individually disclosed. For 
example, outlays for fixed assets should not be reported net of 
retirements.
    Column (b). The annual report sources in this column refer to the 
1976 Annual Report Form MP-1. For years prior or subsequent to 1976, use 
comparable sources.
    Column (c). If the fare/charge increase is filed during the first 
six months of the calendar year, the data reported in column (c) shall 
be based on the 3rd calendar year preceding the filing year. For 
example, if the rate increase is filed on May 15, 1977, column (c) shall 
report data for calendar year 1974.
    If the fare/charge increase is filed during the last six months of 
the calendar year, the data reported in column (c) shall be based on the 
2nd calendar year preceding the filing year. For example, if the rate 
increase is filed on Nov. 15, 1977, column (c) should report data for 
calendar year 1975.
    Column (d). If the fare/charge increase is filed during the first 
six months of the calendar year, the data reported in column (d) should 
be based on the 2nd calendar year preceding the filing year. For 
example, if the rate increase is filed on May 15, 1977, column (d) 
should report data for calendar year 1975.
    If the rate increase is filed during the last six months of the 
calendar year, the data reported in column (d) shall be based on the 1st 
calendar year preceding the filing year. If, for example, the fare/
charge increase is filed on November 15, 1977, column (d) should report 
data for calendar year 1976.
    Column (e). Data to be reported in this column for the base year-
actual shall be based on the 4-quarter calendar year periods identified 
below:

------------------------------------------------------------------------
                                           Four-quarter calendar year   
  Filing month of verified statement              period ending         
------------------------------------------------------------------------
January...............................  Sept. 30, preceding year.       
February..............................      Do.                         
March.................................      Do.                         
April.................................  Dec. 31, preceding year.        
May...................................      Do.                         
June..................................      Do.                         
July..................................  Mar. 31, filing-month year.     
August................................      Do.                         
September.............................      Do.                         
October...............................  June 30, filing-month year.     
November..............................      Do.                         
December..............................      Do.                         
------------------------------------------------------------------------

    The 4-quarter calendar year periods identified above represent the 
minimum requirement. However, in event a proposed fare/charge increase 
is filed at a time when data for a more current quarter than that 
specified are obtainable, the more current quarter may be used in the 
base year-actual. For example, if an increase is filed in late March and 
data for the 4th quarter of the preceding year is obtainable, the base 
year-actual ending December 31, may be used in lieu of the base year-
actual ending September 30.

[42 FR 32541, June 27, 1977; 42 FR 40861, Aug. 12, 1977. Redesignated at 
47 FR 49577, Nov. 1, 1982]

        Schedule F--Affiliate Revenue Data for Services Rendered        
                         [Dollars in thousands]                         
    (  ) Greyhound Lines, Inc. (  ) Trailways combined (  ) All study   
                                carriers                                
------------------------------------------------------------------------
                                       Calendar    Calender             
        Line No. and Item (a)          year 19--   year 19--  Base year-
                                          (b)         (c)     actual (d)
------------------------------------------------------------------------
   affiliate revenues for services                                      
       rendered to respondents                                          
                                                                        
1  Engineering......................  ..........  ..........  ..........
2  Management.......................  ..........  ..........  ..........
3  Legal............................  ..........  ..........  ..........
4  Accounting.......................  ..........  ..........  ..........
5  Financial........................  ..........  ..........  ..........
6  Furnishing of materials and                                          
 supplies...........................  ..........  ..........  ..........
7  Leasing of land, structures, and                                     
 vehicles...........................  ..........  ..........  ..........
8  Purchase of equipment............  ..........  ..........  ..........
9  Construction.....................  ..........  ..........  ..........
10  All other services..............  ..........  ..........  ..........
11  Total affiliate revenues for                                        
 services rendered to respondent                                        
 (lines 1 through 10)...............  ..........  ..........  ..........
12  Total affiliate revenues for                                        
 services rendered to other than                                        
 respondents........................  ..........  ..........  ..........
13  Total affiliate revenues (lines                                     
 11 and 12).........................  ..........  ..........  ..........
14  Total affiliate income from                                         
 operations before income taxes.....  ..........  ..........  ..........
------------------------------------------------------------------------


[[Page 253]]

                         Explanatory--Schedule F

    Purpose. Schedule F is designed to facilitate an assessment of the 
effect on the carriers' profits of transactions with affiliates.
    Affiliate transactions aggregating less than $30,000 need not be 
reported in this Schedule.
    Study Carrier Groupings. A separate Schedule F shall be prepared for 
each of the following:
    1. Greyhound Lines, Inc.
    2. Trailways Combined (study carriers, only)
    3. All Study Carriers
    Column (b). If the fare/charge increase is filed during the first 
six months of the calendar year, the data reported in column (b) shall 
be based on the 3rd calendar year preceding the filing year. If the 
fare/charge increase is filed during the last six months of the calendar 
year, the data reported in column (b) shall be based on the 2nd calendar 
year preceding the filing year.
    Column (c). If the fare/charge increase is filed during the first 
six months of the calendar year, the data reported in column (c) shall 
be based on the 2nd calendar year preceding the filing year. If the 
fare/charge increase is filed during the last six months of the calendar 
year, the data reported in column (c) shall be based on the 1st calendar 
year preceding the filing year.
    Column (d). Data to be reported in this column for the base year-
actual shall be based on the 4-quarter calendar year periods identified 
below:

------------------------------------------------------------------------
                                           Four-quarter calendar year   
  Filing month of verified statement              period ending         
------------------------------------------------------------------------
January...............................  Sept. 30, preceding year.       
February..............................      Do.                         
March.................................      Do.                         
April.................................  Dec. 31, preceding year.        
May...................................      Do.                         
June..................................      Do.                         
July..................................  Mar. 31, filing-month year      
August................................      Do.                         
September.............................      Do.                         
October...............................  June 30, filing-month year.     
November..............................      Do.                         
December..............................      Do.                         
------------------------------------------------------------------------

    The 4-quarter calendar year periods identified above represent the 
minimum requirement. However, in event a proposed fare/charge increase 
is filed at a time when data for a more current quarter than that 
specified are obtainable, the more current may be used in the base year-
actual. For example, if an increase is filed in late March and data for 
the 4th quarter of the preceding year is obtainable then the base year-
actual ending December 31, may be used in lieu of the base year-actual 
ending September 30.

                                      Schedule G--Selected Statistical Data                                     
                                             [Dollars in thousands]                                             
                   (  ) Greyhound Lines, Inc. (  ) Trailways combined (  ) All study carriers                   
----------------------------------------------------------------------------------------------------------------
                                                                                                   Cols. (h)-(l)
      Line No. and Item (a)           Source (b)        1972     1973     1974     1975     1976   (1977)-(1981)
                                                        (c)      (d)      (e)      (f)      (g)         (h)     
----------------------------------------------------------------------------------------------------------------
Operating revenues, expenses,                                                                                   
 and operating ratios:                                                                                          
  1  Passenger revenue..........  Sch. 2998, L. 1,    .......  .......  .......  .......  .......  .............
                                   col. (b).                                                                    
  2  Special bus revenue........  Sch. 2998, L. 2,    .......  .......  .......  .......  .......  .............
                                   col. (b).                                                                    
  3  Express revenue............  Sch. 2998, L. 5,    .......  .......  .......  .......  .......  .............
                                   col. (b).                                                                    
  4  Total operating revenues...  Sch. 2998, L. 9,    .......  .......  .......  .......  .......  .............
                                   col. (b).                                                                    
  5  Total operating expenses...  Sch. 2998, L. 15,   .......  .......  .......  .......  .......  .............
                                   col. (b).                                                                    
  6  Operating ratio............  Line 5line  .......  .......  .......  .......  .......  .............
                                   4.                                                                           
Carrier operating property:                                                                                     
  7  Structures.................  Sch. 1200, L. 2,    .......  .......  .......  .......  .......  .............
                                   col. (c).                                                                    
  8  Revenue equipment..........  Sch. 1200, L. 3,    .......  .......  .......  .......  .......  .............
                                   col. (c).                                                                    
  9  Improvements of leasehold    Sch. 1200, L. 8,    .......  .......  .......  .......  .......  .............
   property.                       col. (c).                                                                    
  10  Total carrier operating     Sch. 1200, L. 11,   .......  .......  .......  .......  .......  .............
   property.                       col. (c).                                                                    
Number and cost of buses:                                                                                       
  11  Number of buses acquired..  Sch. 1221, L. 22,   .......  .......  .......  .......  .......  .............
                                   col. (c).                                                                    
  12  Cost of buses acquired....  Sch. 1221, L. 22,   .......  .......  .......  .......  .......  .............
                                   col. (d).                                                                    
  13  Number of buses retired...  Sch. 1221, L. 22,   .......  .......  .......  .......  .......  .............
                                   col. (e).                                                                    
  14  Cost of buses retired.....  Sch. 1221, L. 22,   .......  .......  .......  .......  .......  .............
                                   col. (f).                                                                    
  15  Average age of buses\1\...  Sch. 1221, L. 22,   .......  .......  .......  .......  .......  .............
                                   col. (i).                                                                    
Employee compensation:                                                                                          
  16  Total daily basis.........  Sch. 9002, L. 20,   .......  .......  .......  .......  .......  .............
                                   col. (c).                                                                    

[[Page 254]]

                                                                                                                
  17  Total hourly basis........  Sch. 9002, L. 21,   .......  .......  .......  .......  .......  .............
                                   col. (c).                                                                    
Man-hours or days paid for:                                                                                     
  18  Total--Daily basis........  Sch. 9002, L. 20,   .......  .......  .......  .......  .......  .............
                                   col. (e).                                                                    
  19  Total--Hourly basis.......  Sch. 9002, L. 21,   .......  .......  .......  .......  .......  .............
                                   col. (e).                                                                    
Revenue bus-miles operated:                                                                                     
  20    Intercity service         Sch. 9002, L. 1,    .......  .......  .......  .......  .......  .............
   (regular route).                col. (e).                                                                    
  21  Charter, sightseeing and    Sch. 9002, L. 3,    .......  .......  .......  .......  .......  .............
   other special service.          col. (e).                                                                    
  22  Vehicle miles operated      Sch. 9002, L. 4,    .......  .......  .......  .......  .......  .............
   exclusively in baggage, mail    col. (e).                                                                    
   express, and/or newspaper                                                                                    
   service.                                                                                                     
Revenue passengers carried:                                                                                     
  23  Number of intercity         Sch. 9002, L. 6,    .......  .......  .......  .......  .......  .............
   revenue passengers carried      col. (b).                                                                    
   (regular route).                                                                                             
  24  Total number of revenue     Sch. 9002, L. 9,    .......  .......  .......  .......  .......  .............
   passengers carried.             col. (b).                                                                    
Other Statistics:                                                                                               
  25  Number of regulator route   Sch. 9002, L. 12,   .......  .......  .......  .......  .......  .............
   intercity passenger miles.      col. (b).                                                                    
  26  Total passenger revenue...  Sch. 9002, L. 16,   .......  .......  .......  .......  .......  .............
                                   col. (b).                                                                    
  27  Passenger-miles per bus     25L. 20...  .......  .......  .......  .......  .......  .............
   mile (average load).                                                                                         
  28  Passenger-miles per         25L. 23...  .......  .......  .......  .......  .......  .............
   passenger carried-intercity                                                                                  
   service (average journey).                                                                                   
----------------------------------------------------------------------------------------------------------------
\1\Line No. 15: The weighted average age of buses for ``All Study Carriers'' is computed by:                    
                                                                                                                
(a) Calculating the average age of buses for each study carrier.                                                
(b) Calculating the number of buses which each study carrier has on hand at the end of the year as a percentage 
  of the total number of buses which all study carriers as a group have on hand at the end of the year.         
(c) Multiplying the average age for each study carrier by that carrier's percentage of total buses on hand at   
  the end of the year.                                                                                          
(d) Summing the result of calculation (c) above for each study carrier. The summation gives the weighted average
  age of buses for ``All Study Carriers'' taken together as a group.                                            

                         Explanatory--Schedule G

    Purpose. The purpose of Schedule G is to develop selected property, 
labor and operational data for use in evaluating the influence and 
relationship of these data to the income and other financial data 
contained in Schedules C through F. This schedule requires data 
commencing with the year 1972 through 1976, and thereafter, adding each 
calendar year's data until a 10-year moving period is reached. A ten-
year time period is useful for analyzing the industry's operations 
during all phases of the business cycle.
    Study Carrier Groupings. Schedule G shall be prepared for each of 
the following:
    1. Greyhound Lines, Inc.
    2. Trailways Combined (study carriers, only).
    3. All Study Carriers.
    Column (b). The annual report sources in this column refer to the 
1976 Annual Report Form MP-1. For years prior or subsequent to 1976, use 
comparable sources.
    Columns (c) through (g). These columns refer to successive calendar 
years from 1972 through 1976, each ending December 31.
    Columns (h) to (l). These columns refer to successive calendar years 
which become applicable as the time period of record is expanded to the 
ultimate 10 year moving time period.

                         Appendix I to Subpart B

    Excerpt from National Bus Traffic Association's brief (pages 18-23) 
in I&S M-29089 increased bus passenger fares and express/rates-
nationwide.

[[Page 255]]

  NBTA Will Undertake the Development of a Cost Allocation System for 
                      Motor Carriers of Passengers

    At the conclusion of the hearing in this proceeding, the 
Administrative Law Judge requested a discussion of the feasibility of 
NBTA undertaking the traffic and cost studies necessary to permit the 
separation of bus carrier expenses by types of service. As the record in 
this case indicates, no such studies have ever been undertaken and there 
is no present capability on the part of either the Commission or the 
carriers themselves to allocate total operating expenses by types of 
carrier service. As the testimony of Mr. Bilz reveals, data derived from 
traffic studies is the source of only a few of the factors which must be 
developed to permit the identification of cost.18 Consequently, the 
development of a carefully conceived overall cost allocation system must 
be accomplished first, and then a determination must be made of the 
types and kinds of studies needed to develop the specific factors 
required for implementation to the system.
---------------------------------------------------------------------------

    18 Tr. 183-186.
---------------------------------------------------------------------------

    At its annual meeting held in Newton, Massachusetts, on September 
27-28, 1976, the members of the National Bus Traffic Association 
considered the question of undertaking the analyses, planning, and 
studies leading to the development and implementation of a cost 
allocation system and agreed to undertake such a program. Mr. Bilz, the 
cost analyst retained by the Association, has been request to work with 
appropriate carrier personnel and an initial meeting to outline the 
first steps is scheduled to be held during November of this year. In the 
meantime, after consultation with Mr. Bilz, we set forth the following 
discussion of what will be involved.
    In assessing the problems and complexities involved in formulating a 
procedure to develop costs by types of service for the bus lines, some 
parallels may be drawn with the procedure which has evolved over the 
years for general commodity motor carriers. Cost formulas for general 
commodity carriers were developed by the Cost Finding Section of the 
Interstate Commerce Commission more than thirty years ago. These cost 
formulas have been modified and refined from time-to-time in order to 
adjust for changing operating practices and conditions, improvements in 
accounting technology or the need to develop costs for particular kinds 
of service or types of traffic. At a later point in time when the need 
arose in general revenue increase cases for more detailed separations of 
the expenses of the general commodity carriers among types of service 
and types of traffic, procedures were developed whereby a continuing 
sample of traffic data could be developed to tie in with unit costs 
produced by the motor carrier cost formulas.19 Thus, the detailed 
separation of traffic data developed in the continuing traffic studies 
was designed to tie in with existing cost allocation formulas. More 
recently, a complete revision of the Uniform System of Accounts for 
general commodity motor carriers necessitated further modification of 
the cost formulas; however, at the same time, such revisions served to 
increase the amount of expenses allocated in the formulas on a direct 
basis and reduced the amount of expenses which could only be allocated 
by means of factors derived from special studies or other means.
---------------------------------------------------------------------------

    19 Probability sampling of general freight motor carrier 
traffic did not develop until some 20 years after the Commission's cost 
formulas for truck lines.
---------------------------------------------------------------------------

    At the present time, the bus industry has committed itself to a 
review of its Uniform System of Accounts, jointly with the Bureau of 
Accounts of the Interstate Commerce Commission, to determine the need 
for revising the accounts to conform more closely with generally 
accepted accounting principles and, most importantly, to facilitate cost 
finding and financial analysis. In the review and analysis of the 
Uniform System of Accounts, consideration should be given to possible 
benefits from a matrix approach in accumulating operating expenses, 
similar in some respects but not necessarily as detailed as the approach 
used in redesigning the system of accounts for general commodity 
carriers. The separations of expenses for bus lines need not be as 
detailed as those made for general commodity carriers since the needs 
for expense segregations are not the same. However, use of a matrix 
system by the bus lines to accumulate operating expenses would result in 
the direct assignment of various categories of expense which would 
otherwise be included in a common pool of expense to be allocated on the 
basis of the best available data. Therefore, as a necessary preliminary 
step toward the development of a cost allocation system for the bus 
lines, the Uniform System of Accounts must be examined for the purpose 
of identifying expenses which can be directly assigned to particular 
services or operations.
    Basically, a cost study for the bus lines involves, first, a 
determination of the expenses chargeable to each of the various services 
provided by the carriers. These services include regular route intercity 
service, involving transportation of passengers, express, baggage, 
newspapers and mail, local service and special services including 
charter operations and tours. Secondly, the need for further separations 
within these categories must be explored. An all-out study would involve 
the allocation of expenses for regular route service among passengers 
and their baggage, express traffic and all other traffic;

[[Page 256]]

however, such detailed separations--which can only be made by means of 
specially-designed allocating procedures and special studies--may not be 
necessary, at least in the initial design of a cost allocation system 
for the bus lines. From the standpoint of current and potential use to 
be made of cost study data, it is reasonable, at this point, to design a 
system which will separate expenses for regular route service involving 
passenger and express traffic (including baggage) on the one hand, and 
all other services on the other. Finally, an additional separation of 
the expenses for regular route service between interstate and intrastate 
traffic is necessary.
    In connection with the first step, i.e., allocation of expenses 
among services, although a number of the various categories of expense 
incurred by the bus lines may be directly allocated to various services, 
there are additional items of expense which are jointly incurred in 
connection with two or more services and can only be separated among 
services on the basis of appropriate allocation factors. The same 
problems arise in the second and third steps, to an even greater extent, 
in determining the extent to which expenses assigned to a particular 
service must be allocated among the various types of traffic handled in 
that service and in making the further separation between interstate and 
intrastate traffic. These separations should be made by means of cost 
allocation factors which are functionally related to the fullest extent 
possible to each item of expense. This calls for the development of 
additional allocation factors which are not presently maintained by the 
bus lines.
    At the present time, the carriers can accurately determine from 
their regularly maintained accounting records the amount of revenue 
accruing from regular route operations, separately for passenger and 
express service, and from operations in connection with charter and 
special service. By means of established probability sampling 
procedures, Greyhound and Continental Trailways can further separate 
passenger revenue in intercity service between interstate and intrastate 
traffic. Other carriers are able to make the latter separation of 
revenue on various bases consistent with the size of their operations. 
It is possible that the probability sampling procedure and other bases 
employed by the smaller carriers may be expanded to include statistical 
data as well as revenue information. The bus lines currently maintain 
records, for the purpose of their annual reports to the Interstate 
Commerce Commission, of the number of bus miles operated separately for 
intercity service, local service and special services. Such data will 
undoubtedly come into use in allocating expenses among services. 
Similarly, records of the number of passengers carried in various 
services, maintained by the bus lines, may be used in some of the 
expense allocations. However, no continuing records are maintained 
showing the number of passengers carried separately in interstate and 
intrastate commerce nor are any separations made of the number of 
passenger miles in each category. Such statistical separations are 
required regardless of the methodology followed in the cost study, that 
is, whether the separations of expenses between interstate and 
intrastate traffic are made within the framework of a cost allocation 
formula or whether the expenses in each category are developed on the 
basis of average mileage-related and non-mileage unit costs developed 
from a cost formula and applied to traffic service units developed for 
interstate and intrastate traffic, i.e., number of passengers and number 
of passenger miles.
    As noted above, expenses for each type of traffic must be separated 
between those which are related to mileage operated and those which are 
not related to mileage. This brings in the problem of segregating the 
terminal activities of the carriers among services and types of traffic. 
Segregation of such expenses will probably require time and motion 
analyses, calculation of space utilization factors at various 
representative terminals and other special studies.
    The formulation of a cost allocation system and the gathering of 
input data for the system will require an extensive amount of work and 
expense on the part of the bus lines. If the amount of time required in 
developing acceptable cost allocation procedures for general freight 
motor carriers is any indication, several years may be required before a 
cost system for the bus lines can be formulated, applied and tested. The 
bus industry recognizes that, because of its workload and limited staff, 
the Cost Finding Section of the Commission cannot take on the task of 
developing a cost allocation system for the bus lines as it did in 
connection with general freight motor carriers; however, it is hoped 
that the efforts of the bus lines in this regard will receive the full 
support and guidance of the Commission's staff so that the best possible 
results may be achieved in the shortest possible time.
                                                          H. G. Homme,  
                                                              Secretary.



PART 1141--PROCEDURES TO CALCULATE INTEREST RATES--Table of Contents




    Authority: 49 U.S.C. 10321; 5 U.S.C. 553.



Sec. 1141.1  Procedures to calculate interest rates.

    (a) For purposes of complying with a Commission decision in a 
complaint or investigation proceeding, interest rates

[[Page 257]]

to be computed shall be the coupon equivalent yield (investment rate) of 
marketable securities of the United States Government having a duration 
of 91 days (3 months). The rate levels will be determined as follows:
    (1) For investigation proceedings, the interest rate shall be the 
coupon equivalent yield in effect on the date the statement is filed 
accounting for all amounts received under the new rates (See 49 U.S.C. 
10707(d)(1)).
    (2) For complaint proceedings, the interest rate shall be the coupon 
equivalent yield in effect on the first day of the calendar quarter in 
which an unlawful charge is paid. The interest rate in complaint 
proceedings shall be updated as of the first day of all subsequent 
calendar quarters, at the coupon equivalent yields in effect on those 
days. Updating will continue until the required reparation payments are 
made.
    (3) For purposes of this section, coupon equivalent yields shall be 
considered ``in effect'' on the date the securities are issued, not on 
the date they are auctioned. If the date the statement is filed (for 
investigation proceedings) or if the first day of the calendar quarter 
(for complaint proceedings) is the same as the issue date, then the 
yield on that date shall be used.
    (b) Interest in a complaint or investigation proceeding shall be 
compounded quarterly, as follows:
    (1) For investigation proceedings, the reparations period shall 
begin on the date the investigation is started. Thus, unless by 
coincidence, the quarterly compounding periods in investigation 
proceedings will not coincide with the calendar quarters.
    (2) For complaint proceedings, the reparations period shall begin on 
the date the unlawful charge is paid. However, in order for the 
quarterly compounding periods in complaint cases to coincide with the 
calendar quarters (so that only one interest rate is in effect during 
each compounding period), the first compounding period shall run from 
the date the unlawful charge is paid to the last day of the current 
calendar quarter, and all subsequent compounding periods shall coincide 
with the calendar quarters.
    (3) For both investigation and complaint proceedings, the annual 
effective interest rate shall be the same as the annual nominal (or 
stated) rate. Thus, the nominal rate must be factored exponentially to 
the power representing the portion of the year covered by the interest 
rate. A simple multiplication of the nominal rate by the portion of the 
year covered by the interest rate would not be appropriate because it 
would result in an effective rate in excess of the nominal rate. Under 
this ``exponential'' approach, the total cumulative reparations payment 
(including interest) is calculated by multiplying the interest factor 
for each quarterly period (or part thereof) by the principal amount for 
that period plus any accumulated interest from previous periods. The 
``interest factor'' for each period is 1.0 plus the interest rate for 
that period to the power representing the portion of the year covered by 
the interest rate. As an example, if the annual interest rate for the 
quarter is 5.6 percent, then the interest factor would be 1.01368, or 
1.056 to the power of 91/365.

[58 FR 19360, Apr. 14, 1993]



  PART 1142--SPECIAL RULES FOR FILING AND HANDLING COMPLAINTS AGAINST BUS RATES AND FARES UNDER THE ZONE OF RATE FREEDOM (49 U.S.C. 10708(d)(4), 10708(d)(5), 
10708(
e
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--Table of Contents





Sec.
1142.1  Filing of complaint.
1142.2  Answer by defendant.
1142.3  Reply by complainant.
1142.4  Discovery.
1142.5  Copies.

    Authority: Sec. 11(c) of the Bus Regulatory Reform Act of 1982, Pub. 
L. 97-261, 96 Stat. 1102; 49 U.S.C. 10321, 10708(f), and 11701; and 5 
U.S.C. 553.

    Source: 48 FR 44830, Sept. 30, 1983, unless otherwise noted.



Sec. 1142.1  Filing of complaint.

    (a) A person seeking the cancellation of an effective rate or fare 
published by

[[Page 258]]

an intercity motor carrier of passengers under provisions of the zone of 
rate freedom shall file a formal complaint. The complaint may challenge 
only the reasonableness of the rate or fare under these special rules. 
Complaints on other grounds, such as discrimination or predatory 
practices, shall be filed under other sections of 49 CFR part 1131.
    (b) A formal complaint must contain the correct, unabbreviated names 
and addresses of each complainant and defendant. It should set forth 
briefly and in plain language the facts upon which it is based. It 
should include specific reference to pertinent statutory provisions and 
Commission regulations, and should advise the Commission and the 
defendant fully in what respects these provisions or regulations have 
been or are violated or will be violated. The complaint should contain a 
detailed statement of the relief requested. Relief in the alternative or 
of several different types may be demanded, but the issues raised should 
not be broader than those to which complainant's verified statement is 
directed.
    (c) Complainant's verified statement of facts and argument shall be 
filed simultaneously with its complaint, and they shall constitute 
complainant's case-in-chief. Whatever evidence is relied upon shall be 
set forth in sufficient detail to support the complaint, such as cost of 
service, rate or fare comparisons, or other information which may be 
pertinent (such as type of service rendered, distance traveled, or 
patronage experienced).
    (d) Complainant shall serve a copy of its complaint and a copy of 
its verified statement on defendant on the same day that these pleadings 
are filed with the Commission. Such service and filing shall comply with 
Sec. 1104.12.

[48 FR 44830, Sept. 30, 1983, as amended at 49 FR 44827, Sept. 30, 1984]



Sec. 1142.2  Answer by defendant.

    The answer to the complaint shall contain the entire case-in-
rebuttal, consisting of defendant's verified statement of facts and 
argument. It shall be filed within 20 days of the filing by complainant 
of the complaint and the verified statement. Defendant shall serve a 
copy of its statement on complainant on the same day it is filed with 
the Commission. Such service and filing shall comply with Sec. 1104.12.



Sec. 1142.3  Reply by complainant.

    Complainant may file a reply to defendant's answer within 10 days 
after the defendant's answer is due. The reply may include evidence 
obtained by the complainant in response to a request for discovery. 
Defendant may file a reply within 5 days after complainant's reply is 
due to such evidence obtained on discovery which is not contained in the 
complaint and which complainant seeks to include in the record at this 
time. A reply shall be served on the parties on the same day it is filed 
with the Commission and comply with Sec. 1104.12.



Sec. 1142.4  Discovery.

    Discovery procedures shall be available to the complainant pursuant 
to our rules at Sec. 1114.21, so long as the request is made at the same 
time the complaint is filed and seeks relevant information needed to 
support the complaint. Unless otherwise directed by the Commission, 
defendant (a) shall respond within 5 days, and (b) shall produce 
relevant information which is readily available. Defendant shall not be 
required to prepare and produce cost, traffic, financial, economic or 
other data not previously prepared. Defendant shall not be required to 
produce privileged information.



Sec. 1142.5  Copies.

    An original and 10 copies of the complaint, statements, answer, 
replies, and discovery requests shall be furnished for the use of the 
Commission.



PART 1143--PREEMPTION OF STATE JURISDICTION: PASSENGER RATES--Table of Contents




Sec.
1143.1  Applicability.
1143.2  Commission jurisdiction.
1143.3  Petition.
1143.4  Notification procedures.
1143.5  Opposition; deadlines.
1143.6  Rebuttal.

    Authority: 49 U.S.C. 10321 and 11501(e); 5 U.S.C. 553.

    Source: 55 FR 11203, Mar. 27, 1990, unless otherwise noted.

[[Page 259]]



Sec. 1143.1  Applicability.

    These rules govern petitions for review, under 49 U.S.C. 11501, of 
State regulation of rates, rules, and practices of interstate passenger 
carriers providing intrastate service. (Commission preemption of State 
jurisdiction over passenger exit is covered at 49 CFR part 1169.)



Sec. 1143.2  Commission jurisdiction.

    If an interstate passenger carrier has requested of a proper State 
authority permission to establish an increased intrastate rate, rule, or 
practice and all or part of the request has been denied, or the State 
has not taken final action (in whole or in part) on the request within 
120 days, the carrier may petition the Interstate Commerce Commission 
for review.



Sec. 1143.3  Petition.

    A petition for review shall include the following:
    (a) A cover sheet indicating that the filing is authorized under 49 
U.S.C. 11501 and that a decision must be made within 60 days.
    (b) One copy of the entire State record, if available, and other, 
new relevant evidence. (No additional copies of the State record need be 
furnished for the Commission's use. Copies of the State record need not 
be furnished to the Governor, State authority, or other parties of 
record.) If the basis for the petition is State inaction, petitioner 
shall also submit a statement by counsel or a verified statement by a 
competent witness that the State has not acted within 120 days after the 
request.
    (c) Other new, relevant evidence and written argument detailing 
reasons for review.
    (d) Certification that the notification procedures at Sec. 1143.4 
have been met.



Sec. 1143.4  Notification procedures.

    The petition for review shall be served, no later than its filing 
date, on the State Governor, the State authority, and on all parties to 
the State proceeding.



Sec. 1143.5  Opposition; deadlines.

    Opposition statements may be filed as a matter of right by the 
Governor, the State authority, or by any party to the State proceeding 
within 15 days after the petition is filed. All others wishing to 
participate shall file a petition for leave to intervene within 15 days 
after the filing. Opposition statements and petitions to intervene shall 
include argument establishing that the State action was reasonable and 
may also address any new evidence submitted by petitioner. Petitions to 
intervene shall also explain why an appearance was not entered in the 
State proceeding but is appropriate in the Commission proceeding.



Sec. 1143.6  Rebuttal.

    Rebuttal to an opposition statement shall be filed within 20 days 
after the petition is filed. Rebuttal to an intervention petition shall 
be filed within 10 days after such petition is filed.



PART 1144--INTRAMODAL RAIL COMPETITION--Table of Contents




Sec.
1144.1  Notification, explanation, and justification.
1144.2  Negotiation.
1144.3  Suspension.
1144.4  Investigation of proposed cancellations.
1144.5  Prescription.
1144.6  General.

    Authority: 49 U.S.C. 10321, 10703, 10705, 10707 and 11103; and 5 
U.S.C. 553.

    Source: 50 FR 46066, Nov. 6, 1985, unless otherwise noted.



Sec. 1144.1  Notification, explanation, and justification.

    (a) Notification. A rail carrier proposing to cancel a through route 
and/or a joint rate shall comply with the requirements of 49 U.S.C. 
10762(c)(3) and 10705a(f), as appropriate, and 49 CFR part 1312, and 
shall give notice of its intent to make such a cancellation 45 days 
prior to the effective date of the cancellation. For cancellations under 
49 U.S.C. 10705(e), the 45-day period must consist of at least a 25-day 
notice of intent to file followed by a 20-day tariff filing in 
compliance with 49 U.S.C. 10762(c)(3).
    (b) Explanation and justification--(1) Request. After a rail carrier 
has given notice of a proposed cancellation, any

[[Page 260]]

affected party may ask the canceling rail carrier to:
    (i) Explain how the proposed cancellation will affect the party, and
    (ii) Justify the application of the cancellation to a route or rate 
actively used by or participated in by the party.
    (2) Reply. The rail carrier proposing the cancellation must give the 
party the requested explanation and justification, including pertinent 
mileage and cost data, within 10 days of the date the request is made.
    (3) Time. By mutual agreement, the rail carrier proposing the 
cancellation and the affected party may alter the time frames of 
paragraph (b)(2) of this section. The 49 CFR part 1132 time periods for 
protests and replies apply.
    (4) Content. The content of the request and reply (other than 
pertinent mileage and cost data) will be left to the parties, though all 
information pertinent to the individual case should be included. The 
failure to provide information necessary to analyze the action under the 
criteria established in Sec. 1144.3 may be treated as an admission 
against interest.

[50 FR 46066, Nov. 6, 1985; 51 FR 18333, May 19, 1986; 56 FR 18532, Apr. 
23, 1991]



Sec. 1144.2  Negotiation.

    (a) Timing. At least 5 days prior to challenging a cancellation of a 
through route or joint rate, or seeking the prescription of a through 
route, joint rate, or reciprocal switching, the party intending to 
initiate such action must first seek to engage in negotiations to 
resolve its dispute with the prospective defendants.
    (b) Participation. Participation or failure to participate in 
negotiations does not waive a party's right to file a timely request for 
suspension and/or investigation or prescription.
    (c) Arbitration. The parties may use arbitration as part of the 
negotiation process, or in lieu of litigation before the Commission.



Sec. 1144.3  Suspension.

    (a) General. Under these rules the Commission will suspend and 
investigate, investigate, or not suspend and investigate a proposed 
cancellation of a through route and/or joint rate. A persuasive 
presentation under all of the criteria below is sufficient for the 
Commission to determine that the requirements of 49 U.S.C. 10707(c)(1) 
have been met warranting suspension and investigation of the proposed 
cancellation. Failure to convince the Commission on any one of the 
criteria may result in either only an investigation (no suspension) or a 
determination not to investigate. This will be decided on a case-by case 
basis.
    (b) Statutory factors. A decision under (a) will be made based on 
the broad factors in 49 U.S.C. 10707(c)(1). The criteria considered in 
analyzing the factors in 49 U.S.C. 10707(c)(1) (A and B) are in 
paragraph (c) of this section. The requirements to keep account under 49 
U.S.C. 10707(c)(1)(C) cannot be applied to cancellation cases, and will 
not be considered.
    (c) Criteria. The Commission will suspend and investigate if a 
protestant shows:
    (1) The cancellations of a through route and/or joint rate would 
eliminate effective railroad competition for the affected traffic 
between the origin and destination. Among other evidence, the Commission 
will consider two rebuttable presumptions to show the elimination of 
effective railroad competition: (i) That the mileage between the origin 
and destination over the route to be canceled is not more than that of 
any feasible alternative rail route; and (ii) that the cost of operating 
via the route to be canceled is not more than that of any feasible 
alternative rail route; and
    (2) Either (i) a protesting shipper has used or would use the 
through route and/or joint rate proposed to be canceled to meet a 
significant portion of its current or future railroad transportation 
needs between the origin and destination; or
    (ii) A protesting carrier has used or would use the affected through 
route and/or joint rate for a significant amount of traffic.



Sec. 1144.4  Investigation of proposed cancellations.

    (a) General. The Commission shall determine that a proposed 
cancellation of a through route and/or joint rate is contrary to the 
public interest under 49

[[Page 261]]

U.S.C. 10705 if it finds that the cancellation, or a rate that would 
remain in place after the cancellation, is contrary to the competition 
policies of 49 U.S.C. 10101a or is otherwise anticompetitive.
    (b) Factors. In making its determination, the Commission will take 
into account all relevant factors, including:
    (1) The revenues of the involved railroads on the affected traffic 
via the rail routes in question.
    (2) The efficiency of the rail routes in question, including the 
costs of operating via those routes.
    (3) The rates charged or sought to be charged by the canceling 
railroad or railroads.
    (4) The revenues, following the cancellation, of the involved 
railroads for the traffic in question via the affected through route; 
the costs of the involved railroads for that traffic via that route; the 
ratios of those revenues to those costs; and all circumstances relevant 
to any difference in those ratios; provided that the mere loss of 
revenue to an affected carrier will not be a basis for finding that a 
cancellation is anticompetitive.
    (c) Other considerations. (1) The Commission will not consider 
product competition.
    (2) If a railroad wishes to rely in any way on geographic 
competition, it will have the burden of proving the existence of 
effective geographic competition by clear and convincing evidence.
    (3) Where a cancellation has been determined to be contrary to the 
competitive standards of this section, the overall revenue inadequacy of 
the canceling carrier will not excuse such a cancellation.
    (4) Any investigations of proposed cancellations under the terms of 
this paragraph will be conducted and concluded by the Commisson on an 
expedited basis.



Sec. 1144.5  Prescription.

    (a) General. A through route or a through rate shall be prescribed 
under 49 U.S.C. 10705, or a switching arrangement shall be established 
under 49 U.S.C. 11103, if the Commission determines:
    (1) That the prescription or establishment (i) is necessary to 
remedy or prevent an act that is contrary to the competition policies of 
49 U.S.C. 10101a or is otherwise anticompetitive, and (ii) otherwise 
satisfies the criteria of 49 U.S.C. 10705 and 11103, as appropriate. In 
making its determination, the Commission shall take into account all 
relevant factors, including:
    (A) The revenues of the involved railroads on the affected traffic 
via the rail routes in question.
    (B) The efficiency of the rail routes in question, including the 
costs of operating via those routes.
    (C) The rates or compensation charged or sought to be charged by the 
railroad or railroads from which prescription or establishment is 
sought.
    (D) The revenues, following the prescription, of the involved 
railroads for the traffic in question via the affected route; the costs 
of the involved railroads for that traffic via that route; the ratios of 
those revenues to those costs; and all circumstances relevant to any 
difference in those ratios; provided that the mere loss of revenue to an 
affected carrier shall not be a basis for finding that a prescription or 
establishment is necessary to remedy or prevent an act contrary to the 
competitive standards of this section; and
    (2) That either:
    (i) The complaining shipper has used or would use the through route, 
through rate, or reciprocal switching to meet a significant portion of 
its current or future railroad transportation needs between the origin 
and destination; or
    (ii) The complaining carrier has used or would use the affected 
through route, through rate, or reciprocal switching for a significant 
amount of traffic.
    (b) Other considerations. (1) The Commission will not consider 
product competition.
    (2) If a railroad wishes to rely in any way on geographic 
competition, it will have the burden of proving the existence of 
effective geographic competition by clear and convincing evidence.
    (3) When prescription of a through route, a through rate, or 
reciprocal switching is necessary to remedy or prevent an act contrary 
to the competitive standards of this section, the

[[Page 262]]

overall revenue inadequacy of the defendant railroad(s) will not be a 
basis for denying the prescription.
    (4) Any proceeding under the terms of this section will be conducted 
and concluded by the Commission on an expedited basis.



Sec. 1144.6  General.

    (a) These rules will govern the Commission's adjudication of 
individual cases pending on or after the effective date of these rules 
(October 31, 1985).
    (b) These rules supersede the rules at 49 CFR part 1132 to the 
extent they are inconsistent.
    (c) Discovery under these rules is governed by the Commission's 
general rules of discovery at 49 CFR part 1114.
    (d) Any Commission determinations or findings under this part with 
respect to compliance or non-compliance with the standards of 
Secs. 1144.4 and 1144.5 shall not be given any res judicata or 
collateral estoppel effect in any litigation involving the same facts or 
controversy arising under the antitrust laws of the United States.



PARTS 1146--1149--[RESERVED]






PARTS 1150-1174--LICENSING PROCEDURES--Table of Contents






PARTS 1150-1159--RAIL LICENSING PROCEDURES--Table of Contents






PART 1150--CERTIFICATE TO CONSTRUCT, ACQUIRE, OR OPERATE RAILROAD LINES--Table of Contents




              Subpart A--Applications Under 49 U.S.C. 10901

Sec.
1150.1  Introduction.
1150.2  Overview.
1150.3  Information about applicant(s).
1150.4  Information about the proposal.
1150.5  Operational data.
1150.6  Financial information.
1150.7  Environmental and energy data.
1150.8  Additional support.
1150.9  Notice.
1150.10  Procedures.

                     Subpart B--Designated Operators

1150.11  Introduction.
1150.12  Information about the designated operator.
1150.13  Relevant dates.
1150.14  Proposed service.
1150.15  Information about offeror.
1150.16  Procedures.

   Subpart C--Modified Certificate of Public Convenience and Necessity

1150.21  Scope of rules.
1150.22  Exemptions and common carrier status.
1150.23  Modified certificate of public convenience and necessity.
1150.24  Termination of service.

          Subpart D--Exempt Transactions Under 49 U.S.C. 10901.

1150.31  Scope of exemption.
1150.32  Procedures and relevant dates--transactions that involve 
          creation of Class III carriers.
1150.33  Information to be contained in notice--transactions that 
          involve creation of Class III carriers.
1150.34  Caption summary--transactions that involve creation of Class 
          III carriers.
1150.35  Procedures and relevant dates--transactions that involve 
          creation of Class I or Class II carriers.
1150.36  Exempt construction of connecting track.



Subpart E--Exempt Transactions Under 49 U.S.C. 10902 for Class III Rail 
                                Carriers

1150.41  Scope of exemption.
1150.42  Procedures and relevant dates for small line acquisitions.
1150.43  Information to be contained in notice for small line 
          acquisitions.
1150.44  Caption summary.
1150.45  Procedures and relevant dates--transactions under section 10902 
          that involve creation of Class I or Class II rail carriers.

    Authority: 5 U.S.C. 553 and 559, 49 U.S.C. 721(a), 10502, 10901 and 
10902.

    Source: 47 FR 8199, Feb. 25, 1982, unless otherwise noted. 
Redesignated at 47 FR 49581, Nov. 1, 1982.



              Subpart A--Applications Under 49 U.S.C. 10901



Sec. 1150.1  Introduction.

    (a) When an application is required. This subpart governs 
applications under 49 U.S.C. 10901 for a certificate of

[[Page 263]]

public convenience and necessity authorizing the construction, 
acquisition or operation of railroad lines. Noncarriers require 
Commission approval under section 10901 to construct, acquire or operate 
a rail line in interstate commerce. Existing carriers require approval 
under section 10901 only to construct a new rail line or operate a line 
owned by a noncarrier, since acquisition by a carrier of an active rail 
line owned by a carrier is covered by 49 U.S.C. 11343. We have exempted 
from these requirements the acquisition by a State entity of a rail line 
that has been approved for abandonment, as well as operations over these 
lines. See subpart C of this part. In addition, where appropriate, we 
have granted individual exemptions from these certification 
requirements. See 49 U.S.C. 10505.
    (b) Content of the application. Applications filed under this 
subpart shall include the information set forth in Secs. 1150.2 through 
1150.9. The applicant must also comply with the Energy and Environmental 
Regulations, at 49 CFR parts 1106 and 1105 (including consulting with 
the Commission's Energy and Environmental Branch at least 6 months prior 
to filing an application, to begin the scoping process to identify 
environmental issues and outline procedures for analysis of this aspect 
of the proposal).



Sec. 1150.2  Overview.

    (a) A brief narrative description of the proposal.
    (b) The full name and address of applicant(s).



Sec. 1150.3  Information about applicant(s).

    (a) The name, address, and phone number of the representative to 
receive correspondence concerning this application.
    (b) Facts showing that applicant is either a common carrier by 
railroad or has been organized to implement the proposal for which 
approval is being sought.
    (c) A statement indicating whether the rail line will be operated by 
applicant. If not, the operator which has been selected must join in the 
application, and provide all information required for an applicant. If 
the operator has not yet been selected, state who is being considered.
    (d) A statement indicating whether applicant is affiliated by stock 
ownership or othewise with any industry to be served by the line. If so, 
provide details about the nature and extent of the affiliation.
    (e) Date and place of organization, applicable State statutes, and a 
brief description of the nature and objectives of the organization.
    (f) If a corporation, submit:
    (1) A list of officers, directors, and 10 principal stockholders of 
the corporation and their respective holdings. A statement whether any 
of these officers, directors or major shareholders control other 
regulated carriers. Also a list of entities, corporation(s) 
individual(s), or group(s) who control applicant, the extent of control, 
and whether any of them control other common carriers.
    (2) As exhibit A, any resolution of the stockholders or directors 
authorizing the proposal.
    (g) If a partnership or individual, submit the name and address of 
all general partners and their respective interests, and whether any of 
them control other carriers.
    (h) If applicant is an entity other than as described in paragraphs 
(e) or (f) of this section, submit name, title, and business address of 
principals or trustee, and whether the entity controls any other common 
carriers.
    (i) If applicant is a trustee, receiver, assignee, or a personal 
representative of the real party in interest, details about the 
appointment (including supporting documents, such as the court order 
authorizing the appointment and the filing) and about the real party in 
interest.
    (j) If applicant is an existing carrier, it may satisfy the 
informational requirements of paragraphs (f) through (i) of this section 
by making appropriate reference to the docket number of prior 
applications that have been filed within the previous three years in 
which the information has been submitted.

[[Page 264]]



Sec. 1150.4  Information about the proposal.

    (a) A description of the proposal and the significant terms and 
conditions, including consideration to be paid (monetary or otherwise). 
As exhibit B, copies of all relevant agreements.
    (b) Details about the amount of traffic and a general description of 
commodities.
    (c) The purposes of the proposal and an explanation of why the 
public convenience and necessity require or permit the proposal.
    (d) As exhibit C, a map which clearly delineates the area to be 
served including origins, termini and stations, and cities, counties and 
States. The map should also delineate principal highways, rail routes 
and any possible interchange points with other railroads. If alternative 
routes are proposed for construction, the map should clearly indicate 
each route.
    (e) A list of the counties and cities to be served under the 
proposal, and whether there is other rail service available to them. The 
names of the railroads with which the line would connect, and the 
proposed connecting points; the volume of traffic estimated to be 
interchanged; and a description of the principal terms of agreements 
with carriers covering operation, interchange of traffic, division of 
rates or trackage rights.
    (f) The time schedule for consummation or completion of the 
proposal.
    (g) If a new line is proposed for construction:
    (1) The approximate area to be served by the line.
    (2) The nature or type of existing and prospective industries (e.g., 
agriculture, manufacturing, mining, warehousing, forestry) in the area, 
with general information about the age, size, growth potential and 
projected rail use of these industries.
    (3) Whether the construction will cross another rail line and the 
name of the railroad(s) owning the line(s) to be crossed. If the 
crossing will be accomplished with the permission of the railroad(s), 
include supporting agreements. If a Commission determination under 49 
U.S.C. 10901(d)(1) will be sought, include such requests.



Sec. 1150.5  Operational data.

    As exhibit D, an operating plan, including traffic projection 
studies; a schedule of the operations; information about the crews to be 
used and where employees will be obtained; the rolling stock 
requirements and where it will be obtained; information about the 
operating experience and record of the proposed operator unless it is an 
operating railroad; any significant change in patterns of service; any 
associated discontinuance or abandonments; and expected operating 
economies.



Sec. 1150.6  Financial information.

    (a) The manner in which applicant proposes to finance construction 
or acquisition, the kind and amount of securities to be issued, the 
approximate terms of their sale and total fixed charges, the extent to 
which funds for financing are now available, and whether any of the 
securities issued would be underwritten by industries to be served by 
the proposed line. Explain how the fixed charges will be met.
    (b) As exhibit E a recent balance sheet. As exhibit F, an income 
statement for the latest available calendar year prior to filing the 
application.
    (c) A present value determination of the full costs of the proposal. 
If construction is proposed, the costs for each year of such 
construction (in a short narrative or by chart).
    (d) A statement of projected net income for 2 years, based upon 
traffic projections. Where construction is contemplated, the statement 
should represent the 2 years following completion of construction.



Sec. 1150.7  Environmental and energy data.

    As exhibit H, information and data prepared under 49 CFR Part 1105, 
and the ``Revision of the Nat'l. Guidelines Environmental Policy Act of 
1969,'' 363 I.C.C. 653 (1980), and in accordance with ``Implementation 
of the Energy Policy and Conservation Act of 1975,'' 49 CFR Part 1106.



Sec. 1150.8  Additional support.

    Any additional facts or reasons to show that the public convenience 
and necessity require or permit approval of this application. The 
Commission may

[[Page 265]]

require additional information to be filed where appropriate.



Sec. 1150.9  Notice.

    A summary of the proposal which will be used to provide notice under 
Sec. 1150.10(f).



Sec. 1150.10  Procedures.

    (a) Waivers. Prior to filing an application, prospective applicants 
may seek an advance waiver, either on a permanent or temporary basis, of 
required information which is unavailable or not necessary or useful in 
analysis of the proposal. However, if the information is clearly not 
applicable to the individual proposal, a waiver is not necessary and 
need not be sought. A petition must specify the sections for which 
waiver or clarification is sought and the reasons why it should be 
granted. No replies will be permitted. Parties may, upon an appropriate 
showing, demonstrate their need to examine data which have previously 
been waived. In such circumstances, the Commission only requires that it 
be produced under Sec. 1150.8 above.
    (b) Filing procedures. The original and 10 copies of the application 
and all documents shall be filed with the Secretary. A filing fee in the 
amount set forth in 49 CFR 1002.2(f)(33) is required to file an 
application. Copies of documents shall be furnished promptly to 
interested parties upon request. The application shall include a stamped 
self-addressed envelope to be used to notify applicant of the docket 
number. Additionally, if possible, telephonic communication of the 
docket number shall be made.
    (c) Signatures. The original of the application shall be signed by 
applicants (if a partnership, all general partners must sign; and if a 
corporation, association, or other similar form of organization, the 
signature should be that of the executive officer having knowledge of 
the matters and designated for that purpose). Applications shall be made 
under oath and shall contain an appropriate certification (if a 
corporation, by its secretary) showing that the affiant is duly 
authorized to verify and file the application. Any persons controlling 
an applicant shall also sign the application.
    (d) Related applications. Applicant shall file concurrently all 
directly related applications (e.g., to issue securities, control motor 
carriers, obtain access to terminal operations, acquire trackage 
rights). All such applications will be considered with the main 
application.
    (e) Service. As soon as the docket number is obtained the applicant 
shall serve a conformed copy of the application by first-class mail upon 
the Governor (or Executive Officer), Public Service Commission, and 
Department of Transportation of each State in which any part of the 
properties involved in the proposed transaction is located. Within 2 
weeks of filing, applicant shall submit to the Commission a copy of the 
certificate of service indicating that all persons so designated have 
been served a copy of the application.
    (f) Publication. Within 2 weeks of filing, applicant shall have 
published the summary of the application (prepared under Sec. 1150.9) in 
a newspaper of general circulation in each county in which the line is 
located. The notice should inform interested parties of the date by 
which they must advise the Commission of their interest in the 
proceeding. This date shall be calculated as the 35th day after the 
filing of the application which is neither a Saturday, Sunday, or legal 
holiday in the District of Columbia. Applicant must file an affidavit of 
publication immediately after the publication has been completed. The 
Commission will, as soon as practicable, either publish the notice 
summary in the Federal Register or reject the application if it is 
incomplete.
    (g) Public participation. Written comments (with 10 copies) must be 
filed within 35 days of the filing of the application. Comments must 
contain the basis for the party's position either in support or 
opposition. Applicant must be served with a copy of each comment. On the 
basis of the comments and the assessment by the Energy and Environmental 
Branch, the Commission will decide if a hearing is necessary. A hearing 
may be either oral or through receipt of written statements (modified 
procedure). (See 49 CFR 1112.1 et seq.) If there is no opposition to the 
application, additional evidence normally

[[Page 266]]

need not be filed, and a decision will be reached using the information 
in the application.
    (h) Replies to written comments. Applicant's replies will be 
considered by the Commission provided they are filed and served within 5 
days of the due date of the pleadings they address.

[47 FR 8199, Feb. 25, 1982. Redesignated at 47 FR 49581, Nov. 1, 1982, 
and amended at 52 FR 46483, Dec. 8, 1987; 53 FR 19302, May 27, 1988]



                     Subpart B--Designated Operators



Sec. 1150.11  Introduction.

    A certificate of designated operator will be issued to an operator 
providing service pursuant to a rail service continuation agreement 
under section 304 of the Regional Rail Reorganization Act of 1973, as 
amended by the Railroad Revitalization and Regulatory Reform Act of 
1976. The designated operator (D-OP) may commence and terminate the 
service in accordance with the terms of the agreement. When service is 
terminated the D-OP must notify all shippers on the line. To obtain a D-
OP certificate, the information in this subpart must be filed with the 
Commission. A copy of the certificate of designated operator shall be 
served on the Association of American Railroads.



Sec. 1150.12  Information about the designated operator.

    (a) The name and address of the D-OP.
    (b) If a new corporation or other new business entity, a copy of the 
certificate of incorporation or, if unincorporated, the facts and 
official organizational documents relating to the business entity.
    (c) The names and addresses of all officers and directors, with a 
statement from each which indicates present affiliation, if any, with a 
railroad.
    (d) Sufficient information to establish its financial responsibility 
for the proposed undertaking, unless the D-OP is a common carrier by 
railroad. The nature and extent of all liability insurance coverage, 
including insurance binder or policy number, and name of insurer.



Sec. 1150.13  Relevant dates.

    The exact dates of the period of operation which have been agreed 
upon by the D-OP, the offeror of the rail service continuation payment, 
and the owner of the line to be operated, in their lease and operating 
agreements.



Sec. 1150.14  Proposed service.

    (a) A copy of all agreements between the D-OP, the offeror of the 
rail service continuation payment, and the owner of the line to be 
operated.
    (b) Any additional information which is necessary to provide the 
Commission with a description of:
    (1) The line over which service is to be provided (e.g., U.S.R.A. 
Line); and
    (2) All interline connections, including the names of the connecting 
railroads.



Sec. 1150.15  Information about offeror.

    (a) The name and address of the offeror of the rail service 
continuation payment.
    (b) Sufficient information to establish the financial responsibility 
of the offeror for the proposed undertaking, or if the offeror is a 
State or municipal corporation or authority, a statement that it has 
authority to perform the service or enter into the agreement for 
subsidy.



Sec. 1150.16  Procedures.

    Upon receipt of this information, the matter will be docketed by the 
prefix initials ``D-OP.'' Operators may begin operating immediately upon 
the filing of the necessary information (plus three copies). Although 
the designated operator will not be required to seek and obtain 
authority from the Commission either to commence or to terminate 
operations, the designated operator is a common carrier by railroad 
subject to all other applicable provisions of 49 U.S.C. Subtitle IV. 
However, we have exempted designated operators from some aspects of 
regulation. See ``Exempting of Certain Designated Operators from section 
11343, 361 ICC 379 (1979), as modified by No. 79-2457, John W. 
McGinness, Brotherhood of Locomotive Engineers and Railway Labor 
Executives' Association v. Interstate Commerce Commission and United

[[Page 267]]

States of America.'' (U.S.C.A. D.C. Cir., decided August 17, 1981).



   Subpart C--Modified Certificate of Public Convenience and Necessity



Sec. 1150.21  Scope of rules.

    These special rules apply to operations over abandoned rail lines, 
which have been acquired (through purchase or lease) by a State. The 
rail line must have fully abandoned, or approved for abandonment by the 
Commission or a bankruptcy court. As used in these rules, the term 
``State'' includes States, political subdivisions of States, and all 
instrumentalities through which the State can act. An operator has the 
option of applying for a modified certificate of public convenience and 
necessity under this subpart or a common carrier certificate under 
Subpart A of this part. A copy of the modified certificate shall be 
served on the Association of American Railroads.



Sec. 1150.22  Exemptions and common carrier status.

    The acquisition by a State of a fully abandoned line is not subject 
to the jurisdiction of the Interstate Commerce Commission. The 
acquisition by a State of a line approved for abandonment and not yet 
fully abandoned is exempted from the Commission's jurisdiction. If the 
State intends to operate the line itself, it will be considered a common 
carrier. However, when a State acquires a rail line described under 
Sec. 1150.21 and contracts with an operator to provide service over the 
line, only the operator incurs a common carrier obligation. The 
operators of these lines are exempted from 49 U.S.C. 10901 and 10903 
which are the statutory requirements governing the start up and 
termination of operations. Operators exempted from these requirements 
must comply with the requirements of this part and must apply for a 
modified certificate of public convenience and necessity. The operator 
is a common carrier and incurs all benefits and responsibilities under 
49 U.S.C. subtitle IV; however, the State through its operational 
agreement or the operator of the line may determine certain 
preconditions, such as payment of a subsidy, which must be met by 
shippers to obtain service over the line. The operator must notify the 
shippers on the line of any preconditions. The modified certificate will 
authorize service to shippers who meet these preconditions and the 
operator will be required to provide complete common carrier service 
under this certificate only to those shippers. (See 363 ICC 132.)



Sec. 1150.23  Modified certificate of public convenience and necessity.

    (a) The operator must file a notice with the Commission for a 
modified certificate of public convenience and necessity. Operations may 
commence immediately upon the filing; however, the Commission will 
review the information filed, and if complete, will issue a modified 
certificate notice.
    (b) A notice for a modified certificate of public convenience and 
necessity shall include the following information:
    (1) The name and address of the operator and, unless the operator is 
an existing rail carrier:
    (i) Its articles of incorporation or, if it is unincorporated, the 
facts and organizational documents relating to its formation;
    (ii) The names and addresses of all of its officers and directors 
and a statement indicating any present affiliation each may have with a 
rail carrier; and
    (iii) Sufficient information to establish the financial 
responsibility of the operator.
    (2) Information about the prior abandonment, including docket 
number, status and date of the first decision approving the abandonment.
    (3) The exact dates of the period of operation which have been 
agreed upon by the operator and the State which owns the line (if there 
is any agreement, it should be provided);
    (4) A description of the service to be performed including, where 
applicable, a description of:
    (i) The line over which service is to be performed;
    (ii) All interline connections including the names of the connecting 
railroads;
    (iii) The nature and extent of all liability insurance coverage, 
including

[[Page 268]]

binder or policy number and name of insurer; and
    (iv) Any preconditions which shippers must meet to receive service.
    (5) The name and address of any subsidizers, and
    (6) Sufficient information to establish the financial responsibility 
of any subsidizers (if the subsidizer is a State, the information should 
show that it has authority to enter into the agreement for subsidized 
operations).
    (c) The service offered and the applicable rates, charges, and 
conditions must be described in tariffs published by the operator to the 
Commission's rules.



Sec. 1150.24  Termination of service.

    The duration of the service may be determined in the contract 
between the State and the operator. An operator may not terminate 
service over a line unless it first provides 60 days' notice of its 
intent to terminate the service. The notice of intent must be:
    (a) Filed with the State and the Commission, and
    (b) Mailed to all persons that have used the line within the 6 
months preceding the date of the notice.



          Subpart D--Exempt Transactions Under 49 U.S.C. 10901

    Source: 51 FR 2504, Jan. 17, 1986, unless otherwise noted.



Sec. 1150.31  Scope of exemption.

    (a) Except as indicated below, this exemption applies to all 
acquisitions and operations under section 10901 (See 1150.1, supra). 
This exemption also includes:
    (1) Acquisition by a noncarrier of rail property that would be 
operated by a third party;
    (2) Operation by a new carrier of rail property acquired by a third 
party;
    (3) A change in operators on the line; and
    (4) Acquisition of incidental trackage rights. Incidental trackage 
rights include the grant of trackage rights by the seller, or the 
assignment of trackage rights to operate over the line of a third party 
that occur at the time of the exempt acquisition or operation. This 
exemption does not apply when a class I railroad abandons a line and 
another class I railroad then acquires the line in a proposal that would 
result in a major market extension as defined at Sec. 1180.3(c).
    (b) Other exemptions that may be relevant to a proposal under this 
subpart are the exemption for control at Sec. 1180.2(d)(1) and (2), and 
the from securities regulation at 49 CFR part 1175.



Sec. 1150.32  Procedures and relevant dates--transactions that involve creation of Class III carriers.

    (a) To qualify for this exemption, applicant must file a verified 
notice providing details about the transaction, and a brief caption 
summary, conforming to the format in Sec. 1150.34, for publication in 
the Federal Register.
    (b) The exemption will be effective 7 days after the notice is 
filed. The Commission, through the Director of the Office of 
Proceedings, will publish a notice in the Federal Register within 30 
days of the filing. A change in operators would follow the provisions at 
Sec. 1150.34, and notice must be given to shippers.
    (c) If the notice contains false or misleading information, the 
exemption is void ab initio. A petition to revoke under 49 U.S.C. 
10505(d) does not automatically stay the exemption.
    (d) Applicant must preserve intact all sites and structures more 
than 50 years old until compliance with the requirements of Section 106 
of the National Historic Preservation Act, 16 U.S.C. 470 is achieved.

[51 FR 2504, Jan. 17, 1986, as amended at 53 FR 4626, Feb. 17, 1988; 53 
FR 5982, Feb. 29, 1988]



Sec. 1150.33  Information to be contained in notice--transactions that involve creation of Class III carriers.

    (a) The full name and address of the applicant;
    (b) The name, address, and telephone number of the representative of 
the applicant who should receive correspondence;
    (c) A statement that an agreement has been reached or details about 
when an agreement will be reached;
    (d) The operator of the property;
    (e) A brief summary of the proposed transaction, including:

[[Page 269]]

    (1) The name and address of the railroad transferring the subject 
property,
    (2) The proposed time schedule for consummation of the transaction,
    (3) The mile-posts of the subject property, including any branch 
lines, and
    (4) The total route miles being acquired;
    (f) A map that clearly indicates the area to be served, including 
origins, termini, stations, cities, counties, and States; and
    (g) A certificate that applicant's projected revenues do not exceed 
those that would qualify it as a Class III carrier.

[51 FR 2504, Jan. 17, 1986, as amended at 51 FR 25207, July 11, 1986; 53 
FR 4626, Feb. 17, 1988; 53 FR 5982, Feb. 29, 1988; 56 FR 36111, July 31, 
1991]



Sec. 1150.34  Caption summary--transactions that involve creation of Class III carriers.

    The caption summary must be in the following form. The information 
symbolized by numbers is identified in the key below:

                     Interstate Commerce Commission

                           Notice of Exemption

                           Finance Docket No.

                         (1)--Exemption (2)-(3)

    (1) Has filed a notice of exemption to (2) (3)'s line between (4). 
Comments must be filed with the Commission and served on (5). (6).
Key to symbols:

    (1) Name of entity acquiring or operating the line, or both.
    (2) The type of transaction, e.g., to acquire, operate, or both.
    (3) The transferor.
    (4) Describe the line.
    (5) Petitioners representative, address, and telephone number.
    (6) Cross reference to other class exemptions being used.
    The notice is filed under Sec. 1150.31. If the notice contains false 
or misleading information, the exemption is void ab initio. Petitions to 
revoke the exemption under 49 U.S.C. 10505(d) may be filed at any time. 
The filing of a petition to revoke will not automatically stay the 
transaction.

[47 FR 8199, Feb. 25, 1982. Redesignated at 47 FR 49581, Nov. 1, 1982. 
Amended at 53 FR 5982, Feb. 29, 1988]



Sec. 1150.35  Procedures and relevant dates--transactions that involve creation of Class I or Class II carriers.

    (a) To qualify for this exemption, applicant must serve a notice of 
intent to file a notice of exemption no later than 14 days before the 
notice of exemption is filed with the Commission.
    (b) The notice of intent must contain all the information required 
in Sec. 1150.33 plus:
    (1) A general statement of service intentions; and
    (2) A general statement of labor impacts.
    (c) The notice of intent must be served on:
    (1) The Governor of each State in which track is to be sold;
    (2) The State(s) Department of Transportation or equivalent agency;
    (3) The national offices of the labor unions with employees on the 
affected line(s); and
    (4) Shippers representing at least 50 percent of the volume of local 
traffic and traffic originating or terminating on the line(s) in the 
most recent 12 months for which data is available (beginning with the 
largest shipper and working down).
    (d) Applicant must also file a verified notice of exemption 
conforming to the requirements of (b) above and of Sec. 1150.34, and 
certify compliance with Sec. 1150.35 (a), (b), and (c), attaching a copy 
of the notice of intent.
    (e) The exemption will be effective 21 days after the notice is 
filed. The Commission, through the Director of the Office of 
Proceedings, will publish a notice in the Federal Register within 30 
days of the filing.
    (f) If the notice contains false or misleading information, the 
exemption is void ab initio. A petition to revoke under 49 U.S.C. 
10505(d) does not automatically stay the transaction. Stay petitions 
must be filed within 7 days of the filing of the notice of exemption. 
Replies will be due 7 days thereafter.

[[Page 270]]

To be considered, stay petitions must be timely served on the applicant.
    (g) Applicant must comply with Sec. 1150.33(g) regarding section 106 
of the National Historic Preservation Act, 16 U.S.C. 470.

[53 FR 5982, Feb. 29, 1988, as amended at 53 FR 31341, Aug. 18, 1988]



Sec. 1150.36   Exempt construction of connecting track.

    (a) Scope. This class exemption applies to proceedings involving the 
construction and operation of connecting lines of railroad within 
existing rail rights-of-way, or on land owned by connecting railroads, 
under 49 U.S.C. 10901 (a), (b), and (c). (See the reference to 
connecting track in 49 CFR 1105.6(b)(1).) This class exemption is 
designed to expedite and facilitate connecting track construction while 
ensuring full and timely environmental review. The Surface 
Transportation Board (Board) has found that its prior review of 
connecting track construction and operation is not necessary to carry 
out the rail transportation policy of 49 U.S.C. 10101; that continued 
regulation is not necessary to protect shippers from abuse of market 
power; and that the construction of connecting track would be of limited 
scope. See 49 U.S.C. 10502. To use this class exemption, a pre-filing 
notice, environmental report, historic report, and notice of exemption 
must be filed that complies with the procedures in Sec. 1150.36 (b) and 
(c), and the Board's environmental rules, codified at 49 CFR part 1105.
    (b) Environmental requirements. The environmental regulations at 49 
CFR part 1105 must be complied with fully. An environmental report 
containing the information specified at 49 CFR 1105.7(e), as well as an 
historic report containing the information specified at 49 CFR 
1105.8(d), must be filed either before or at the same time as the notice 
of exemption is filed. See 49 CFR 1105.7(a). The entity seeking the 
exemption authority must also serve copies of the environmental report 
on the agencies listed at 49 CFR 1105.7(b). Because the environmental 
report must include a certification that appropriate agencies have been 
consulted in its preparation (see 49 CFR 1105.7(c)), parties should 
begin environmental and historic consultations well before the notice of 
exemption is filed. Environmental requirements may be waived or modified 
where a petitioner demonstrates in writing that such action is 
appropriate. See 49 CFR 1105.10(c). It is to the advantage of parties to 
consult with the Board's Section of Environmental Analysis (SEA) at the 
earliest possible date to begin environmental review.
    (c) Procedures and dates. (1) At least 20 days prior to the filing 
of a notice of exemption with the Board, the party seeking the exemption 
authority must notify in writing: the State Public Service Commission, 
the State Department of Transportation (or equivalent agency), and the 
State Clearinghouse (if there is no clearinghouse, the State 
Environmental Protection Agency), of each State involved. The pre-filing 
notice shall include: the name and address of the railroad (or other 
entity proposing to construct the line) and the proposed operator; a 
complete description of the proposed construction and operation, 
including a map; an indication that the class exemption procedure is 
being used; and the approximate date that construction is proposed to 
begin. This pre-filing notice shall include a certification that the 
petitioner will comply with the Board's environmental regulations, 
codified at 49 CFR part 1105, and a statement that those regulations 
generally require the Board to:
    (i) Prepare an environmental assessment (EA) (or environmental 
impact statement (EIS) if necessary),
    (ii) Make the document (EA or EIS, as appropriate) available to the 
parties (and to the public, upon request to SEA); and
    (iii) Accept for filing and consideration comments on the 
environmental document as well as petitions for stay and 
reconsideration.
    (2) Petitioner must file a verified notice of exemption with the 
Board at least 90 days before the construction is proposed to begin. In 
addition to the information contained in Sec. 1150.36(c)(1), the notice 
shall include a statement certifying compliance with the environmental 
rules at 49 CFR part 1105 and the pre-filing notice requirements of 49 
CFR 1150.36(c)(1).

[[Page 271]]

    (3) The Board, through the Director of the Office of Proceedings, 
shall publish a notice in the Federal Register within 20 days after the 
notice of exemption is received that describes the construction project 
and invites comments. SEA will then prepare an EA (or, if necessary, an 
EIS). The EA generally will be made available 15 days after the Federal 
Register notice. It will be served on all parties and appropriate 
agencies. Others may request a copy from SEA. The deadline for 
submission of comments on the EA will generally be within 30 days of its 
availability (see 49 CFR 1105.10(b)). If an EIS is prepared, the time 
frames and procedures set forth in 49 CFR 1105.10(a) generally will 
apply.
    (4) The Board's environmental document (together with any comments 
and SEA's recommendations) shall be used in deciding whether to allow 
the particular construction project to proceed under the class exemption 
and whether to impose appropriate mitigating conditions upon its use 
(including use of an environmentally preferable route). If the Board 
concludes that a particular project will result in serious adverse 
environmental consequences that cannot be adequately mitigated, it may 
deny authority to proceed with the construction under the class 
exemption (the ``no-build'' alternative). Persons believing that they 
can show that the need for a particular line outweighs the adverse 
environmental consequences can file an application for approval of the 
proposed construction under 49 U.S.C. 10901.
    (5) No construction may begin until the Board has completed its 
environmental review and issued a final decision.
    (6) Petitions to stay the effective date of the notice of exemption 
on other than environmental and/or historic preservation grounds must be 
filed within 10 days of the Federal Register publication. Petitions to 
stay the effective date of the notice on environmental and/or historic 
preservation grounds may be filed at any time but must be filed 
sufficiently in advance of the effective date to allow the Board to 
consider and act on the petition before the notice becomes effective. 
Petitions for reconsideration must be filed within 20 days of the 
Federal Register publication.
    (7) The exemption generally will be effective 70 days after 
publication in the Federal Register, unless stayed. If the notice of 
exemption contains false or misleading information, the exemption is 
void ab initio and the Board shall summarily reject the exemption 
notice.
    (8) Where significant environmental issues have been raised or 
discovered during the environmental review process, the Board shall 
issue, on or before the effective date of the exemption, a final 
decision allowing the exemption to become effective and imposing 
appropriate mitigating conditions or taking other appropriate action 
such as selecting the ``no build'' alternative.
    (9) Where there has been full environmental review and no 
significant environmental issues have been raised or discovered, the 
Board, through the Director of the Office of Proceedings, shall issue, 
on or before the effective date of the exemption, a final decision 
consisting of a Finding of No Significant Impact (FONSI) to show that 
the environmental record has been considered (see 49 CFR 1105.10(g)).
    (10) The Board, on its own motion or at the request of a party to 
the case, will stay the effective date of individual notices of 
exemption when an informed decision on environmental issues cannot be 
made prior to the date that the exemption authority would otherwise 
become effective. Stays will be granted initially for a period of 60 
days to permit resolution of environmental issues and issuance of a 
final decision. The Board expects that this 60-day period will usually 
be sufficient for these purposes unless preparation of an EIS is 
required. If, however, environmental issues remain unresolved upon 
expiration of this 60-day period, the Board, upon its own motion, or at 
the request of a party to the case, will extend the stay, as necessary 
to permit completion of environmental review and issuance of a final 
decision. The Board's order will specify the duration of each extension 
of the initial stay period. In cases requiring the preparation of an 
EIS, the Board will extend the stay for a period sufficient to permit

[[Page 272]]

compliance with the procedural guidelines established by the Board's 
environmental regulations.
    (d) Third-Party Consultants. An environmental and historic report 
required under 49 CFR 1105.7 and 1105.8 will not be required where a 
petitioner engages a third-party consultant who is approved by SEA and 
acts under SEA's direction and supervision in preparing the EA or EIS. 
In such a case, the third-party consultant must act on behalf of the 
Board, working under SEA's direction to collect the environmental 
information that is needed and to compile it into a draft EA or EIS, 
which is prepared under SEA's direction and then submitted to SEA for 
its final review and approval. See 49 CFR 1105.10(d).

[61 FR 29974, June 13, 1996]



Subpart E--Exempt Transactions Under 49 U.S.C. 10902 for Class III Rail 
                                Carriers

    Source: 61 FR 32355, June 24, 1996, unless otherwise noted.



Sec. 1150.41  Scope of exemption.

    Except as indicated in paragraphs (a) through (d) of this section, 
this exemption applies to acquisitions or operations by Class III rail 
carriers under section 10902. This exemption also includes:
    (a) Acquisition by a Class III rail carrier of rail property that 
would be operated by a third party;
    (b) Operation by a Class III carrier of rail property acquired by a 
third party;
    (c) A change in operators on such a line; and
    (d) Acquisition of incidental trackage rights. Incidental trackage 
rights include the grant of trackage rights by the seller, or the 
acquisition of trackage rights to operate over the line of a third 
party, that occurs at the time of the purchase.



Sec. 1150.42  Procedures and relevant dates for small line acquisitions.

    (a) This exemption applies to the acquisition of rail lines with 
projected annual revenues which, together with the acquiring carrier's 
projected annual revenue, do not exceed the annual revenue of a Class 
III railroad. To qualify for this exemption, the Class III rail carrier 
applicant must file a verified notice providing details about the 
transaction, and a brief caption summary, conforming to the format in 
Sec. 1150.44, for publication in the Federal Register. In addition to 
the written submission, the notice and summary must be submitted on a 
3.5-inch diskette formatted for WordPerfect 5.1.
    (b) The exemption will be effective 7 days after the notice is 
filed. The Board, through the Director of the Office of Proceedings, 
will publish a notice in the Federal Register within 30 days of the 
filing. A change in operators must follow the provisions at 
Sec. 1150.44, and notice must be given to shippers.
    (c) If the notice contains false or misleading information, the 
exemption is void ab initio. A petition to revoke under 49 U.S.C. 
10502(d) does not automatically stay the exemption.
    (d) Applicant must preserve intact all sites and structures more 
than 50 years old until compliance with the requirements of section 106 
of the National Historic Preservation Act, 16 U.S.C. 470f, is achieved.



Sec. 1150.43  Information to be contained in notice for small line acquisitions.

    (a) The full name and address of the Class III rail carrier 
applicant;
    (b) The name, address, and telephone number of the representative of 
the applicant who should receive correspondence;
    (c) A statement that an agreement has been reached or details about 
when an agreement will be reached;
    (d) The operator of the property;
    (e) A brief summary of the proposed transaction, including:
    (1) The name and address of the railroad transferring the subject 
property to the Class III rail carrier applicant;
    (2) The proposed time schedule for consummation of the transaction;
    (3) The mileposts of the subject property, including any branch 
lines; and
    (4) The total route miles being acquired;
    (f) A map that clearly indicates the area to be served, including 
origins, termini, stations, cities, counties, and states; and

[[Page 273]]

    (g) A certificate that applicant's projected revenues as a result of 
the transaction will not result in the creation of a Class II or Class I 
rail carrier so as to require processing under Sec. 1150.45.



Sec. 1150.44  Caption summary.

    The caption summary must be in the following form. The information 
symbolized by numbers is identified in the key as follows:

                      Surface Transportation Board

                           Notice of Exemption

                         STB Finance Docket No.

                         (1)--Exemption (2)-(3)

    (1) Has filed a notice of exemption to (2) (3)'s line between (4). 
Comments must be filed with the Board and served on (5). (6). Key to 
symbols:
(1) Name of carrier acquiring or operating the line.
(2) The type of transaction, e.g., to acquire or operate.
(3) The transferor.
(4) Describe the line.
(5) Petitioner's representative, address, and telephone number.
(6) Cross reference to other class exemptions being used.
    The notice is filed under 49 CFR 1150.41. If the notice contains 
false or misleading information, the exemption is void ab initio. The 
filing of a petition to revoke will not automatically stay the 
transaction.

[61 FR 32355, June 24, 1996; 61 FR 36965, July 15, 1996]



Sec. 1150.45   Procedures and relevant dates--transactions under section 10902 that involve creation of Class I or Class II rail carriers.

    (a) To qualify for this exemption, applicant must serve a notice of 
intent to file a notice of exemption no later than 14 days before the 
notice of exemption is filed with the Board.
    (b) The notice of intent must contain all the information required 
in Sec. 1150.43 plus:
    (1) A general statement of service intentions; and
    (2) A general statement of labor impacts.
    (c) The notice of intent must be served on:
    (1) The Governor of each state in which track is to be sold;
    (2) The state(s) Department of Transportation or equivalent agency;
    (3) The national offices of the labor unions with employees on the 
affected line(s); and
    (4) Shippers representing at least 50 percent of the volume of local 
traffic and traffic originating or terminating on the line(s) in the 
most recent 12 months for which data are available (beginning with the 
largest shipper and working down).
    (d) Applicant must also file a verified notice of exemption 
conforming to the requirements of paragraph (b) of this section and of 
Sec. 1150.44, and certify compliance with paragraphs (a), (b), and (c) 
of this section, attaching a copy of the notice of intent. In addition 
to the written submission, the notice must be submitted on a 3.5-inch 
diskette formatted for WordPerfect 5.1.
    (e) The exemption will be effective 21 days after the notice is 
filed. The Board, through the Director of the Office of Proceedings, 
will publish a notice in the Federal Register within 30 days of the 
filing.
    (f) If the notice contains false or misleading information, the 
exemption is void ab initio. A petition to revoke under 49 U.S.C. 
10502(d) does not automatically stay the transaction. Stay petitions 
must be filed within 7 days of the filing of the notice of exemption. 
Replies will be due 7 days thereafter. To be considered, stay petitions 
must be timely served on the applicant.
    (g) Applicant must preserve intact all sites and structures more 
than 50 years old until compliance with the requirements of section 106 
of the National Historic Preservation Act, 16 U.S.C. 470f, is achieved.



PART 1151--FEEDER RAILROAD DEVELOPMENT PROGRAM--Table of Contents




Sec.
1151.1  Scope.
1151.2  Procedures.
1151.3  Contents of application.
1151.4  Commission determination.

    Authority: 5 U.S.C. 553, 49 U.S.C. 10910.


[[Page 274]]


    Source: 48 FR 9654, Mar. 8, 1983, unless otherwise noted.



Sec. 1151.1  Scope.

    This part governs applications filed under 49 U.S.C. 10910. The 
Commission can require the sale of a rail line to a financially 
responsible person. A rail line is eligible for a forced sale if it 
appears in category 1 or 2 of the owning railroad's system diagram map 
(but the railroad has not filed an application to abandon the line), or 
the public convenience and necessity, as defined in 49 U.S.C. 
10910(c)(1), permit or require the sale of the line.

[48 FR 9654, Mar. 8, 1983, as amended at 56 FR 37861, Aug. 9, 1991]



Sec. 1151.2  Procedures.

    (a) Service. When an application is filed, applicant must 
concurrently serve a copy of the application by first class mail on:
    (1) The owning railroad;
    (2) All rail patrons who originated and/or received traffic on the 
line during the 12-month period preceding the month in which the 
application is filed;
    (3) The designated State agency in the State(s) where the property 
is located;
    (4) County governments where the line is located;
    (5) The National Railroad Passenger Corporation (Amtrak) (if Amtrak 
operates on the line);
    (6) And the national offices of rail unions with employees on the 
line.
    (b) Acceptance or rejection of an application.
    (1) The Commission, through the Director of the Office of 
Proceedings, will accept a complete application no later than 30 days 
after the application is filed by publishing a notice in the Federal 
Register. An application is complete if it has been properly served and 
contains substantially all information required by Sec. 1151.3, except 
as modified by advance waiver. The notice will also announce the 
schedule for filing of competing applications and responses.
    (2) The Commission, through the Director of the Office of 
Proceedings, will reject an incomplete application by serving a decision 
no later than 30 days after the application is filed. The decision will 
explain specifically why the application was incomplete. A revised 
application may be submitted, incorporating portions of the prior 
application by reference.
    (c) Competing applications.
    (1) Unless otherwise scheduled in the notice, competing applications 
by other parties seeking to acquire all or any portion of the line 
sought in the initial application are due within 30 days after the 
initial application is accepted.
    (2) The Commission, through the Director of the Office of 
Proceedings, will issue a decision accepting or rejecting a competing 
application no later than 15 days after it is filed. A competing 
application will be rejected if it does not substantially contain the 
information required by Sec. 1151.3, except as modified by advance 
waiver.
    (d) Incomplete applications.
    (1) If an applicant seeking to file an initial or competing 
application is unable to obtain required information that is primarily 
or exclusively within the personal knowledge of the owning carrier, the 
applicant may file an incomplete application if it files at the same 
time a request for discovery under 49 CFR part 1114 to obtain the needed 
information from the owning carrier.
    (2) The Commission, through the Director of the Office of 
Proceedings, will by decision conditionally accept incomplete initial or 
competing applications, if the Director determines that the discovery 
sought is necessary for the application and primarily or exclusively 
within the knowledge of the owning carrier.
    (3) When the information sought through discovery has been filed for 
an initial application, Federal Register notice under paragraph (b) of 
this section will be published.
    (4) When the information sought through discovery has been filed for 
a competing application, a decision will be issued under paragraph (c) 
of this section.
    (e) Comments. Unless otherwise scheduled in the notice, verified 
statements and comments addressing both the initial and competing 
applications must be filed within 60 days after the initial application 
is accepted.

[[Page 275]]

    (f) Replies. Unless otherwise scheduled in the notice, verified 
replies by applicants and other interested parties must be filed within 
80 days after the initial application is accepted.
    (g) Publication. If the Commission finds that the public convenience 
and necessity require or permit sale of the line, the Commission shall 
concurrently publish this finding in the Federal Register.
    (h) Acceptance or rejection. If the Commission concludes that sale 
of the line should be required, the applicant(s) must file a notice with 
the Commission and the owning railroad accepting or rejecting the 
Commission's determination. The notice must be filed within 10 days of 
the service date of the decision.
    (i) Selection. If two or more applicants timely file notices 
accepting the Commission's determination, the owning railroad must 
select the applicant to which it will sell the line and file notice of 
its selection with the Commission and serve a copy on the applicants 
within 15 days of the service date of the Commission decision.
    (j) Waiver. Prior to filing an initial or competing application, an 
applicant may file a petition to waive or clarify specific portions of 
part 1151. A decision by the Director of the Office of Proceedings 
granting or denying a petition for waiver or clarification will be 
issued within 30 days of the date the petition is filed. Appeals from 
the Director's decision will be decided by the entire Commission.
    (k) Extension. Extensions of filing dates may be granted for good 
cause.

[56 FR 37861, Aug. 9, 1991]



Sec. 1151.3  Contents of application.

    (a) The initial application and all competing applications must 
include the following information in the form of verified statements:
    (1) Identification of the line to be purchased including:
    (i) The name of the owning carrier; and
    (ii) The exact location of the line to be purchased including 
milepost designations, origin and termination points, stations located 
on the line, and cities, counties and States traversed by the line.
    (2) Identification of applicant including:
    (i) The applicant's name and address;
    (ii) The name, address, and phone number of the representative to 
receive correspondence concerning this application;
    (iii) A description of applicant's affiliation with any railroad; 
and
    (iv) If the applicant is a corporation, the names and addresses of 
its officers and directors.
    (3) Information sufficient to demonstrate that the applicant is a 
financially responsible person. In this regard, the applicant must 
demonstrate its ability:
    (i) To pay the higher of the net liquidation value (NLV) or going 
concern value (GVC) of the line; and
    (ii) To cover expenses associated with providing services over the 
line (including, but not limited to, operating costs, rents, and taxes) 
for at least the first 3 years after acquisition of the line.
    (4) An estimate of the NLV and the GCV of the line and evidence in 
support of these estimates.
    (5) An offer to purchase the line at the higher of the two estimates 
submitted pursuant to paragraph (a)(4) of this section.
    (6) The dates for the proposed period of operation of the line 
covered by the application.
    (7) An operating plan that identifies the proposed operator; 
attaches any contract that the applicant may have with the proposed 
operator; describes in detail the service that is to be provided over 
the line, including all interline connections; and demonstrates that 
adequate transportation will be provided over the line for at least 3 
years from the date of acquisition.
    (8) A description of the liability insurance coverage carried by 
applicant or any proposed operator. If trackage rights are requested, 
the insurance must be at a level sufficient to indemnify the owning 
railroad against all personal and property damage that may result from 
negligence on the part of the operator in exercising the trackage 
rights.
    (9) Any preconditions (such as assuming a share of any subsidy 
payments) that will be placed on shippers in order

[[Page 276]]

for them to receive service, and a statement that if the application is 
approved, no further preconditions will be placed on shippers without 
Commission approval. (This Statement Will Be Binding Upon Applicant if 
the Application is Approved.)
    (10) The name and address of any person(s) who will subsidize the 
operation of the line.
    (11) A statement that the applicant will seek a finding by the 
Commission that the public convenience and necessity permit or require 
acquisition, or a statement that the line is currently in category 1 or 
2 of the owning railroad's system diagram map.
    (i) If the applicant seeks a finding of public convenience and 
necessity, the application must contain detailed evidence that permits 
the Commission to find that:
    (A) The rail carrier operating the line refused within a reasonable 
time to make the necessary efforts to provide adequate service to 
shippers who transport traffic over the line;
    (B) The tranportation over the line is inadequate for the majority 
of shippers who transport traffic over the line;
    (C) The sale of the line will not have a significantly adverse 
financial effect on the rail carrier operating the line;
    (D) The sale of the line will not have an adverse effect on the 
overall operational performance of the rail carrier operating the line; 
and
    (E) The sale of the line will be likely to result in improved 
railroad transportation for shippers who transport traffic over the 
line.
    (ii) If the applicant seeks a finding that the line is currently in 
category 1 or 2 of the owning carrier's system diagram map, the relevant 
portion of the current map must be attached to the application.
    (12) A statement detailing applicant's election of exemption from 
the provisions of Title 49, United States Code, and a statement that if 
the application is approved, no further exemptions will be elected. 
(This Statement Will Be Binding Upon the Applicant if the Application is 
Approved.)
    (13) A description of any trackage rights sought over the owning 
railroad that are required to allow reasonable interchange or to move 
power equipment or empty rolling stock between noncontiguous feeder 
lines operated by the applicant, and an estimate of the reasonable 
compensation for such rights, including full explanation of how the 
estimate was reached. The description of the trackage rights shall 
include the following information: Milepost or other identification for 
each segment of track; the need for the trackage rights (interchange of 
traffic, movement of equipment, etc.); frequency of operations; times of 
operation; any alternative to the use of trackage rights; and any other 
pertinent data. Trackage rights that are necessary for the interchange 
of traffic shall be limited to the closest point to the junction with 
the owning railroad's line that allows the efficient interchange of 
traffic. A statement shall be included that the applicant agrees to have 
its train and crew personnel take the operating rules examination of the 
railroad over which the operating rights are exercised.
    (14) If applicant requests Commission prescribed joint rates and 
divisions in the feeder line proceeding, a description of any joint rate 
and division agreement that must be established. The description must 
contain the following information:
    (i) The railroad(s) involved;
    (ii) The estimated revenues that will result from the division(s);
    (iii) The total costs of operating the line segment purchased 
(including any trackage rights fees).
    (iv) Information sufficient to allow the Commission to determine 
that the line sought to be acquired carried less than 3 million gross 
ton-miles of traffic per mile in the preceding calendar year \1\; and
---------------------------------------------------------------------------

    \1\ Gross ton-miles are calculated by adding the ton-miles of the 
cargo and the ton-miles related to the tare (empty) weight of the 
freight cars used to transport the cargo in the loaded movement. In 
calculating the gross ton-miles, only those related to the portion of 
the segment purchased shall be included.
---------------------------------------------------------------------------

    (v) Any other pertinent information.
    (15) The extent to which the owning railroad's employees who 
normally service the line will be used.

[[Page 277]]

    (16) A certificate stating that the service requirements of 
Sec. 1151.2(a) have been met.
    (b) Applicant must make copies of the application available to 
interested parties upon request.

[48 FR 9654, Mar. 8, 1983, as amended at 56 FR 37862, Aug. 9, 1991]



Sec. 1151.4  Commission determination.

    (a) The Commission shall determine whether each applicant is a 
financially responsible person. To be a financially responsible person, 
the Commission must find that:
    (1) The applicant is capable of paying the constitutional minimum 
value of the line and able to assure that adequate transportation will 
be provided over the line for at least 3 years;
    (2) The applicant is not a class I or class II railroad or an entity 
affiliated with a class I or class II railroad.
    (b) If the Commission finds that one or more applicants are 
financially responsible parties, it shall determine whether the involved 
line or line segment is a qualified line. A line is a qualified line if:
    (1) Either
    (i) The public convenience and necessity require or permit the sale 
of line or line segment; or
    (ii) The line or line segment is classified in category 1 or 2 of 
the owning carrier's system diagram map; and
    (2) The traffic level on the line or line segment sought to be 
acquired was less than 3 million gross ton-miles of traffic per mile in 
the preceding calendar year (Note: This finding will not be required for 
applications filed after October 1, 1983).
    (c) If the Commission finds that one or more financially responsible 
parties have offered to buy a qualifying line of railroad, the 
Commission shall set the acquisition cost of the line at the higher of 
NLV or GCV, order the owning carrier to sell the rail line to one of the 
financially responsible applicants, and resolve any related issues 
raised in the application. If an applicant and the owning railroad agree 
on an acquisition price, that price shall be the final price.
    (d) If trackage rights are sought in the application, the Commission 
shall, based on the evidence of record, set the adequate compensation 
for such rights, if the parties have not agreed.
    (e) If the applicant requests the Commission to set joint rates or 
divisions and the line carried less than 3 million gross ton-miles of 
traffic per mile during the preceding calendar year, the Commission 
shall, pursuant to 49 U.S.C. 10705(a), establish joint rates and 
divisions based on the evidence of record in the proceeding. Unless 
specifically requested to do so by the selling carrier, the Commission 
will not set the rate for the selling railroad's share of the joint rate 
at less than the applicable level (for the year in which the acquisition 
is made) set by 49 U.S.C. 10709(d)(2), which limits Commission maximum 
ratemaking jurisdiction to rates above certain cost/price ratios.



PART 1152--ABANDONMENT AND DISCONTINUANCE OF RAIL LINES AND RAIL TRANSPORTATION UNDER 49 U.S.C. 10903--Table of Contents




                           Subpart A--General

Sec.
1152.1  Purpose and scope.
1152.2  Definitions.

                        Subpart B--System Diagram

1152.10  System diagram map.
1152.11  Description of lines to accompany the system diagram map.
1152.12  Filing and publication.
1152.13  Amendment of the system diagram map.
1152.14  Availability of data.
1152.15  Reservation of jurisdiction.

    Subpart C--Procedures Governing Notice, Applications, Financial 
               Assistance, and Acquisition for Public Use

1152.20  Notice of intent to abandon or discontinue service.
1152.21  Form of notice.
1152.22  Contents of application.
1152.23  Summary application.
1152.24  Filing and service of application.
1152.25  Participation in abandonment or discontinuance proceedings.
1152.26  Commission determination and certification under 49 U.S.C. 
          10904.
1152.27  Financial assistance procedures.
1152.28  Public use procedures.
1152.29  Prospective use of rights-of-way for interim trail use and rail 
          banking.

[[Page 278]]

  Subpart D--Standards for Determining Costs, Revenues, and Return on 
                                  Value

1152.30  General.
1152.31  Revenue and income attributable to branch lines.
1152.32  Calculation of avoidable costs.
1152.33  Apportionment rules for the assignment of expenses to on-branch 
          costs.
1152.34  Return on investment.
1152.35  [Reserved]
1152.36  Submission of revenue and cost data.
1152.37  Financial status reports.

        Subpart E--Abandonment Procedures for Bankrupt Railroads

1152.40  Filing and service requirements.
1152.41  Contents of the application.
1152.42  Responses to the application.
1152.43  Report of the Commission.

   Subpart F--Exempt Abandonments and Discontinuances of Service and 
                             Trackage Rights

1152.50  Exempt abandonments and discontinuances of service and trackage 
          rights.

  Subpart G--Special Rules Applicable to Petitions for Abandonments or 
Discontinuances Of Service Or Trackage Rights Filed Under the 49 U.S.C. 
                        10505 Exemption Procedure

1152.60  Special rules.

Appendix

    Authority:  5 U.S.C. 553, 559, and 704; 11 U.S.C. 1170; 16 U.S.C. 
1247(d), and 1248; and 49 U.S.C. 10321, 10362, 10505, 10903, 10904, 
10905, 10906, 11161, and 11163.

    Source: 41 FR 48520, Nov. 4, 1976, unless otherwise noted. 
Redesignated at 47 FR 49581, Nov. 1, 1982.



                           Subpart A--General



Sec. 1152.1  Purpose and scope.

    (a) 49 U.S.C. 10903 et seq. governs abandonment of rail lines and 
discontinuance of rail service by common carriers. Section 10903(a) 
provides that no line of railroad may be abandoned and no rail service 
discontinued unless the Commission has issued a certificate of public 
convenience and necessity authorizing the abandonment or discontinuance.
    (b) Part 1152 contains regulations governing abandonment and 
discontinuance of service over rail lines. This part also sets forth 
procedures for providing financial assistance to assure continued rail 
freight service and for acquisition of rail lines for alternate public 
use.

[48 FR 54236, Dec. 1, 1983]



Sec. 1152.2   Definitions.

    Unless otherwise required by the context, the following definitions 
apply in this part:
    (a) Account means an account in the Commission's Uniform System of 
Accounts for Railroad Companies (49 CFR part 1201).
    (b) Act means the Interstate Commerce Act (49 U.S.C. 10101 et seq.) 
as amended.
    (c) Base Year means the latest 12-month period, ending no earlier 
than 6 months prior to the filing of the abandonment or discontinuance 
application, for which data has been collected at the branch level as 
prescribed in Sec. 1152.30(b).
    (d) Branch means a segment of line for which an application for a 
certificate of abandonment or discontinuance, pursuant to 49 U.S.C. 
10903, has been filed.
    (e) Carrier means a railroad company or the trustee or trustees of a 
railroad company subject to regulation under 49 U.S.C., Subtitle IV, 
chapter 105.
    (f) Commission means the Interstate Commerce Commission.
    (g) Designated state agency means the instrumentality created by a 
State or designated by appropriate authority to administer or coordinate 
its state rail plan as required by 49 U.S.C. 1654(5)(j)(2), or 
regulations promulgated pursuant thereto.
    (h) Forecast Year means the 12-month period, beginning with the 
first day of the month in which the application is filed with the 
Commission, for which future revenues and costs are estimated.
    (i) Form R-1 means the railroad's annual report filed with the 
Commission in accordance with the requirements of 49 U.S.C. 11145.
    (j) Offeror means a shipper, a State, the United States, a local or 
regional transportation authority, or any financially responsible person 
offering rail service continuation assistance under 49 U.S.C. 10905.

[[Page 279]]

    (k) Office means the section of Rail Services Planning established 
by Section 205 of the Regional Rail Reorganization Act of 1973 (45 
U.S.C. 715) as amended.
    (l) Rail Act means the Railroad Revitalization and Regulatory Reform 
Act of 1976, Pub. L. 94-210 (90 Stat. 31).
    (m) URCS means the Uniform Railroad Costing System.
    (n) Significant user means (1) each of the 10 rail patrons which 
originated and/or received the largest number of carloads (or each 
patron if there are less than 10), and (2) any other rail patron which 
originated and/or received 50 or more carloads, on the line proposed for 
abandonment or discontinuance, during the 12-month period preceding the 
month in which notice is given of the abandonment or discontinuance 
application.
    (o) Subsidy year means any twelve-month period for which a subsidy 
agreement has been negotiated and is in operation.
    (p) GMA means the General Managers Association of Chicago.

[41 FR 48520, Nov. 4, 1976, as amended at 43 FR 7624, Feb. 24, 1978; 45 
FR 18008, Mar. 20, 1980. Redesignated and amended at 47 FR 49581, Nov. 
1982; 48 FR 44828, Sept. 30, 1983; 48 FR 54236, Dec. 1, 1983; 53 FR 
49667, Dec. 9, 1988; 56 FR 61387, Dec. 3, 1991]



                        Subpart B--System Diagram



Sec. 1152.10   System diagram map.

    (a) Each carrier shall prepare a diagram of its rail system on a 
map, designating all lines in its system by the categories established 
in paragraph (b) of this section.
    (b) All lines in each carrier's rail system shall be separated into 
the following categories:
    (1) All lines or portions of lines which the carrier anticipates 
will be the subject of an abandonment or discontinuance application to 
be filed within the 3-year period following the date upon which the 
diagram, or any amended diagram, is filed with the Commission;
    (2) All lines or portions of lines potentially subject to 
abandonment are those which the carrier has under study and believes may 
be the subject of a future abandonment application because of either 
anticipated operating losses or excessive rehabilitation costs, as 
compared to potential revenues.
    (3) All lines or portions of lines for which an abandonment or 
discontinuance application is pending before the Commission on the date 
upon which the diagram, or any amended diagram, is filed with the 
Commission;
    (4) All lines or portions of lines which are being operated under 
the rail service continuation provisions of 49 U.S.C. 10905 or of 
section 304(c)(2) of the Regional Rail Reorganization Act of 1973, as 
amended, on the date upon which the diagram, or any amended diagram, is 
filed with the Commission; and
    (5) All other lines or portions of lines which the carrier owns and 
operates, directly or indirectly.
    (c) The system diagram map shall be color-coded to show the 5 
categories of lines as follows:
    (1) Red shall designate those lines described in Sec. 1152.10(b)(1);
    (2) Green shall designate those lines described in 
Sec. 1152.10(b)(2);
    (3) Yellow shall designate those lines described in 
Sec. 1152.10(b)(3);
    (4) Brown shall designate those lines described in 
Sec. 1152.10(b)(4); and
    (5) Black or dark blue shall designate those lines described in 
Sec. 1152.10(b)(5).
    (d) The system diagram map shall also identify, and shall be drawn 
to a scale sufficient to depict clearly, the location of:
    (1) All State boundary lines;
    (2) Boundaries of every county in which is situated a rail line 
owned or operated by the carrier which is listed in categories 1 thru 4 
(Sec. 1152.10(b) (1) thru (4)).
    (3) Every Standard Metropolitan Statistical Area (SMSA) any portion 
of which is located within 5 air miles of a rail line owned or operated 
by the carrier; and
    (4) Every city outside an SMSA which has a population of 5,000 or 
more persons (according to the latest published United States census 
reports) and of which any portion is located within 5 air miles of a 
rail line owned or operated by the carrier. A series of interrelated 
maps may be utilized where the system serves a very large or

[[Page 280]]

congested area. An explanation of the interrelationship must be 
furnished.

[41 FR 48520, Nov. 4, 1976, as amended at 42 FR 25327, May 17, 1977; 43 
FR 30557, July 17, 1978. Redesignated and amended at 47 FR 49581, Nov. 
1, 1982; 48 FR 54236, Dec. 1, 1983]



Sec. 1152.11   Description of lines to accompany the system diagram map.

    Each carrier shall list and describe, separately by category and 
within each category by State, all lines or portions of lines identified 
on its system diagram map as falling within categories 1 thru 3 
(Sec. 1152.10(b) (1) thru (3)) as follows:
    (a) Carrier's designation for each line (for example, the Zanesville 
Secondary Track);
    (b) State or States in which each line is located;
    (c) County or counties in which each line is located;
    (d) Mileposts delineating each line or portion of line; and
    (e) Agency or terminal stations located on each line or portion of 
line with milepost designations.



Sec. 1152.12  Filing and publication.

    (a) Each carrier shall file with the Commission six copies of its 
color-coded system diagram map (identified by its ``AB number'' as set 
forth in the appendix to this part) and the accompanying line 
descriptions. If a revised map is filed, the line descriptions for the 
lines which were revised must be filed.
    (b) The color-coded system diagram map, any amendments of the map, 
and accompanying line descriptions shall be served upon the Governor, 
the public service commission (or equivalent agency) and the designated 
State agency of each State within which the carrier operates or owns a 
line of railroad.
    (c) The carrier shall--(1) Publish in a newspaper of general 
circulation in each county containing category 1 through 3 lines or 
lines being revised, a notice containing: (i) A black-and-white copy of 
the system diagram map (or a portion of map clearly depicting its lines 
in that county); and (ii) a description of each line;
    (2) Post a copy of the newspaper notice: (i) In each agency station 
or terminal on each line in categories 1 through 3 and on each line 
which has been revised; or (ii) if there is no agency station on the 
line, at any station through which business for the line is received or 
forwarded;
    (3) Furnish, at reasonable cost, upon request of any interested 
person, a copy of its system diagram map (either color-coded or black-
and-white); and
    (4) Notify interested persons of this availability through its 
publication in the appropriate county newspaper.
    (d) Each carrier shall file with the Commission an affidavit of 
service and publication stating the date each was accomplished. A copy 
of each newspaper notice published shall be attached to the affidavit. 
The effective date of the filing of the initial system diagram map and 
each amended system diagram map as required in paragraph (a) of this 
section shall be deemed to be the date upon which the Commission 
receives the affidavit required in this paragraph.
    (e) The Commission shall require republication of the notice if it 
is found to be inadequate.

[43 FR 30557, July 17, 1978, as amended at 43 FR 45588, Oct. 3, 1978. 
Redesignated at 47 FR 49581, Nov. 1, 1982, and amended at 48 FR 54236, 
Dec. 1, 1983]



Sec. 1152.13  Amendment of the system diagram map.

    (a) Each carrier shall be responsible for maintaining the continuing 
accuracy of its system diagram map and the accompanying line 
descriptions. Amendments may be filed at any time and will be subject to 
all carrier filing and publication requirements of Sec. 1152.12.
    (b) Every system diagram listing a line in category 2 
(Sec. 1152.10(b)(2)) shall be revised annually. Each annual revision 
shall clearly reflect the carrier's decision whether to transfer each 
such line to category 1 or 5 (Sec. 1152.10(b)(1) or (5)) or to retain 
the line in category 2 for further study.
    (c) By June 30 of each year, each carrier shall file with the 
Commission:
    (1) A revised and updated color-coded system diagram map and line 
descriptions which shall be subject to the filing and publication 
requirements of Sec. 1152.12.

[[Page 281]]

    (2) A verified statement by a corporate officer having authority to 
so certify that no change has occurred in the categories of lines shown 
on its most recently filed system diagram map and accompanying 
descriptions.
    (d) Under 49 U.S.C. 10904, the Commission is precluded from issuing 
a certificate of abandonment or discontinuance if the abandonment or 
discontinuance application is opposed by a significant user, a State, or 
a political subdivision of a State unless the line involved is 
identified and described on the system diagram map for at least 4 months 
prior to the filing of such application. The 4-month minimum notice 
period of section 10904(e)(3) will be deemed to have commenced only for 
a line or portion of a line which is designated on the carrier's system 
diagram map as a line in category 1 (Sec. 1152.10(b)(1)).

[41 FR 48520, Nov. 4, 1976, as amended at 43 FR 30557, July 17, 1978; 45 
FR 18008, Mar. 20, 1980. Redesignated and amended at 47 FR 49581, Nov. 
1, 1982; 48 FR 54236, Dec. 1, 1983]



Sec. 1152.14   Availability of data.

    Each carrier shall provide to the designated State agency, upon 
request, information concerning the net liquidation value (as defined in 
Sec. 1152.34(c)) of any line placed in category 1 (Sec. 1152.10(b)(1)) 
on its system diagram map or line description together with a 
description of such a line and any appurtenant facilities and of their 
condition.

[41 FR 48520, Nov. 4, 1976, as amended at 43 FR 7624, Feb. 24, 1978. 
Redesignated at 47 FR 49581, Nov. 1, 1982]



Sec. 1152.15   Reservation of jurisdiction.

    49 U.S.C. 10904(e)(1) authorizes the Commission, at its discretion, 
to provide for designation of lines as ``potentially subject to 
abandonment'' under standards which vary by region of the Nation, by 
railroad, or by group of railroads. The Commission expressly reserves 
the right to adopt such varying standards in the future.

[41 FR 48520, Nov. 4, 1976. Redesignated and amended at 47 FR 49581, 
Nov. 1, 1982]



    Subpart C--Procedures Governing Notice, Applications, Financial 
               Assistance, and Acquisition for Public Use



Sec. 1152.20  Notice of intent to abandon or discontinue service.

    (a) Filing and publication requirements. An applicant shall give 
Notice of Intent to file an abandonment or discontinuance application by 
complying with the following procedures:
    (1) Filing. Applicant must serve its Notice of Intent on the 
Commission, by certified letter, in the format prescribed in 
Sec. 1152.21. The Notice shall be filed in accordance with the time 
requirements of paragraph (b) of this section.
    (2) Service. Applicant must serve, by first-class mail (unless 
otherwise specified), its Notice of Intent upon: (i) Significant users 
of the line; (ii) the Governor (by certified mail) of each State 
directly affected by the abandonment or discontinuance; (iii) the Public 
Service Commission (or equivalent agency) in these States: (iv) The 
designated State agency in these States: (v) The State Cooperative 
Extension Service in these States; (vi) the U.S. Department of 
Transportation (Federal Railroad Administration); (vii) Department of 
Defense (Military Traffic Management Command, Transportation Engineering 
Agency, Railroads for National Defense Program); (viii) the U.S. 
Department of Interior (Bureau of Outdoor Recreation) (Recreation 
Resources Assistance Division, National Park Service), and (Land 
Resources Division, National Park Service); (ix) the U.S. Railroad 
Retirement Board; (x) the Commission's Office of Special Counsel; (xi) 
the National Railroad Passenger Corporation (``Amtrak'') (if Amtrak 
operates over the involved line); (xii) the headquarters of the Railroad 
Labor Executives' Association; and (xiii) the U.S. Department of 
Agriculture, Chief of the Forest Service. For purposes of this 
subsection ``directly affected States'' are those in which any part of a 
line sought to be abandoned is located.
    (3) Posting. Applicant must post a copy of its Notice of Intent at 
each agency station and terminal on the line to be abandoned. (If there 
are no

[[Page 282]]

agency stations on the line, the Notice of Intent should be posted at 
any agency station through which business for the involved line is 
received or forwarded.)
    (4) Newspaper publication. Applicant must publish its Notice of 
Intent at least once during each of 3 consecutive weeks in a newspaper 
of general circulation in each county in which any part of the involved 
line is located.
    (b) Time limits. (1) The Notice of Intent must be served at least 15 
days, but not more than 30 days, prior to the filing of the abandonment 
application;
    (2) The Notice must be posted and fully published within the 30-day 
period prior to the filing of the application; and
    (3) The Notice must be filed with the Commission either concurrently 
with service or when the Notice is first published (whichever occurs 
first).
    (c) Historic site data. When a carrier files a Notice of Intent, it 
must also submit the historic site data described at Sec. 1105.7(c)(10). 
This information must be submitted to the Commission and to the State 
Historic Preservation Officer (as defined in 36 CFR 800.2(h)) of each 
State in which any part of the involved line is located.

[48 FR 54236, Dec. 1, 1983, and 49 FR 15088, Apr. 17, 1984, as amended 
at 55 FR 31600, Aug. 3, 1990; 56 FR 35835, July 29, 1991; 56 FR 36111, 
July 31, 1991; 56 FR 38175, Aug. 12, 1991]



Sec. 1152.21  Form of notice.

    The notice of intent to abandon or to discontinue service shall be 
in the following form:

                 No. AB              (Sub-No.         )

          Notice of Intent To Abandon or To Discontinue Service

    (Name of Applicant) gives notice that on or about (insert date 
application will be filed with the Commission) it intends to file with 
the Interstate Commerce Commission, Washington, D.C. 20423, an 
application for a certificate permitting the abandonment of (the 
discontinuance of service on), a line of railroad known as              
extending from railroad milepost near (station name) to (the end of line 
or rail milepost) near (station name), a distance of miles, in           
   County(ies), State(s). The line for which the abandonment (or 
discontinuance) application will be filed includes the stations of (list 
all stations on the line in order of milepost number, indicating 
milepost location).
    The reason(s) for the proposed abandonment (or discontinuance) is 
(are)              (explain briefly and clearly why the proposed action 
is being undertaken by the applicant). Based on information in our 
possession, the line (does) (does not) contain federally granted rights-
of-way. Any documentation in the railroad's possession will be made 
available promptly to those requesting it.
    This line of railroad has appeared on the system diagram map in 
category 1 since (insert date).
    The interest of railroad employees will be protected by (specify the 
appropriate conditions).
    Any interested person, after the application is filed on (insert 
date), is entitled to file with the Interstate Commerce Commission 
written comments concerning the proposed abandonment (or discontinuance) 
or protests to it.

    Protests must contain the following:
    (1) Protestant's name, address and business.
    (2) A statement describing protestant's interest in the proceeding 
including:
    (i) A description of protestant's use of the line;
    (ii) If protestant does not use the line, information concerning the 
group or public interest it represents; and
    (iii) If protestant's interest is limited to the retention of 
service over a portion of the line, a description of the portion of the 
line subject to protestant's interest (with milepost designations if 
available).
    (3) Specific reasons why protestant opposes the application 
including information regarding protestant's reliance on the involved 
service [this information must be supported by affidavits of persons 
with personal knowledge of the fact(s)].
    (4) Any rebuttal of material submitted by applicant.
    (5) If an oral hearing is desired, a request for and reasons why an 
oral hearing is necessary.
    In addition, a commenting party or protestant may provide a 
statement of position and a summary of evidence regarding:
    (i) Intent to offer financial assistance;
    (ii) Environmental impact;
    (iii) Impact on rural and community development;
    (iv) Suitability of the properties for other public purposes;
    (v) Recommended provisions for protection of the interests of 
employees; and

[[Page 283]]

    (vi) Prospective use of the right-of-way for interim trail use and 
rail banking under 16 U.S.C. 1247(d) and Sec. 1152.29.

Written comments and protests will be considered by the Commission in 
determining whether an investigation is needed to assist in determining 
what disposition to make of the application. The Commission will 
automatically direct investigation if a protest is filed which 
demonstrates: (1) The protestant filed a feeder line application under 
49 U.S.C. 10910; (2) the feeder line application involves any portion of 
the rail line involved in the abandonment or discontinuance application; 
(3) the feeder line application was filed prior to the date the 
abandonment or discontinuance application was filed; and (4) the feeder 
line application is pending before the Commission. If an investigation 
is conducted, the commenting party or protestant may participate in the 
proceeding as its interests may appear.
    Those parties filing protests to the proposed abandonment (or 
discontinuance) should be prepared to participate actively in either 
oral hearing or through the submission of additional material in the 
form of verified statements. Parties seeking information concerning the 
filing of protests should refer to Sec. 1152.25.
    Written comments and protests should indicate the proceeding 
designation No. AB____________ (Sub-No.__________) and should be filed 
with the Secretary, Interstate Commerce Commission, Washington, DC 
20423, no later than (insert the date 30 days after the date applicant 
intends to file its application). Interested persons may file a written 
comment or protest with the Commission to become a party to this 
abandonment (or discontinuance) proceeding. A copy of each written 
comment or protest shall be served upon the representative of the 
applicant (insert name, address, and phone number). The original and 2 
copies of all comments or protests shall be filed with the Commission 
with a certificate of service.
    If no protests are received within 30 days after the application is 
filed, the Commission will grant the abandonment (or discontinuance) 
request and issue a certificate which permits the abandonment (or 
discontinuance) to occur within 75 days after the application is filed.
    The line sought to be abandoned (or discontinued) will be available 
for subsidy or sale for continued rail use, if the Commission decides to 
permit the abandonment (or discontinuance), in accordance with 
applicable laws and regulations (49 U.S.C. 10905 and 49 CFR 1152.27). 
Applicant will promptly provide upon request to each interested party an 
estimate of the subsidy and minimum purchase price required to keep the 
line in operation. The carrier's representative to whom inquiries may be 
made concerning sale or subsidy terms is (insert name and business 
address).
    Persons seeking further information concerning abandonment 
procedures may contact the Interstate Commerce Commission's Office of 
Proceedings or refer to the full abandonment or discontinuance 
regulations at 49 CFR Part 1152. Questions concerning environmental 
issues may be directed to the Commission's Section of Energy and 
Environment.
    A copy of the application will be available for public inspection on 
or after (insert date abandonment application is to be filed with 
Commission) at each agency station or terminal on the line proposed to 
be abandoned or discontinued [if there is no agency station on the line, 
the application shall be deposited at any agency station through which 
business for the line is received or forwarded (insert name, address, 
location, and business hours)]. The carrier shall furnish a copy of the 
application to any interested person proposing to file a protest or 
comment, upon request.
    An environmental assessment (or environmental impact statement, if 
necessary) prepared by the Section of Energy and Environment will be 
served upon all parties of record and upon any agencies or other persons 
who commented during its preparation. Any other persons who would like 
to obtain a copy of the EA (or EIS) may contact the Section of Energy 
and Environment. EA's in these abandonment proceedings normally will be 
made available within 33 days of the filing of the application. The 
deadline for submission of comments on the EA will generally be within 
30 days of its service. The comments received will be addressed in the 
Commission's decision. A supplemental EA may be issued where 
appropriate.

[48 FR 54237, Dec. 1, 1983, as amended at 51 FR 16852, May 7, 1986; 55 
FR 31600, Aug. 3, 1990; 56 FR 36111, July 31, 1991]



Sec. 1152.22   Contents of application.

    Applications for certificates of public convenience and necessity 
permitting the abandonment of railroad lines or the discontinuance of 
rail service shall contain the following information and each paragraph 
(a) through (i) of this section shall be attested to by a person having 
personal knowledge of the matters contained therein:
    (a) General. (1) Exact name of applicant.
    (2) Whether applicant is a common carrier by railroad subject to the 
Interstate Commerce Act.
    (3) Whether the carrier which owns or operates the line of railroad 
to be abandoned or over which service is to be

[[Page 284]]

discontinued is a part of any railroad system.
    (4) Relief sought (abandonment of line or discontinuance of 
service).
    (5) Detailed map of the subject line on a sheet not larger than 8 x 
10\1/2\ inches, drawn to scale, and with the scale shown thereon. The 
map must show, in clear relief, the exact location of the rail line to 
be abandoned or over which service is to be discontinued and its 
relation to other rail lines in the area, highways, water routes, and 
population centers.
    (6) Reference to inclusion of the rail line to be abandoned or over 
which service is to be discontinued on the carrier's system diagram map, 
in compliance with Secs. 1152.10 through 1152.13, and the date upon 
which such line was first listed on the system diagram map in category 1 
in accordance with Sec. 1152.10(b)(1). A copy of the line description 
which accompanies the system diagram map shall also be submitted.
    (7) Detailed statement of reasons for filing application.
    (8) Name, title, and address of representative of applicant to whom 
correspondence should be sent.
    (b) Condition of properties. (1) The present physical condition of 
the line including any operating restrictions and estimate of deferred 
maintenance and rehabilitation costs (e.g., number of ties that need 
replacing, miles of rail that need replacing and/or new ballast, bridge 
repairs or replacement needed, and estimated labor expenses necessary to 
upgrade the line to minimum Federal Railroad Administration Class I 
safety standards). The bases for the estimates shall be stated with 
particularity, and workpapers shall be made available upon request of 
the Commission or any interested persons.
    (2) Statement whether the line, or any portion of line, could be 
operated profitably if necessary deferred maintenance and rehabilitation 
were performed.
    (c) Service provided. Description of the service performed on the 
line during each of the 2 calendar years immediately preceding the 
filing of the application, for that part of the current year for which 
information is available, and for the base year (as defined by 
Sec. 1152.2(c)), if different, including the actual:
    (1) Number of trains operated and their frequency.
    (2) Miles of track operated (include main line and all railroad-
owned sidings).
    (3) Average number of locomotive units operated.
    (4) Carload commodity group tonnage on the line.
    (5) Overhead or bridge traffic by carload commodity group tonnage 
(include detailed information on overhead or bridge traffic to be 
retained by the carrier).
    (6) Average crew size.
    (7) Level of maintenance.
    (8) Any important changes in train service undertaken in the 5 
calendar years immediately preceding the filing of the application.
    (9) Reasons for decline in traffic, if any, in the best judgment of 
applicant.
    (d) Revenue and cost data. (1) Computation of the revenues 
attributable and avoidable costs for the line to be abandoned for the 
base year (as defined by Sec. 1152.2(c) and to the extent such branch 
level data is available), in accordance with the methodology prescribed 
in Secs. 1152.31 through 1152.33, as applicable, and submitted in the 
form called for in Sec. 1152.36, as Exhibit 1.
    (2) The same computation shall be made for the 2 calendar years 
immediately preceding the filing of the application and for that part of 
the current year for which information is available using data collected 
at the branch level to the extent available and otherwise allocating 
system revenues and expenses to the line. The basis for any such 
allocation shall be stated with particularity.
    (3) The carrier shall compute an estimate of the future revenues 
attributable, avoidable costs and reasonable return on the value for the 
line to be abandoned, for the ``Forecast Year'' (as defined in 
Sec. 1152.2(h)) in the form called for in Exhibit 1. The carrier shall 
fully support and document all dollar amounts shown in the Forecast year 
column including an explanation of the rationale and key assumptions 
used to determine the Forecast Year amounts.
    (4) The carrier shall also compute an ``Estimated Subsidy Payment'' 
for the

[[Page 285]]

base year in the form called for in Exhibit 1 and an alternate payment 
to reflect (i) increases or decreases in attributable revenues and 
avoidable costs projected for the subsidy year and (ii) an estimate, in 
reasonable detail, of the cash income tax reductions, Federal and State, 
to be realized in the subsidy year. The bases for the adjustment, e.g., 
rate increase, changes in traffic level, necessary maintenance to comply 
with minimum Federal Railroad Administration Class I safety standards, 
shall be stated with particularity.
    (5) If the line to be abandoned or over which service is to be 
discontinued is less than the entire mileage owned or operated by the 
carrier, a detailed statement showing the effect of the proposed 
abandonment or discontinuance on its net railway operating income for 
each of the 2 calendar years immediately preceding the filing of the 
application and for that part of the current year for which information 
is available.
    (6) If the line to be abandoned or over which service to be 
discontinued is operated as a part of a system under common control and 
management, a detailed statement showing the effect of the proposed 
abandonment or discontinuance on the net railway operating income of the 
other individual members of the system for each of the 2 calendar years 
immediately preceding the filing of the application and for that part of 
the current year for which information is available.
    (e) Rural and community impact. (1) The name and population 
(identify source and date of figures) of each community in which a 
station on the line is located.
    (2) Identification of significant users, as defined in 
Sec. 1152.2(n), by name, address, principal commodity, and by tonnage 
and/or carloads for each of the 2 calendar years immediately preceding 
the filing of the abandonment or discontinuance application and for that 
part of the current year for which information is available.
    (3) Detailed description of the alternate sources of transportation 
service (rail, motor, water, air) available, including a detailed 
description and nature of operations, and the highway network in the 
proximate area.
    (4) Statement of efforts which have been made to continue service 
through solicitation of additional traffic, and the sale or subsidy of 
the line and the results of those efforts.
    (5) Statement of whether the properties proposed to be abandoned are 
suitable for use for other public purposes, including roads or highways, 
other forms of mass transportation, conservation, energy production or 
transmission, or recreation. If the applicant is aware of any 
restriction on the title to the property, including any reversionary 
interest, which would affect the transfer of title or the use of 
property for other than rail purposes, this shall be disclosed.
    (f) Environmental impact. The applicant shall submit information 
regarding the environmental impact of the proposed abandonment or 
discontinuance in compliance with Sec. 1105.7. If certain information 
required by the environmental regulations duplicates information 
required elsewhere in the application, the environmental information 
requirements may be met by a specific reference to the location of the 
information elsewhere in the application.
    (g) Passenger service. If passenger service is provided on the line, 
the applicant shall state whether appropriate steps have been taken for 
discontinuance pursuant to 49 U.S.C. 10908-10909 or the Rail Passenger 
Service Act. (45 U.S.C. 501 et seq.)
    (h) Financial statements. (1) Carrier's general balance sheet as of 
the latest date available.
    (2) Carrier's income statement for each of the 2 calendar years 
immediately preceding the filing of the application for abandonment or 
discontinuance and for that portion of the current year for which 
information is available.
    (i) Additional information. The application shall submit such 
additional information to support its application as the Commission may 
require.
    (j) Verification. The original application shall be executed and 
verified in the form set forth below by an officer of the carrier having 
knowledge of the facts and matters relied upon.

[[Page 286]]

                              Verifications

State of ________________ ss.
County of ________________
____________________________ (Name of affiant)
makes oath and says that he is the ______________ (Title of Affiant) of 
the ________________ (Name of applicant) applicant herein; that he has 
been authorized by the applicant (or as appropriate, a court) to verify 
and file with the Interstate Commerce Commission the foregoing 
application in AB- ______ (Sub-No. ______); that he has carefully 
examined all of the statements in the application as well as the 
exhibits attached thereto and made a part thereof; that he has knowledge 
of the facts and matters relied upon in the application; and that all 
representations set forth therein are true and correct to the best of 
his knowledge, information, and belief.
________________________________________________________________________
                                                        (Signature)     
Subscribed and sworn to before me ______ in and for the State and County 
above named, this ______ day of ________, 19__.
________________________________________________________________________
My commission expires___________________________________________________

[41 FR 48520, Nov. 4, 1976, as amended at 42 FR 25327, May 17, 1977; 43 
FR 30557, July 17, 1978; 43 FR 45588, Oct. 3, 1978; 46 FR 45348, Sept. 
11, 1981. Redesignated at 47 FR 49581, Nov. 1, 1982, and amended at 48 
FR 44828, Sept. 30, 1983; 48 FR 54237, Dec. 1, 1983; 53 FR 49667, Dec. 
9, 1988; 54 FR 18517, May 1, 1989]



Sec. 1152.23   Summary application.

    (a) If the applicant anticipates no substantial or material 
opposition to an application for abandonment or discontinuance, it may 
omit from the application the information required under Sec. 1152.22, 
except that required under paragraphs (a), (d)(3), (e), (f), and (i) of 
that section. All notice and publication requirements of Secs. 1152.20, 
1152.21, and 1152.22 must be followed for a summary application.
    (b) A summary application must contain a certification that 
applicant is not aware of any substantial and material objection to the 
application.
    (c) If an investigation is ordered to be conducted (Sec. 1152.26), 
of a summary application, the applicant must file the remainder of the 
information required in a standard long-form application under 
Sec. 1152.22 within 60 days of the service date of the Commission's 
order instituting the investigation. The actual date of filing of the 
application, as supplemented, for the purposes of complying with all 
statutory timetables, shall be deemed to be the date upon which such 
additional complete information is received by the Commission.
    (d) If the information necessary to complete a summary application 
which has been made the subject of an investigation is not received by 
the Commission within the 60 day period under paragraph (c) of this 
section, the summary application may not be refiled prior to 1 calendar 
year from the service date of the order of dismissal.
    (e) A check or money order payable to the Interstate Commerce 
Commission must be submitted with the application to cover the 
applicable filing fee.

[41 FR 48520, Nov. 4, 1976. Redesignated at 47 FR 49581, Nov. 1, 1982 
and amended at 48 FR 54238, Dec. 1, 1983; 49 FR 18494, May 1, 1984]



Sec. 1152.24   Filing and service of application.

    (a) An original and 10 copies of applications, typewritten or 
printed on paper approximately 8\1/2\ inches by 11 inches with 1\1/2\ 
inch left margin shall be filed with the Secretary of the Interstate 
Commerce Commission, Washington, DC 20423. The original shall bear the 
date and signature and shall be complete in itself; the signature may be 
stamped or typed and the notarial seal may be omitted on the copies. A 
check or money order payable to the Interstate Commerce Commission must 
also be submitted to cover the applicable filing fee.
    (b) The applicant shall tender with its application an affidavit 
attesting to its compliance with the notice requirement of Sec. 1152.20. 
The affidavit shall include the dates of service, posting, and 
publication of the notice.
    (c) When the application is filed with the Commission, the applicant 
shall serve, by first class mail, a copy on the Governor, the Public 
Service Commission (or equivalent agency), and the designated State 
agency of each State in which any part of the line of railroad sought to 
be abandoned or discontinued is situated, and on the Commission's 
Section of Rail Services Planning. A copy of the application will be 
available for public inspection, on or after the date the abandonment 
application is filed with the Commission, at each agency station or 
terminal on the

[[Page 287]]

line proposed to be abandoned or discontinued (if there is no agency 
station on the line, the application shall be deposited at any agency 
station through which business for the line is received or forwarded). A 
certificate of service shall be promptly filed with the Commission.
    (d) The applicant shall promptly furnish by first class mail a copy 
of the application to any interested person proposing to file a written 
comment or petition to investigate upon request. A certificate of 
service shall promptly be filed with the Commission.
    (e)(1) The Commission shall reject any abandonment or discontinuance 
application which does not substantially conform to the regulations in 
this Subpart C regarding notice, form, and content or which applies to a 
line which has not properly been published on the carrier's system 
diagram map in conformance with the regulations of subpart B of this 
part.
    (2) Upon the filing of an abandonment or discontinuance application, 
the Commission will review the application and determine whether it 
conforms with all applicable regulations. If the application is 
substantially incomplete or its filing otherwise defective, the 
Commission shall reject the application for stated reasons by order 
(which order will be administratively final) within 20 days from the 
date of filing of the application.
    (3) A revised application may be submitted, and the Commission will 
determine whether the resubmitted application conforms with all 
prescribed regulations. A properly revised application submitted with 60 
days of the order rejecting the incomplete or improper application need 
not be subjected to new notice and publication under Sec. 1152.20, 
unless the defect causing the rejection was in the notice and/or 
publication. A revised application submitted after such 60-day period 
must be newly published and noticed.
    (4) The resubmission of an abandonment or discontinuance application 
shall be considered a de novo filing for the purposes of computation of 
the time periods prescribed in 49 U.S.C. 10904, Provided, That a 
resubmitted application is deemed complete and proper.
    (5) An applicant may seek waiver of specific regulations listed in 
Subpart C of this part by filing a petition for waiver with the 
Commission. A decision by the Director of the Office of Proceedings 
granting or denying a waiver petition will be issued within 30 days of 
the date the petition is filed. Appeals from the Director's decision 
will be decided by the entire Commission. If waiver is not obtained 
prior to the filing of the application, the application may be subject 
to rejection under paragraphs (e)(1) and (2) of this section.

[41 FR 48520, Nov. 4, 1976. Redesignated at 47 FR 49581, Nov. 1, 1982, 
and amended at 48 FR 44828, Sept. 30, 1983; 48 FR 54238, Dec. 1, 1983; 
49 FR 14955, Apr. 16, 1984; 53 FR 19302, May 27, 1988]



Sec. 1152.25  Participation in abandonment or discontinuance proceedings.

    (a) Public participation--(1) Protests and comments. Interested 
persons may become parties to an abandonment or discontinuance 
proceeding by filing written comments or protests with the Commission. 
Protests must contain the following information:
    (i) Protestant's name, address and business.
    (ii) A statement describing protestant's interest in the proceeding 
including:
    (A) A description of protestant's use of the line;
    (B) If protestant does not use the line, information concerning the 
group or public interest it represents; and
    (C) If protestant's interest is limited to the retention of service 
over a portion of the line, a description of the portion of the line 
subject to protestant's interest (with milepost designations if 
available).
    (iii) Specific reasons why protestant opposes the application 
including information regarding protestant's reliance on the involved 
service (this information must be supported by affidavits of persons 
with personal knowledge of the fact(s)).
    (iv) Any rebuttal of material submitted by applicant.
    (v) If an oral hearing is desired, a request for and reasons why an 
oral hearing is necessary.

[[Page 288]]

    (2) Additional information. In addition to the information required 
in paragraph (a)(1) of this section, a commenting party or protestant 
may provide a statement of position and a summary of evidence regarding:
    (i) Intent to offer financial assistance;
    (ii) Environmental impact;
    (iii) Impact on rural and community development;
    (iv) Suitability of the properties for other public purposes;
    (v) Recommended provisions for protection of the interests of 
employees; and
    (vi) Prospective use of the right-of-way for interim trail use and 
rail banking under 16 U.S.C. 1247(d) and 49 CFR 1152.29.
    (3) Investigations. (i) Based on the written comments and protests, 
the Commission will determine whether an investigation is needed to 
assist in determining what disposition to make of the application. The 
Commission will automatically direct investigation if a protest is filed 
which demonstrates:
    (A) The protestant filed a feeder line application under 49 U.S.C. 
10910;
    (B) The feeder line application involves any portion of the rail 
line involved in the abandonment or discontinuance application;
    (C) The feeder line application was filed prior to the date the 
abandonment or discontinuance application was filed; and
    (D) The feeder line application is pending before the Commission.
    (ii) If an investigation is conducted, parties filing written 
comments or protests may participate in the investigated proceeding. A 
party filing a protest should be prepared to actively participate either 
in modified procedure investigation (i.e. through the submission of 
written verified statements) or in oral hearing.
    (b) Employee or employee representative participation. Employees or 
their representatives may file protests or comments to an application. 
However, since the Commission will impose employee protective conditions 
under 49 U.S.C. 10903(b)(2) if an application is granted, employees and 
their representatives need not file comments or protests seeking this 
protection.
    (c) Filing and service of written comments, protests, and replies. 
(1) Written comments and protests shall be filed with the Commission 
(the Secretary, Interstate Commerce Commission, Washington, DC 20423) 
within 30 days of the filing with the Commission of an abandonment or 
discontinuance application. Requests for public use conditions (see 
Sec. 1152.28(a)(3)) may be filed no later than 10 days after the date of 
publication in the Federal Register of the notice of findings that the 
public convenience and necessity require or permit the abandonment or 
discontinuance. The proposed date of filing of an abandonment or 
discontinuance application shall be included in the Notice of Intent 
required in Secs. 1152.20 through 1152.21.
    (2) An original and 10 copies of each written comment or protest 
shall be filed with the Commission.
    (3) A copy of each written comment or protest shall be served on 
applicant or its representative at the time of filing with the 
Commission. Each filing shall contain a certificate of service.
    (4) Replies to written comments and protests will be considered by 
the Commission provided they are filed and served within 5 days of the 
due date of the pleadings they address. An original and 10 copies of 
such replies shall be filed with the Commission.
    (d) Time limits. (1) Pleadings, requests or other papers or 
documents (including any comments or protests and any appeal from a 
Commission decision) required or permitted to be filed under this part 
must be received for filing at the Commission's Offices at Washington, 
DC within the time limits, if any, for such filing. The date of receipt 
at the Commission and not the date of deposit in the mails is 
determinative, provided, however, that if such document is mailed by 
certified, registered, or express mail, postmarked at least 3 days prior 
to the due date, it will be accepted as timely filed.
    (2) In computing any time period prescribed or allowed by this part, 
the day of the act, event, or default after which the designated period 
of time begins to run is not to be included.
    (3) Any filing under this part which falls due on a Saturday, 
Sunday, or a

[[Page 289]]

legal holiday in the District of Columbia, may be filed at the 
Commission by the end of the next day which is neither a Saturday, 
Sunday, nor a holiday, except as indicated in paragraph (d)(4) of this 
section. A half holiday shall not be considered as a holiday.
    (4) Offers of financial assistance made pursuant to Sec. 1152.27(c) 
must be filed on or before their statutory due date as computed in 
paragraph (d)(2) of this section, regardless of whether that date is a 
Saturday, Sunday, or a legal holiday in the District of Columbia.
    (5) The Commission will reject any pleading filed after its due date 
unless good cause is shown why the pleading is filed late.
    (6) Modified procedure: (i) If the Commission decides to institute 
an investigation under the modified procedure, the following time limits 
shall govern the submission of evidence:
    (A) Applicant's initial verified statements due no later than 15 
days after the date the decision instituting an investigation is served;
    (B) Protestant's verified statements due no later than 40 days after 
the date the decision instituting an investigation is served; and
    (C) Applicant's reply verified statements due no later than 55 days 
after the date the decision instituting an investigation is served.
    (ii) Under the schedule established in paragraph (d)(6)(i) of this 
section, parties shall not be permitted to file motions to strike all or 
part of any evidence submitted.
    (7) Oral Hearings: (i) If the Commission decides to institute an 
investigation through oral hearing, the oral hearing shall be for the 
primary purpose of cross examination of witnesses filing verified 
statements pursuant to paragraph (d)(7)(ii) of this section. Any direct 
testimony, other than applicant's rebuttal evidence, shall be received 
at the discretion of the hearing officer.
    (ii) The following time limits shall govern the submission of 
written evidence prior to the commencement of the hearing:
    (A) Applicant's initial verified statements due no later than 15 
days after the date the decision instituting an investigation is served; 
and
    (B) Protestant's verified statements due no later than 40 days after 
the date the decision instituting an investigation is served. Any 
rebuttal evidence by applicant shall be received in the form of 
testimony at the oral hearing.
    (iii) Post hearing legal briefs shall be due 20 days after the close 
of the oral hearing, or at an earlier date if established at the hearing 
by the hearing officer.
    (e) Appellate procedures--(1) Scope of rule. Except as specifically 
indicated below, these appellate procedures are to be followed in 
abandonment and discontinuance proceedings in lieu of the general 
procedures at 49 CFR 1115. Appeals of initial decisions of the Director 
of the Office of Proceedings determining:
    (i) Whether to designate protested abandonment proceedings for 
investigation (including action on requests for oral hearing);
    (ii) Whether offers of financial assistance satisfy the standards of 
49 U.S.C. 10905(d) for purposes of negotiations or, in exemption 
proceedings, for purposes of partial revocation and negotiations;
    (iii) Whether partially to revoke or to reopen abandonment 
exemptions authorized, respectively, under 49 U.S.C. 10505 and 49 CFR 
part 1152 subpart F for the purpose of imposing public use conditions 
under the criteria in 49 CFR 1152.28 and/or conditions limiting salvage 
of the rail properties for environmental and historic preservation 
purposes; and
    (iv) The applicability and administration of the Trails Act [16 
U.S.C. 1247(d)] in abandonment proceedings under 49 U.S.C. 10903-04 (and 
abandonment exemption proceedings) as set forth in 49 CFR 1011.8(c)(4) 
and (5) will be acted on by the entire Commission as set forth at 49 CFR 
1011.2(a)(8).

An original and 10 copies of all appeals, and replies to appeals, under 
this section should be filed with the Commission.

    (2) Appeals criteria. (i) Appeals to the initial decision in non-
protested proceedings or non-investigated (protested) proceedings will 
not be entertained. Those decisions are administratively final upon the 
date they are served.

[[Page 290]]

    (A) In a protested but not investigated proceeding, parties seeking 
further administrative action may file a petition to reopen the 
proceeding under paragraph (e)(6) of this section. If an abandonment or 
discontinuance is granted and a party wishes the Commission to consider 
a petition to reopen before the abandonment or discontinuance 
certificate becomes effective, it must file its petition within 15 days 
after the administratively final decision is served (together with any 
necessary request for a stay of the certificate's effectiveness). If a 
petition is received within that 15 day period, any replies to the 
petition must be filed no later than 25 days after the date the decision 
is served. The Commission will then announce whether it will grant the 
petition (and reopen the proceeding) by the 120th day after the 
application was filed (the last date upon which the certificate could 
become effective).
    (B) In a proceeding that is not protested, since the Commission is 
required to authorize abandonment or discontinuance, the only subsequent 
pleadings permitted are petitions to vacate the certificate filed under 
paragraph (e)(8) of this section.
    (ii) In investigated proceedings, the Commission may hear appeals in 
its discretion, if it finds that either:
    (A) The action (if taken by an administrative law judge, an employee 
board, or a division) involves a matter of general transportation 
importance, or
    (B) The action would be affected materially because of new evidence, 
changed circumstances, or material error.
    (3) Time limits. (i) Any appeal from the initial decision in an 
investigated proceeding shall be filed no later than 20 days after the 
date the initial decision is served.
    (ii) The Commission will announce whether it will hear an appeal 
filed under paragraph (e)(3)(i) of this section within 30 days after the 
date the initial decision is served. If the Commission decides to hear 
the appeal, other parties will be afforded 15 days from the date of 
service of the decision to file replies to the appeals.
    (iii) In order to exhaust its administrative remedies, a party must 
file an appeal under paragraph (e)(3)(i) of this section from the 
initial decision in an investigated proceeding no later than 20 days 
after the date the initial decision is served before seeking judicial 
review. In the event an appeal is timely filed, administratively final 
action for the purposes of this rule is deemed to occur when the 
Commission (A) issues its decision not to hear the appeal, (B) fails to 
issue such a decision within 30 days after the date the initial decision 
was served, or (C) hears the appeal and issues a decision on the appeal. 
If the Commission decides to hear the appeal, the decision to hear the 
appeal will operate as an automatic stay and no certificate will be 
issued until the Commission has acted on the appeal.
    (4) Form. An appeal and any reply shall not exceed 30 pages in 
length, including the index of subject matter, argument, and appendices 
or other attachments.
    (5) To the extent that an appeal requests further hearing, 
rehearing, reargument, or reconsideration, the appeal shall state in 
detail the nature of the relief requested and the reasons therefor. When 
a party seeks an opportunity to introduce evidence, the appeal must 
state briefly the evidence, explain why it is not cumulative, and 
explain why it was not previously adduced.
    (6) Petitions to reopen administratively final actions: Except as 
provided for in paragraph (e)(2)(i)(B) of this section, a person may 
file a petition to reopen any administratively final action of the 
Commission. A petition to reopen shall state in detail the respects in 
which the proceeding involves material error, new evidence, or 
substantially changed circumstances. An original and 10 copies of such 
petitions should be filed with the Commission.
    (7) Judicial review: (i) Parties may seek judicial review of a 
Commission action in an abandonment or discontinuance proceeding on the 
day the action of the Commission becomes final.
    (ii) If an appeal or a petition seeking reopening is filed under 
this section, before or after a petition seeking judicial review is 
filed with the courts, the Commission will act upon the appeal or 
petition after advising the court of its

[[Page 291]]

pendency unless action might interfere with the court's jurisdiction.
    (8) Petitions to vacate certificates: In the event of procedural 
defects (such as the loss of a properly filed protest, the failure of 
the applicant to afford the public the requisite notice of its proposed 
abandonment, etc.) the Commission will entertain petitions to vacate 
certificates in these abandonment or discontinuance proceedings. An 
original and 10 copies of these petitions to vacate should be filed with 
the Commission.
    (9) Petitions to stay. (i) The filing of an appeal shall not stay 
the effect of a prior action. An original and 10 copies of any petitions 
to stay should be filed with the Commission.
    (ii) If an appeal is filed in an investigated proceeding, under 
paragraph (e)(2)(ii) of this section, a petition to stay is unnecessary 
and inappropriate. A certificate will not have been issued at that time 
and, if the Commission decides to hear the appeal, will not be issued 
until the Commission has acted upon the appeal. Therefore, there is no 
action requiring a stay.
    (iii) A petition to reopen an administratively final action in a 
protested but non-investigated proceeding may be accompanied by a 
petition for a stay of the effectiveness of a certificate of abandonment 
or discontinuance, which permits the abandonment or discontinuance to 
occur prior to 120 days after the application is filed. The petitions 
may seek postponement of the effectiveness of the certificate only until 
the 120th day after the application is filed. The petitions may seek 
postponement of the effectiveness of the certificate only until the 
120th day after the application is filed, when effectiveness is required 
by law (49 U.S.C. 10904(c)(2)).
    (iv) A party may petition for a stay of the effectiveness of a 
certificate of abandonment or discontinuance pending a request for 
judicial review. The reasons for the desired relief shall be stated in 
the petition, and the petition shall be filed not less than 10 days 
prior to the effective date of the certificate. No reply need be filed. 
If a party elects to file a reply, the reply must reach the Commission 
no later than 5 days after the petition is filed.

[46 FR 45348, Sept. 11, 1981. Redesignated at 47 FR 49581, Nov. 1, 1982, 
and amended at 47 FR 49582, Nov. 1, 1982; 48 FR 54238, Dec. 1, 1983; 49 
FR 15087, Apr. 17, 1984; 51 FR 16852, May 7, 1986; 51 FR 21559, June 13, 
1986; 53 FR 3401, Feb. 5, 1988; 53 FR 19302, May 27, 1988; 57 FR 13049, 
Apr. 15, 1992]



Sec. 1152.26  Commission determination and certification under 49 U.S.C. 10904.

    (a) If no protests to an application are filed under Sec. 1152.25, 
the Commission shall (1) find that the public convenience and necessity 
require or permit the abandonment or discontinuance, and (2) no later 
than 45 days after the application is filed, issue a certificate which 
permits the abandonment or discontinuance to occur within 75 days after 
the application is filed.
    (b) Upon receipt of a protest to an application under Sec. 1152.25, 
the Commission shall, no later than 45 days after the application is 
filed, determine whether an investigation is needed to assist in 
determining what disposition to make of the application.
    (1) If no investigation is instituted, the Commission shall issue a 
decision no later than 75 days after the date the application is filed. 
If the Commission finds that the present or future public convenience 
and necessity require or permit the abandonment or discontinuance, it 
shall issue a certificate no later than 90 days after the application is 
filed permitting the abandonment or discontinuance to occur no later 
than 120 days after the application is filed (unless the financial 
assistance procedures provided for in Sec. 1152.27 have not been 
concluded).
    (2) If the Commission decides to institute an investigation, the 
investigation shall be completed no later than 135 days, and an initial 
decision issued no later than 165 days, after the date the application 
is filed.
    (i) The initial decision following an investigation shall become the 
final decision of the Commission unless, during the 30 days following 
the initial decision, the Commission decides to hear appeals in 
accordance with the criteria set forth in Sec. 1152.25(e)(2)(ii).

[[Page 292]]

    (ii) If an initial decision following an investigation is appealed, 
and considered by the Commission in its discretion, the Commission shall 
issue a final decision no later than 255 days after the date the 
application is filed.
    (iii) Whenever the Commission finds, following an investigation, 
that the present or future public convenience and necessity require or 
permit the abandonment or discontinuance, the Commission will issue a 
certificate no later than 15 days following the final decision, 
permitting the abandonment or discontinuance to occur no later than 75 
days following issuance of the final decision (unless the financial 
assistance procedures provided for in Sec. 1152.27 have not been 
concluded).
    (3) A copy of the decision instituting an investigation of an 
abandonment or discontinuance application shall be served on the carrier 
which owns or operates the line of railroad or its representative. 
Copies of the decision shall also be served by the Commission on all 
parties which filed written comments and on all persons upon which 
copies of the application are required to be served under 
Sec. 1152.24(c).

[46 FR 45350, Sept. 11, 1981; 46 FR 48216, Oct. 1, 1981. Redesignated at 
47 FR 49581, Nov. 1, 1982, and amended at 48 FR 54238, Dec. 1, 1983]



Sec. 1152.27  Financial assistance procedures.

    (a) Provision of information. An applicant must provide promptly 
upon request to a party considering an offer of financial assistance to 
continue existing rail service, and concurrently to the Commission, the 
following:
    (1)(i) In an application proceeding, an estimate of the annual 
subsidy and minimum purchase price required to keep the line or a 
portion of the line in operation;
    (ii) In an exemption proceeding, either an estimate of the annual 
subsidy or the minimum purchase price, depending upon the type of 
financial assistance indicated in the potential offeror's formal 
expression of intent submitted under paragraph (c)(2)(i) of this 
section;
    (2) Its most recent reports on the physical condition of the 
involved line; and
    (3) Traffic, revenue, and other data necessary to determine the 
amount of annual financial assistance that would be required to continue 
rail transportation over that part of the railroad line. In an exemption 
proceeding, the data to be provided must at a minimum include the 
carrier's estimate of the net liquidation value of the line, with 
supporting data reflecting available real estate appraisals, assessments 
of the quality and quantity of track materials in a line, and removal 
cost estimates (including the cost of transporting removed materials to 
point of sale or point of storage for relay use), and, if an offer of 
subsidy is contemplated, an estimate of the cost of rehabilitating the 
line to Federal Railroad Administration Class I Safety Standards (49 CFR 
part 213).
    (b) Federal Register notice. (1) Abandonment and discontinuance 
applications. If the Commission finds that the present or future public 
convenience and necessity permit or require the proposed abandonment or 
discontinuance, the Commission will publish these findings in the 
Federal Register concurrently with the service of the decision. The 
Federal Register publication will serve as notice to persons intending 
to offer financial assistance to assure continued rail service under 49 
U.S.C. 10905 and these regulations as they relate to abandonment and 
discontinuance applications.
    (2) Exemption proceedings. If the Commission exempts a proposed 
abandonment of a line of railroad from the prior approval requirements 
of 49 U.S.C. 10903, et seq., the Commission will publish notice of this 
action in the Federal Register. The Federal Register publication will 
serve as notice to persons with a potential interest in providing 
financial assistance to assure continued rail service under 49 U.S.C. 
10905 and these regulations as they relate to exempt abandonments and 
discontinuances.
    (c) Submission of financial assistance offer--(1) Abandonment and 
discontinuance applications. (i) Service and filing. An offeror must 
serve its offer of assistance on the carrier owning and operating the 
line and all parties to the

[[Page 293]]

abandonment or discontinuance proceeding. The offer must be filed 
concurrently with the Secretary, Interstate Commerce Commission, 
Washington, DC 20423.
    (A) An offer may be filed and served at any time after the filing of 
the abandonment or discontinuance application. Once notice of the 
abandonment findings is published in the Federal Register, however, the 
Commission must be notified that an offer has previously been submitted.
    (B) An offer, or notification of a previously filed offer, must be 
filed and served no later than 10 days after the Federal Register 
publication described in paragraph (b) of this section. This filing and 
service is subject to the requirements of 49 CFR 1152.25 (d)(1), (d)(2), 
and (d)(4).
    (C) If, after a bona fide request, applicant has failed to provide a 
potential offeror promptly with the information required under paragraph 
(a) of this section and if that information is not contained in the 
application, the Commission will entertain petitions to toll the 10-day 
period for submitting offers of financial assistance under paragraph 
(c)(1) of this section. Petitions must be filed with the Commission 
within 5 days after publication in the Federal Register (described in 
paragraph (b) of this section). Petitions should include copies of the 
prior written request for information or an accurate outline of the 
specific information that was orally requested. Replies to these 
petitions must be filed within 10 days after the publication. These 
petitions and replies must be filed on or before their actual due date 
under 49 CFR 1152.25(d)(4). The Commission will issue a decision on 
petitions within 15 days after publication.
    (ii) Contents of offer. The offeror shall set forth its offer in 
detail. The offer must:
    (A) Identify the line, or the portion of the line, in question;
    (B) Demonstrate that the offeror is financially responsible; that 
is, that it has or within a reasonable time will have the financial 
resources to fulfill proposed contractual obligations;
    (C) Explain the disparity between the offeror's purchase price or 
subsidy if it is less than the carrier's estimate under paragraph (a)(1) 
of this section, and explain how the offer of subsidy or purchase is 
calculated.
    (2) Exemption proceedings. (i) Expression of intent to file offer. 
Persons with a potential interest in providing financial assistance must 
no later than 10 days after the Federal Register publication described 
in paragraph (b)(2) of this section submit to the carrier and the 
Commission a formal expression of their intent to file an offer of 
financial assistance, indicating the type of financial assistance they 
wish to provide (i.e., subsidy or purchase). Such submissions are 
subject to the filing requirements of Sec. 1152.25(d)(1) through (d)(3). 
Submission of a formal expression of intent under this subsection will 
automatically stay the effective date either of the decision granting an 
individual exemption or the notice of exemption under the class 
exemption for 40 days (normally, this will be 10 days beyond the date 
stated in the Federal Register publication).
    (ii) Service and filing. An offeror must serve its offer of 
assistance on the carrier that instituted the exempt filing as well as 
all other parties to the proceeding. The offer must be filed 
concurrently with the Secretary, Interstate Commerce Commission, 
Washington, DC 20423.
    (A) An offer may be filed and served at any time after the filing of 
the exemption petition or notice of exemption. Once notice of exemption 
is published in the Federal Register, however, the Commission must be 
notified that an offer has previously been submitted.
    (B) An offer, or notification of a previously filed offer, must be 
filed and served no later than 30 days after the Federal Register 
publication described in paragraph (b)(2) of this section. This filing 
and service is subject to the requirements of 49 CFR 1152.25 (d)(1), 
(d)(2), and (d)(4).
    (C) If, after a bona fide request, applicant has failed to provide a 
potential offeror promptly with the information required under paragraph 
(a) of this section and if that information is not contained in the 
exemption petition or notice of exemption, the Commission will entertain 
petitions to toll the 30- 

[[Page 294]]

day period for submitting offers of financial assistance under paragraph 
(c)(2) of this section. Petitions must be filed with the Commission 
within 25 days after publication in the Federal Register (described in 
paragraph (b)(2) of this section). Petitions should include copies of 
the prior written request for information or an accurate outline of the 
specific information that was orally requested. Replies to these 
petitions must be filed within 30 days after the publication. These 
petitions and replies must be filed on or before their actual due date 
under 49 CFR 1152.25(d)(4). The Commission will issue a decision on 
petitions to toll the offer period within 35 days after publication.
    (D) Upon receipt of a formal expression of intent to file an offer 
under paragraph (c)(2)(i) of this section, applicant may advise the 
Commission and the potential offeror that additional time is needed to 
develop the information required under paragraph (a) of this section. 
Applicant shall expressly indicate the amount of time it considers 
necessary (not to exceed 60 days) to develop and submit the required 
information to the potential offeror. For the duration of the time 
period so indicated by applicant the 30-day period for submitting offers 
of financial assistance under paragraph (c)(2) of this section shall be 
tolled without formal Commission action.
    (iii) Contents of offer. The offeror shall set forth its offer in 
detail. The offer must meet the requirements of paragraph (c)(1)(ii).
    (d) Access to documents. Upon receipt by the carrier of a written 
comment under Sec. 1152.25 or a formal expression of intent under 
paragraph (c)(2)(i) of this section indicating an intent to offer 
financial assistance or upon receipt by the carrier of an offer of 
financial assistance, whichever occurs earlier, the carrier must make 
available to that party or offeror the records, accounts, appraisals, 
working papers, and other documents used in preparing Exhibit 1 
(Sec. 1152.36) or, if an exemption proceeding, those documents that 
would have been used in preparing Exhibit 1 had an abandonment or 
discontinuance application been filed or whatever records, reports, and 
other data in the possession of the carrier seeking the exemption which 
provide data comparable to that which would have been utilized in 
preparing an Exhibit 1. These documents shall be made available during 
regular business hours at a time and place mutually agreeable to the 
parties.
    (e) Review of offers. (1) Abandonment and discontinuance 
applications. The Commission will review each offer submitted to 
determine if the offeror is a financially responsible person offering 
assistance which is likely to cover:
    (i) The difference between the revenues attributable to the line and 
the avoidable cost of providing freight service on the line plus a 
reasonable return on the value of the line, or
    (ii) The acquisition cost of all or any portion of the line.

If these criteria are met, the Commission will issue a decision 
postponing the issuance of a certificate of abandonment or, if a 
certificate has been issued, postponing the effective date of the 
certificate. This decision will be issued within 15 days of the Federal 
Register publication described in paragraph (b) of this section (or five 
days after the offer is filed if the time for filing has been tolled 
under paragraph (c)(1)(i)(C) of this section). Under the delegation of 
authority at Sec. 1011.8, the Director of the Office of Proceedings will 
make the initial determination whether offers of financial assistance 
satisfy the standards of 49 U.S.C. 10905(d) for purposes of 
negotiations. Appeals of initial decisions determining whether offers of 
financial assistance satisfy the standards of 49 U.S.C. 10905(d) for 
purposes of negotiations will be acted upon by the entire Commission 
pursuant to the rule set forth at 49 CFR 1011.2(a)(8).
    (2) Exemption proceedings. The Commission will review each offer 
submitted to determine if the offeror is a financially responsible 
person offering assistance which is likely to cover:
    (i) The difference between the revenues attributable to the line and 
the avoidable cost of providing freight service on the line plus a 
reasonable return on the value of the line; or
    (ii) The acquisition cost of all or any portion of the line.


[[Page 295]]


If these criteria are met, the Commission will postpone the effective 
date either of the decision granting an individual exemption or the 
notice of exemption under the class exemption and partially revoke the 
exemption or (in the case of a class exemption) the notice of exemption 
to the extent it applies to 49 U.S.C. 10905. The decision to postpone 
and partially revoke will be issued within 35 days of the Federal 
Register publication described in paragraph (b) of this section (or five 
days after the offer is filed if the time for filing has been tolled 
under paragraph (c)(2)(ii)(C) or (c)(2)(ii)(D) of this section). Under 
the delegation of authority at Sec. 1011.8, the Director of the Office 
of Proceedings will make the initial determination whether offers of 
financial assistance satisfy the standards of 49 U.S.C. 10905(d) for 
purposes of partial revocation and negotiations. Appeals of initial 
decisions determinig whether offers of financial assistance satisfy the 
standards of 49 U.S.C. 10905(d) for purposes of partial revocation and 
negotiations will be acted upon by the entire Commission pursuant to the 
rule set forth at 49 CFR 1011.2(a)(8).
    (f) Agreement on financial assistance. (1) If the carrier and a 
person offering financial assistance enter into a subsidy agreement 
designed to provide for continued rail service, the Commission will 
postpone the issuance of a certificate authorizing the abandonment or 
discontinuance. If a certificate, decision granting an individual 
exemption, or notice of exemption has been issued, the Commission will 
postpone the effective date of the certificate, decision, or notice of 
exemption. The postponement will be for as long as the subsidy agreement 
is in effect.
    (2) If the carrier and a person offering to purchase a line enter 
into a purchase agreement which will result in continued rail service, 
the Commission will approve the transaction and dismiss the application 
for abandonment or discontinuance, or the petition for exemption or 
notice of exemption. Commission approval is not required under 49 U.S.C. 
10901 or 11343 for the parties to consummate the transaction or for the 
purchaser to institute service and operate as a railroad subject to 49 
U.S.C. 10501(a).
    (g) Failure to reach agreement on financial assistance. (1) If the 
carrier and a financially responsible person fail to agree on the amount 
or terms of subsidy or purchase, either party may request the Commission 
to establish the conditions and amount of compensation. This request 
must be filed with the Commission within 30 days after the offer is made 
and served concurrently on all parties to the proceeding.
    (2) If no agreement is reached within 30 days after the offer of 
purchase or subsidy is made, and no request is made to the Commission to 
set the conditions and amount of compensation under paragraph (g)(1) of 
this section, the Commission will serve either:
    (i) A certificate authorizing the abandonment or discontinuance 
within 10 days after the date the request to set conditions and amount 
of compensation was due (unless an appeal is being heard under 
Sec. 1152.25(e)), or
    (ii) A decision vacating the prior decision, which postponed the 
effective date of either the decision granting the exemption or the 
notice of exemption and partially revoked either the decision granting 
the exemption or (in the case of a class exemption) the notice of 
exemption.

The certificate or decision to vacate will be effective on its date of 
service. If a certificate was issued but its effective date was 
postponed under paragraph (e) of this section, the certificate will 
become effective 10 days after the date the request to set conditions 
and compensation was due (unless an appeal is being heard under 
Sec. 1152.25(e)).
    (h) Request to establish conditions and compensation for financial 
assistance. (1) If the Commission is requested to establish conditions 
and compensation for financial assistance under paragraph (g)(1) of this 
section, the Commission will issue a decision within 60 days after the 
request is due (i.e., within 90 days after the offer is made).
    (2) If the applicant receives multiple offers of financial 
assistance, requests to establish conditions and compensation will not 
be permitted before the applicant selects the offeror with whom it 
wishes to transact business. (See paragraph (l)(1) of this section).

[[Page 296]]

    (3) A party requesting the Commission to establish conditions and 
compensation for financial assistance must provide with the request, a 
narrative indicating the status of the negotiations between the parties 
and the likelihood of voluntary settlement prior to the issuance of a 
Commission decision setting terms. The party filing the request must 
also, within the time period set forth in paragraph (h)(4) of this 
section, provide reasons why its estimates are correct and the other 
negotiating party's estimates are incorrect; points of agreement and 
points of disagreement between the negotiating parties; and evidence 
substantiating these allegations. The offeror has the burden of proof as 
to all issues in dispute.
    (4) The offeror must submit all evidence and information supporting 
the terms it seeks within 30 days after the offer is made. The carrier's 
reply to this evidence and support for the terms it seeks are due within 
50 days after the offer is made. The offeror may submit rebuttal 
evidence within 60 days after the offer is made. Evidence and 
information submitted after these dates may be rejected.
    (5) If requested, the Commission will determine the amount and terms 
of subsidy based on the avoidable cost of providing continued rail 
transportation, plus a reasonable return on the value of the line.
    (6) If requested, the Commission will determine the price and other 
terms of sale. The Commission will not set a price below the fair market 
value of the line (including, unless otherwise agreed upon by the 
parties, all facilities on the line or portion necessary to provide 
effective transportation services). Fair market value equals 
constitutional minimum value which is the greater of the net liquidation 
value of the line or the going concern value of the line. The 
constitutional minimum value is computed without regard to labor 
protection costs.
    (7) Within 10 days of the service date of the Commission's decision, 
the offeror must accept or reject the Commission's terms and conditions 
with a written notification to the Commission and all parties to the 
proceeding. If the offeror accepts the terms and conditions set by the 
Commission, the Commission's decision is binding on both parties. If the 
offeror withdraws its offer or does not accept the terms and conditions 
set by the Commission with a timely written notification, the Commission 
will serve, within 20 days after the service date of the Commission 
decision setting the terms and conditions, either
    (i) A certificate authorizing the abandonment or discontinuance 
(unless other offers are being considered under paragraph (l) of this 
section and unless an appeal is being heard under Sec. 1152.25(e)), or
    (ii) A decision vacating the prior decision, which postponed the 
effective date of either the decision granting the exemption or the 
notice of exemption and partially revoked the exemption or (in the case 
of a class exemption) the notice of exemption (unless other offers are 
being considered under paragraph (l) of this section).

The certificate or decision to vacate will be effective on its date of 
service. If a certificate was issued but its effective date was 
postponed under paragraph (e) of this section, the certificate will 
become effective 20 days after the service date of the Commission 
decision setting the terms and conditions (unless other offers are being 
considered under paragraph (l) of this section or an appeal is being 
heard under Sec. 1152.25(e)).
    (i) Substitution of purchasers and disposition after sale. (1) Prior 
to the consummation of a purchase under this section, an offeror may 
substitute its corporate affiliate as the purchaser under an agreement, 
provided the Commission has determined either
    (i) The original offeror has guaranteed the financial responsibility 
of its affiliate, or
    (ii) The affiliate has demonstrated financial responsibility in its 
own right.
    (2) Except as provided in paragraph (i)(3) of this section, a 
purchaser under this section may not:
    (i) Transfer the line or discontinue service over the line prior to 
the end of the second year after consummation of the original sale under 
these provisions, or

[[Page 297]]

    (ii) Transfer the line, except to the carrier from whom the line was 
purchased, prior to the end of the fifth year after consummation.
    (3) Paragraph (i)(2) of this section does not preclude a purchaser 
under this section from transferring the line to a corporate affiliate 
following the consummation of the original sale. Prior Commission 
approval of the affiliate's acquisition and operation, however, is 
required under 49 U.S.C. 10901 or 11343. A corporate affiliate acquiring 
a line under this section is prohibited from discontinuing service over 
the line or transferring the line to a party that is not a corporate 
affiliate during the time periods prescribed in paragraph (i)(2) of this 
section.
    (j) Discontinuance of subsidy. A subsidizer may discontinue a 
subsidy under this section by giving 60 days notice of the 
discontinuance to the applicant and all other parties to the proceeding. 
Unless another financially responsible party enters into a subsidy 
agreement as beneficial to the carrier as the discontinued subsidy 
agreement, the carrier may by filing a request with the Commission and 
serving the request on all parties to the abandonment or exemption 
proceeding obtain
    (1) A certificate authorizing abandonment or discontinuance of 
service or
    (2) A decision vacating the decision postponing the effective date 
of either the decision granting the exemption or the notice of 
exemption.

The Commission will issue a certificate or decision to vacate within 10 
days after the filing and service of the request. This certificate or 
decision to vacate will be effective immediately. If a certificate was 
issued but its effective date was postponed under paragraph (e) of this 
section, the certificate will become effective 10 days after the filing 
and service of the request.
    (k) Default on agreement. If any party defaults on its obligations 
under a financial assistance agreement, any other party to the agreement 
may promptly inform the Commission of that default. Upon notification, 
the Commission will take appropriate action.
    (l) Multiple offers of financial assistance. (1) If an applicant 
receives more than one offer to purchase or subsidize the line, the 
applicant must select the offeror with whom it wishes to transact 
business. In abandonment and discontinuance application proceedings 
within 25 days after the Federal Register publication described in 
paragraph (b)(1) of this section and in exemption proceedings within 45 
days after the Federal Register publication described in paragraph 
(b)(2) of this section, applicant must:
    (i) File a written notification of its selection with the 
Commission, and
    (ii) Serve a copy of the notification on all parties to the 
proceeding.
    (2)(i) Abandonment and discontinuance applications. If the applicant 
has received multiple offers of financial assistance and has selected 
the offeror with whom it wishes to transact business, the negotiating 
parties shall complete the sale or subsidy agreement or request the 
Commission to establish the conditions and amount of compensation within 
40 days after the Federal Register publication described in paragraph 
(b)(1) of this section. The request must be served concurrently on all 
parties to the proceeding. If no agreement on subsidy or sale is reached 
within the 40 day period and the Commission has not been requested to 
establish the conditions and amount of compensation, any other offeror 
may request the Commission to establish the conditions and amount of 
compensation. This request must be filed at the Commission within 50 
days of the Federal Register publication described in paragraph (b)(1) 
of this section and served concurrently on all parties to the 
proceeding. If no other request is filed, the Commission will issue a 
certificate authorizing abandonment or discontinuance within 60 days of 
the Federal Register publication described in paragraph (b)(1) of this 
section (unless an appeal is being heard under Sec. 1152.25(e)). This 
certificate will be effective immediately. If no other request is filed 
and a certificate was issued but its effective date was postponed under 
paragraph (e) of this section, the certificate will become effective 60 
days after the Federal Register publication described in paragraph 
(b)(1) of this section (unless an appeal is being heard under 
Sec. 1152.25(e)).

[[Page 298]]

    (ii) Exemption proceedings. If the carrier seeking the exemption has 
received multiple offers of financial assistance and has selected the 
offeror with whom it wishes to transact business, the negotiating 
parties shall complete the sale or subsidy agreement or request the 
Commission to establish the conditions and amount of compensation within 
60 days after the Federal Register publication described in paragraph 
(b)(2) of this section. The request must be served concurrently on all 
parties to the proceeding. If no agreement on subsidy or sale is reached 
within the 60 day period and the Commission has not been requested to 
establish the conditions and amount of compensation, any other offeror 
may request the Commission to establish the conditions and amount of 
compensation. This request must be filed at the Commission within 70 
days of the Federal Register publication described in paragraph (b)(2) 
of this section and served concurrently on all parties to the 
proceeding. If no other request is filed, the Commission will issue a 
decision vacating the decision postponing the effective date of either 
the decision granting exemption or (in the case of a class exemption) 
the notice of exemption within 80 days of the Federal Register 
publication described in paragraph (b)(2) of this section. The decision 
to vacate will be effective immediately.
    (3) If the Commission has established the conditions and amount of 
compensation, and the original offer is withdrawn under paragraph (h)(7) 
of this section, any other offeror may accept the Commission's decision. 
If the decision is accepted by another offeror, the Commission will 
require the applicant to accept the terms incorporated in the 
Commission's decision.

[48 FR 55129, Dec. 9, 1983, as amended at 50 FR 36432, Sept. 6, 1985; 51 
FR 2505, Jan. 17, 1986; 52 FR 48440, Dec. 22, 1987]



Sec. 1152.28  Public use procedures.

    (a)(1) If the Commission finds that the present or future public 
convenience and necessity require or permit abandonment or 
discontinuance, the Commission will determine if the involved rail 
properties are suitable for other public purposes.
    (2) A request for a public use condition under 49 U.S.C. 10906 must 
be in writing and set forth: (i) The condition sought; (ii) the public 
importance of the condition; (iii) the period of time for which the 
condition would be effective; and (iv) justification for the imposition 
of the time period. A copy of the request shall be mailed to the 
applicant.
    (3) For applications filed under part 1152, subpart C, a request for 
a public use condition must be filed not more than 10 days from the date 
of publication of the notice of findings in the Federal Register. A 
decision on the public use request will be issued by the Director of the 
Office of Proceedings prior to the effective date of the abandonment. 
For abandonment exemptions under part 1152, subpart F or exemptions 
granted on the basis of an individual petition filed under 49 U.S.C. 
10505, a request for a public use condition must be filed not more than 
20 days from the date of publication of the notice of exemption in the 
Federal Register.
    (b) If the Commission finds that the rail properties are suitable 
for other public purposes, the railroad may dispose of the rail 
properties only under the conditions described in the Commission's 
decision. The conditions imposed by the Commission may include a 
prohibition against the disposal of the rail assets for a period of not 
more than 180 days from the effective date of the decision authorizing 
the abandonment or discontinuance, unless the properties have first been 
offered, on reasonable terms, for sale for public purposes. This period 
will run concurrently with any other postponements. Jurisdiction to 
impose such conditions expires after 180 days from the effective date of 
the decision authorizing the abandonment or discontinuance.

[48 FR 54238, Dec. 1, 1983, as amended at 49 FR 15087, Apr. 17, 1984; 57 
FR 13049, Apr. 15, 1992]



Sec. 1152.29  Prospective use of rights-of-way for interim trail use and rail banking.

    (a) If any state, political subdivision, or qualified private 
organization is interested in acquiring or using a right-of-way of a 
rail line proposed to be

[[Page 299]]

abandoned for interim trail use and rail banking pursuant to 16 U.S.C. 
1247(d), it must file a comment (in a regulated abandonment proceeding) 
or a petition (in an exemption proceeding) indicating that it would like 
to do so. The comment or petition must include:
    (1) A map depicting, and an accurate description of, the right-of-
way, or portion thereof (including mileposts), proposed to be acquired 
or used;
    (2) A statement indicating the user's willingness to assume full 
responsibility: For managing the right-of-way; for any legal liability 
arising out of the use of the right-of-way (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 all taxes 
assessed against the right-of-way; and
    (3) An acknowledgment that interim trail use is subject to the 
user's continuing to meet its responsibilities described in paragraph 
(a)(2) of this section, and subject to possible future reconstruction 
and reactivation of the right-of-way rail service. The statement must be 
in the following form:

       Statement of Willingness to Assume Financial Responsibility

    In order to establish interim trail use and rail banking under 16 
U.S.C. 1247(d) and 49 CFR 1152.29,____________________ (Interim Trail 
User) is willing to assume 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 
owned by ____________________ (Railroad) and operated by 
____________________ (Railroad). The property, known as 
____________________ (Name of Branch Line), extends from railroad 
milepost ________, near____________________(Station name), to railroad 
milepost________, near ____________________ (Station name), a distance 
of ________ miles in ____________________ County(ies), 
____________________ (State(s)). The right-of-way is part of a line of 
railroad proposed for abandonment in Docket No. AB-__________ (Sub-No. 
____________________
    A map of the property depicting the right-of-way is attached.
    ____________________ (Interim Trail User) acknowledges that use of 
the right-of-way is subject to the user's continuing to meet its 
responsibilities described above and subject to possible future 
reconstruction and reactivation of the right-of-way for rail service. A 
copy of this statement is being served on the railroad(s) on the same 
date it is being served on the Commission.
    (b)(1) In regular (regulated) abandonment proceedings under 49 
U.S.C. 10903-04, interim trail use statements are due within the 30-day 
protest and comment period following the date the abandonment 
application is filed. See Sec. 1152.25(c).
    (i) In every proceeding where a Trails Act request is made, the 
Commission will determine whether the Trails Act is applicable.
    (ii) In a nonprotested proceeding, when a timely trail use statement 
is filed, the Commission, by the 35th day after the abandonment 
application is filed, will issue a decision that either:
    (A) Finds that the Trails Act is not applicable because of failure 
to comply with the provisions of Sec. 1152.29(a); or
    (B) Finds that the Trails Act is applicable and directs the carrier 
to notify the Commission, within 5 days, about whether it intends to 
negotiate an agreement.

If the Trails Act is not applicable, or is applicable but the carrier 
either does not intend to negotiate an agreement, or does not timely 
notify the Commission of its intention to negotiate, the public 
convenience and necessity will be found to require or permit 
abandonment, and a certificate of abandonment will be issued pursuant to 
Sec. 1152.26(a). If the carrier is willing to negotiate an agreement, 
and the public convenience and necessity permit abandonment, the 
Commission will issue a Certificate of Interim Trail Use or Abandonment 
by the 45th day after the application is filed.
    (iii) In a protested but noninvestigated proceeding, when a timely 
trail use statement is filed, the initial decision determining that no 
investigation will be undertaken, which is issued

[[Page 300]]

within 45 days after the application is filed, will include a finding 
that either:
    (A) The Trails Act is not applicable because of failure to comply 
with the provisions of Sec. 1152.29(a); or
    (B) The Trails Act is applicable, and directing the carrier to 
notify the Commission within 10 days about whether it intends to 
negotiate an agreement.

If the Trails Act is not applicable, or is applicable but the carrier 
either does not intend to negotiate an agreement, or does not timely 
notify the Commission of its intention to negotiate, a decision on the 
merits will be issued under Sec. 1152.26(b)(1). If the carrier is 
willing to negotiate an agreement, and the public convenience and 
necessity permit abandonment, the Commission will issue a Certificate of 
Interim Trail Use or Abandonment by the 75th day after the application 
is filed.
    (2) In exemption proceedings, a petition containing an interim trail 
use statement are due within 10 days after the date the Notice of 
Exemption is published in the Federal Register.
    (3) If the regular abandonment or exemption request is investigated, 
comments will be accepted at any time during the time provided for 
making evidentiary filings in the investigation.
    (4) In Conrail abandonment proceedings under NERSA, interim trail 
use statements are due within 60 days after the date that Conrail's 
abandonment application is filed.
    (5) When an interim trail use comment(s) or petition(s) is filed, 
the railroad must submit a reply to the Commission within 10 days after 
the date the Commission issues a Notice of Findings in regular 
abandonment proceedings, and within 10 days after the date a petition 
requesting interim trail use is filed in an exemption or NERSA 
proceeding indicating whether and with whom it intends to negotiate an 
agreement.
    (6) Late-filed trail use statements must be supported by a statement 
showing good cause for late filing.
    (7) In proceedings where a Trails Act request is made, the 
Commission will determine whether the Trails Act is applicable.
    (c) Regular and NERSA abandonment proceedings. (1) If continued rail 
service does not occur pursuant to Sec. 1152.27, and a railroad intends 
to enter into an interim trail use/rail banking agreement, then the 
Commission will issue a Certificate of Interim Trail Use or Abandonment 
(CITU) to the railroad and to the interim trail user for that portion of 
the right-of-way to be covered by the agreement. The CITU will: Permit 
the railroad to discontinue service, cancel tariffs, and salvage track 
and material consistent with interim trail use and rail banking, as long 
as it is consistent with any other Commission order, 30 days after the 
date it is issued (10 days after issuance in Conrail proceedings); and 
permit the railroad to fully abandon the line if no agreement is reached 
180 days after it is issued, subject to appropriate conditions, 
including labor protection, and environmental matters.
    (2) The CITU will indicate that interim trail use is subject to 
future restoration of rail service, and subject to the user continuing 
to meet the financial obligations for the right-of-way. The CITU will 
also indicate that, if the user intends to terminate trail use, it must 
send the Commission a copy of the CITU and request that it be vacated on 
a specified date. The Commission will reopen the abandonment proceeding, 
vacate the CITU, and issue an effective abandonment certificate for the 
involved portion of the right-of-way. Copies of the abandonment 
certificate will be sent to:
    (i) The abandonment applicant;
    (ii) The owner of the right-of-way; and
    (iii) The current trail user.
    (3) If an application to construct and operate a rail line over the 
right-of-way is authorized under 49 U.S.C. 10901 and 49 CFR Part 1150, 
or exempted under 49 U.S.C. 10505, then the CITU will be vacated 
accordingly.
    (d) Exempt abandonment proceedings. (1) If a railroad intends to 
enter into an interim trail use/rail banking agreement, then the 
Commission will issue a Notice of Interim Trail Use or Abandonment 
(NITU) to the railroad and to the interim trail user for the portion of 
the right-of-way to be covered by the agreement. The NITU will permit 
the railroad to discontinue service, cancel tariffs, and salvage track 
and materials, consistent with interim trail use

[[Page 301]]

and rail banking, 30 days after the date it is issued, and permit the 
railroad to fully abandon the line if no agreement is reached 180 days 
after it is issued, subject to appropriate conditions, including labor 
protection, and environmental matters.
    (2) The NITU will indicate that interim trail use is subject to 
future restoration of rail service, and subject to the user continuing 
to meet the financial obligations for the right-of-way. The NITU will 
also indicate that if the user intends to terminate trail use, it must 
send the Commission a copy of the NITU and request that it be vacated on 
a specific date. The Commission will reopen the exemption proceeding, 
vacate the NITU, and reissue a Notice of Exemption for that portion of 
the right-of-way. Copies of the reissued Notice of Exemption will be 
sent to:
    (i) The abandonment exemption applicant;
    (ii) The owner of the right-of-way; and
    (iii) The trail user.
    (3) If an application to construct and operate a rail line over the 
right-of-way is authorized under 49 U.S.C. 10901 and 49 CFR Part 1150, 
or exempted under 49 U.S.C. 10505, then the NITU will be vacated 
accordingly.
    (e) Where late-filed trail use statements are accepted, the Director 
(or designee) will telephone the railroad to determine whether 
abandonment has been consummated and, if not, whether the railroad is 
willing to negotiate an interim trail use agreement. The railroad shall 
confirm, in writing, its response, within 5 days. If abandonment has 
been consummated, the trail use request will be dismissed. If 
abandonment has not been consummated but the railroad refuses to 
negotiate, then trail use will be denied. If abandonment has not been 
consummated and the railroad is willing to negotiate, the abandonment 
proceeding will be reopened, the certificate of abandonment decision 
granting an exemption or notice of exemption will be vacated, and an 
appropriate CITU or NITU will be issued. The effective date of the CITU 
or NITU will be the same date as the vacated certificate, decision, or 
notice.
    (f) When a trail user intends to terminate trail use and another 
person intends to become a trail user by assuming financial 
responsibility for the right-of-way, then the existing and future trail 
users shall file, jointly:
    (1) A copy of the extant CITU or NITU; and
    (2) A Statement of Willingness to Assume Financial Responsibility by 
the new trail user.

The parties shall indicate the date on which responsibility for the 
right-of-way is to transfer to the new trail user. The Commission will 
reopen the abandonment or exemption proceeding, vacate the existing NITU 
or CITU; and issue an appropriate replacement NITU or CITU to the new 
trail user.
    (g) In proceedings where a timely trail use statement is filed, but 
due to either the railroad's indication of its unwillingness to 
negotiate interim trail use agreement, or its failure to timely notify 
the Commission of its willingness to negotiate, a certificate of 
abandonment or an exemption notice or decision is issued instead of a 
CITU or NITU, and subsequently the railroad and trail use proponent 
nevertheless determine to negotiate an interim trail use agreement under 
the Trails Act, then the railroad and trail use proponent must file a 
joint pleading requesting that an appropriate CITU or NITU be issued. 
The Commission will reopen the proceeding, vacate the outstanding 
certificate, decision or notice (or portion thereof), and issue an 
appropriate CITU or NITU that will permit the parties to negotiate for a 
period agreed to by the parties in their joint filing, but not to exceed 
180 days, at the end of which, the CITU or NITU will convert into a 
certificate, decision, or notice permitting abandonment.

[51 FR 16852, May 7, 1986, as amended at 52 FR 46774, Dec. 10, 1987]



  Subpart D--Standards for Determining Costs, Revenues, and Return on 
                                  Value

    Source: 43 FR 7624, Feb. 24, 1978, unless otherwise noted. 
Redesignated at 47 FR 49581, Nov. 1, 1982.

[[Page 302]]



Sec. 1152.30  General.

    (a) Contents of subpart. (1) 49 U.S.C. 10905 directs the Commission 
to determine the extent to which the avoidable costs of providing rail 
service plus a reasonable return on the value of the line exceed the 
revenues attributable to the line. Section 205(e)(1)(B) of the Regional 
Rail Reorganization Act of 1973, as amended, directs the Office to 
publish standards for determining the ``avoidable costs of providing 
rail freight service'', as that phrase is used in section 10905. This 
subpart contains the methodology for such determinations and the 
standards necessary for application of those terms in the context of a 
particular proceeding. Such data will be used in reaching the 
Commission's findings on the merits of an abandonment of discontinuance 
proceeding and in making the necessary financial assistance 
determinations.
    (2) This subpart also sets forth a method by which the carrier may 
establish its Forecast Year estimates and Estimated Subsidy Payment to 
be included in its application (Sec. 1152.22(d) of this part). 
Furthermore, an offeror of financial assistance may use this method to 
formulate a subsidy offer and/or Proposed Subsidy Payment under 49 
U.S.C. 10905 and Sec. 1152.27 of Subpart C of this part.
    (b) Data collection. The owning or operating carrier shall establish 
a system to collect at branch level the data necessary to compute the 
base year data and the final subsidy payment. The collection and 
compilation of such data shall be in accordance with the Branch Line 
Accounting System (49 CFR Part 1201) established by the Office pursuant 
to section 205(e)(1)(a) of the Regional Rail Reorganization Act of 1973, 
as amended.
    (c) Final payment of financial assistance. (1) When a financial 
assistance agreement is concluded and rail service continued thereunder, 
the final annual payment will be adjusted to reflect the actual revenues 
derived, avoidable costs incurred, and value of the properties used in 
the subsidy year.
    (2) Where an adjustment results in an increase in the Estimated 
Subsidy Payment upon which the financial assistance agreement is based, 
the amount of such increase in excess of 15 percent of the estimated 
payment shall be treated as a carryover avoidable cost in the subsequent 
subsidy year. However, if the railroad notifies the subsidizer that the 
estimate will be exceeded by more than 15 percent in one of the 
Financial Status Reports (Sec. 1152.37) issued during the first ten 
months of the subsidy year or the increase results from an expense 
preapproved by the subsidizer, the adjusted amount shall be included in 
the final annual payment.

[41 FR 48520, Nov. 4, 1976, as amended at 43 FR 7625, Feb. 24, 1978. 
Redesignated at 47 FR 49581, Nov. 1, 1982, and amended at 47 FR 49582, 
Nov. 1, 1982; 48 FR 54238, Dec. 1, 1983; 53 FR 49667, Dec. 9, 1988]



Sec. 1152.31  Revenue and income attributable to branch lines.

    The revenue attributable to the rail properties is the total of the 
revenues assigned to the branch in accordance with this section, plus 
any subsidy payments that would cease upon discontinuance of service on 
the branch, for the subsidy year. The revenues assigned shall be derived 
from the following accounts:
    (a) Account 101-Freight. The revenue assigned under this account 
shall be the actual revenues, including transit revenues, accruing to 
the railroad, derived from waybills and other source documents, for all 
traffic that:
    (1) Originates and terminates on the branch;
    (2) Originates or terminates on the branch and is handled off the 
branch on the system but not on another carrier; and
    (3) Originates or terminates on the branch and is handled on another 
carrier.

All traffic that is received or forwarded through interchange at a point 
on the branch, including ferry operations, shall be considered as 
originating or terminating on the branch. The revenues of all other 
bridge or overhead traffic shall be attributed to the branch on the 
ratio of miles moved on the branch to miles moved on the system, 
provided, however, that the parties may agree on a mutually acceptable 
usage charge for bridge traffic in lieu of the mileage apportionment.

[[Page 303]]

    (b) Account 104--Switching; Account 105--Water transfers; Account 
106--Demurrage; Account 110--Incidental; Account 121--Joint Facility-
Credit; Account 122--Joint Facility-Debt; Account 506--Revenues from 
Properties Used in Other Than Carrier Operations; Account 510--
Miscellaneous Rent Income; Account 519--Miscellaneous Income. The 
revenues assigned under these accounts shall be the actual revenues 
accruing to the railroad that are directly attributable to the branch.
    (c) Conversion Chart For Revenue Accounts

------------------------------------------------------------------------
                                                                Present 
            Revenue account title                Previous       account 
                                                account No.       No.   
------------------------------------------------------------------------
Freight.....................................         101,109         101
Switching...................................             110         104
Water transfers.............................             113         105
Demurrage...................................             137         106
Incidental..................................  130, 132, 133,            
                                              135, 138, 139,            
                                               141, 142, 143         110
Joint facility-credit.......................             151         121
Joint facility-debt.........................             152         122
Revenues from property used in other than                               
 carrier operations, less expenses..........        502, 511    506, 534
Miscellaneous rent income...................             510         510
Miscellaneous income........................             519         519
------------------------------------------------------------------------


[43 FR 7624, Feb. 24, 1978. Redesignated at 47 FR 49581, Nov. 1, 1982 
and amended at 56 FR 61387, Dec. 3, 1991]



Sec. 1152.32  Calculation of avoidable costs.

    This section defines: Which cost elements are eligible for inclusion 
in the calculation of avoidable costs; the conditions under which 
certain cost elements become eligible for inclusion; and the basis of 
apportioning those cost elements which are not assigned to the branch on 
an actual expense basis. The avoidable costs of providing freight 
service on a branch shall be the total of the costs assigned to the 
branch in accordance with this section. The avoidable costs of providing 
freight service on a branch shall be just and reasonable, and shall not 
exceed those necessary for an honest and efficient operation. Those 
expenses apportioned under this section shall be derived from the latest 
Form R-1 or Form R-2 of the railroad filed with the ICC prior to the 
conclusion of the subsidy year, and assigned to the branch according to 
the procedures set forth in Sec. 1152.33 of these regulations. When the 
term ``Actual'' is specified as the basis for assigning an expense, it 
shall mean that the only costs which can be assigned to the account are 
those costs which are incurred solely as a result of the continuation of 
rail freight service on the branch. The accounts in the following 
charts, which list only the ``freight-only'' account numbers, shall 
include the portion of common expenses that have been apportioned to 
freight service.

----------------------------------------------------------------------------------------------------------------
                                                   Previous         Present     Basis of assignment to on-branch
     Operating expense group and accounts         account No.     account No.                 costs             
----------------------------------------------------------------------------------------------------------------
(a) Maintenance of way and structures                                                                           
  (1) Administration:                                                                                           
                                                                                                                
                     Track                                                                                      
                                                                                                                
  Salaries and wages..........................             201        11-13-02  Actual.                         
  Materials...................................  ..............        21-13-02      Do.                         
  Purchased services..........................  ..............        41-13-02      Do.                         
  Other expenses..............................  ..............        61-13-02      Do.                         
                                                                                                                
             Bridges and buildings                                                                              
                                                                                                                
  Salaries and wages..........................             201        11-13-03      Do.                         
  Materials...................................  ..............        21-13-03      Do.                         
  Purchased services..........................  ..............        41-13-03      Do.                         
  Other expenses..............................  ..............        61-13-03      Do.                         
                                                                                                                
                    Signals                                                                                     
                                                                                                                
  Salaries and wages..........................             201        11-13-04      Do.                         
  Materials...................................  ..............        21-13-04      Do.                         
  Purchased services..........................  ..............        41-13-04      Do.                         
  Other expenses..............................  ..............        61-13-04      Do.                         
                                                                                                                
                Communications                                                                                  
                                                                                                                
  Salaries and wages..........................             201        11-13-05      Do.                         
  Materials...................................  ..............        21-13-05      Do.                         
  Purchased services..........................  ..............        41-13-05      Do.                         

[[Page 304]]

                                                                                                                
  Other expenses..............................  ..............        61-13-05      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and wages..........................             201        11-13-06      Do.                         
  Materials...................................  ..............        21-13-06      Do.                         
  Purchased services..........................  ..............        41-13-06      Do.                         
  Other expenses..............................  ..............        61-13-06      Do.                         
                                                                                                                
  (2) Repair maintenance and other roadway--                                                                    
 running                                                                                                        
  Salaries and wages..........................             202        11-11-10      Do.                         
  Materials...................................  ..............        21-11-10      Do.                         
  Repairs by others--DR.......................  ..............        39-11-10      Do.                         
  Repairs for others--CR......................  ..............        40-11-10      Do.                         
  Purchased services..........................  ..............        41-11-10      Do.                         
  Other expenses..............................  ..............        61-11-10      Do.                         
                                                                                                                
              Roadway--switching                                                                                
                                                                                                                
  Salaries and wages..........................             202        11-12-10      Do.                         
  Materials...................................  ..............        21-12-10      Do.                         
  Repairs by others--DR.......................  ..............        39-12-10      Do.                         
  Repairs for others--CR......................  ..............        40-12-10      Do.                         
  Purchased services..........................  ..............        41-12-10      Do.                         
  Other expenses..............................  ..............        61-12-10      Do.                         
                                                                                                                
         Tunnels and subways--running                                                                           
                                                                                                                
  Salaries and wages..........................             206        11-11-11      Do.                         
  Materials...................................  ..............        21-11-11      Do.                         
  Repairs by others--DR.......................  ..............        39-11-11      Do.                         
  Repairs for others--CR......................  ..............        40-11-11      Do.                         
  Purchased services..........................  ..............        41-11-11      Do.                         
  Other expenses..............................  ..............        61-11-11      Do.                         
                                                                                                                
        Tunnels and subways--switching                                                                          
                                                                                                                
  Salaries and wages..........................             206        11-12-11      Do.                         
  Materials...................................  ..............        21-12-11      Do.                         
  Repairs by others--DR.......................  ..............        39-12-11      Do.                         
  Repairs for others--CR......................  ..............        40-12-11      Do.                         
  Purchased services..........................  ..............        41-12-11      Do.                         
  Other expenses..............................  ..............        61-12-11      Do.                         
                                                                                                                
         Bridges and culverts--running                                                                          
                                                                                                                
  Salaries and wages..........................         208-210        11-11-12      Do.                         
  Materials...................................  ..............        21-11-12      Do.                         
  Repairs by others--DR.......................  ..............        39-11-12      Do.                         
  Repairs for others--CR......................  ..............        40-11-12      Do.                         
  Purchased services..........................  ..............        41-11-12      Do.                         
  Other expenses..............................  ..............        61-11-12      Do.                         
                                                                                                                
        Bridges and culverts--switching                                                                         
                                                                                                                
  Salaries and wages..........................         208-210        11-12-12      Do.                         
  Materials...................................  ..............        21-12-12      Do.                         
  Repairs by others--DR.......................  ..............        39-12-12      Do.                         
  Repairs for others--CR......................  ..............        40-12-12      Do.                         
  Purchased services..........................  ..............        41-12-12      Do.                         
  Other expenses..............................  ..............        61-12-12      Do.                         
Ties--running--material.......................             212        21-11-13      Do.                         
Ties--switching--material.....................             212        21-12-13      Do.                         
Rails--running--material......................             214        21-11-14      Do.                         
Rails--switching--material....................             214        21-12-14      Do.                         
Other track material--running--material.......             216        21-11-15      Do.                         
Other track material--switching--material.....             216        21-12-15      Do.                         
Ballast--running--material....................             218        21-11-16      Do.                         
Ballast--switching--material..................             218        21-12-16      Do.                         
                                                                                                                
      Track laying and surfacing--running                                                                       
                                                                                                                
  Salaries and wages..........................             220        11-11-17      Do.                         
  Materials...................................  ..............        21-11-17      Do.                         
  Repairs by others--DR.......................  ..............        39-11-17      Do.                         
  Repairs for others--CR......................  ..............        40-11-17      Do.                         
  Purchased services..........................  ..............        41-11-17      Do.                         
  Other expenses..............................  ..............        61-11-17      Do.                         
                                                                                                                
     Track laying and surfacing--switching                                                                      
                                                                                                                
  Salaries and wages..........................             220        11-12-17      Do.                         
  Materials...................................  ..............        21-12-17      Do.                         
  Repairs by others--DR.......................  ..............        39-12-17      Do.                         
  Repairs for others--CR......................  ..............        40-12-17      Do.                         

[[Page 305]]

                                                                                                                
  Purchased services..........................  ..............        41-12-17      Do.                         
  Other expenses..............................  ..............        61-12-17      Do.                         
                                                                                                                
        Road property damaged--running                                                                          
                                                                                                                
  Salaries and wages..........................    202-220, 249        11-11-48      Do.                         
  Materials...................................  ..............        21-11-48      Do.                         
  Repairs by others--DR.......................  ..............        39-11-48      Do.                         
  Repairs for others--CR......................  ..............        40-11-48      Do.                         
  Purchased services..........................  ..............        41-11-48      Do.                         
  Other expenses..............................  ..............        61-11-48      Do.                         
                                                                                                                
       Road property damaged--switching                                                                         
                                                                                                                
  Salaries and wages..........................    202-220, 249        11-12-48      Do.                         
  Materials...................................  ..............        21-12-48      Do.                         
  Repairs by others--DR.......................  ..............        39-12-48      Do.                         
  Repairs for others--CR......................  ..............        40-12-48      Do.                         
  Purchased services..........................  ..............        41-12-48      Do.                         
  Other Expenses..............................  ..............        61-12-48      Do.                         
                                                                                                                
         Road property damaged--other                                                                           
                                                                                                                
  Salaries and wages..........................    221, 227-247        11-13-48      Do.                         
  Materials...................................        253, 257        21-13-48      Do.                         
  Repairs by others--DR.......................        265, 269        39-13-48      Do.                         
  Repairs for others--CR......................  ..............        40-13-48      Do.                         
  Purchased services..........................  ..............        41-13-48      Do.                         
  Other expenses..............................  ..............        61-13-48      Do.                         
                                                                                                                
       Signals and interlockers--running                                                                        
                                                                                                                
  Salaries and wages..........................             249        11-11-19      Do.                         
  Materials...................................  ..............        21-11-19      Do.                         
  Repairs by others--DR.......................  ..............        39-11-19      Do.                         
  Repairs for others--CR......................  ..............        40-11-19      Do.                         
  Purchased services..........................  ..............        41-11-19      Do.                         
  Other expenses..............................  ..............        61-11-19      Do.                         
                                                                                                                
      Signals and interlockers--switching                                                                       
                                                                                                                
  Salaries and wages..........................             249        11-12-19      Do.                         
  Materials...................................  ..............        21-12-19      Do.                         
  Repairs by others--DR.......................  ..............        39-12-19      Do.                         
  Repairs for others--CR......................  ..............        40-12-19      Do.                         
  Purchased services..........................  ..............        41-12-19      Do.                         
  Other expenses..............................  ..............        61-12-19      Do.                         
                                                                                                                
            Communications systems                                                                              
                                                                                                                
  Salaries and wages..........................             247        11-13-20      Do.                         
  Materials...................................  ..............        21-13-20      Do.                         
  Repairs by others--DR.......................  ..............        39-13-20      Do.                         
  Repairs for others--CR......................  ..............        40-13-20      Do.                         
  Purchased services..........................  ..............        41-13-20      Do.                         
  Other expenses..............................  ..............        61-13-20      Do.                         
                                                                                                                
            Electric power systems                                                                              
                                                                                                                
  Salaries and wages..........................   253, 257, 304        11-13-21      Do.                         
  Materials...................................  ..............        21-13-21      Do.                         
  Repairs by others--DR.......................  ..............        39-13-21      Do.                         
  Repairs for others--CR......................  ..............        40-13-21      Do.                         
  Purchased services..........................  ..............        41-13-21      Do.                         
  Other expenses..............................  ..............        61-13-21      Do.                         
                                                                                                                
       Highway grade crossings--running                                                                         
                                                                                                                
  Salaries and wages..........................             273        11-11-22      Do.                         
  Materials...................................  ..............        21-11-22      Do.                         
  Repairs by others--DR.......................  ..............        39-11-22      Do.                         
  Repairs for others--CR......................  ..............        40-11-22      Do.                         
  Purchased services..........................  ..............        41-11-22      Do.                         
  Other expenses..............................  ..............        61-11-22      Do.                         
                                                                                                                
      Highway grade crossings--switching                                                                        
                                                                                                                
  Salaries and wages..........................             273        11-12-22      Do.                         
  Materials...................................  ..............        21-12-22      Do.                         
  Repairs by others--DR.......................  ..............        39-12-22      Do.                         
  Repairs for others--CR......................  ..............        40-12-22      Do.                         
  Purchased services..........................  ..............        41-12-22      Do.                         
  Other expenses..............................  ..............        61-12-22      Do.                         
                                                                                                                
         Station and office buildings                                                                           
                                                                                                                
  Salaries and wages..........................             227        11-13-23      Do.                         
  Materials...................................  ..............        21-13-23      Do.                         

[[Page 306]]

                                                                                                                
  Repairs by others--DR.......................  ..............        39-13-23      Do.                         
  Repairs for others--CR......................  ..............        40-13-23      Do.                         
  Purchased services..........................  ..............        41-13-23      Do.                         
  Other expenses..............................  ..............        61-13-23      Do.                         
                                                                                                                
        Station buildings--locomotives                                                                          
                                                                                                                
  Salaries and wages..........................        235, 253        11-13-24      Do.                         
  Materials...................................         and 257        21-13-24      Do.                         
  Repairs by others--DR.......................  ..............        39-13-24      Do.                         
  Repairs for others--CR......................  ..............        40-13-24      Do.                         
  Purchased services..........................  ..............        41-13-24      Do.                         
  Other expenses..............................  ..............        61-13-24      Do.                         
                                                                                                                
         Shop buildings--freight cars                                                                           
                                                                                                                
  Salaries and wages..........................        235, 253        11-13-25      Do.                         
  Materials...................................         and 257        21-13-25      Do.                         
  Repairs by others--DR.......................  ..............        39-13-25      Do.                         
  Repairs for others--CR......................  ..............        40-13-25      Do.                         
  Purchased services..........................  ..............        41-13-25      Do.                         
  Other expenses..............................  ..............        61-13-25      Do.                         
                                                                                                                
        Shop buildings--other equipment                                                                         
                                                                                                                
  Salaries and wages..........................        235, 253        11-13-26      Do.                         
  Materials...................................         and 257        21-13-26      Do.                         
  Repairs by others--DR.......................  ..............        39-13-26      Do.                         
  Repairs for others--CR......................  ..............        40-13-26      Do.                         
  Purchased services..........................  ..............        41-13-26      Do.                         
  Other expenses..............................  ..............        61-13-26      Do.                         
                                                                                                                
        Locomotive servicing facilities                                                                         
                                                                                                                
  Salaries and wages..........................        231, 233        11-13-27      Do.                         
  Materials...................................  ..............        21-13-27      Do.                         
  Repairs by others--DR.......................  ..............        39-13-27      Do.                         
  Repairs for others--CR......................  ..............        40-13-27      Do.                         
  Purchased services..........................  ..............        41-13-27      Do.                         
  Other expenses..............................  ..............        61-13-27      Do.                         
                                                                                                                
    Miscellaneous buildings and structures                                                                      
                                                                                                                
  Salaries and wages..........................  221, 229, 239,        11-13-28      Do.                         
  Materials...................................        265, 304        21-13-28      Do.                         
  Repairs by others--DR.......................  ..............        39-13-28      Do.                         
  Repairs for others--CR......................  ..............        40-13-28      Do.                         
  Purchased services..........................  ..............        41-13-28      Do.                         
  Other expenses..............................  ..............        61-13-28      Do.                         
                                                                                                                
                Coal terminals                                                                                  
                                                                                                                
  Salaries and wages..........................             243        11-13-29      Do.                         
  Materials...................................  ..............        21-13-29      Do.                         
  Repairs by others--DR.......................  ..............        39-13-29      Do.                         
  Repairs for others--CR......................  ..............        40-13-29      Do.                         
  Purchased services..........................  ..............        41-13-29      Do.                         
  Other expenses..............................  ..............        61-13-29      Do.                         
                                                                                                                
                 Ore terminals                                                                                  
                                                                                                                
  Salaries and wages..........................             243        11-13-30      Do.                         
  Materials...................................  ..............        21-13-30      Do.                         
  Repairs by others--DR.......................  ..............        39-13-30      Do.                         
  Repairs for others--CR......................  ..............        40-13-30      Do.                         
  Purchased services..........................  ..............        41-13-30      Do.                         
  Other expenses..............................  ..............        61-13-30      Do.                         
                                                                                                                
              TOFC/COFC terminals                                                                               
                                                                                                                
  Salaries and wages..........................             244        11-13-31      Do.                         
  Materials...................................  ..............        21-13-31      Do.                         
  Repairs by others--DR.......................  ..............        39-13-31      Do.                         
  Repairs for others--CR......................  ..............        40-13-31      Do.                         
  Purchased services..........................  ..............        41-13-21      Do.                         
  Other expenses..............................  ..............        61-13-31      Do.                         
                                                                                                                
            Other marine terminals                                                                              
                                                                                                                
  Salaries and wages..........................             241        11-13-32      Do.                         
  Materials...................................  ..............        21-13-32      Do.                         
  Repairs by others--DR.......................  ..............        39-13-32      Do.                         
  Repairs for others--CR......................  ..............        40-13-32      Do.                         
  Purchased services..........................  ..............        41-13-32      Do.                         
  Other expenses..............................  ..............        61-13-32      Do.                         
                                                                                                                

[[Page 307]]

                                                                                                                
    Motor vehicle loading and distribution                                                                      
                  facilities                                                                                    
                                                                                                                
  Salaries and wages..........................             227        11-13-33      Do.                         
  Materials...................................  ..............        21-13-33      Do.                         
  Repairs by others--DR.......................  ..............        39-13-33      Do.                         
  Repairs for others--CR......................  ..............        40-13-33      Do.                         
  Purchased services..........................  ..............        41-13-33      Do.                         
  Other expenses..............................  ..............        61-13-33      Do.                         
                                                                                                                
   Facilities for other specialized service                                                                     
                  operations                                                                                    
                                                                                                                
  Salaries and wages..........................        227, 237        11-13-35      Do.                         
  Materials...................................  ..............        21-13-35      Do.                         
  Repairs by others--DR.......................  ..............        39-13-35      Do.                         
  Repairs for others--CR......................  ..............        40-13-35      Do.                         
  Purchased services..........................  ..............        41-13-35      Do.                         
  Other expenses..............................  ..............        61-13-35      Do.                         
                                                                                                                
               Roadway machines                                                                                 
                                                                                                                
  Salaries and wages..........................             269        11-13-36  Daily repair costs per GMA, for 
                                                                                 each type of machine used on   
                                                                                 the branch line sec.           
                                                                                 1152.33(a)(1).                 
  Materials...................................  ..............        21-13-36      Do.                         
  Repairs by others--DR.......................  ..............        39-13-36      Do.                         
  Repairs for others--CR......................  ..............        40-13-36      Do.                         
  Purchased services..........................  ..............        41-13-36      Do.                         
  Other expenses..............................  ..............        61-13-36      Do.                         
                                                                                                                
           Small tools and supplies                                                                             
                                                                                                                
  Salaries and wages..........................  ..............  ..............  ................................
  Materials...................................  ..............  ..............  ................................
  Repairs by others--DR.......................  ..............  ..............  ................................
  Repairs for others--CR......................  ..............  ..............  ................................
  Purchased services..........................  ..............  ..............  ................................
  Other expenses..............................             271        11-13-37  Assign supplies on the daily    
                                                                                 costs per GMA, for each type of
                                                                                 machine used on the branch;    
                                                                                 small tool assign to           
                                                                                 maintenance of way 11-11/12-10 
                                                                                 through 17, and 48, sec.       
                                                                                 1152.33(a)(2).                 
  Materials...................................  ..............        21-13-37      Do.                         
  Repairs by others--DR.......................  ..............        39-13-37      Do.                         
  Repairs for others--CR......................  ..............        40-13-37      Do.                         
  Purchased services..........................  ..............        41-13-37      Do.                         
  Other expenses..............................  ..............        61-13-37      Do.                         
                                                                                                                
                 Snow removal                                                                                   
                                                                                                                
  Salaries and wages..........................             272        11-13-38  Actual.                         
                                                                      21-13-38      Do.                         
                                                                      39-13-38      Do.                         
                                                                      40-13-38      Do.                         
                                                                      41-13-38      Do.                         
                                                                      61-13-38      Do.                         
Fringe benefits--running......................        277, 457        12-11-00  11-11-XX, sec. 1152.33(a)(3)(i).
Fringe benefits--switching....................        277, 457        12-12-00  11-12-XX, sec.                  
                                                                                 1152.33(a)(3)(ii).             
Fringe benefits--other........................        277, 457        12-13-00  11-13-XX, sec.                  
                                                                                 1152.33(a)(3)(iii).            
                                                                                                                
       Casualties and insurance--running                                                                        
                                                                                                                
  Other casualties............................             274        52-11-00  Actual.                         
  Insurance...................................             275        53-11-00      Do.                         
                                                                                                                
      Casualties and insurance--switching                                                                       
                                                                                                                
  Other casualties............................             274        52-12-00      Do.                         
  Insurance...................................             275        53-12-00      Do.                         
Lease rentals--debit--running.................             542        31-11-00      Do.                         
Lease rentals--debit--switching...............             542        31-12-00      Do.                         
Lease rentals--debit--other...................             542        31-13-00      Do.                         
Lease rentals--credit--running................             509        32-11-00      Do.                         
Lease rentals--credit--switching..............             509        32-12-00      Do.                         
Lease rentals--credit--other..................             509        32-13-00      Do.                         
Joint facility rent--debit--running...........             541        33-11-00      Do.                         
Joint facility rent--debit--switching.........             541        33-12-00      Do.                         
                                                                                                                

[[Page 308]]

                                                                                                                
        Casualties and insurance--other                                                                         
                                                                                                                
  Other casualties............................        274, 420        52-13-00      Do.                         
  Insurance...................................             275        53-13-00      Do.                         
Joint facility--debit--other..................             541        33-13-00      Do.                         
Joint facility rent--credit--running..........             508        34-11-00      Do.                         
Joint facility rent--credit--switching........             508        34-12-00      Do.                         
Joint facility rent--credit--other............             508        34-13-00      Do.                         
Other rents--debit--running...................             543        35-11-00      Do.                         
Other rents--debit--switching.................             543        35-12-00      Do.                         
Other rents--debit--other.....................             543        35-13-00      Do.                         
Other rents--credit--running..................             510        36-11-00      Do.                         
Other rents--credit--switching................             510        36-12-00      Do.                         
Other rents--credit--other....................             510        36-13-00      Do.                         
Depreciation--running.........................             266        62-11-00      Do.                         
Depreciation--switching.......................             266        62-12-00      Do.                         
Depreciation--other...........................        266, 305        62-13-00      Do.                         
Joint facility--debit--running................             278        37-11-00      Do.                         
Joint facility--debit--switching..............             278        37-12-00      Do.                         
Joint facility--debit--other..................             278        37-13-00      Do.                         
Joint facility--credit--running...............             279        38-11-00      Do.                         
Joint facility--credit--switching.............             279        38-12-00      Do.                         
Joint facility--credit--other.................             279        38-13-00      Do.                         
                                                                                                                
  Dismantling retired road property--running                                                                    
                                                                                                                
  Salaries and wages..........................             270        11-11-39      Do.                         
  Materials...................................  ..............        21-11-39      Do.                         
  Purchased services..........................  ..............        41-11-39      Do.                         
  Other expenses..............................  ..............        61-11-39      Do.                         
                                                                                                                
 Dismantling retired road property--switching                                                                   
                                                                                                                
  Salaries and wages..........................             270        11-12-39      Do.                         
  Materials...................................  ..............        21-12-39      Do.                         
  Purchased services..........................  ..............        41-12-39      Do.                         
  Other expenses..............................  ..............        61-12-39      Do.                         
                                                                                                                
   Dismantling retired road property--other                                                                     
                                                                                                                
  Salaries and wages..........................        270, 306        11-13-39      Do.                         
  Materials...................................  ..............        21-13-39      Do.                         
  Purchased services..........................  ..............        41-13-39      Do.                         
  Other expenses..............................  ..............        61-13-39      Do.                         
                                                                                                                
                Other--running                                                                                  
                                                                                                                
  Salaries and wages..........................    281-282, 274        11-11-99      Do.                         
  Materials...................................  ..............        21-11-99      Do.                         
  Purchased services..........................  ..............        41-11-99      Do.                         
  Other expenses..............................  ..............        61-11-99      Do.                         
                                                                                                                
               Other--switching                                                                                 
                                                                                                                
  Salaries and wages..........................    281-282, 274        11-12-99      Do.                         
  Materials...................................  ..............        21-12-99      Do.                         
  Purchased Services..........................  ..............        41-12-99      Do.                         
  Other Expenses..............................  ..............        61-12-99      Do.                         
                                                                                                                
                 Other--other                                                                                   
                                                                                                                
  Salaries and wages..........................    281-282, 274        11-13-99      Do.                         
  Materials...................................  ..............        21-13-99      Do.                         
  Purchased services..........................  ..............        41-13-99      Do.                         
  Other expenses..............................  ..............        61-13-99      Do.                         
(b) Maintenance of equipment                                                                                    
  (1) Locomotives:                                                                                              
                                                                                                                
                Administration                                                                                  
                                                                                                                
  Salaries and wages..........................             301        11-21-01      Do.                         
  Materials...................................  ..............        21-21-01      Do.                         
  Purchased services..........................  ..............        41-21-01      Do.                         
  Other expenses..............................  ..............        61-21-01      Do.                         
                                                                                                                
            Repairs and maintenance                                                                             
                                                                                                                
  Salaries and wages..........................             311        11-21-41  Road diesel and road electric   
                                                                                 locomotive gross ton miles.    
                                                                                 Yard diesel and yard electric  
                                                                                 locomotive unit hours, Sec.    
                                                                                 1152.33(b)(1).                 
  Materials...................................  ..............        21-21-41      Do.                         
  Repairs by others--DR.......................  ..............        39-21-41      Do.                         
  Repairs for others--CR......................  ..............        40-21-41      Do.                         

[[Page 309]]

                                                                                                                
  Purchased services..........................  ..............        41-21-41      Do.                         
  Other expenses..............................  ..............        61-21-41      Do.                         
                                                                                                                
               Machinery repair                                                                                 
                                                                                                                
  Salaries and wages..........................             302        11-21-40  Actual.                         
  Materials...................................  ..............        21-21-40      Do.                         
  Repairs by others--DR.......................  ..............        39-21-40      Do.                         
  Repairs for others--CR......................  ..............        40-21-40      Do.                         
  Purchased services..........................  ..............        41-21-40      Do.                         
  Other expenses..............................  ..............        61-21-40      Do.                         
                                                                                                                
               Equipment damaged                                                                                
                                                                                                                
  Salaries and wages..........................             311        11-21-48      Do.                         
  Materials...................................  ..............        21-21-48      Do.                         
  Repairs by others--DR.......................  ..............        39-21-48      Do.                         
  Repairs for others--CR......................  ..............        40-21-48      Do.                         
  Purchased services..........................  ..............        41-21-48      Do.                         
  Other expenses..............................  ..............        61-21-48      Do.                         
                                                                                                                
               Equipment damaged                                                                                
                                                                                                                
Fringe benefits...............................        335, 457        12-21-00  11-21-XX, sec. 1152.33(b)(3)(i).
                                                                                                                
        Other casualties and insurance                                                                          
                                                                                                                
  Other casualties............................             332        52-21-00  Actual.                         
  Insurance...................................             333        53-21-00      Do.                         
Lease rentals--debit..........................             537        31-21-00      Do.                         
Lease rentals--credit.........................             504        32-21-00      Do.                         
Joint facility rent--debit....................             541        33-21-00      Do.                         
Joint facility rent--credit...................             508        34-21-00      Do.                         
Other rents--debit............................             537        35-21-00      Do.                         
Other rents--credit...........................             504        36-21-00      Do.                         
Joint facility--debit.........................             336        37-21-00      Do.                         
Joint facility--credit........................             337        38-21-00      Do.                         
Depreciation..................................        331, 305        62-21-00  All locomotives, locomotive unit
                                                                                 hours, sec. 1152.33(b)(2).     
                                                                                                                
         Dismantling retired property                                                                           
                                                                                                                
  Salaries and wages..........................        306, 329        11-21-39  Actual.                         
  Materials...................................  ..............        21-21-39      Do.                         
  Purchased services..........................  ..............        41-21-39      Do.                         
  Other expenses..............................  ..............        61-21-39      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and wages..........................        339, 332        11-21-99      Do.                         
  Materials...................................             339        21-21-99      Do.                         
  Purchased services..........................             339        41-21-99      Do.                         
  Other expenses..............................        339, 332        61-21-99      Do.                         
  (2) Freight cars:                                                                                             
                                                                                                                
                Administration                                                                                  
                                                                                                                
  Salaries and wages..........................             301        11-22-01      Do.                         
  Materials...................................  ..............        21-22-01      Do.                         
  Purchased services..........................  ..............        41-22-01      Do.                         
  Other expenses..............................  ..............        61-22-01      Do.                         
                                                                                                                
               Machinery repair                                                                                 
                                                                                                                
  Salaries and wages..........................             302        11-22-40      Do.                         
  Materials...................................  ..............        21-22-40      Do.                         
  Repairs by others--DR.......................  ..............        39-22-40      Do.                         
  Repairs for others--CR......................  ..............        40-22-40      Do.                         
  Purchased services..........................  ..............        41-22-40      Do.                         
  Other expenses..............................  ..............        61-22-40      Do.                         
                                                                                                                
               Equipment damage                                                                                 
                                                                                                                
  Salaries and wages..........................             314        11-22-48      Do.                         
  Materials...................................  ..............        21-22-48      Do.                         
  Repairs by others--DR.......................  ..............        39-22-48      Do.                         
  Repairs for others--CR......................  ..............        40-22-48      Do.                         
  Purchased services..........................  ..............        41-22-48      Do.                         
  Other expenses..............................  ..............        61-22-48      Do.                         
Fringe benefits...............................        335, 457        12-22-00  11-22-XX, sec. 1152.33-         
                                                                                 (b)(3)(iii).                   
                                                                                                                
        Other casualties and insurance                                                                          
                                                                                                                
  Other casualties............................             332        52-22-00  Actual.                         
  Insurance...................................             333        53-22-00      Do.                         

[[Page 310]]

                                                                                                                
Joint facility rent--DR.......................             541        33-22-00      Do.                         
Joint facility rent--CR.......................             508        34-22-00      Do.                         
Joint facility--DR............................             336        37-22-00      Do.                         
Joint facility--CR............................             337        38-22-00      Do.                         
                                                                                                                
         Dismantling retired property                                                                           
                                                                                                                
  Salaries and wages..........................        306, 329        11-22-39      Do.                         
  Materials...................................  ..............        21-22-39      Do.                         
  Purchased services..........................  ..............        41-22-39      Do.                         
  Other expenses..............................  ..............        61-22-39      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and wages..........................   330, 339, 332        11-22-99      Do.                         
  Materials...................................  ..............        21-22-99      Do.                         
  Purchased services..........................  ..............        41-22-99      Do.                         
  Other expenses..............................  ..............        61-22-99      Do.                         
                                                                                                                
Freight car costs per day and per mile:                                                                         
                                                                                                                
            Repair and maintenance                                                                              
                                                                                                                
  Salaries and wages..........................             314        11-22-42  These accounts are used to      
                                                                                 develop the cost per car day   
                                                                                 and per car mile for each type 
                                                                                 of car, sec. 1152.32(g).       
  Materials...................................  ..............        21-22-42      Do.                         
  Repairs by others--DR.......................  ..............        39-22-42      Do.                         
  Repairs for others--CR......................  ..............        40-22-42      Do.                         
  Purchased services..........................  ..............        41-22-42      Do.                         
  Other expenses..............................  ..............        61-22-42      Do.                         
Lease rentals--DR.............................             536        31-22-00  ................................
Lease rentals--CR.............................             503        32-22-00  ................................
Depreciation..................................        331, 305        62-22-00  ................................
Other rents--DR...............................             536        35-22-00  ................................
  Other rents--CR.............................             503        36-22-00  ................................
  (3) Other equipment:                                                                                          
                                                                                                                
                Administration                                                                                  
                                                                                                                
  Salaries and wages..........................             301        11-23-01  Actual.                         
  Materials...................................  ..............        21-23-01      Do.                         
  Purchased services..........................  ..............        41-23-01      Do.                         
  Other expenses..............................  ..............        61-23-01      Do.                         
                                                                                                                
Repair and maintenance:                                                                                         
                                                                                                                
   Trucks, trailers and containers--revenue                                                                     
                    service                                                                                     
                                                                                                                
  Salaries and wages..........................             318        11-23-43      Do.                         
  Materials...................................  ..............        21-23-43      Do.                         
  Repairs by others--DR.......................  ..............        39-23-43      Do.                         
  Repairs for others--CR......................  ..............        40-23-43      Do.                         
  Purchased services..........................  ..............        41-23-43      Do.                         
  Other expenses..............................  ..............        61-23-43      Do.                         
                                                                                                                
      Floating equipment--revenue service                                                                       
                                                                                                                
  Salaries and wages..........................             323        11-23-44      Do.                         
  Materials...................................  ..............        21-23-44      Do.                         
  Repairs by others--DR.......................  ..............        39-23-44      Do.                         
  Repairs for others--CR......................  ..............        40-23-44      Do.                         
  Purchased services..........................  ..............        41-23-44      Do.                         
  Other expenses..............................  ..............        61-23-44      Do.                         
                                                                                                                
         Computer and data processing                                                                           
                                                                                                                
  Salaries and wages..........................           (\1\)        11-23-46      Do.                         
  Materials...................................  ..............        21-23-46      Do.                         
  Repairs by others--DR.......................  ..............        39-23-46      Do.                         
  Repairs for others--CR......................  ..............        40-23-46      Do.                         
  Purchased services..........................  ..............        41-23-46      Do.                         
  Other expenses..............................  ..............        61-23-46      Do.                         
                                                                                                                
                   Machinery                                                                                    
                                                                                                                
  Salaries and wages..........................             302        11-23-40      Do.                         
  materials...................................  ..............        21-23-40      Do.                         
  Repairs by others--DR.......................  ..............        39-23-40      Do.                         
  Repairs for others--CR......................  ..............        40-23-40      Do.                         
  Purchased services..........................  ..............        41-23-40      Do.                         
  Other expenses..............................  ..............        61-23-40      Do.                         
                                                                                                                
     Work and other non revenue equipment                                                                       
                                                                                                                
  Salaries and wages..........................        326, 328        11-23-47      Do.                         

[[Page 311]]

                                                                                                                
  Materials...................................  ..............        21-23-47      Do.                         
  Repairs by others--DR.......................  ..............        39-23-47      Do.                         
  Repairs for others--CR......................  ..............        40-23-47      Do.                         
  Purchased services..........................  ..............        41-23-47      Do.                         
  Other expenses..............................  ..............        61-23-47      Do.                         
                                                                                                                
               Equipment damaged                                                                                
                                                                                                                
  Salaries and wages..........................  318, 323, 326,        11-23-48      Do.                         
                                                           328                                                  
  Materials...................................  ..............        21-23-48      Do.                         
  Repairs by others--DR.......................  ..............        39-23-48      Do.                         
  Repairs for others--CR......................  ..............        40-23-38      Do.                         
  Purchased services..........................  ..............        41-23-48      Do.                         
  Other expenses..............................  ..............        61-23-48      Do.                         
                                                                                                                
               Equipment damaged                                                                                
                                                                                                                
Fringe benefits...............................        335, 457        12-23-00  11-23-XX, sec.                  
                                                                                 1152.33(b)(3)(ii).             
                                                                                                                
         Other casualties and insurance                                                                         
                                                                                                                
  Other casualties............................             332        52-23-00  Actual.                         
  Insurance...................................             333        53-23-00      Do.                         
Lease rentals--DR.............................        539, 540        31-23-00      Do.                         
Lease rentals--CR.............................        506, 507        32-23-00      Do.                         
Joint facility rent--DR.......................             541        33-23-00      Do.                         
Joint facility rent--CR.......................             508        34-23-00      Do.                         
Other rents--DR...............................        539, 540        35-23-00      Do.                         
Other rents--CR...............................        506, 507        36-23-00      Do.                         
Depreciation..................................        331, 305        62-23-00      Do.                         
Joint facility--DR............................             336        37-23-00      Do.                         
Joint facility--CR............................             337        38-23-00      Do.                         
                                                                                                                
         Dismantling retired property                                                                           
                                                                                                                
  Salaries and wages..........................        306, 329        11-23-39      Do.                         
  Materials...................................  ..............        21-23-39      Do.                         
  Purchased services..........................  ..............        41-23-39      Do.                         
  Other expenses..............................  ..............        61-23-39      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and wages..........................        339, 332        11-23-99      Do.                         
  Materials...................................             339        21-23-99      Do.                         
  Purchased services..........................             339        41-23-99      Do.                         
  Other expenses..............................        339, 332        61-23-99      Do.                         
                                                                                                                
(c) Transportation                                                                                              
  (1) Train operations:                                                                                         
                                                                                                                
                Administration                                                                                  
                                                                                                                
  Salaries and wages..........................             371        11-31-01      Do.                         
  Materials...................................  ..............        21-31-01      Do.                         
  Purchased services..........................  ..............        41-31-01      Do.                         
  Other expenses..............................  ..............        61-31-01      Do.                         
                                                                                                                
                 Engine crews                                                                                   
                                                                                                                
  Salaries and wages..........................             392        11-31-56      Do.                         
  Materials...................................             402        21-31-56  Train hours, sec.               
                                                                                 1152.33(c)(1)(i).              
  Purchased services..........................             402        41-31-56  Actual.                         
  Other expenses..............................             402        61-31-56      Do.                         
                                                                                                                
                  Train crews                                                                                   
                                                                                                                
  Salaries and wages..........................             401        11-31-57      Do.                         
  Materials...................................             402        21-31-57  Trains hours, sec.              
                                                                                 1152.33(c)(1)(i).              
  Purchased services..........................             402        41-31-57  Actual.                         
  Other expenses..............................             402        61-31-57      Do.                         
                                                                                                                
              Dispatching trains                                                                                
                                                                                                                
  Salaries and wages..........................             372        11-31-58      Do.                         
  Materials...................................  ..............        21-31-58      Do.                         
  Purchased services..........................  ..............        41-31-58      Do.                         
  Other experses..............................  ..............        61-31-58      Do.                         
                                                                                                                
      Operating signals and interlockers                                                                        
                                                                                                                
  Salaries and wages..........................             404        11-31-59      Do.                         
  Materials...................................  ..............        21-31-59      Do.                         
  Purchased services..........................  ..............        41-31-59      Do.                         
  Other expenses..............................  ..............        61-31-59      Do.                         
                                                                                                                

[[Page 312]]

                                                                                                                
             Operating drawbridges                                                                              
                                                                                                                
  Salaries and wages..........................             406        11-31-60      Do.                         
  Materials...................................  ..............        21-31-60      Do.                         
  Purchased services..........................  ..............        41-31-60      Do.                         
  Other expenses..............................  ..............        61-31-60      Do.                         
                                                                                                                
          Highway crossing protection                                                                           
                                                                                                                
  Salaries and wages..........................             405        11-31-61      Do.                         
  Materials...................................  ..............        21-31-61      Do.                         
  Purchased services..........................  ..............        41-31-61      Do.                         
  Other expenses..............................  ..............        61-31-61      Do.                         
                                                                                                                
     Train and inspection and lubrication                                                                       
                                                                                                                
  Salaries and wages..........................   314, 402, 311        11-31-62  Train hours, Sec.               
                                                                                 1152.33(c)(1)(i).              
  Materials...................................  ..............        21-31-62      Do.                         
  Purchased services..........................  ..............        41-31-62  Actual.                         
  Other expenses..............................  ..............        61-31-62      Do.                         
                                                                                                                
                Locomotive fuel                                                                                 
                                                                                                                
  Salaries and wages..........................  ..............  ..............  ................................
  Materials...................................  ..............  ..............  ................................
  Purchased services..........................  ..............  ..............  ................................
  Other expenses..............................             394  11-31-671-31-6  Diesel locomotive unit hours,   
                                                                741-31-6761-31   Sec. 1152.33(c)(1)(ii).        
                                                                           -67                                  
                                                                                                                
   Electric power purchased or produced for                                                                     
                 motive power                                                                                   
                                                                                                                
  Salaries and wages..........................        395, 445        11-31-68  Electric locomotive unit hours, 
                                                                                 sec. 1152.33(c)(1)(iii).       
  Materials...................................        395, 445        21-31-68      Do.                         
  Purchased services..........................   395, 396, 445        41-31-68      Do                          
  Other expenses..............................        395, 445        61-31-68      Do.                         
                                                                                                                
             Servicing locomotives                                                                              
                                                                                                                
  Salaries and wages..........................             400        11-31-69  Locomotive unit miles, sec.     
                                                                                 1152.33(c)(1)(iv).             
  Materials...................................  ..............        21-31-69      Do.                         
  Purchased services..........................  ..............        41-31-69      Do.                         
  Other expenses..............................  ..............        61-31-69      Do.                         
Freight lost or damaged--solely related.......        418, 419        51-31-00  Actual.                         
                                                                                                                
                Clearing wrecks                                                                                 
                                                                                                                
  Salaries and wages..........................             415        11-31-63      Do.                         
  Materials...................................  ..............        21-31-63      Do.                         
  Purchased services..........................  ..............        41-31-63      Do.                         
  Other expenses..............................  ..............        61-31-63      Do.                         
Fringe benefits...............................        409, 457        12-31-00  11-31-XX, sec. 1152.33(c)(4)(i).
                                                                                                                
        Other casualties and insurance                                                                          
                                                                                                                
  Other casualties............................   416, 417, 420        52-31-00  Actual.                         
  Insurance...................................             414        53-31-00      Do.                         
  Joint facility--DR..........................             412        37-31-00      Do.                         
  Joint facility--CR..........................             413        38-31-00      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and wages..........................   402, 411, 420        11-31-99      Do.                         
  Materials...................................  ..............        21-31-99      Do.                         
  Purchased services..........................  ..............        41-31-99      Do.                         
  Other expenses..............................  ..............        61-31-99      Do.                         
  (2) Yard operations:                                                                                          
                                                                                                                
                Administration                                                                                  
                                                                                                                
  Salaries and wages..........................             371        11-32-01      Do.                         
  Materials...................................  ..............        21-32-01      Do.                         
  Purchased services..........................  ..............        41-32-01      Do.                         
  Other expenses..............................  ..............        61-32-01      Do.                         
                                                                                                                
                 Switch crews                                                                                   
                                                                                                                
  Salaries and wages..........................        378, 380        11-32-64      Do.                         
  Materials...................................             389        21-32-64  Locomotive unit hours, sec.     
                                                                                 1152.33(c)(2)(i)               
  Purchased services..........................             389        41-32-64  Actual.                         
  Other expenses..............................             389        61-32-64      Do.                         
                                                                                                                
            Controlling operations                                                                              
                                                                                                                
  Salaries and wages..........................             377        11-32-65      Do.                         

[[Page 313]]

                                                                                                                
  Materials...................................             389        21-32-65      Do.                         
  Purchased services..........................             389        41-32-65      Do.                         
  Other expenses..............................             389        61-32-65      Do.                         
                                                                                                                
          Yard and terminal clerical                                                                            
                                                                                                                
  Salaries and wages..........................             377        11-32-66  Actual.                         
  Materials...................................             389        21-32-66      Do.                         
  Purchased services..........................             389        41-32-66      Do.                         
  Other expenses..............................             389        61-32-66      Do.                         
                                                                                                                
  Operating switches, signals, retarders and                                                                    
                     humps                                                                                      
                                                                                                                
  Salaries and wages..........................             379        11-32-59      Do.                         
  Materials...................................             389        21-32-59      Do.                         
  Purchased services..........................             389        41-32-59      Do.                         
  Other expenses..............................             389        61-32-59      Do.                         
                                                                                                                
                Locomotive fuel                                                                                 
                                                                                                                
  Salaries and wages..........................             382        11-32-67  Diesel locomotive unit hours,   
                                                                                 sec. 1152.33(c)(2)(ii)         
  Materials...................................  ..............        21-32-67      Do.                         
  Purchased services..........................  ..............        41-32-67      Do.                         
  Other expenses..............................  ..............        61-32-67      Do.                         
                                                                                                                
   Electric power purchased or produced for                                                                     
                 motive power                                                                                   
                                                                                                                
  Salaries and wages..........................        383, 445        11-32-68  Electric locomotive unit hours, 
                                                                                 sec. 1152.33(c)(2)(iii).       
  Materials...................................        383, 445        21-32-68      Do.                         
  Purchased services..........................   383, 384, 445        41-32-68      Do.                         
  Other expenses..............................        383, 445        61-32-68      Do.                         
                                                                                                                
             Servicing locomotives                                                                              
                                                                                                                
  Salaries and wages..........................             388        11-32-69  Locomotive unit hours, sec.     
                                                                                 1152.33(c)(2)(i).              
  Materials...................................  ..............        21-32-69      Do.                         
  Purchased services..........................  ..............        41-32-69      Do.                         
  Other expenses..............................  ..............        61-32-69      Do.                         
Freight lost or damaged--solely related.......        418, 419        51-32-00  Actual.                         
                                                                                                                
                Clearing wrecks                                                                                 
                                                                                                                
  Salaries and wages..........................             415        11-32-63      Do.                         
  Materials...................................  ..............        21-32-63      Do.                         
  Purchased services..........................  ..............        41-32-63      Do.                         
  Other expenses..............................  ..............        61-32-63      Do.                         
Fringe benefits...............................        409, 457        12-32-00  11-32-XX, sec. 1152.33-         
                                                                                 (c)(4)(ii).                    
                                                                                                                
        Other casualties and insurance                                                                          
                                                                                                                
  Other casualties............................        416, 420        52-32-00  Actual.                         
  Insurance...................................             414        53-32-00      Do.                         
Joint facility--DR............................        390, 412        37-32-00      Do.                         
Joint facility--CR............................        391, 413        38-32-00      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and wages..........................        411, 420        11-32-99      Do.                         
  Materials...................................  ..............        21-32-99      Do.                         
  Purchased services..........................  ..............        41-32-99      Do.                         
  Other expenses..............................  ..............        61-32-99      Do.                         
                                                                                                                
  (3) Train and yard operations common:                                                                         
                                                                                                                
            Cleaning car interiors                                                                              
                                                                                                                
  Salaries and wages..........................             402        11-33-70      Do.                         
  Materials...................................  ..............        21-33-70      Do.                         
  Purchased services..........................  ..............        41-33-70      Do.                         
                                                                                                                
       Adjusting and transferring loads                                                                         
                                                                                                                
  Salaries and wages..........................        373, 402        11-33-71      Do.                         
  Materials...................................        376, 402        21-33-71      Do.                         
  Purchased services..........................        376, 402        41-33-71      Do.                         
                                                                                                                
      Carloading devices and grain doors                                                                        
                                                                                                                
  Salaries and wages..........................             402        11-33-72      Do.                         
  Materials...................................  ..............        21-33-72      Do.                         
  Purchased services..........................  ..............        41-33-72      Do.                         
Freight lost or damaged--all other............        418, 419        51-33-00      Do.                         
Fringe benefits...............................             409        12-33-00  11-33-XX, sec.                  
                                                                                 1152.33(c)(4)(iii).            

[[Page 314]]

                                                                                                                
  (4) Specialized service operations:                                                                           
                                                                                                                
                Administration                                                                                  
                                                                                                                
  Salaries and wages..........................   371, 408, 443        11-34-01  Actual.                         
  Materials...................................  ..............        21-34-01      Do.                         
  Purchased services..........................  ..............        41-34-01      Do.                         
  Other expenses..............................  ..............        61-34-01      Do.                         
                                                                                                                
  Pick-up and delivery, marine line haul, and                                                                   
            rail substitute service                                                                             
                                                                                                                
  Salaries and wages..........................   408, 421, 422        11-34-73      Do.                         
  Materials...................................  ..............        21-34-73      Do.                         
  Purchased services..........................  ..............        41-34-73      Do.                         
  Other expenses..............................  ..............        61-34-73      Do.                         
                                                                                                                
    Loading and unloading and local marine                                                                      
                                                                                                                
  Salaries and wages..........................   375, 408, 421        11-34-74      Do.                         
  Materials...................................     422 and 443        21-34-74      Do.                         
  Purchased services..........................  ..............        41-34-74      Do.                         
  Other expenses..............................  ..............        61-34-74      Do.                         
                                                                                                                
              Protective services                                                                               
                                                                                                                
  Salaries and wages..........................  402, 421, 422,        11-34-75      Do.                         
                                                           443                                                  
  Materials...................................  ..............        21-34-75      Do.                         
  Purchased services..........................  ..............        41-34-75      Do.                         
  Other expenses..............................  ..............        61-34-75      Do.                         
Freight lost or damaged--Solely related.......        418, 419        51-34-00      Do.                         
Fringe benefits...............................   409, 457, 449        12-34-00  11-34-XX, sec. 1152.33-         
                                                                                 (c)(4)(iv).                    
                                                                                                                
           Casualties and insurance                                                                             
                                                                                                                
  Other casualties............................        416, 420        52-34-00  Actual.                         
  Insurance...................................             414        53-34-00      Do.                         
Joint facility--DR............................        412, 447        37-34-00      Do.                         
Joint facility--CR............................        413, 448        38-34-00      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and wages..........................  411, 442, 446.        11-34-99      Do.                         
                                                           420                                                  
  Materials...................................  ..............        21-34-99      Do.                         
  Purchased services..........................  ..............        41-34-99      Do.                         
  Other expenses..............................  ..............        61-34-99      Do.                         
  (5) Administrative support operations:                                                                        
                                                                                                                
                Administration                                                                                  
                                                                                                                
  Salaries and wages..........................             371        11-35-01      Do.                         
  Materials...................................  ..............        21-35-01      Do.                         
  Purchased services..........................  ..............        41-35-01      Do.                         
  Other expenses..............................  ..............        61-35-01      Do.                         
                                                                                                                
 Employees performing clerical and accounting                                                                   
                   functions                                                                                    
                                                                                                                
  Salaries and wages..........................             373        11-35-76      Do.                         
  Materials...................................             376        21-35-76      Do.                         
  Purchased services..........................             376        41-35-76      Do.                         
  Other expenses..............................             376        61-35-76      Do.                         
                                                                                                                
        Communication systems operation                                                                         
                                                                                                                
  Salaries and wages..........................        373, 407        11-35-77      Do.                         
  Materials...................................        376, 407        21-35-77      Do.                         
  Purchased services..........................        376, 407        41-35-77      Do.                         
  Other expenses..............................        376, 407        61-35-77      Do.                         
                                                                                                                
       Loss and damage claims processing                                                                        
                                                                                                                
  Salaries and wages..........................        418, 419        11-35-78  Number of claims, sec.          
                                                                                 1152.33(c)(3)(i).              
  Materials...................................  ..............        21-35-78      Do.                         
  Purchased services..........................  ..............        41-35-78      Do.                         
  Other expenses..............................  ..............        61-35-78      Do.                         
Fringe benefits...............................        409, 457        12-35-00  11-35-XX. sec. 1152.33-         
                                                                                 (c)(4)(v).                     
Joint facility--DR............................        412, 447        37-35-00  Actual.                         
Joint facility--CR............................        413, 448        38-35-00      Do.                         
                                                                                                                
           Casualties and insurance                                                                             
                                                                                                                
  Other casualties............................        416, 420        52-35-00      Do.                         
  Insurance...................................             414        53-35-00      Do.                         
                                                                                                                

[[Page 315]]

                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and wages..........................        411, 420        11-35-99      Do.                         
  Materials...................................             411        21-35-99      Do.                         
  Purchased services..........................             411        41-35-99      Do.                         
  Other expenses..............................        411, 420        61-35-99      Do.                         
                                                                                                                
(d) General Administrative                                                                                      
                                                                                                                
       Officers--general administration                                                                         
                                                                                                                
  Salaries and wages..........................   351, 451, 452        11-61-01      Do.                         
  Materials...................................  ..............        21-61-01      Do.                         
  Purchased services..........................  ..............        41-61-01      Do.                         
  Other expenses..............................  ..............        61-61-01      Do.                         
                                                                                                                
       Accounting, auditing and finance                                                                         
                                                                                                                
  Salaries and wages..........................        452, 451        11-61-86      Do.                         
  Materials...................................  ..............        21-61-86      Do.                         
  Purchased services..........................  ..............        41-61-86      Do.                         
  Other expenses..............................  ..............        61-61-86      Do.                         
                                                                                                                
    Management services and data processing                                                                     
                                                                                                                
  Salaries and wages..........................        452, 451        11-61-87      Do.                         
  Materials...................................  ..............        21-61-87      Do.                         
  Purchased services..........................  ..............        41-61-87      Do.                         
  Other expenses..............................  ..............        61-61-87      Do.                         
                                                                                                                
                   Marketing                                                                                    
                                                                                                                
  Salaries and wages..........................             352        11-61-88      Do.                         
  Materials...................................  ..............        21-61-88      Do.                         
  Purchased services..........................  ..............        41-61-88      Do.                         
  Other expenses..............................  ..............        61-61-88      Do.                         
                                                                                                                
                     Sales                                                                                      
                                                                                                                
  Salaries and wages..........................             352        11-61-89      Do.                         
  Materials...................................  ..............        21-61-89      Do.                         
  Purchased services..........................  ..............        41-61-89      Do.                         
  Other expenses..............................  ..............        61-61-89      Do.                         
                                                                                                                
            Industrial development                                                                              
                                                                                                                
  Salaries and wages..........................   356, 452, 451        11-61-90      Do.                         
  Materials...................................  ..............        21-61-90      Do.                         
  Purchased services..........................  ..............        41-61-90      Do.                         
  Other expenses..............................  ..............        61-61-90      Do.                         
                                                                                                                
         Personnel and labor relations                                                                          
                                                                                                                
  Salaries and wages..........................        452, 451        11-61-91      Do.                         
  Materials...................................  ..............        21-61-91      Do.                         
  Purchased services..........................  ..............        41-61-91      Do.                         
  Other expenses..............................  ..............        61-61-91      Do.                         
                                                                                                                
             Legal and secretarial                                                                              
                                                                                                                
  Salaries and wages..........................   452, 454, 274        11-61-92      Do.                         
  Materials...................................     332 and 420        21-61-92      Do.                         
  Purchased services..........................  ..............        41-61-92      Do.                         
  Other expenses..............................  ..............        61-61-92      Do.                         
                                                                                                                
       Public relations and advertising                                                                         
                                                                                                                
  Salaries and wages..........................        353, 354        11-61-93      Do.                         
  Materials...................................  ..............        21-61-93      Do.                         
  Purchased services..........................  ..............        41-61-93      Do.                         
  Other expenses..............................  ..............        61-61-93      Do.                         
                                                                                                                
           Research and development                                                                             
                                                                                                                
  Salaries and wages..........................           (\1\)        11-61-94      Do.                         
  Materials...................................  ..............        21-61-94      Do.                         
  Purchased services..........................  ..............        41-61-94      Do.                         
  Other expenses..............................  ..............        61-61-94      Do.                         
Fringe benefits...............................   359, 456, 457        12-61-00  11-61-XX, sec. 1152.33(d)(1).   
                                                                                                                
           Casualties and insurance                                                                             
                                                                                                                
  Other casualties............................            None        52-61-00  Actual                          
  Insurance...................................        357, 455        53-61-00      Do.                         
Writedown of uncollectible accounts...........        706, 707        63-61-00      Do.                         
Other taxes except on corporate income or                  532        65-61-00      Do.                         
 payroll.                                                                                                       
Joint facility--DR............................             461        37-61-00      Do.                         
Joint facility--CR............................             462        38-61-00      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and wages..........................   355, 360, 460        11-61-99      Do.                         

[[Page 316]]

                                                                                                                
  Materials...................................   351, 451, 452        21-61-99      Do.                         
  Purchased services..........................         and 453        41-61-99      Do.                         
  Other expenses..............................  ..............        61-61-99      Do.                         
----------------------------------------------------------------------------------------------------------------
\1\Various accounts.                                                                                            

    (e) Deadheading, taxi, and hotel costs. The costs assigned under 
this subsection shall be the actual costs incurred as a result of 
providing service to the branch line for deadheading, taxi, and hotel 
costs. The amounts included under this subsection shall not be included 
under other subsections of these regulations.
    (f) Overhead movement costs. The costs assigned under this 
subsection shall be the actual costs incurred in moving overhead in 
order to provide service to the branch. The amounts shown under this 
subsection shall not be included under other subsections of these 
regulations.
    (g) Freight car costs. For Class I railroads, the on-segment costs 
for time-mileage freight cars shall be calculated on the basis of the 
carrier's average cost per day and per mile. Those freight cars that are 
rented on a straight mileage basis are to be costed on the carrier's 
average cost per mile for each type of car rented on this basis. No 
costs are to be included in the calculation for private line (shipper 
owned) or other cars for which the railroad does not make payments. The 
cost per day and per mile shall be calculated separately for each type 
of car specified in Ex Parte No. 334, Car Service Compensation--Basic 
Per Diem Charges, 362 I.C.C. 884 (1980). The freight car costs shall be 
seporated between ``return on value-freight cars'' and ``freight car 
costs other than return on freight cars''. The costs assigned to a line 
under this subsection are to be derived from the accounts listed below.

------------------------------------------------------------------------
                                                                Account 
       Operating expense group--Repair and maintenance            No.   
------------------------------------------------------------------------
Salaries and wages...........................................   11-22-42
Materials....................................................   21-22-42
Repairs by others--DR........................................   39-22-42
Repairs for others--CR.......................................   40-22-42
Purchased services...........................................   41-22-42
Other expenses...............................................   61-22-42
Lease rentals--DR............................................   31-22-00
Lease rentals--CR............................................   32-22-00
Depreciation.................................................           
Other rents--DR..............................................   35-22-00
Other rents--CR..............................................   36-22-00
------------------------------------------------------------------------

The system total of the repair and maintenance accounts, all accounts 
designated XX-XX-42, and depreciation shall be divided into time-related 
costs and mileage-related costs on the basis of the present ``Rail Form 
A'' apportionment factors (i.e., 50 percent time and 50 percent mileage 
for repairs, and 60 percent time and 40 percent mileage for 
depreciation). Freight car costs shall not include depreciation as 
determined in Account No. 62-22-00. Freight car depreciation shall be 
calculated in the manner set forth in paragraph (g)(3)(i) of this 
section. The system total receipts and payments for the hire of time-
mileage cars, and the basic data used in the development of the car-day 
and car-mile factors, shall be taken from the carrier's latest Form R-1 
and company records. The specific steps to complete the calculation are 
as follows:
    (1) The total system car days by car type shall be calculated by: 
(i) Averaging the carrier's freight car ownership at the beginning and 
end of the year (Form R-1, schedule 710, columns (b) and (k); (ii) 
multiplying the average by the standard active number of car days (346) 
as developed in ICC Docket No. 31358; (iii) subtracting car days on 
foreign lines (source: Company records); and (iv) adding the foreign car 
days on home line (source: Company records). This procedure shall be 
followed for each car type specified in Ex Parte No. 334, supra.
    (2) The total railroad car miles shall be calculated by adding the 
loaded car miles for the railroad owned and leased cars (R-1, Schedule 
755) to empty car miles for the railroad owned or leased cars (R-1, 
Schedule 755). The total car miles, loaded and empty, shall be 
calculated for each car type specified in Ex Parte No. 334, supra.

[[Page 317]]

    (3) The cost per car day shall be calculated for each type of time-
mileage car by adding 50 percent of total freight car repair costs for 
each type (Form R-1, schedule 415, column (b)), and 60 percent of the 
depreciation shall be developed as follows:
    (i) The current value for each type of car shall be calculated by 
first arriving at the current cost per car using the most recent 
purchase of this type by the railroad indexed to the midpoint of the 
year or a price quote from the manufacturer. This unit price shall be 
applied to the average number of this type of car owned by the carrier 
during the year. The current value developed for each car type is then 
multiplied by the composite depreciation rate for that type of car as 
shown in the latest annual report filed with the Commission or company 
records.
    (ii) Add 100 percent of the return on investment. Return on 
investment shall be determined by multiplying the current value of each 
type of car, developed in paragraph (g)(3)(i) of this section, by 1 
minus the ratio of accumulated depreciation to the total original cost 
investment. This will determine the net current value for each type of 
car. The net current value for each type of car shall then be multiplied 
by the nominal rate of return calculated in Sec. 1152.34(d) to obtain 
nominal return on investment for each type of car. The total return on 
investment shall then be calculated by deducting the projected holding 
gain (loss) for the forecast and/or subsidy year from the nominal return 
on investment for each type of car. The total return on investment for 
each type of car shall then be divided by total car-days for each car-
type developed in paragraph (g)(1) of this section.
    (iii) To the amounts for repairs and depreciation, and add the time 
portion of the railroad's payment for hire of time-mileage freight cars 
(Form R-1, schedule 414, column (g)), and subtract the time portion of 
the railroad's receipts for hire of time mileage freight cars (Form R-1, 
schedule 414, column (d)). The total of these costs is divided by the 
total car days for each type developed in paragraph (g)(1) of this 
section.
    (4) The cost per mile shall be calculated for each type of time-
mileage car as follows. First, add: (i) 50 percent of the total freight 
train car repair cost for each car type (Form R-1, schedule 415, column 
(b)); (ii) 40 percent of the total depreciation costs for each car type 
developed in paragraph (g)(3)(i) of this section; and (iii) the mileage 
portion of the carrier's payments for the hire of time-mileage freight 
cars (Form R-1, schedule 414, column (f)). Then, subtract the mileage 
portion of the carrier's receipts for hire of time-mileage freight cars 
(Form R-1, schedule 414, column (c)). Finally, divide the result by the 
total car-miles for each car-type developed in paragraph (g)(2) of this 
section.
    (5) The costs per car day and per car mile developed in paragraphs 
(g)(3) and (4) of this section shall be applied to the total car days 
and total car miles for each car type accumulated on the line segment 
for all traffic originated and/or terminated on the segment plus those 
freight cars that bridge the line segment which are attributed to time-
mileage freight train cars. The on-segment costs for freight cars rented 
on a straight mileage basis shall be the railroad's total payments for 
mileage cars (Form R-1, schedule 414, column (e)), for each car type 
divided by the total miles on which the charges were based.
    (6) For Class II and III railroads, the on-segment costs for time-
mileage and straight mileage freight cars shall be calculated in the 
same manner prescribed for Class I railroads, using the latest data 
available.
    (h) Return on investment--locomotive (line). The return on 
investment shall be calculated for each type of classification of 
locomotive that is actually used to provide service to the line segment. 
The return for the locomotive(s) used shall be calculated in accordance 
with the following procedure:
    (1) The current replacement cost for each type of locomotive used to 
serve the line segment shall be based on the most recent purchase of 
that particular type and size locomotive by the carrier, indexed to the 
midpoint of the subsidy year, or an amount quoted by the manufacturer. 
The amount must be substantiated. This unit cost shall be multiplied by 
1 minus the ratio of total

[[Page 318]]

accumulated depreciation to original total cost of that type of 
equipment owned by applicant-carrier, as shown by company records.
    (2) The current nominal cost of capital shall be used in the 
calculation of return on investment for locomotives shall be calculated 
as provided in Sec. 1152.34(d).
    (3) The return on investment for each category or type of locomotive 
shall be the nominal return less the holding gain (loss). The nominal 
return is calculated by multiplying the replacement cost determined in 
paragraph (h)(1) of this section by the nominal rate of return 
determined in paragraph (h)(2) of this section. The holding gain (loss) 
shall be gain (loss) projected to occur during the forecast and/or 
subsidy year.
    (4) The return on investment for each type of locomotive shall be 
assigned to the line segment on a ratio of the locomotive unit hours on 
the segment to average locomotive unit hours per unit for each type of 
locomotive in the system. This ratio will be developed as follows:
    (i) The carrier shall keep and maintain records of the number of 
hours that each type of locomotive incurred in serving the segment 
during the subsidy period.
    (ii) The railroad shall develop the system average locomotive unit 
hours per unit for each of the following types of locomotives; yard 
diesel; yard-other; road diesel; and road-other.
    (iii) The ratio applied to the return on investment is calculated by 
dividing the hours that each type or class of locomotive is used to 
serve the segment, as developed in paragraph (h)(4)(i) of this section, 
by the system average locomotive unit hours per unit for the applicable 
type developed in paragraph (h)(4)(ii) of this section.
    (5) The cost assigned to the segment for each type of locomotive 
shall be calculated by multipying the annual return on investment 
developed in paragraph (h)(3) of this section by the ratio(s) developed 
in paragraph (h)(4) of this section.
    (i) Revenue taxes. The amount of revenue taxes shall be computed 
based on the amounts directly paid in those States that subject the 
railroad to a revenue tax.
    (j) Property taxes (Line). (1) The assigned costs under this 
subsection shall be the net systemwide property tax savings resulting 
from the abandonment, calculated as set out below, if the applicant-
carrier intends subsequently to sell or otherwise dispose of the 
abandoned properties. If the applicant-carrier expresses an intent to 
dispose of the properties, it will be presumed that the properties will 
ultimately be sold or otherwise disposed of after abandonment. 
Protestants may rebut this presumption by showing that it would be 
financially beneficial to retain ownership of the property for 
investment purposes.
    (2) In States where a true ad valorem tax is levied on real property 
(such as track, land, buildings, and other facilities), applicant must 
affirm that the ad valorem method applies and must substantiate the 
amount of property taxes levied against the property on the line 
segment.
    (3) In States where the ad valorem method is not employed, applicant 
must describe the applicable property tax methodology if it is claiming 
the local property tax as an avoidable cost of operations. Additionally, 
it must substantiate with evidence and computations the actual Statewide 
tax savings attributable to the abandonment.
    (4) Any property tax properly substantiated under paragraphs (f)(2) 
or (3) of this section shall be presumed to represent systemwide savings 
to the carrier. Protestants may rebut this presumption by presenting 
evidence: (i) That property taxes in those States where the carrier 
operates that are not involved in the abandonment will increase 
significantly because of reassessments attributable to the abandonment; 
or (ii) that a significantly higher property tax will be levied against 
a retained portion of the abandoned property. If applicant does not 
refute protestant's evidence, it may claim avoidable property taxes only 
if, and to the extent, it proves systemwide property tax savings.
    (5) In States where real property taxes are assessed and levied 
against the owner of the property but the tax

[[Page 319]]

on rolling stock is assessed to the railroad operating the service on 
the basis of a formula of a State-wide valuation of property, the tax on 
rolling stock attributable to each line segment shall be determined as 
follows:
    (i) Using ratio of the cost of equipment (as used in the formula) to 
the total of all property costs (as used in formula);
    (ii) Apply that ratio to the total State assessment to determine the 
portion of the assessment attributable to rolling stock;
    (iii) Allocate the rolling stock assessment thus determined to each 
line segment on the basis of car and locomotive unit miles on the 
segment to total car and locomotive unit miles in the State; and
    (iv) Apply the appropriate tax rate or rates to the allocated 
assessment thus determined.
    (k) Administrative costs. The costs assigned under this account 
shall be the actual costs directly attributable to the administration of 
the subsidy program or at the option of the carrier, one percent of the 
total annual revenues attributed to the branch shall be allowable to 
cover all costs of administering the subsidy program. Either method may 
be used, but not both.
    (l) Casualty reserve account. The costs assigned under this account 
shall be any payments mutually agreed to by the person offering the 
subsidy and the railroad for the purpose of holding the subsidizer 
harmless from any liability under those accounts that are used to record 
any costs incurred by the railroad as a result of an accident.
    (m) Rehabilitation. (1) For abandonment purposes the applicant 
carrier shall project the amounts necessary to permit efficient 
operations over the line segment. The carrier shall indicate the level 
of FRA Class Safety Standard to be attained with the amount of 
expenditure. See 49 CFR Part 213. Applicant-carrier, in making its 
projection of rehabilitation costs, shall give consideration to
    (i) The cost to attain the lowest operationally feasible track 
level,
    (ii) The cost to attain the rehabilitation level resulting in the 
lowest operating and rehabilitation expenditures, or
    (iii) The cost to attain the rehabilitation level resulting in the 
lowest loss, or highest profit, from operations.
    (2) For subsidy purposes rehabilitation costs shall not be included 
unless:
    (i) The track does not meet minimum Federal Railroad Administrative 
Class I Safety Standards (49 CFR part 213), in which case the railroad 
will furnish, with the abandonment application, a detailed estimate of 
the costs to rehabilitate the track to the minimum level; or
    (ii) The potential subsidizer requests a level of service which 
requires expenditures for rehabilitation.
    (n) Off-branch costs. The off-branch costs developed in this section 
shall be separated between ``off-branch costs other than return on 
freight cars'' and ``return on value-freight cars''. The off-branch 
costs shall be developed in the following manner:
    (1) Terminal costs, line-haul costs, interchange costs, and modified 
terminal costs shall be considered as the off-branch avoidable costs of 
providing service over the remainder of the railroad's system. These 
costs shall be computed by applying the variable unit costs to the 
service units attributed to the branch line's traffic for the time 
periods specified in Sec. 1152.22(d) of this part.
    (2) The procedure for determining the off-branch costs shall be 
based upon the URCS cost formula. This formula shall be applied to the 
latest Annual Report Form R-1 filed by the railroad, with two 
exceptions. First, the amount used in the formula for freight car 
depreciation shall be calculated using the procedure discussed in 
paragraph (g)(3)(iii) of this section applied to the average total car 
fleet of the railroad. Second, the return on investment in freight cars 
shall be computed using the procedure set forth in paragraph (g)(3)(ii) 
of this section. In addition, the application of URCS shall include the 
use of the nominal cost of capital for all return on investment 
determinations.
    (3) The Class I Procedure: A Class I railroad shall calculate its 
off-branch costs using the Class I procedure set forth in this paragraph 
(n)(3).
    (i) The unit costs developed by applying URCS in the manner 
specified in

[[Page 320]]

paragraph (n)(2) of this section shall be applied to the service 
characteristics of each movement of traffic that is attributed to the 
branch line. This application shall result in the total off-branch cost 
associated with this traffic for normal terminal handlings, line-haul 
mileage, and interchange events.
    (ii) The modified terminal cost per carload shall be calculated 
separately for each type of freight car and applied to each car that is 
attributed to the branch line. The modified terminal cost shall consist 
of clerical costs, two days of freight car cost, and an inter-intra 
train switching cost (locomotive engine minute cost only). The clerical 
cost and inter-intra train switching cost shall be calculated from unit 
costs developed within the individual URCS application.
    (A) The unit costs for the clerical cost per carload calculation are 
located in Worktable E1, Part 1: Line 106, columns 1, 2, and 3; line 
107, column 1; line 108, column 1; line 109, column 1; and line 110, 
column 1.
    (B) The inter-intra train switching cost shall be calculated by 
multiplying the total switch engine minute cost from Worktable E1, Part 
1, line 111, columns 1, 2, and 3 by the total minutes specified in the 
next sentence. The total minutes specified in this sentence shall equal 
the sum of;
    (1) The minutes per switch event from Worktable E2, Part 1, line 
118, column 29; and
    (2) The product of the minutes per switch event from Worktable E2, 
Part 1, line 118, column 29 and the ratio of loaded to total car miles 
for the particular type of freight car being costed.
    (C) The freight car cost shall be the car ownership costs per car 
day for two days developed in accordance with the procedures set forth 
in paragraph (g)(3) of this section for the type of freight car being 
costed.
    (iii) For a Class I railroad, the total costs calculated using the 
procedures set forth in paragraphs (n)(3)(i) and (n)(3)(ii) of this 
section shall constitute the off-branch costs attributable to the branch 
line's traffic.
    (4) A Class II or Class III railroad shall calculate its off-branch 
costs using any one of three different procedures. The Class I 
Procedure: A Class II or Class III railroad may calculate its off-branch 
costs using the Class I procedure set forth in paragraph (n)(3) of this 
section, if the necessary data are available from the railroad's own 
records. If the data necessary to complete the Class I procedure set 
forth in paragraph (n)(3) of this section are not available from the 
railroad's own records, the Class II or Class III railroad shall 
calculate its off-branch costs using either one of the following 
procedures based on the latest regional URCS data and the railroad's own 
records. The Class II/III Simplified Costing Procedure: A Class II or 
Class III railroad may calculate its off-branch costs using the Class I 
procedure set forth in paragraph (n)(3) of this section, with regional 
URCS data of the Class I railroads used in lieu of individual URCS data 
of the Class II or Class III railroad. Costs developed through the use 
of the Class II/III simplified costing procedure shall enjoy a 
rebuttable presumption of correctness. The Class II/III Standard Costing 
Procedure: A Class II or Class III railroad may calculate its off-branch 
costs using the Class II/III standard costing procedure set forth in 
paragraphs (n)(4)(i) through (n)(4)(xiv) of this section. Costs 
developed through the use of the Class II/III standard costing procedure 
shall be given preference over costs developed through the use of the 
Class II/III simplified costing procedure.
    The Class II/III standard costing procedure is set forth in 
paragraphs (n)(4)(i) through (n)(4)(xiv) of this section.
    (i) The Class II or Class III railroad shall first determine which 
URCS regional application will be used based on its geographical 
location. The railroad's total estimated system variable expenses are 
calculated by multiplying its total operating expenses by the ratio of 
variable expenses to total expenses; this ratio is located in Worktable 
D8, Part 6, line 615, column 1 of the URCS printout for the appropriate 
region. If a railroad has passenger and freight service, the freight 
portion of the total estimated system variable expenses shall be 
calculated by multiplying the total estimated system variable expenses, 
calculated as above, by the

[[Page 321]]

ratio of freight related operating expenses to total railway operating 
expenses.
    (ii) The total number of revenue carload terminal handlings, as 
determined from the railroad's records, shall be calculated as the sum 
of:
    (A) Originated and terminated (local) revenue carloads multiplied by 
2; plus
    (B) Interchanged and either originated or terminated (interline) 
revenue carloads.
    (iii) The total number of revenue carload interchange handlings, as 
determined from the railroad's records, shall be calculated as the sum 
of:
    (A) Bridge (interchange to interchange) revenue carloads multiplied 
by 2; plus
    (B) Revenue carloads that are interchanged and either originated or 
terminated (interline).
    (iv) The system average shipment weight per car, as determined from 
the railroad's records, shall be calculated by dividing:
    (A) Ton-miles-revenue freight by
    (B) Loaded freight car miles.
    (v) The system average loaded car miles per car, as determined from 
the railroad's records, shall be calculated by dividing:
    (A) Revenue ton-miles by
    (B) Revenue tons.
    (vi) The railroad shall complete an URCS Phase III ``Movement 
Costing Program'' based on the application of URCS data for the 
appropriate region. The following data shall be inputs to the Phase III 
program application.
    (A) The carrier code, either ``REG 4'' or ``REG 7'', shall 
correspond to the appropriate region.
    (B) The type of shipment shall be designated as ``OD'' in order for 
the movement to be costed as an interline movement.
    (C) The distance shall be the system average loaded car miles per 
car as developed in paragraph (n)(4)(v) of this section.
    (D) The type of freight car shall be identified as a Box, General 
Service Equipped, which has an input user code of ``3''. If all of the 
traffic on the branch line is transported in a single type of car, and 
it is not a Box, General Service Equipped, the code for that type of car 
may be substituted.
    (E) The number of freight cars shall be ``1''.
    (F) The car ownership factor shall be designated as ``R'' for 
railroad owned cars unless all of the branch line traffic is moved in 
privately owned cars, in which case the code ``P'' for privately owned 
cars would be the input.
    (G) The program requires a loss and damage input. The code ``48'', 
representing the average of all commodities, shall be used.
    (H) The input for shipment weight shall be the system average 
shipment weight per car developed in paragraph (n)(4)(iv) of this 
section.
    (I) The input for type of movement shall be ``1'', representing an 
individual car movement.
    (vii) The ratios employed to separate the total estimated system 
variable expenses, as determined in paragraph (n)(4)(i) of this section, 
among terminal, interchange, and line-haul operations shall be based on 
the procedures outlined in this paragraph (n)(4)(vii). This separation 
shall reflect the variable costs resulting from the application of the 
URCS Phase III program based on the input factors specified in paragraph 
(n)(4)(vi) of this section. The ratios shall be calculated in the 
following manner:
    (A) The terminal expenses calculated by the application of the Phase 
III program shall consist of the following:
    (1) ``Carload and Clerical Costs'' shall be calculated as the sum of 
lines 256, 258, 260, 262, 264, 266, and 268.
    (2) Switching expenses based on ``Total SEM-Industry'' shall be 
calculated by multiplying:
    (i) The sum of lines 315, 317, and 319, by
    (ii) Line 311.
    (3) Car mile yard cost ``CM(Y)-Industry'' shall be calculated by 
multiplying:
    (i) The sum of lines 426, 428, and 430, by
    (ii) Line 422.
    (4) Car day yard cost ``CD(Y)-Industry'' and ``CD(Y)-L&UL'' shall be 
calculated by multiplying:
    (i) The sum of lines 452, 454, and 456, by
    (ii) The sum of lines 446 and 450.

[[Page 322]]

    (5) The expenses for accessorial services for railroad owned cars 
shall be calculated as the sum of:
    (i) The product of line 422 and the sum of lines 464, 466, and 468; 
plus
    (ii) The product of the sum of lines 446 and 450 and the sum of 
lines 476, 478, and 480.
    (B) The interchange expenses calculated by the application of the 
Phase III program shall consist of the following:
    (1) Switching expenses based on ``Total SEM-Interchange'' shall be 
calculated by multiplying
    (i) The sum of lines 315, 317, and 319, by
    (ii) Line 312.
    (2) Car mile cost in interchange ``CM(Y)-Interchange'' shall be 
calculated by multiplying
    (i) The sum of lines 426, 428, and 430, by
    (ii) Line 423.
    (3) Car day cost in interchange ``CD(Y)-Interchange (L&E)'' shall be 
calculated by multiplying
    (i) The sum of lines 452, 454, and 456, by
    (ii) Line 447.
    (4) The expenses for accessorial services for railroad owned cars 
shall be calculated as the sum of:
    (i) The product of line 423 and the sum of lines 464, 466, and 468; 
plus
    (ii) The product of line 447 and the sum of lines 476, 478, and 480.
    (C) The line-haul expenses resulting from the application of the 
Phase III program shall be calculated by subtracting the sum of:
    (1) The terminal expenses as determined in paragraph (n)(4)(vii)(A) 
of this section, and
    (2) The interchange expenses as determined in paragraph 
(n)(4)(vii)(B) of this section, from
    (3) The total variable cost excluding loss and damage as calculated 
in the Phase III program at line 696.
    (D) The ratio for terminal expenses shall be calculated by dividing 
the terminal expenses as determined in paragraph (n)(4)(vii)(A) of this 
section by the total variable cost excluding loss and damage as 
calculated in the Phase III program at line 696.
    (E) The ratio for interchange expenses shall be calculated by 
dividing the interchange expenses as determined in paragraph 
(n)(4)(vii)(B) of this section by the total variable cost excluding loss 
and damage as calculated in the Phase III program at line 696.
    (F) The ratio for line-haul expenses shall be calculated by dividing 
the line-haul expenses as determined in paragraph (n)(4)(vii)(C) of this 
section by the total variable cost excluding loss and damage as 
calculated in the Phase III program at line 696.
    (viii) The railroad's total estimated system variable expenses shall 
be separated as follows:
    (A) The total terminal variable expenses shall be calculated by 
multiplying the total estimated system variable expenses as determined 
in paragraph (n)(4)(i) of this section by the ratio for terminal 
expenses as determined in paragraph (n)(4)(vii)(D) of this section.
    (B) The total interchange variable expenses shall be calculated by 
multiplying the total estimated system variable expenses as determined 
in paragraph (n)(4)(i) of this section by the ratio for interchange 
expenses as determined in paragraph (n)(4)(vii)(E) of this section.
    (C) The total line-haul variable expenses shall be calculated by 
multiplying the total estimated system variable expenses as determined 
in paragraph (n)(4)(i) of this section by the ratio for line-haul 
expenses as determined in paragraph (n)(4)(vii)(F) of this section.
    (ix) The railroad's unit costs shall be determined for terminal, 
interchange, and line-haul operations as follows:
    (A) The terminal cost per carload shall be calculated by dividing 
the total terminal variable expenses as determined in paragraph 
(n)(4)(viii)(A) of this section by the total number of revenue carload 
terminal handlings as determined in paragraph (n)(4)(ii) of this 
section.
    (B) The interchange cost per carload shall be calculated by dividing 
the total interchange variable expenses as determined in paragraph 
(n)(4)(viii)(B) of this section by the total number of revenue carload 
interchange handlings as determined in paragraph (n)(4)(iii) of this 
section.
    (C) The line-haul cost per car mile shall be calculated by dividing 
the

[[Page 323]]

total line-haul variable expenses as determined in paragraph 
(n)(4)(viii)(C) of this section by the total system freight. car miles, 
loaded and empty, as determined from the railroad's records.
    (x) The modified terminal cost per carload is a composite of costs 
developed in the Phase III program and costs determined in accordance 
with paragraph (g) of this section and this paragraph. The modified 
terminal cost per carload shall be calculated for each type of car as 
follows:
    (A) The station clerical cost per carload shall be developed in the 
following manner:
    (1) The station clerical expense ratio shall be calculated by 
dividing the total clerical cost (the sum of lines 256, 258, 260, 262, 
264, 266, and 268) by the terminal expenses as determined in paragraph 
(n)(4)(vii)(A) of this section.
    (2) The station clerical cost per carload shall be calculated by 
multiplying the terminal cost per carload as determined in paragraph 
(n)(4)(ix)(A) of this section by the station clerical expense ratio.
    (B) The interchange switching cost per carload shall be developed in 
the following manner:
    (1) The total interchange switching expense shall be calculated by 
multiplying the sum of lines 315, 317, and 319 by line 312.
    (2) The interchange switching ratio shall be calculated by dividing 
the total interchange switching expense by the interchange expenses as 
determined in paragraph (n)(4)(vii)(B) of this section.
    (3) The interchange switching cost per carload shall be calculated 
by multiplying the interchange cost per carload as determined in 
paragraph (n)(4)(ix)(B) of this section by the interchange switching 
ratio.
    (C) The freight car cost element shall be the freight car cost per 
car day for two days as developed for each car type in paragraph (g)(3) 
of this section.
    (D) The modified terminal cost per carload shall be the total of the 
costs developed in paragraphs (n)(4)(x)(A), (n)(4)(x)(B), and 
(n)(4)(x)(C) of this section.
    (xi) The terminal costs shall be calculated by multiplying the 
terminal cost per carload as determined in paragraph (n)(4)(ix)(A) of 
this section by the number of carloads that both:
    (A) Originated or terminated on the branch, and
    (B) Are local to the railroad serving the branch.
    (xii) The interchange costs shall be calculated by multiplying the 
interchange cost per carload as determined in paragraph (n)(4)(ix)(B) of 
this section by the number of carloads that both:
    (A) Originated or terminated on the branch, and
    (B) Are received in or forwarded through interchange with other 
railroads.
    (xiii) The line-haul costs shall be calculated by multiplying the 
line-haul cost per car mile as determined in paragraph (n)(4)(ix)(C) of 
this section by the total loaded and empty car miles generated on the 
railroad's system off the branch by cars that originated or terminated 
on the branch.
    (xiv) The modified terminal costs shall be calculated by multiplying 
the modified terminal cost per carload as determined in paragraph 
(n)(4)(x)(D) of this section by the number of carloads that originated 
or terminated on the branch.
    (o) Locomotive depreciation. The depreciation cost for locomotives 
used on the line shall be calculated using the following procedure:
    (1) The current replacement cost for each type of locomotive used to 
serve the line will be based on the most recent purchase of that 
particular type and size locomotive by the carrier indexed to the 
midpoint of the year or an amount quoted by the manufacturer.
    (2) The depreciation rate that will be applied to the replacement 
cost shall be the carrier's component rate for each type of locomotive 
as reported in the latest Annual Report Form R-1 submitted to the 
Commission or from the company records. Carriers using depreciation 
rates based on company records must explain why composite rates are 
inappropriate; provide a detailed explanation of the methodology used to 
compute the alternate depreciation rate; and demonstrate that these 
rates have been used consistently.

[[Page 324]]

    (3) The annual depreciation cost for each type of locomotive shall 
be calculated by multiplying the replacement cost(s) developed in 
paragraph (o)(1) of this section by the rate from paragraph (o)(2) of 
this section.
    (4) The depreciation expense for each type of locomotive shall be 
assigned to the line on the ratio of the hours incurred serving the line 
to the average system locomotive unit hours in service by each of the 
following categories of locomotives: Yard-diesel; yard-other; road-
diesel; and road-other. The ratio for each type of locomotive used to 
serve the line shall be the same as that developed in paragraph (h)(4) 
of this section.
    (5) The depreciation shall be calculated by multiplying the annual 
depreciation expense for each type of locomotive developed in paragraph 
(o)(3) of this section by the ratio(s) developed in paragraph (o)(4) of 
this section.
    (p) Opportunity costs. Applicant-carrier may, at its discretion, 
present evidence of its opportunity costs, if the assets engaged in the 
line proposed to be abandoned could be used more profitably in some 
other capacity. Opportunity costs may be calculated in accordance with 
the methodology established in Sec. 1152.34 of this part, or by using 
any other reasonable, fully-explained method. Opportunity costs are not 
included as costs on Exhibit 1 described at Sec. 1152.36. These costs 
should be submitted as a separate exhibit to the application.
    (q) Labor costs. (1) The salaries, wages and fringe benefits of 
personnel exclusively assigned to the line segment shall be deemed 
attributable costs of the segment. The salaries, wages, and fringe 
benefits of personnel not exclusively assigned to the line segment shall 
be deemed attributable costs of the segment to the extent they are shown 
to be apportionable to the segment to be abandoned.
    (2) These costs shall be deemed attributable notwithstanding any 
obligation of applicant to provide employee protection for employees 
after the abandonment.

[43 FR 7625, Feb. 24, 1978, as amended at 43 FR 10564, Mar. 14, 1978. 
Redesignated at 47 FR 49581, Nov. 1, 1982, and amended at 48 FR 54239, 
Dec. 1, 1983; 50 FR 31592, Aug. 5, 1985; 52 FR 2706, Jan. 26, 1987; 54 
FR 18517, May 1, 1989; 54 FR 26046, June 21, 1989; 54 FR 27795, June 30, 
1989; 56 FR 61387, Dec. 3, 1991]



Sec. 1152.33  Apportionment rules for the assignment of expenses to on-branch costs.

    The accounts specified under Sec. 1152.32(a), (b), (c), and (d) as 
having an assignment basis other than ``Actual'' shall be apportioned 
according to the rules contained in this section.
    (a) Maintenance of way and structures--(1) Roadway machines. All 
accounts designated XX-13-36 shall be assigned to the branch on the 
basis of the average repair costs, for each type of machine, included in 
the daily rental fees charged by the operating railroad or as published 
by the General Manager's Association of Chicago (GMA), based on the 
actual number of days each type of machine is used on the branch.
    (2) Small tools and supplies. All accounts designated XX-13-37 shall 
be assigned to the branch as follows: (i) The costs of supplies, 
consumed in the operation of roadway machines, shall be assigned to the 
branch on the basis of the average costs of supplies per day, included 
in the daily rental fees charged by the operating railroad or as 
published by the GMA, multiplied by the actual number of days that the 
machine is used on the branch; (ii) the costs of small tools shall be 
assigned to the branch on the basis of the ratio that the branch amounts 
in Accounts 11-11-10 through 11-11-17 and 11-11-48, plus 11-12-10 
through 11-12-17 and 11-12-48 bear to the railroad's system total for 
the same accounts.
    (3) Fringe benefits. Fringe benefits shall be assigned to the branch 
separated between running, switching and other, on the ratio that the 
total branch salary and wages bear to the total system salaries and 
wages for each activity as follows:

[[Page 325]]

    (i) Fringe benefits--Running, Account 12-11-00, total of all 11-11-
XX accounts branch to system;
    (ii) Fringe benefits--Switching, Account 12-12-00, total of all 11-
12-XX accounts branch to system; and
    (iii) Fringe benefits--Other, Account 12-13-00, total of all 11-13-
XX accounts branch to system.
    (b) Maintenance of equipment--(1) Locomotive repairs and 
maintenance. All accounts designated XX-21-41 shall be separated between 
yard and road with a further separation between diesel and other 
(electric). The costs for these accounts for yard locomotives shall be 
assigned to the branch separately for diesel and electric locomotives on 
the basis of the ratio of branch diesel and electric yard locomotive 
unit-hours to the total system diesel and electric yard locomotive unit-
hours. The costs for these accounts for road locomotives shall be 
assigned to the branch separately for diesel and electric locomotives on 
the basis of the ratio of branch diesel and electric locomotive gross 
ton-miles in road service to the total system diesel and electric 
locomotive gross ton-miles in road service. The costs assigned under 
these accounts for specialized equipment devoted exclusively to branch 
line service shall be the actual costs for the specific equipment used.
    (2) Locomotive depreciation. Locomotive depreciation shall be 
calculated and assigned in accordance with the procedures set forth in 
Sec. 1152.32(o).
    (3) Fringe Benefits. Fringe benefits for locomotives and other 
equipment shall be assigned to the branch on the ratio that the total 
branch salary and wages bear to the system total salaries and wages for 
each type of equipment as follows:
    (i) Locomotives--Account 12-21-00, total of all 11-21-XX accounts 
branch to system.
    (ii) Other Equipment--Account 12-23-00, total of all 11-23-XX 
accounts branch to system.
    (iii) Fringe benefits for freight cars shall be calculated by first 
estimating the total in Account 11-22-42, Freight car repairs--salaries 
and wages, that is included in the total on branch costs for freight 
cars as determined from the car day and car mile cost calculations, in 
Sec. 1152.32(g) of these regulations.
    To this amount is added the branch totals in the balance of all 11-
22-XX accounts. The ratio of this total branch account to the system 
total for all 11-22-XX accounts is applied to Account 12-22-00, Fringe 
Benefits--Freight Cars.
    (c) Transportation--(1) Train operations--(i) Engine Crews-
Materials, Account 21-31-56; Train Crews-Materials, Account 21-31-57; 
Train Inspection and Lubrication-Salaries and Wages, Account 11-31-62; 
and Train Inspection and Lubrication-Materials, Account 21-31-62; If the 
branch is served by a local/way or through train, the costs in these 
accounts shall be assigned to the branch on the weighted ratio of the 
loaded freight train cars on the branch to the total system loaded 
freight train cars, and the loaded and empty car-miles on the branch to 
the total system loaded and empty car-miles. This shall be calculated as 
follows:
    (A) To determine the car-mile portion of these accounts,
    (1) Multiply the total amounts in these accounts (from the R-1 
Annual Report, Schedule 410) by 69 percent (the ratio of train-mile and 
running expenses from Rail Form A),
    (2) Divide the amount in paragraph (c)(1)(i)(A)(1) of this section 
by the total system loaded and empty car-miles, and
    (3) Multiply the car-mile unit cost factor from paragraph 
(c)(1)(i)(A)(2) of this section by the on-branch car-miles (loaded and 
empty).
    (B) To determine the carload portion of these accounts.
    (1) Multiply the total amounts in these accounts by 31 percent (the 
ratio of terminal expenses from Rail Form A),
    (2) Divide the amount in paragraph (c)(1)(i)(B)(1) of this section 
by the total system carloads, and
    (3) Multiply the carload unit cost factor from paragraph 
(c)(1)(i)(B)(2) of this section by the on branch carloads.
    (C) To determine the total costs assignable to the branch for these 
accounts, add the amounts developed in paragraphs (c)(1)(i)(A)(3) and 
(c)(1)(i)(B)(3) of this section.

[[Page 326]]

    (ii) All accounts designated xx-31-67 shall be assigned to the 
branch in accordance with the following procedure. The dollar amounts 
used in the determination of locomotive fuel costs shall be based on 
data contained in the most recent publication issued by the General 
Managers Association (GMA) relating to the rental of locomotives. The 
total number of locomotive unit hours incurred by the locomotive(s) 
shall then be categorized according to the applicable GMA horsepower 
classification group. The fuel cost is derived from the Repairs and 
Supplies Expenses element of the locomotive rental rates published by 
the GMA. The fuel cost per locomotive unit hour shall be determined for 
each GMA horsepower classification group by multiplying the latest GMA 
fuel cost percentage by the Repairs and Supplies Expense per hour 
included in each group. The fuel cost update ratio is determined by 
using the indices for fuel from the Association of American Railroad's 
(AAR's) Railroad Cost Recovery Index (RCR). The indices shall be taken 
from the district of which the railroad is assigned by the Commission. 
The index for the current period is divided by the index of the period 
representative of the GMA publication to develop the fuel update ratio. 
The fuel cost per locomotive unit hour developed for each GMA horsepower 
group shall be multiplied by the fuel update ratio to determine the fuel 
cost per locomotive hour for each horsepower group. The updated fuel 
cost per locomotive unit hour for each applicable GMA group shall be 
multiplied by the number of locomotive unit hours incurred in serving 
the branch by locomotives of that GMA horsepower classification group. 
The total cost developed under this procedure for each horsepower 
classification shall be the locomotive fuel cost assignable to the 
branch line.
    (iii) Electric power purchased or produced for motive power--All 
accounts designated XX-31-68 shall be assigned to the branch on the 
ratio of road electric locomotive unit hours on the branch to the total 
system road electric locomotive unit hours.
    (iv) Servicing locomotives--All accounts designated XX-31-69 shall 
be assigned to the branch on the ratio of road locomotive unit miles on 
the branch to the total system road locomotive unit miles.
    (2) Yard operations--(i) Switch Crews--Materials, Account 21-32-64, 
and Servicing Locomotives, all accounts designated XX-32-69. The costs 
for these accounts shall be assigned to the branch on the ratio of yard 
locomotive unit hours on the branch to the system total yard locomotive 
unit hours.
    (ii) Locomotive fuel--All accounts designated XX-32-67 shall be 
assigned to the branch on the ratio of yard diesel locomotive unit hours 
on the branch to the total system yard diesel locomotive unit hours.
    (iii) Electric power purchased or produced for motive power--All 
accounts designated XX-32-68 shall be assigned to the branch on the 
ratio of yard electric locomotive unit hours on the branch to the total 
system yard electric locomotive unit hours.
    (3) Administrative support operations--(i) Loss and damage claims 
processing--All accounts designated XX-35-78 shall be assigned to the 
branch on the ratio of the number of claims processed for loss or damage 
occurring on the branch to the total number of claims processed by the 
railroad.
    (ii) [Reserved]
    (4) Transportation fringe benefits. Fringe benefits shall be 
assigned to the branch separated between train operations, yard 
operations, train and yard operations common, specialized service 
operations, and administrative support operations. The costs for each 
activity shall be assigned to the branch on the ratio that the total 
branch salary and wages bear to the total system salary and wages for 
each activity shown below.
    (i) Train Operations, Account 12-31-00, total of all 11-31-XX 
accounts branch to system.
    (ii) Yard Operations, Account 12-32-00, total of all 11-32-XX 
accounts branch to system.
    (iii) Train and Yard Operations Common, Account 12-33-00, total of 
all 11-33-XX accounts branch to system.
    (iv) Specialized Service Operations, Account 12-34-00, total of all 
11-34-XX accounts branch to system.

[[Page 327]]

    (v) Administrative Support, Account 12-35-00, total of all 11-35-XX 
accounts branch to system.
    (d) General administrative. (1) Fringe Benefits, Account 12-61-00, 
shall be assigned to the branch on the ratio that the total branch 
salary and wages in all 11-61-XX accounts bear to the system total 
salary and wages in all 11-61-XX accounts.
    (2) [Reserved]

[43 FR 7624, Feb. 24, 1978. Redesignated at 47 FR 49581, Nov. 1, 1982 
and amended at 48 FR 54241, Dec. 1, 1983; 52 FR 2709, Jan. 26, 1987]



Sec. 1152.34  Return on investment.

    Return on investment for road property shall be computed according 
to the procedures set forth in this section.
    (a)  [Reserved]
    (b)  [Reserved]
    (c) Return on investment--road properties. Return on investment--
road properties shall be computed according to the following procedures:
    (1) The investment base to which the nominal return element shall 
apply shall be the sum of:
    (i) The allowable working capital computed at 15 days on-branch cash 
avoidable costs (on branch avoidable costs less depreciation).
    (ii) The amount of current income tax benefits resulting from 
abandonment of the line which would have been applicable to the period 
of the subsidy agreement. (Conversely, if the railroad would incur an 
income tax liability from abandonment, the liability should be deducted 
from the investment base.) This information is to be furnished by the 
railroad and subject to audit by the person offering the subsidy.
    (iii) The net liquidation value for the highest and best use for 
non-rail purposes, of the rail properties on the line to be subsidized 
which are used and required for performance of the services requested by 
the persons offering the subsidy. This value shall be determined by 
computing the current appraised market value of such properties for 
other than rail transportation purposes, less all costs of dismantling 
and disposition of improvements necessary to make the remaining 
properties available for their highest and best use and complying with 
applicable zoning, land use, and environmental regulations. If 
rehabilitation has been performed along the line during any subsidy year 
and rehabilitation expenses have been paid by the subsidizer under 49 
CFR 1152.32(m)(2), the investment base shall exclude the increment to 
the net liquidation value of the line caused by the rehabilitation 
project.
    (d) Reasonable return. A rail carrier shall furnish to the 
Commission, and to any financially responsible person considering making 
a offer of a rail service continuation payment, a substantiated 
statement showing its current nominal cost of capital. The railroad's 
nominal cost of capital shall be the current before tax cost of capital, 
weighted to the capital structure, and adjusted for the effects of the 
combined statutory Federal and State income tax rates. This rate of 
return expressed as a percent, shall be calculated as follows:
    (1) The railroad shall determine its permanent capital structure 
ratio for debt and equity capital such that the two numbers total 100 
percent. This capital structure will be the actual capital structure of 
the railroad. If this calculation is not possible or also not 
representative because the railroad is part of a conglomerate, the debt-
equity ratio from the Commission's latest Determination of Adequate 
Railroad Revenues will be used. However, if the debt-equity ratio for 
the railroad industry is used then the industry average equity and debt 
rate from the Commission's latest revenue adequacy finding must also be 
used in paragraphs (d)(2) and (d)(3) of this section.
    (2) The current nominal cost of debt shall be determined by taking 
the average of all debt instruments (including bonds, equipment trust 
certificates, financial lease arrangement, et cetera) issued by the 
carrier in the most recent 12 month period. The debt cost calculated by 
this procedure is a before-tax rate and is not adjusted for inflation or 
income taxes.
    (3) The current nominal after tax cost of equity shall be an amount 
equal to that which a prudent investor would expect to earn through 
investment in the market place. The current after tax nominal cost of 
equity is divided by 1 minus the combined statutory Federal and State 
income tax rates. This will

[[Page 328]]

develop the nominal cost of equity on a before tax basis.
    (4) The current nominal before-tax cost of debt is multiplied by the 
current percentage of debt to total capital to obtain a weighted before-
tax nominal cost of current debt.
    (5) The current nominal before-tax cost of equity is multiplied by 
the current percentage of equity to total capital to obtain a weighted 
nominal before-tax cost of current equity.
    (6) The results of paragraphs (d)(4) and (d)(5) are added together 
to determine the current nominal cost of capital.
    (e) Holding gain (loss)-road properties. The railroad shall 
determine the holding gain (loss) that is projected to occur during the 
forecast and/or subsidy year.

[52 FR 2709, Jan. 26, 1987, as amended at 53 FR 45766, Nov. 14, 1988; 53 
FR 49667, Dec. 9, 1988; 54 FR 18518, May 1, 1989]
Sec. 1152.35  [Reserved]



Sec. 1152.36  Submission of revenue and cost data.

    The following information shall be submitted by applicant as Exhibit 
1 to an abandonment or discontinuance application (Sec. 1152.22(d)) and 
shall be developed in accordance with the methodology established in 
Secs. 1152.31 through 1152.35, as applicable. Such information, form and 
methodology shall also be used by an offeror of financial assistance to 
formulate a Proposed Subsidy Payment (Sec. 1152.27).

------------------------------------------------------------------------
                                                               Projected
                                   Base year      Forecast      subsidy 
                                   operations       year         year   
                                                 operations   operations
------------------------------------------------------------------------
Revenues attributable for:                                              
  1. Freight originated and/or   .............  ............  ..........
   terminated on branch.                                                
  2. Bridge traffic............  .............  ............  ..........
  3. All other revenue and       .............  ............  ..........
   income.                                                              
  4. Total revenues              .............  ............  ..........
   attributable (lines 1                                                
   through 3).                                                          
Avoidable costs for:                                                    
  5. On-branch costs (lines 5a   .............  ............  ..........
   through 5k).                                                         
    a. Maintenance of way and    .............  ............  ..........
     structures.                                                        
    b. Maintenance of equipment  .............  ............  ..........
    c. Transportation..........  .............  ............  ..........
    d. General administrative..  .............  ............  ..........
    e. Deadheading, taxi, and    .............  ............  ..........
     hotel.                                                             
    f. Overhead movement.......  .............  ............  ..........
    g. Freight car costs (other  .............  ............  ..........
     than return on freight                                             
     cars).                                                             
    h. Return on value-          .............  ............  ..........
     locomotives.                                                       
    i. Return on value-freight   .............  ............  ..........
     cars.                                                              
    j. Revenue taxes...........  .............  ............  ..........
    k. Property taxes..........  .............  ............  ..........
  6. Off-branch costs..........                                         
    a. Off-branch costs (other   .............  ............  ..........
     than return on freight                                             
     cars).                                                             
    b. Return on value-freight                                          
     cars.                                                              
  7. Total avoidable costs       .............  ............  ..........
   (line 5 plus line 6).                                                
Subsidization costs for:                                                
  8. Rehabilitation \1\........  .............  ............  ..........
  9. Administration costs        .............  ............  ..........
   (subsidy year only) \2\.                                             
  10. Casualty reserve account   .............  ............  ..........
   \2\.                                                                 
  11. Total subsidization costs  .............  ............  ..........
   (lines 8 through 10).                                                
Return on value:                                                        
  12. Valuation of property      .............  ............  ..........
   (lines 12a through 12c).                                             
    a. Working capital.........  XXXX.........  ............  ..........
    b. Income tax consequences.  XXXX.........  ............  ..........
    c. Net liquidation value...  XXXX.........  ............  ..........
  13. Nominal rate of return...  XXXX.........  ............  ..........
  14. Nominal return on value    XXXX.........  ............  ..........
   (line 12 times line 13).                                             
  15. Holding gain (loss)......  XXXX.........  ............  ..........
  16. Total return on value      XXXX.........  ............  ..........
   (line 14 minus 15).                                                  
  17. Avoidable loss from        .............  ............  ..........
   operations (line 4 minus                                             
   line 7).                                                             
  18. Estimated forecast year    .............  ............  ..........
   loss from operations (line 4                                         
   minus lines 7 and 16).                                               
  19. Estimated subsidy (line 4  .............  ............  ..........
   minus lines 7, 11 and 16).                                           
------------------------------------------------------------------------
\1\ This projection shall be computed in accordance with Sec.           
  1152.32(m).                                                           
\2\ Omit in applications pursuant to Secs.  1152.22 and 1152.23.        


[53 FR 49668, Dec. 9, 1988, as amended at 54 FR 18518, May 1, 1989]

[[Page 329]]



Sec. 1152.37  Financial status reports.

    Within 30 days after the end of each quarter of the subsidy year, 
each carrier which is party to a financial assistance agreement shall 
submit to the subsidizer a Financial Status Report for each line 
operated under subsidy. Such Financial Status Report shall be in the 
form prescribed below. Significant deviations from the negotiated 
estimates must be explained. Unless the parties agree otherwise, the 
last Financial Status Report issued within the first ten months of the 
subsidy period will be the basis for negotiating the financial 
assistance agreement for the subsequent subsidy year. The year-end 
report will be the basis of the subsidy payment adjustment. All data 
shall be developed in accordance with the methodology set forth in 
Secs. 1152.31 through 1152.35. In the quarterly reports, the actual data 
for the year to date and a projection to the end of the subsidy year 
shall be shown for each item.

------------------------------------------------------------------------
                                                    Actual     Projected
------------------------------------------------------------------------
                  Revenues for                                          
                                                                        
1. Freight originated and/or terminated on                              
 branch.........................................                        
2. Bridge traffic...............................                        
3. All other revenue and income.................                        
4. Total revenues (lines 1 through 3)...........                        
                                                                        
               Avoidable costs for                                      
                                                                        
5. On-branch costs (lines 5a through 5j)........                        
  a. Maintenance of way and structures..........                        
  b. Maintenance of equipment...................                        
  c. Transportation.............................                        
  d. General administrative.....................                        
  e. Deadheading, taxi, and hotel...............                        
  f. Overhead movement..........................                        
  g. Freight car costs..........................                        
  h. Return on investment--locomotives..........                        
  i. Revenue taxes..............................                        
  j. Property taxes.............................                        
6. Off-branch costs.............................                        
7. Total avoidable costs (line 5 plus line 6)...                        
                                                                        
             Subsidization costs for                                    
                                                                        
8. Rehabilitation...............................                        
9. Administrative costs.........................                        
10. Casualty....................................                        
11. Total subsidization costs (lines 8 through                          
 10)............................................                        
                                                                        
                 Return on value                                        
                                                                        
12. Valuation of property (lines 12a through                            
 12c)...........................................                        
  a. Working capital............................                        
  b. Income tax consequences....................                        
  c. Net liquidation value......................                        
13. Rate of return..............................                        
14. Total return on value (line 12 times line                           
 13)............................................                        
                                                                        
                 Subsidy payment                                        
                                                                        
15. Subsidy payment (line 4 minus lines 7, 11,                          
 and 14)........................................                        
------------------------------------------------------------------------


[43 FR 7624, Feb. 24, 1978. Redesignated at 47 FR 49581, Nov. 1, 1982, 
and amended at 54 FR 18519, May 1, 1989]



        Subpart E--Abandonment Procedures for Bankrupt Railroads



Sec. 1152.40  Filing and service requirements.

    (a) The application for abandonment shall be filed with the 
Commission at the same time the proposal to abandon is presented to the 
Bankruptcy Court.
    (b) An original and 10 copies of the application, typewritten or 
printed on paper approximately 8\1/2\ inches by 11 inches with 1\1/2\ 
inch left margin shall be filed with the Secretary of the Interstate 
Commerce Commission, Washington, DC 20423. The original shall bear the 
date and signature of the officer or other person authorized to file the 
application, and shall be complete in itself. The signature may be 
stamped or typed and the notarial seal may be omitted on the copies. A 
check or money order payable to the Interstate Commerce Commission must 
also be submitted to cover the applicable filing fee.
    (c) Service. Concurrent with the filing of an application with the 
Commission, a copy of the application shall be served on all parties 
entitled to receive notice under Sec. 1152.20.

[44 FR 73106, Dec. 17, 1979. Redesignated at 47 FR 49581, Nov. 1, 1982, 
and amended at 53 FR 19302, May 27, 1988]



Sec. 1152.41  Contents of the application.

    Applications filed by bankrupt railroads concerning the abandonment 
of railroad lines or the discontinuance of rail service shall contain 
the following information and each paragraphs (a) through (i) of this 
section shall be attested to by a person having personal knowledge of 
the matters contained therein:

[[Page 330]]

    (a) General. (1) Exact name of applicant.
    (2) Whether applicant is a common carrier by railroad subject to the 
Interstate Commerce Act.
    (3) Whether the carrier which owns or operates the line of railroad 
to be abandoned or over which service is to be discontinued is a part of 
any railroad system.
    (4) Relief sought (abandonment of line or discontinuance of 
service).
    (5) Detailed map of the subject line on a sheet not larger than 8 x 
10\1/2\ inches, drawn to scale, and with the scale shown thereon. The 
map must show, in clear relief, the exact location of the rail line to 
be abandoned or over which service is to be discontinued and its 
relation to other rail lines in the area, highways, water routes, and 
population centers.
    (6) Detailed statement of reasons for filing application.
    (7) Name, title, address, and telephone number of the representative 
of applicant to whom correspondence should be sent.
    (8) A statement that a response to the application may be submitted 
to the Commission within 30 days, and must conform to Sec. 1152.42.
    (9) Certificate of service.
    (b) Condition of properties. (1) The present physical condition of 
the line including any operating restrictions and estimate of deferred 
maintenance and rehabilitation costs (e.g., number of ties that need 
replacing, miles of rail that need replacing and/or new ballast, bridge 
repairs or replacement needed, and estimated labor expenses necessary to 
upgrade the line to minimum Federal Railroad Administration Class I 
safety standards). The bases for the estimates shall be stated with 
particularity, and workpapers shall be made available upon request of 
the Commission or any interested persons.
    (2) Statement whether the line, or any portion of line, could be 
operated profitably if necessary deferred maintenance and rehabilitation 
were performed.
    (c) Service provided. Describe service performed on the line during 
the most recent full calendar year for which information is available, 
and that part of the current year for which information is available. 
This should include:
    (1) Number of trains operated and their frequency;
    (2) Miles of track operated (include main line and all railroad-
owned sidings);
    (3) Average number of locomotive units operated;
    (4) Carload commodity group tonnage on the line;
    (5) Overhead or bridge traffic by carload commodity group tonnage 
(include detailed information on overhead or bridge traffic to be 
retained by the carrier);
    (6) Average crew size;
    (7) Level of maintenance;
    (8) Any important changes in train service undertaken in the 5 
calendar years immediately preceding the filing of the application; and
    (9) Reasons for decline in traffic, if any, in the best judgment of 
applicant.
    (d) Revenue and cost data. (1) Computation of the revenues 
attributable, avoidable costs and reasonable return on value for the 
line to be abandoned for the most recent full calendar year (to the 
extent such branch level data is available), in accordance with the 
methodology prescribed in Sec. 1152.36, as Exhibit 1.
    (2) If the line to be abandoned or over which service is to be 
discontinued is less than the entire mileage owned or operated by the 
carrier, a detailed statement showing the effect of the proposed 
abandonment or discontinuance on its net railway operating income for 
the calendar year immediately preceding the filing of the application 
and for that part of the current year for which information is 
available.
    (3) If the line to be abandoned or over which service to be 
discontinued is operated as a part of a system under common control and 
management, a detailed statement showing the effect of the proposed 
abandonment or discontinuance on the net railway operating income of the 
other individual members of the system for the calendar year immediately 
preceding the filing of the application and for that part of the current 
year for which information is available.

[[Page 331]]

    (e) Service area. (1) The name and population (identify source and 
date of figures) of each community in which a station on the line is 
located.
    (2) Identification of significant users, as defined in 
Sec. 1152.2(n), by name, address, principal commodity, and by tonnage 
and/or carloads for that part of the current year and the previous 
calendar year for which information is available.
    (3) Detailed description of the alternate sources of transportation 
service (rail, motor, water, air) available, including a detailed 
description and nature of operations, and the highway network in the 
proximate area.
    (4) Statement of efforts which have been made to continue service 
through solicitation of additional traffic, and the sale or subsidy of 
the line and the results of those efforts.
    (f) Environmental and energy impact. The applicant shall submit as a 
part of its abandonment or discontinuance application full and complete 
information with regard to the environmental impact of the proposed 
abandonment or discontinuance in compliance with 49 CFR part 1106 and 
Sec. 1105.12(b) and (c). If certain information required by the 
environmental regulations duplicates wholly or in part information 
required elsewhere in an abandonment or discontinuance application, the 
environmental information requirements may be met by a direct and 
specific reference to the location of the required information elsewhere 
in the abandonment or discontinuance application. Environment 
information should not be submitted for those cases covered by the 
Milwaukee Railroad Restructuring Act, Pub. L. 96-101 (1979).
    (g) Passenger service. If passenger service is provided on the line, 
submit a statement of whether appropriate steps have been taken for 
discontinuance pursuant to 49 U.S.C. 10908 and 10909.
    (h) All testimony considered necessary to support the proposal shall 
be filed with the application in the form of verified statements.
    (i) Verification. The original application shall be executed and 
verified in the form set forth below by an officer of the carrier having 
knowledge of the facts and matters relied upon.

                              Verification

State of ________________________ ss. County of 
____________________________ (Name of affiant) makes oath and says that 
he is the ________________________ (Title of Affiant) of the 
________________________ (Name of applicant) applicant herein; that he 
has been authorized by the applicant (or as appropriate, a court) to 
verify and file with the Interstate Commerce Commission the foregoing 
application in AB- ________________________ (Sub-No. 
________________________); that he has carefully examined all of the 
statements in the application as well as the exhibits attached thereto 
and made a part thereof; that he has knowledge of the facts and matters 
relied upon in the application; and that all representations set forth 
therein are true and correct to the best of his knowledge, information, 
and belief.
________________________
(Signature)
Subscribed and sworn to before me ________ in and for the State and 
County above named, this ______ day of ____________, 19____.
________________________
My commission expires ________________________

[44 FR 73106, Dec. 17, 1979. Redesignated at 47 FR 49581, Nov. 1, 1982, 
and amended at 53 FR 49668, Dec. 9, 1988]



Sec. 1152.42  Responses to the application.

    (a) Filing. The original and 10 copies of responses to the 
application shall be filed with the Commission within 30 days of the 
filing of the application. A copy of each response shall be concurrently 
served on the carrier and Bankruptcy Court. A certificate of service 
shall accompany the response.

[[Page 332]]

    (b) Verification. Each response shall be verified.

State of ________________________ ss. County of 
____________________________ (Name of affiant) makes oath and says that 
he has been authorized to verify and file with the Interstate Commerce 
Commission the foregoing response in AB-________________________ (Sub-
No. ________________________), that he has carefully examined all of the 
statements in the response; that he has knowledge of the facts and 
matters relied upon; and that all representations set forth are true and 
correct to the best of his knowledge, information, and belief.
________________________
(Signature)

Subscribed and sworn to before me ________ in and for the State and 
County above named, this ______ day of ____________, 19____.
________________________
My commission expires ________________________

    (c) Warning. The Commission will not consider untimely, unserved, or 
unverified responses.
[44 FR 73106, Dec. 17, 1979. Redesignated at 47 FR 49581, Nov. 1, 1982, 
and amended at 53 FR 19302, May 27, 1988]



Sec. 1152.43  Report of the Commission.

    The Commission, or designee thereof, shall prepare a report for the 
Bankruptcy Court within the time allotted by the Court pursuant to 11 
U.S.C. 1170. The Commission report shall rely on the application and 
responses.

[44 FR 73106, Dec. 17, 1979. Redesignated at 47 FR 49581, Nov. 1, 1982]



   Subpart F--Exempt Abandonments and Discontinuances of Service and 
                             Trackage Rights



Sec. 1152.50  Exempt abandonments and discontinuances of service and trackage rights.

    (a)(1) A proposed abandonment or discontinuance of service or 
trackage rights over a railroad line is exempt from the provisions of 49 
U.S.C. 10903-10905 if the criteria designated in this section are 
satisfied.
    (2) Whenever the Commission determines a proposed abandonment to be 
exempt from the requirements of 49 U.S.C. 10903-10905, whether under 
this section or on the basis of the merits of an individual petition, 
the provisions of Sec. 1152.27 and Sec. 1152.28 as they relate to 
exemption proceedings shall be applicable.
    (b) An abandonment or discontinuance of service or trackage rights 
is exempt if the carrier certifies that no local traffic has moved over 
the line for at least 2 years and any overhead traffic on the line can 
be rerouted over other lines and that no formal complaint filed by a 
user of rail service on the line (or a State or local government entity 
acting on behalf of such user) regarding cessation of service over the 
line either is pending with the Commission or any U.S. District Court or 
has been decided in favor of the complainant within the 2-year period. 
The complaint must allege (if pending) or prove (if decided) that the 
carrier has imposed an illegal embargo or other unlawful impediment to 
service.
    (c) The Commission has found:
    (1) That its prior review and approval of these abandonments and 
discontinuances is not necessary to carry out the rail transportation 
policy of 49 U.S.C. 10101a; and
    (2) That these transactions are of limited scope and continued 
regulation is unnecessary to protect shippers from abuse of market 
power. 49 U.S.C. 10505.

A notice must be filed to use this class exemption. The procedures are 
set out in Sec. 1152.50(d). This class exemption does not relieve a 
carrier of its statutory obligation to protect the interests of 
employees. 49 U.S.C. 10505(g)(2) and 10903(b)(2). This also does not 
preclude a carrier from seeking an exemption of a specific abandonment 
or discontinuance that does not fall within this class.
    (d) Notice of exemption. (1) At least 10 days prior to filing a 
notice of exemption with the Commission, the railroad seeking the 
exemption must notify in writing (i) the Public Service Commission (or 
equivalent agency) in the State(s) where the line will be abandoned or 
the service or trackage rights discontinued, (ii) Department of Defense 
(Military Traffic Management Command, Transportation Engineering Agency, 
Railroads for National Defense Program), (iii) the National Park 
Service, Recreation Resources Assistance Division, (iv) the National 
Park Service, Land Resources Division, and (v) the U.S. Department of 
Agriculture,

[[Page 333]]

Chief of the Forest Service. The notice shall name the railroad, 
describe the line involved, indicate the exemption procedure is being 
used, and include the approximate date that the notice of exemption will 
be filed with the Commission. The notice shall include the following 
statement: ``Based on information in our possession, the line (does) 
(does not) contain federally granted rights-of-way. Any documentation in 
the railroad's possession will be made available promptly to those 
requesting it.''
    (2) The railroad must file a verified notice using its appropriate 
abandonment docket number and subnumber (followed by the letter ``X'') 
with the Commission at least 50 days before the abandonment or 
discontinuance is to be consummated. The notice shall include the 
proposed consummation date, the certification required in 
Sec. 1152.50(b), the information required in Sec. 1152.22(a)(1) through 
(5) and (8), and (e)(5), the level of labor protection, and a 
certificate that the notice requirements of Secs. 1152.50(d)(1) and 
1105.11 have been complied with.
    (3) The Commission, through the Director of the Office of 
Proceedings, shall publish a notice in the Federal Register within 20 
days after the filing of the notice of exemption. Petitions to stay the 
effective date of the notice on other than environmental or historic 
preservation grounds must be filed within 10 days of the publication. 
Petitions to stay the effective date of the notice on environmental or 
historic preservation grounds may be filed at any time but must be filed 
sufficiently in advance of the effective date in order to allow the 
Commission to consider and act on the petition before the notice becomes 
effective. Petitions for reconsideration, comments regarding 
environmental, energy and historic preservation matters, and requests 
for public use conditions under 49 U.S.C. 10906 and 49 CFR 1152.28(a)(2) 
must be filed within 20 days after publication. The exemption will be 
effective 30 days after publication, unless stayed. If the notice of 
exemption contains false or misleading information, the use of the 
exemption is void ab initio and the Commission shall summarily reject 
the exemption notice.
    (4) In out-of-service rail line exemption proceedings under 49 CFR 
1152.50, the Commission, on its own motion, will stay the effective date 
of individual notices of exemption when an informed decision on pending 
environmental and historic preservation issues cannot be made prior to 
the date that the exemption authority would otherwise become effective.
    (5) A request to implement interim trail use and rail banking under 
16 U.S.C. 1247(d) and 49 CFR 1152.29 should be filed with the Commission 
and served on the railroad within 10 days of publication of the notice 
of exemption in the Federal Register. A notice or decision to all 
parties will be issued if use of the exemption is made subject to 
environmental, energy, historic preservation, public use and/or interim 
trail use and rail banking conditions.
    (6) To address whether the standard labor protective conditions set 
forth in Oregon Short Line R. Co.--Abandonment--Goshen, 360 I.C.C. 91 
(1979), adequately protect affected employees, a petition for partial 
revocation of the exemption under 49 U.S.C. 10505(d) must be filed.
    (e) Abandonment petitions for exemption. Whenever a petitioner 
intends to seek abandonment authority through a petition for exemption, 
a copy of the petition shall be served upon the persons receiving 
notices of exemption under Sec. 1152.50(d). The petition must include 
the following statement: ``Based on information in our possession, the 
line (does) (does not) contain federally granted right-of-way. Any 
documentation in petitioner's possession will be made available promptly 
to those requesting it.''

[49 FR 17003, Apr. 23, 1984, as amended at 50 FR 8335, Mar. 1, 1985; 50 
FR 24649, June 12, 1985; 51 FR 197, Jan. 3, 1986; 51 FR 16853, May 7, 
1986; 51 FR 42098, Nov. 21, 1986; 52 FR 46775, Dec. 10, 1987; 52 FR 
48443, Dec. 22, 1987; 54 FR 9823, Mar. 8, 1989; 55 FR 31600, 31601, Aug. 
3, 1990; 56 FR 32337, July 16, 1991; 56 FR 35835, July 29, 1991; 57 FR 
13049, Apr. 15, 1992]


[[Page 334]]





  Subpart G--Special Rules Applicable to Petitions for Abandonments or 
Discontinuances Of Service Or Trackage Rights Filed Under the 49 U.S.C. 
                        10505 Exemption Procedure



Sec. 1152.60  Special rules.

    (a) This section contains special rules applicable to any proceeding 
filed under the 49 U.S.C. 10505 exemption procedure wherein is sought 
either the abandonment of a rail line or the discontinuance of service 
or trackage rights over a rail line. General rules applicable to any 
proceeding filed under 49 U.S.C. 10505 exemption procedure may be found 
in 49 CFR part 1121.
    (b) Any petition filed under the 49 U.S.C. 10505 exemption procedure 
wherein is sought either the abandonment of a rail line or the 
discontinuance of service or trackage rights over a rail line must be 
accompanied by a map that meets the requirements of Sec. 1152.22(a)(5) 
of this part.

[56 FR 32337, July 16, 1991, as amended at 56 FR 46392, Sept. 12, 1991]


                                Appendix                                
------------------------------------------------------------------------
              AB No.                          Name of Carrier           
------------------------------------------------------------------------
1................................  Chicago & North Western              
                                    Transportation Co.                  
2................................  Louisville & Nashville RR. Co.       
3................................  Missouri Pacific RR. Co.             
4................................  Cadillac & Lake City Ry. (debtor).   
5................................  Penn Central Transportation Co.      
                                    (debtor).                           
6................................  Burlington Northern, Inc.            
7................................  Chicago, Milwaukee, St. Paul &       
                                    Pacific Ry. Co.                     
8................................  Denver & Rio Grande Western RR. Co.  
9................................  St. Louis-San Francisco Ry. Co.      
10...............................  Norfolk & Western Ry. Co.            
11...............................  Chicago & Eastern Illinois RR.       
12...............................  Southern Pacific Transportation Co.  
13...............................  Holton Inter-Urban Ry. Co.           
14...............................  Northwestern Pacific RR. Co.         
15...............................  Petaluma & Santa Rosa RR. Co.        
16...............................  San Diego & Arizona Eastern Ry. Co.  
17...............................  Visalia Electric RR. Co.             
18...............................  The Chesapeake & Ohio Ry. Co.        
19...............................  The Baltimore & Ohio RR. Co.         
20...............................  The Texas & Pacific Ry. Co.          
21...............................  Abilene & Southern Ry. Co.           
22...............................  Texas-New Mexico Ry. Co.             
23...............................  Texas Pacific-Missouri Pacific       
                                    Terminal RR. of New Orleans.        
24...............................  Fort Worth Belt Railway Co.          
25...............................  The Weatherford Mineral Wells &      
                                    Northwestern Ry. Co.                
26...............................  Southern Ry. Co.                     
27...............................  The Alabama Great Southern RR. Co.   
28...............................  Central of Georgia RR. Co.           
29...............................  The Cincinnati, New Orleans & Texas  
                                    Pacific RR. Co.                     
30...............................  Georgia Southern & Florida Ry. Co.   
31...............................  Grand Trunk Western RR. Co.          
32...............................  Boston & Maine Corp. (debtor).       
33...............................  Union Pacific RR. Co.                
34...............................  St. Joseph & Grand Island RR. Co.    
35...............................  Los Angeles & Salt Lake RR. Co.      
36...............................  Oregon Short Line RR. Co.            
37...............................  Oregon-Washington Railroad &         
                                    Navigation Co.                      
38...............................  Pennsylvania & Atlantic RR. Co.      
39...............................  St. Louis Southwestern Ry. Co.       
40...............................  St. Louis Southwestern Ry. Co. of    
                                    Texas.                              
41...............................  Flint Hills Ry., Inc.                
42...............................  Aroostock Valley RR. Co.             
43...............................  Illinois Central Gulf RR. Co.        
44...............................  Lehigh Valley RR. Co. (debtor).      
45...............................  Albany Port District Commission.     
46...............................  Chicago, Rock Island & Pacific RR.   
                                    Co.                                 
47...............................  Duluth Union Depot and Transfer Co.  
48...............................  Erie Lackawanna Ry. Co.              
49...............................  The Ann Arbor RR. Co.                
50...............................  Reading Co. (debtor).                
51...............................  Oregon Electric Ry. Co.              
52...............................  The Atchison, Topeka & Santa Fe Ry.  
                                    Co.                                 
53...............................  The Kansas & Missouri Railway and    
                                    Terminal Co.                        
54...............................  Georgia RR.: The Western Ry. of      
                                    Alabama; Atlanta & West Point RR.   
                                    Co.; Milledgeville Ry. Co.; Georgia 
                                    Railroad & Banking Co.              
55...............................  Seaboard Coast Line RR. Co.          
56...............................  The City of Maryville & The Maryville
                                    Housing Authority.                  
57...............................  Soo Line RR. Co.                     
58...............................  Reader RR.                           
59...............................  Chattahoochee Valley Ry. Co.         
60...............................  Morehead & North Fork RR. Co.        
61...............................  Spokane, Portland & Seattle Ry. Co.  
62...............................  Marinette, Tomahawk & Western RR. Co.
63...............................  Midway RR. Co.                       
64...............................  Chattanooga Station Co.              
65...............................  St. Johnsbury & Lamoille County RR.  
                                    Co.                                 
66...............................  Minneapolis, Anoka & Cuyuna Range RR.
                                    Co.                                 
67...............................  West Pittston-Exeter RR. Co.         
68...............................  Lake Superior & Ishpeming RR. Co.    
69...............................  Western Maryland Ry. Co. and (The    
                                    Baltimore and Cumberland Valley RR.)
70...............................  Florida East Coast Ry. Co.           
71...............................  The Baltimore & Annapolis RR. Co.    
72...............................  Sacaramento Northern Ry.             
73...............................  Cincinnati Union Terminal Co.        
74...............................  Pennsylvania-Reading Seashore Lines. 
75...............................  Richmond Terminal Co.                
76...............................  Texas Central RR. Co.                
77...............................  Bangor & Aroostook RR. Co.           
78...............................  Fonda, Johnstown & Gloversville RR.  
                                    Co.                                 
79...............................  Central RR. Co. of New Jersey.       
80...............................  Allentown Terminal RR. Co.           
81...............................  Norwood & St. Lawrence RR. Co.       
82...............................  The Marianna & Blountstown RR.       
83...............................  Maine Central RR. Co.                
84...............................  Illinois Terminal RR. Co.            
85...............................  The Union Terminal Co.               
86...............................  Cheswick and Harmar RR. Co.          
87...............................  Susquehanna Connecting RR. Co.       
88...............................  Bessemer & Lake Erie RR. Co.         
89...............................  Alameda Belt Line.                   
90...............................  Caton & Loudon Ry. Co.               
91...............................  Central Illinois Light Co.           
92...............................  The Salt Lake City Union Depot & RR. 
                                    Co.                                 
93...............................  Peoria Terminal Co.                  
94...............................  El Paso Union Passenger Depot Co.    
95...............................  Hollis & Eastern RR. Co.             
96...............................  Bellefonte Central RR. Co.           
97...............................  The Texas Mexican Ry. Co.            
98...............................  Claremont & Concord Ry. Co.          

[[Page 335]]

                                                                        
99...............................  Arkansas Western Ry. Co.             
100..............................  The General State Authority          
                                    (Commonwealth of Pennsylvania).     
101..............................  Duluth, Missabe & Iron Range Ry. Co. 
102..............................  Missouri-Kansas-Texas RR. Co.        
103..............................  Kansas City Southern Ry. Co.         
104..............................  East Tennessee & Western North       
                                    Carolina RR. Co.                    
105..............................  Western Pacific RR. Co.              
106..............................  The Colorado & Wyoming Ry. Co.       
107..............................  Kalamazoo, Allegan & Grand Rapids RR.
                                    Co.                                 
108..............................  Texas Export RR. Co.                 
109..............................  Quanah, Acme & Pacific Ry. Co.       
110..............................  Nezperce RR. Co.                     
111..............................  Detroit, Toledo & Ironton RR. Co.    
112..............................  Great Plains Ry. Co.                 
113..............................  Edgemoor & Manetta RR.               
114..............................  Clarendon & Pittsford RR. Co.        
115..............................  Lehigh & New England Ry. Co.         
116..............................  City of Hillsboro (for Oregon        
                                    Electric Ry.).                      
117..............................  Elgin, Joliet & Eastern Ry. Co.      
118..............................  Albany Passenger Terminal Co.        
119..............................  The Fort Worth & Denver Ry. Co.      
120..............................  Chicago & Western Indiana RR. Co.    
121..............................  Spokane International RR.            
122..............................  Terminal RR. Association of St.      
                                    Louis.                              
123..............................  Chicago Produce Terminal Co.         
124..............................  Waterloo RR. Co.                     
125..............................  Norfolk Southern Ry. Co.             
126..............................  Wellsville, Addison & Galeton RR. Co.
127..............................  Central Iowa Transportation          
                                    Cooperative.                        
128..............................  East Washington RR. Co.              
129..............................  Twin Branch RR. Co.                  
130..............................  Cotton-Plant Fargo Ry. Co.           
131..............................  Yakima Valley Transportation Co.     
132..............................  The Akron & Barberton Belt RR. Co.   
133..............................  Warren and Quachita Valley Ry. Co.   
134..............................  State of Vermont (Agency of          
                                    Transportation, Dept. of Rail,      
                                    Waterway & Motor Carriers).         
135..............................  Condon, Kingria & Southern RR. Co.   
136..............................  Chicago South Shore & South Belt RR. 
                                    Co.                                 
137..............................  Augusta RR. Co.                      
138..............................  McCloud River RR. Co.                
139..............................  Providence & Worcester RR. Co.       
140..............................  Hoboken Shore RR. Co.                
141..............................  Kanawha Central RR. Co.              
142..............................  New Orleans Lower Coast RR. Co.      
143..............................  Jacksonville Terminal Co.            
144..............................  Tidewater Southern Ry. Co.           
145..............................  Carrollton RR. Co.                   
146..............................  Columbia Newberry & Laurens RR. Co.  
147..............................  Gainesville-Midland RR. Co.          
148..............................  Durham & Southern RR. Co.            
149..............................  Winston-Salem Southbound RR. Co.     
150..............................  Highpoint Thomasville and Denton RR. 
                                    Co.                                 
151..............................  Haysi RR. Co.                        
152..............................  Clinchfield RR. Co.                  
153..............................  Mount Hood Ry. Co.                   
154..............................  Texas, Oklahoma & Eastern RR. Co.    
155..............................  DeQueen and Eastern RR. Co.          
156..............................  Delaware & Hudson Ry. Co.            
157..............................  Richmond, Frederick, Potomac RR. Co. 
158..............................  Pittsburgh & Lake Erie RR. Co.       
159..............................  Monongahela Ry. Co.                  
160..............................  Montour RR. Co.                      
161..............................  Pittsburgh, Chartiers & Youghiogheny 
                                    RR. Co.                             
162..............................  Youngstown & Southern RR. Co.        
163..............................  Raritan River RR. Co.                
164..............................  Texas South Eastern RR. Co.          
165..............................  East Troy Municipal RR. Co.          
166..............................  Vermont Ry. Co.                      
167..............................  Conrail (Consolidated Rail Corp.)    
168..............................  Lake Erie & Eastern RR. Co.          
169..............................  Toledo, Angola & Western RR. Co.     
170..............................  Sunset Ry. Co.                       
171..............................  Fairport, Painesville & Eastern Ry.  
                                    Co.                                 
172..............................  Fort Wayne Union Ry. Co.             
173..............................  Detroit, Toledo Shore Line RR. Co.   
174..............................  Central Vermont Ry. Co.              
175..............................  Duluth, Winnipeg & Pacific RR. Co.   
176..............................  Valley & Siletz RR. Co.              
177..............................  Minnesota, Dakota & Western Ry. Co.  
178..............................  Hillsdale County Ry. Co.             
179..............................  The Apache Ry. Co.                   
180..............................  The Lowville & Beaver RR. Co.        
181..............................  East Camden & Highland RR. Co.       
182..............................  The Youngstown and Northern RR. Co.  
183..............................  Union RR. Co.                        
184..............................  McKeesport Connecting RR. Co.        
185..............................  The Lake Terminal RR. Co.            
186..............................  The Newburgh & South Shore Ry. Co.   
187..............................  Northhampton & Bath RR. Co.          
188..............................  Johnstown & Stony Creek RR. Co.      
189..............................  Connellsville & Monongahela Ry. Co.  
190..............................  Carbon County Ry. Co.                
191..............................  Colorado Southern Ry. Co.            
192..............................  Birmingham Southern RR. Co.          
193..............................  Canton RR. Co.                       
194..............................  Grafton & Upton RR. Co.              
195..............................  The Mobile & Gulf RR. Co.            
196..............................  Atlanta & Saint Andrews Bay Ry. Co.  
197..............................  Cedar Rapids and Iowa Ry. Co.        
198..............................  Chicago & Illinois Midland Ry. Co.   
199..............................  The Long Island RR. Co.              
200..............................  Escanaba & Lake Superior RR. Co.     
201..............................  Minneapolis Northfield & Southern Ry.
                                    Co.                                 
202..............................  Montpelier & Barre RR. Co.           
203..............................  Mississippi Ry. Co.                  
204..............................  Cape Fear Ry. Co.                    
205..............................  Washington, Idaho & Montana RR. Co.  
206..............................  The Louisiana & Pine Bluff Ry. Co.   
207..............................  Arkansas & Louisiana Missouri Ry. Co.
208..............................  Wolfeboro Rail Road Co., Inc.        
209..............................  Brooklyn Eastern District Terminal   
210..............................  New York, Susquehanna & Western RR.  
                                    Co.                                 
211..............................  Rahway Valley RR. Co.                
212..............................  Kansas City Public RR.               
213..............................  Canadian Pacific                     
214..............................  Vanderburg County RR. Co.            
215..............................  New Jersey, Indiana, Illinois RR. Co.
216..............................  Norfolk & Franklin & Danville Ry. Co.
217..............................  South Brooklyn Ry. Co.               
218..............................  Livonia, Avon & Lakeville RR. Co.    
219..............................  New York Dock Ry. Co.                
220..............................  Skaneateles Short Line RR. Co.       
221..............................  Toole Valley Ry. Co.                 
222..............................  San Francisco Belt RR.               
223..............................  Narragansett Pier RR. Co. Inc.       
224..............................  Port Authority of New York & New     
                                    Jersey.                             
225..............................  Portland Traction Co.                
226..............................  The Toledo Terminal RR. Co. (Toledo  
                                    RR.).                               
227..............................  Wheeling & Lake Erie Ry. Co.--WLE.   
228..............................  Chelatchie Prairie Railroad, Inc.--  
                                    CR.                                 
229..............................  Praire Central Ry. Co.               
230..............................  Washington County RR. Co.            
231..............................  Staten Island Railroad Corporation-- 
                                    SIRC.                               
232..............................  Kansas Southwestern Ry. Co.          
233..............................  Fresno Interurban Ry. Co.            
234..............................  Prairie Trunk Ry. Co.                
235..............................  Butte Anaconda Pacific Ry. Co.       
236..............................  Camas Prairie RR. Co.                
237..............................  Pend Orville Valley RR., Inc.        
238..............................  Port Everglades Ry.                  
239..............................  Sierra RR. Co.                       

[[Page 336]]

                                                                        
240..............................  Cambria and Indiana, RR. Co.         
241..............................  Arcata and Mad River RR. Co.         
242..............................  Maryland and Pennsylvania RR. Co.    
243..............................  Virginia Blue Ridge Ry.              
244..............................  Oklahoma, Kansas and Texas RR. Co.   
245..............................  Oregon, Pacific and Eastern RR. Co.  
246..............................  Yreka Western RR. Co.                
247..............................  Alabama Southern RR. Co., Inc.       
248..............................  Bolivar Southern RR. Co.             
249..............................  The Mobile & Gulf RR. Co.            
250..............................  Cadiz RR. Co.                        
251..............................  Louisiana Midland Ry. Co.            
252..............................  Northern Missouri RR. Co.            
252..............................  Bear Creek Mainline RR.              
254..............................  Providence & Worcester RR. Co.       
255..............................  Frankport & Cincinnati RR.           
256..............................  Ottumwa Connecting RR.               
257..............................  Sand Springs Ry. Co.                 
258..............................  Central California Traction Co.      
259..............................  Vermont Ry. Inc.                     
260..............................  Rarus Ry. Corp.                      
261..............................  Staten Island Rapid Transit Operating
                                    Authority.                          
262..............................  Norfolk and Portsmouth Belt Line RR. 
                                    Co.                                 
263..............................  Staten Island Ry. Corp.              
264..............................  Vermont & Massachusetts RR. Co.      
265..............................  State of Vermont and Vermont Ry.,    
                                    Inc.                                
266..............................  California Western RR. Co.           
267..............................  Vandalia RR. Co.                     
268..............................  Portland Terminal Co.                
269..............................  Iowa Terminal RR. Co.                
270..............................  Sumpter & Choctaw Ry. Co.            
271..............................  Chicago & Illinois Midland Ry. Co.   
272..............................  Morristown & Erie Ry. Inc. 273       
273..............................  Camino, Placerville & Lake Tahoe RR. 
                                    Co.                                 
274..............................  Chesapeake Western Ry.               
275..............................  Fourteen--Eleven Corp.               
276..............................  Nashville and Ashland City RR.       
277..............................  West Virginia Northern RR. Inc.      
278..............................  The Eastern Shore RR. Inc.           
279..............................  Canadian National Railway Company.   
280..............................  Hillsboro & Northeastern Railway     
                                    Company.                            
281..............................  Texas North Western Railway Company. 
282..............................  Graham County Railway.               
283..............................  Ware Shoals Railroad Company.        
284..............................  Iowa Northern Railroad Company.      
285..............................  The Nevada Northern Railway Company; 
                                    Los Angeles Department of Water and 
                                    Power d/b/a Nevada Northern Railway 
                                    Company.                            
286..............................  The New York, Susquehanna and Western
                                    Railway Corporation.                
287..............................  The Port Huron and Detroit Railroad  
                                    Company.                            
288..............................  Franklin County Railroad Corporation.
289..............................  Central Railroad Company of          
                                    Indianapolis, Inc.                  
290..............................  Norfolk and Western Railway Company; 
                                    Norfolk Southern Railway Company;   
                                    Southern Railway Company; The       
                                    Alabama Great Southern Railroad     
                                    Company; Carolina and Northwestern  
                                    Railway Company; The Cincinnati, New
                                    Orleans and Texas Pacific Railway   
                                    Company; Central of Georgia Railroad
                                    Company; The Georgia Midland Railway
                                    Company; The Georgia Northern       
                                    Railway Company; Georgia Southern   
                                    and Florida Railway Company;        
                                    Southern Railway--Carolina Division;
                                    Tennessee Railway Company; Wabash   
                                    Railroad Company; The Wheeling and  
                                    Lake Erie Railway Company; Woodstock
                                    & Blocton Railway Company.          
291..............................  Andalusia & Conecuh Railroad Company.
292..............................  Alabama & Florida Railroad Company,  
                                    Inc.                                
293..............................  Detroit & Mackinac Railway Company.  
294..............................  Gulf & Mississippi Railroad          
                                    Corporation.                        
295..............................  The Indiana Railroad Company.        
296..............................  The Robeson County Railroad          
                                    Corporation.                        
297..............................  Columbus & Greenville Railway Co.    
298..............................  Iowa Southern Railroad Company.      
299..............................  Oregon & Northwestern Railroad Co.   
300..............................  Chicago Rail Link.                   
301..............................  SouthRail Corporation.               
302..............................  Chicago, Missouri & Western Railroad 
                                    Company.                            
303..............................  Wisconsin Central Ltd.               
304..............................  MidLouisiana Rail Corporation.       
305..............................  Nicholas, Fayette & Greenbrier       
                                    Railroad Company.                   
306..............................  Kewash Railroad, Inc.                
307..............................  Wyoming and Colorado Railroad        
                                    Company, Inc.                       
308..............................  Central Michigan Railway Company.    
309..............................  Cimarron River Valley Railway        
                                    Company.                            
310..............................  Utah Railway Company.                
311..............................  White River Park Development         
                                    Commission.                         
312..............................  South Carolina Central Railroad      
                                    Company, Inc.                       
313..............................  The Southeastern Pennsylvania        
                                    Transportation Authority.           
314..............................  Chicago, Central & Pacific Railroad  
                                    Company.                            
315..............................  Texas Central Railroad Company.      
316..............................  Angelina and Neches River Railroad   
                                    Company.                            
317..............................  Indiana Harbor Belt Railroad Company.
318..............................  Louisiana & Delta Railroad, Inc.     
319..............................  Florida Central Railroad Company,    
                                    Inc.                                
320..............................  Upper Merion and Plymouth Railroad   
                                    Company.                            
321..............................  Kansas City Public Service Freight   
                                    Operation.                          
322..............................  NRUC Corporation (St. Lawrence       
                                    Railroad Division).                 
323..............................  Ogdensburg Bridge and Port Authority.
324..............................  Arkansas and Missouri Railroad       
                                    Company, Inc.                       
325..............................  Florida Midland Railroad Company,    
                                    Inc.                                
326..............................  Washington Central Railroad Company, 
                                    Inc.                                
327..............................  St. Joseph Terminal Railroad Company.
328..............................  Community Improvement Corporation.   
329..............................  Cedar Valley Railroad Company.       
330..............................  Otter Tail Valley Railroad Company,  
                                    Inc.                                
331..............................  Bi-State Development Agency of the   
                                    Missouri-Illinois Metropolitan      
                                    District.                           
332..............................  The Bloomer Line.                    
333..............................  Unity Railways Company.              
334..............................  Crosbyton Railroad Company.          
335..............................  KCT Railway Corporation.             
336..............................  Indiana Hi-Rail Corporation.         
337..............................  Dakota, Minnesota & Eastern Railroad 
                                    Corporation.                        
338..............................  Oregon, California & Eastern Railway 
                                    Company, Inc.                       
339..............................  The Port of Tillamook Bay.           
340..............................  Lenawee County Railroad Company.     
341..............................  The Southwestern Railroad Company,   
                                    Inc.                                
342..............................  Buffalo Creek & Gauley Railroad Co.  
------------------------------------------------------------------------

[41 FR 48520, Nov. 4, 1976. Redesignated at 47 FR 49581, Nov. 1, 1982. 
Redesignated at 48 FR 54241, Dec. 1, 1983, and amended at 51 FR 33613, 
Sept. 22, 1986; 56 FR 18532, Apr. 23, 1991; 56 FR 24119, May 28, 1991]



PART 1155--STANDARDS FOR DETERMINING RAIL SERVICE CONTINUATION SUBSIDIES--Table of Contents




Sec.
1155.1  Purpose of the standards.

[[Page 337]]

1155.2  Definitions of terms used in the standards.
1155.3  Procedure for calculating a subsidy estimate.
1155.4  Interim payments, financial reports, and interpretations.
1155.5  Year-end adjustment.
1155.6  Revenue and income attributable to branch lines.
1155.7  Calculation of avoidable costs and management fee.
1155.8  Apportionment rules for the assignment of expenses to on-branch 
          costs.
1155.9  Return on the value of rail properties.

Appendix I--Format for Presentation of Subsidy Estimate
Appendix II--Format for Financial Status Reports

    Authority: 49 U.S.C. 10321 and 10905; 5 U.S.C. 559.

    Source: 43 FR 1692, Jan. 11, 1978, unless otherwise noted. 
Redesignated at 47 FR 49582, Nov. 1, 1982.



Sec. 1155.1  Purpose of the standards.

    (a) The 3R Act established a method of preserving rail service that 
would otherwise be discontinued as a result of the restructuring process 
developed by the final system plan. Section 304(c)(2) of the 3R Act, as 
amended, provides that no rail service or properties may be discontinued 
or abandoned if a financially responsible person or government entity 
offers a subsidy which: (1) Covers the difference between the carrier's 
revenues attributable to such rail properties and the carrier's 
avoidable costs of providing rail service on such properties, together 
with a reasonable management fee, and (2) includes a reasonable return 
on the value of such properties. Further, the person offering the 
subsidy shall designate the operator of the continued rail service.
    (b) RSPO was directed to develop and publish standards to determine 
``revenues attributable to the rail properties,'' the ``avoidable costs 
of providing service,'' a ``reasonable return on the value,'' and a 
``reasonable management fee'' as those phrases are used in section 304 
of the 3R Act as amended. These standards (49 CFR part 1155), developed 
by RSPO and referred to as the ``Regional Subsidy Standards,'' are 
applicable only for subsidized freight operations over those rail 
properties of the railroads in reorganization which were not conveyed to 
ConRail. (Methods governing the calculation of subsidies for rail 
properties of other railroads as well as those properties conveyed to 
ConRail are covered by a separate set of standards (49 CFR part 1152) 
and are referred to as the ``National Subsidy Standards.'')
    (c) These standards intend that parties to a subsidy agreement 
utilize arms-length negotiation to the fullest extent possible in 
establishing and executing a subsidy operating agreement. The standards 
presented here develop the methodologies for:
    (1) Calculating a subsidy estimate to be used as a basis for a 
subsidy offer under section 304(c)(2) of the 3R Act, as amended,
    (2) Determining the actual revenues and costs of a subsidized 
operation during the subsidy year, and
    (3) Establishing a return on the value of the properties used in 
continuing the rail service.

Parties may agree in arms-length negotiations to provisions which modify 
these standards, subject to review of such modifications by RSPO. RSPO 
would not expect to disapprove variations from the standards which are 
the product of arms-length negotiations and which are shown to be 
reasonable in the light of pertinent facts and circumstances. When an 
agreement has been reached, a copy shall be filed promptly with RSPO for 
its review.
    (d) In brief, the standards describe the method for establishing a 
subsidy estimate, the basis for paying this estimate during the subsidy 
year, the method of calculating the actual subsidy during the subsidy 
period, and the provisions for adjusting for the difference between the 
estimated subsidy and the actual subsidy at the end of the subsidy 
period.
    (e) For further information regarding these standards, persons may 
contact RSPO's Cost Evaluation Branch at 202-254-7552.



Sec. 1155.2  Definitions of terms used in the standards.

    Unless otherwise required by the context, the following definitions 
apply:
    Account means an account in the ICC's Uniform System of Accounts for 
Railroad Companies (49 CFR part 1201).

[[Page 338]]

    3R Act means the Regional Rail Reorganization Act of 1973, Pub. L. 
93-236 (87 Stat. 985).
    4R Act means the Railroad Revitalization and Regulatory Reform Act 
of 1976, Pub. L. 94-210 (90 Stat. 31).
    Base year means, for initial subsidy estimates, the year employed by 
the U.S. Railway Association in developing the final system plan (1973). 
For subsequent subsidy estimates, the base year is the year immediately 
preceding the year for which the subsidy estimate is being calculated.
    Branch means a segment of a railroad that is not designated to be in 
the final system plan under the 3R Act, and that is the subject of a 
notice in writing of intent to discontinue service under section 304(a) 
of the 3R Act.
    Form R-1 means a class I railroad's annual report filed with the ICC 
in accordance with the requirements of 49 U.S.C. 11145.
    Form R-2 means a class II railroad's annual report filed with the 
ICC in accordance with the requirements of 49 U.S.C. 11145.
    FRA means the Federal Railroad Administration, U.S. Department of 
Transportation.
    GMA means General Managers Association of Chicago.
    ICC means the Interstate Commerce Commission.
    Just and Reasonable Charge means that a charge to an account shall 
not exceed an amount necessary to the honest and efficient operation and 
management of carrier business.
    Notice of intent means a notice in writing of intent to discontinue 
service under section 304(a) of the 3R Act and notice of intent to 
abandon rail properties under section 304(b) of the 3R Act.
    Person offering a subsidy means a shipper, a State, the United 
States, a local or regional transportation authority, or any responsible 
person offering a rail service continuation subsidy under section 
304(c)(2)(A) of the 3R Act.
    Rail Form A means the ICC's formula for use in determining rail 
freight service costs, statement 1F1-73.
    Railroad means a railroad company, or the trustee or trustees of a 
railroad company, that gives a notice in writing of intent to 
discontinue service under section 304(a) of the 3R act, and, as the 
context requires, ``railroad'' may mean either the owner of rail 
properties over which subsidized service is or may be performed, or the 
operator of that service, or both.
    RSPO means the Rail Services Planning Office established by section 
205 of the 3R Act.
    Subsidy year means any 12-month period for which a subsidy agreement 
is negotiated and in operation.
    XX, when used in place of digits in a six-digit account number, 
means that all accounts containing the remaining four digits are to be 
used in the procedure being described. Example: ``11-21-XX'' refers to 
all salary and wage accounts for locomotives because ``11'' designates 
salaries and wages and ``21'' designates locomotives. Thus, ``11-21-XX'' 
includes all of the following accounts: 11-21-01, 11-21-40, 11-21-48, 
11-21-39, and 11-21-99. Similarly, ``XX-31-67'' means all accounts 
containing ``31'' (train operations) and ``67'' (locomotive fuel).

[43 FR 1692, Jan. 11, 1978, as amended at 45 FR 19560, Mar. 26, 1980. 
Redesignated and amended at 47 FR 49582, Nov. 1, 1982]



Sec. 1155.3  Procedure for calculating a subsidy estimate.

    (a) Discontinuance notice and subsidy offer procedures--(1) Notice 
of discontinuance. A railroad giving notice of intent to discontinue 
service on a branch shall provide an ``Estimate of Subsidy Payment'' and 
shall distribute copies of this estimate to the Director of RSPO, the 
Governor and railroad regulatory commission of each State within which 
the branch is located, and any other person upon request. The format of 
the ``Estimate of Subsidy Payment'' is prescribed in appendix I. The 
subsidy estimate shall be the difference between the revenues 
attributable to the rail properties and the avoidable costs of providing 
service on such rail properties, together with a reasonable management 
fee, plus a reasonable return on the value of the properties. Beginning 
with the week in which it gives notice of intent to discontinue service 
on the branch, pursuant to section 304(a)(1)(B) of the 3R Act, the 
railroad shall publish a copy of that notice of

[[Page 339]]

intent in a newspaper or newspapers of general circulation in the area 
encompassing the branch at least once a week for three consecutive 
weeks. Each railroad shall include in the required notices a statement 
of the address of the railroad's office within the State or States where 
interested persons may examine, during regular working hours, the 
materials and information upon which the subsidy estimate calculations 
were made. If the railroad so requests, examination of documents which 
disclose information concerning the nature, kind, quantity, destination, 
consignee, or routing of traffic may be restricted to the representative 
of the person offering a subsidy and then only if that representative 
agrees to keep that information confidential. A notice of intent to 
discontinue service, according to section 304(a)(1)(B) of the 3R Act, is 
not considered complete or given until the railroad has fulfilled these 
requirements.
    (2) Subsidy offer. Persons wishing to subsidize rail service 
proposed for discontinuance shall:
    (i) Communicate in writing with the railroad selected as the 
designated operator for the continuation of such service, offering to 
pay such operator the estimated subsidy amount, and
    (ii) Communicate in writing with the trustee(s) or owner(s) of the 
railroad which owns the branch line, offering to pay a reasonable return 
on the value of the properties.

Upon the offer of a subsidy from a financially responsible person, 
discontinuance of the rail service or abandonment of the rail properties 
for which the subsidy is being offered is prohibited, pursuant to 
section 304(c)(2)(A) of the 3R Act. The parties are free to negotiate 
operating levels and reasonable variations from the standards, but when 
impasse occurs in the negotiations, the standards established here can 
be invoked.

Because USRA was not required to utilize the standards promulgated by 
RSPO as criteria for inclusion of branch lines in the final system plan, 
it is possible that a branch line could be excluded from the final 
system plan and yet generate revenues which exceed the costs as 
calculated under these standards. Therefore, RSPO has established the 
amount that a potential subsidizer must offer under section 304(c)(2)(A) 
as the amount computed by the subsidy estimate formula or $1.00, 
whichever is the greater.
    (3) Use of prior subsidy standards. Even though these standards 
become effective January 1, 1978, parties to existing subsidy agreements 
may agree to continue to use the standards in effect prior to January 1, 
1978, for the remainder of the current subsidy year.
    (4) Basis of estimated subsidy. The estimated subsidy for the 
subsidy year immediately following conveyance in the reorganization 
process (ConRail start-up date) shall be calculated according to an 
interim formula based on data from 1973, which was the base year 
employed by USRA in developing the final system plan. This interim 
formula, using 1973 data, is to be employed only for the calculation of 
initial subsidy agreements; once a subsidy agreement is in place, 
subsequent years' estimates shall be based on data drawn from the 
preceding subsidy year. Estimates for revenues, on-branch avoidable 
costs, off-branch costs, a reasonable management fee, and a return on 
value shall be calculated according to the procedures in Secs. 1155.3(b) 
through 1155.3(f) inclusive. The subsidy estimate procedure relies in 
many instances on the same formulas that are used to calculate the 
actual subsidy amount; the basic difference between the estimated and 
actual subsidy calculations is that the actual subsidy amount is 
calculated using data reflecting the experience of the subsidy year, 
while the estimate is based on anticipated operational results.
    (b) Estimated revenues. Using base year data, estimated revenues 
shall include all sources of revenue and income prescribed as revenues 
and income attributable to the rail properties in the calculation of the 
actual subsidy, see Sec. 1155.6.
    (c) Estimated on-branch costs. On-branch cost estimates shall be 
separated and calculated as follows:
    (1) Routine maintenance of way and structures. These expenses shall 
be estimated at $1,000 per year per mile of track on the branch for 
which the railroad is responsible for maintenance,

[[Page 340]]

unless the parties agree to a higher level.
    (2) Rehabilitation. Rehabilitation costs shall not be included 
unless: (i) The track involved does not meet minimum FRA class I safety 
standards (49 CFR part 213), in which case, the railroad shall furnish a 
detailed estimate of the costs to rehabilitate the track to FRA class I 
level with the notice of intent and provision to cover such costs shall 
be included in the subsidy agreements; or (ii) The potential subsidizer 
requests a level of service which requires expenditures for 
rehabilitation and makes such a request within 10 days after the date of 
notice of intent is filed, in which case the railroad shall furnish an 
estimate of the costs involved within 20 days after the date of that 
request. All such requests and estimates shall refer to specific 
projects for rehabilitation.
    (3) Maintenance of equipment excluding freight cars.  Estimates for 
maintenance of equipment shall be developed by applying base year data 
to the formula for calculating the actual maintenance of equipment 
expense, see Sec. 1155.7(b). Unless the parties agree to a different 
base, the resulting average unit costs shall be applied to the branch 
base year service units to arrive at the estimate.
    (4) Transportation. Transportation costs shall be estimated based on 
system average costs. The number of trips per year shall be based on the 
frequency of service performed at the time the notice is filed unless 
the parties agree to a different level. Labor costs for train crews 
shall be based on system average costs for each type of crew applied to 
the hours of service on the branch. The crew costs shall be classified 
into three major categories: Yard, local/way, and through. The straight 
time average costs per hour for each yard, local/way, or through train 
crew member shall be calculated for class I railroads by using the 
railroad's Employees, Service, and Compensation Report (Form B) for the 
base year. The calculation is made by adding together the straight time 
compensation and the constructive allowances, and dividing this total by 
the straight time hours actually worked. This process would be repeated 
for each yard, local/way, and through train class of employee. For class 
II railroads, the straight time average cost per hour for each yard, 
local/way, or through train crew member shall be calculated in the same 
manner, using the railroad's payroll records for the base year. After 
the hourly rate is determined for each member, the cost per crew hour 
shall be calculated based on the exact size and consist of the crew 
currently serving the branch. The crew cost per hour is multiplied by 
the estimated hours that will be incurred in serving the branch during 
the subsidy period. The estimated direct crew costs must be increased to 
cover fringe benefits using the procedure specified in Sec. 1155.7(c). 
The railroad shall also furnish estimates of costs for the remaining 
transportation accounts using Sec. 1155.7(c) as a guide to their 
inclusion and basis of calculation.
    (5) General administrative expenses. In exceptional circumstances, 
the railroad may be allowed to include general administrative expenses. 
Such expenses are allowable only if the size of the railroad's operation 
(measured in total mileage, gross revenues, gross ton-miles, or car-
miles) is increased by more than 25 percent as a result of operating the 
subsidized service, or the individual line being operated under a 
subsidy agreement generates $10 million or more in gross revenues per 
annum. If the railroad foresees this increase, then estimates may be 
calculated for the accounts included under general administrative costs 
in Sec. 1155.7(d).
    (6) Deadheading, taxi, and hotel costs. Estimates for these costs 
shall be determined from base year data reflecting deadheading, taxi, 
and hotel costs incurred as a result of providing service to the branch 
line. The amounts under this section shall not be included under the 
wage accounts for yard conductors and brakemen, yard enginemen, or 
trainmen.
    (7) Overhead movement costs. Estimates for these costs shall be 
determined from base year data reflecting overhead movement costs 
incurred as a result of providing service to the branch. The amounts 
shown shall be limited to transportation, equipment, and freight cars. 
The amounts shown under this section shall not be included

[[Page 341]]

under other sections of these standards.
    (8) Freight car costs. Freight cars costs shall be estimated by a 
method consistent with the detailed procedures specified in 
Sec. 1155.7(g).
    (9) Taxes. Estimates for property taxes shall be based on the base 
year actual tax assessment, adjusted for tax rate changes; revenue taxes 
shall be based on the estimated revenue level.
    (10) Administrative fee. The estimated administrative fee shall be 
one percent of the revenues estimated under Sec. 1155.3(b).
    (11) Casualty reserve account. Estimates for this item shall be any 
payments mutually agreed to by the person offering the subsidy and the 
railroad for the purpose of holding the subsidizer harmless from any 
liability. Such cost may include a reasonable fee to cover the cost of 
administering the fund.
    (12) Termination costs. Estimates for these costs shall be 
determined according to a projection of costs reasonably and necessarily 
incurred should service to the subsidized branch be terminated. These 
costs shall not include any costs which the railroad would have incurred 
had the branch not been operated under the subsidy program. The 15 
percent ceiling discussed in Sec. 1155.5 is not applicable to these 
costs unless they are included in the estimated subsidy amount.
    (d) Estimated off-branch costs. A ratio of off-branch costs to 
revenues for the base year shall be used to derive the estimate of off-
branch costs for the subsidy year. Base year off-branch costs shall be 
calculated using the procedure established in Sec. 1155.7(n). If data 
identifying actual carloads by car type are not available, car type 
shall be based upon the railroad's best estimate. The resulting ratio of 
base year off-branch costs to revenues shall then be applied to the 
revenues estimated under Sec. 1155.3(b) to develop the estimated off-
branch costs for the subsidy year.
    (e) Estimated management fee. The estimated management fee shall be 
four and one-half percent of the revenues estimated under 
Sec. 1155.3(b). If the railroad and the person offering the subsidy 
agree to an additional fee designed as an incentive to maximize 
revenues, minimize expenses, promote efficient service, or otherwise 
achieve public interest objectives, the railroad shall be paid such fee 
as determined in accordance with an agreement to that effect.
    (f) Estimated return on value. The railroad shall appraise the value 
of the property using the procedures described in Sec. 1155.9(a). If the 
value is challenged, an appraisal of the property by a qualified and 
certified appraiser(s) shall be offered by the potential subsidizer. If 
the parties cannot agree on a valuation through negotiation, an average 
of the two appraisals shall be used as the estimated valuation. The rate 
of return to be applied to the value of the properties shall be 
determined in accordance with Sec. 1155.9(b).



Sec. 1155.4  Interim payments, financial reports, and interpretations.

    (a) Interim Subsidy Payments. The person offering a subsidy shall 
offer to pay, in return for the continuation of rail service, an amount 
computed on the basis of the interim formula described in Sec. 1155.3. 
The interim payment may be adjusted, by agreement of the parties, to 
take into account factors, such as rate increases and changes in traffic 
levels, which would make the sole use of base year data an inappropriate 
means of estimating the payment for the subsidy year or to conform to 
amendments to these standards made subsequent to the original agreement. 
Interest shall be applied to any deferred payment, calculated at the 
same rate as the rate of return on value specified in Sec. 1155.9(b), 
for the period of time such payment is outstanding. The amount estimated 
for the management fee and for the difference between the revenues 
attributable and the avoidable costs shall be paid to the railroad 
operating the branch line. The amount estimated for the return on value 
shall be paid directly to the trustee(s) or owner(s) of the property, 
unless the parties agree that such payment shall be made by the railroad 
in behalf of the subsidizer.
    (b) Financial Status Reports. The railroad must establish a system 
for collecting costs and other required data at the branch level, and 
must, within

[[Page 342]]

thirty days after the end of each quarter of the subsidy year, file with 
the person offering the subsidy a ``Financial Status Report'' which 
shall include the information prescribed in the method for calculating 
the actual subsidy as specified in Secs. 1155.6, 1155.7, and 1155.9. The 
format of the ``Financial Status Report'' is prescribed in Appendix II. 
Significant deviations from the original estimates must be explained. In 
all reports, the actual data reflecting the year to date shall show a 
projection to the end of the subsidy year for each item, except that 
off-branch costs shall be estimated during the subsidy year by applying 
the ratio developed in accordance with Sec. 1155.3(d) to the revenues.

Unless the parties agree otherwise, the last Financial Status Report 
filed during the first ten months of the subsidy year shall be the basis 
for developing the estimated subsidy payment for the subsequent year's 
agreement. The Financial Status Reports should be considered detailed 
progress reports monitoring the actual costs and revenues involved for 
operating rail service on the branch throughout the subsidy year; the 
Financial Status Reports are not to be considered as ``progress 
billings'' for subsidy services performed.
    (c) Interpretations of the Standards. Parties desiring an 
interpretation of the standards should file a written petition with OTA 
citing the section involved and setting forth their position and 
rationale. If the request arises from a dispute with other parties, the 
petitioner shall identify those parties and serve each of them with a 
copy of the petition. Parties desiring to file a reply must do so within 
10 days of their receipt of the petition. OTA will issue an 
interpretation, unless it concludes that the matter raised requires 
amendment of the standards, in which case OTA will institute a 
rulemaking proceeding. The address of OTA is:

Office of Transportation Analysis, Rail Service Planning Office, 
Interstate Commerce Commission, Washington, D.C. 20423.

[43 FR 1692, Jan. 11, 1978. Redesignated at 47 FR 49582, Nov. 1, 1982, 
and amended at 48 FR 34476, July 29, 1983]



Sec. 1155.5  Year-end adjustment.

    (a) On the basis of the railroad's year-end Final Status Report and 
the net impact of inflation developed in Secs. 1155.7(n)(5) and 
1155.8(e), the subsidy payment shall be adjusted to reconcile any 
differences between the subsidy payments actually made based on the 
estimated subsidy and the actual subsidy calculated from data reflecting 
the actual revenues and costs experienced in the operation of the branch 
during the subsidy year.
    (b) Where an adjustment results in an increase in the estimated 
subsidy payment, the amount of such increase in excess of 15 percent of 
the estimated subsidy shall be treated as a carryover advoidable cost in 
the subsequent subsidy year. This provision shall apply unless:
    (1) The railroad notifies the subsidizer in one of the Financial 
Status Reports issued during the first ten months of the subsidy year 
that the estimate will be exceeded by more than 15 percent, or
    (2) The increase results from an expense approved in advance by the 
person offering the subsidy.
    (c) Should the year-end adjustment reflect an overpayment by the 
person offering the subsidy, the amount of overpayment shall be 
reimbursed by the railroad.

[43 FR 1692, Jan. 11, 1978, as amended at 45 FR 27447, Apr. 23, 1980. 
Redesignated at 47 FR 49582, Nov. 1, 1982]



Sec. 1155.6  Revenue and income attributable to branch lines.

    The revenue attributable to the rail properties is the total of the 
revenues assigned to the branch in accordance with this section, plus 
any subsidy payments that would cease upon discontinuance of service on 
the branch, for the subsidy year. The revenues assigned shall be derived 
from the following accounts:
    (a) Account 101-Freight. The revenues assigned under this account 
shall be the actual revenues, including transit revenues, accruing to 
the railroad, derived from waybills and other source documents, for all 
traffic that:
    (1) Originates or terminates on the branch;

[[Page 343]]

    (2) Originates or terminates on the branch and is handled off the 
branch on the system but not on another carrier; and
    (3) Originates or terminates on the branch and is handled on another 
carrier.
    All traffic that is received or forwarded through interchange at a 
point on the branch, including ferry operations, shall be considered as 
originating or terminating on the branch. The revenues of all other 
bridge or overhead traffic shall be attributed to the branch on the 
ratio of miles moved on the branch to miles moved on the system, 
provided, however, that the parties may agree on a mutually acceptable 
usage charge for bridge traffic in lieu of the mileage apportionment.
    (b) Account 104--Switching; Account 105--Water transfers; Account 
106--Demurrage; Account 110--Incidental: Account 121--Joint Facility-
Credit; Account 122--Joint Facility-Debit; Account 506--Revenues from 
Properties Used in Other Than Carrier Operations; Account 510--
Miscellaneous Rent Income; Account 519--Miscellaneous Income. The 
revenues assigned under these accounts shall be the actual revenues 
accruing to the railroad that are directly attributable to the branch.
    (c) Conversion Chart for Revenue Accounts.

------------------------------------------------------------------------
                                                                Present 
        Revenue account title             Previous account      account 
                                               number            number 
------------------------------------------------------------------------
Freight..............................  101, 109..............        101
Switching............................  110...................        104
Water transfers......................  113...................        105
Demurrage............................  137...................        106
Incidental...........................  130, 132, 133, 135,           110
                                        138, 139, 141, 142,             
                                        143.                            
Joint facility--credit...............  151...................        121
Joint facility--debit................  152...................        122
Revenues from property used in other   502, 511..............   506, 534
 than carrier operations less                                           
 expenses.                                                              
Miscellaneous rent income............  510...................        510
Miscellaneous income.................  519...................        519
------------------------------------------------------------------------

[43 FR 1692, Jan. 11, 1978; 43 FR 8530, Mar. 2, 1978. Redesignated at 47 
FR 49582, Nov. 1, 1982]



Sec. 1155.7  Calculation of avoidable costs and management fee.

    (a) This section defines:
    (1) Which cost elements are eligible for inclusion in the 
calculation of avoidable costs;
    (2) The conditions under which certain cost elements become eligible 
for inclusion; and
    (3) The basis of apportioning those cost elements which are not 
assigned to the branch on an actual expense basis.
    (b) The avoidable costs of providing freight service on a branch 
shall be the total of the just and reasonable charges assigned to the 
branch in accordance with this section. Those expenses apportioned under 
this section shall be derived from the latest Form R-1 or R-2 or R-3 of 
the railroad filed with the ICC prior to the conclusion of the subsidy 
year, and assigned to the branch according to the procedures set forth 
in Sec. 1155.8 of these regulations.
    (c) When the term ``actual'' is specified as the basis for assigning 
an expense, it shall mean that the only costs which can be assigned to 
the account are those costs which are incurred solely as a result of the 
continuation of rail freight service on the branch.
    (d) The accounts in the following charts, which list only the 
``freight-only'' account numbers, shall include the portion of common 
expenses that have been apportioned to freight service.

----------------------------------------------------------------------------------------------------------------
                                                   Previous         Present     Basis of assignment to on-branch
     Operating expense group and accounts       account number  account Number                costs             
----------------------------------------------------------------------------------------------------------------
(a) Maintenance of Way and Structures                                                                           
  (1) Administration:                                                                                           
                                                                                                                
                     Track                                                                                      
                                                                                                                
  Salaries and Wages..........................             201        11-13-02  Actual.                         
  Materials...................................  ..............        21-13-02      Do.                         
  Purchased Services..........................  ..............        41-13-02      Do.                         
  Other Expenses..............................  ..............        61-13-02      Do.                         
                                                                                                                
             Bridges and Buildings                                                                              
                                                                                                                
  Salaries and Wages..........................             201        11-13-03      Do.                         

[[Page 344]]

                                                                                                                
  Materials...................................  ..............        21-13-03      Do.                         
  Purchased Services..........................  ..............        41-13-03      Do.                         
  Other Expenses..............................  ..............        61-13-03      Do.                         
                                                                                                                
                    Signals                                                                                     
                                                                                                                
  Salaries and Wages..........................             201        11-13-04      Do.                         
  Materials...................................  ..............        21-13-04      Do.                         
  Purchased Services..........................  ..............        41-13-04      Do.                         
  Other Expenses..............................  ..............        61-13-04      Do.                         
                                                                                                                
                Communications                                                                                  
                                                                                                                
  Salaries and Wages..........................             201        11-13-05      Do.                         
  Materials...................................  ..............        21-13-05      Do.                         
  Purchased Services..........................  ..............        41-13-05      Do.                         
  Other Expenses..............................  ..............        61-13-05      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and Wages..........................             201        11-13-06      Do.                         
  Materials...................................  ..............        21-13-06      Do.                         
  Purchased Services..........................  ..............        41-13-06      Do.                         
  Other Expenses..............................  ..............        61-13-06      Do.                         
                                                                                                                
  (2) Repair maintenance and other:                                                                             
                                                                                                                
               Roadway--Running                                                                                 
                                                                                                                
  Salaries and Wages..........................             202        11-11-10      Do.                         
  Materials...................................  ..............        21-11-10      Do.                         
  Repairs by Others--DR.......................  ..............        39-11-10      Do.                         
  Repairs for Others--CR......................  ..............        40-11-10      Do.                         
  Purchased Services..........................  ..............        41-11-10      Do.                         
  Other Expenses..............................  ..............        61-11-10      Do.                         
                                                                                                                
              Roadway--Switching                                                                                
                                                                                                                
  Salaries and Wages..........................             202        11-12-10      Do.                         
  Materials...................................  ..............        21-12-10      Do.                         
  Repairs by Others--DR.......................  ..............        39-12-10      Do.                         
  Repairs for Others--CR......................  ..............        40-12-10      Do.                         
  Purchased Services..........................  ..............        41-12-10      Do.                         
  Other Expenses..............................  ..............        61-12-10      Do.                         
                                                                                                                
         Tunnels and Subways--Running                                                                           
                                                                                                                
  Salaries and Wages..........................             206        11-11-11      Do.                         
  Materials...................................  ..............        21-11-11      Do.                         
  Repairs by Others--DR.......................  ..............        39-11-11      Do.                         
  Repairs for Others--CR......................  ..............        40-11-11      Do.                         
  Purchased Services..........................  ..............        41-11-11      Do.                         
  Other Expenses..............................  ..............        61-11-11      Do.                         
                                                                                                                
        Tunnels and Subways--Switching                                                                          
                                                                                                                
  Salaries and Wages..........................             206        11-12-11      Do.                         
  Materials...................................  ..............        21-12-11      Do.                         
  Repairs by Others--DR.......................  ..............        39-12-11      Do.                         
  Repairs for Others--CR......................  ..............        40-12-11      Do.                         
  Purchased Services..........................  ..............        41-12-11      Do.                         
  Other Expenses..............................  ..............        61-12-11      Do.                         
                                                                                                                
         Bridges and Culverts--Running                                                                          
                                                                                                                
  Salaries and Wages..........................         208-210        11-11-12      Do.                         
  Materials...................................  ..............        21-11-12      Do.                         
  Repairs by Others--DR.......................  ..............        39-11-12      Do.                         
  Repairs for Others--CR......................  ..............        40-11-12      Do.                         
  Purchased Services..........................  ..............        41-11-12      Do.                         
  Other Expenses..............................  ..............        61-11-12      Do.                         
                                                                                                                
        Bridges and Culverts--Switching                                                                         
                                                                                                                
  Salaries and Wages..........................         208-210        11-12-12      Do.                         
  Materials...................................  ..............        21-12-12      Do.                         
  Repairs by Others--DR.......................  ..............        39-12-12      Do.                         
  Repairs for Others--CR......................  ..............        40-12-12      Do.                         
  Purchased Services..........................  ..............        41-12-12      Do.                         
  Other Expenses..............................  ..............        61-12-12      Do.                         
Ties--Running--Material.......................             212        21-11-13      Do.                         
Ties--Switching--Material.....................             212        21-12-13      Do.                         
Rails--Running--Material......................             214        21-11-14      Do.                         
Rails--Switching--Material....................             214        21-12-14      Do.                         
Other Track Material--Running--Material.......             216        21-11-15      Do.                         
Other Track Material--Switching--Material.....             216        21-12-15      Do.                         
Ballast--Running--Material....................             218        21-11-16      Do.                         

[[Page 345]]

                                                                                                                
Ballast--Switching--Material..................             218        21-12-16      Do.                         
                                                                                                                
      Track Laying and Surfacing--Running                                                                       
                                                                                                                
  Salaries and Wages..........................             220        11-11-17      Do.                         
  Materials...................................  ..............        21-11-17      Do.                         
  Repairs by Others--DR.......................  ..............        39-11-17      Do.                         
  Repairs for Others--CR......................  ..............        40-11-17      Do.                         
  Purchased Services..........................  ..............        41-11-17      Do.                         
  Other Expenses..............................  ..............        61-11-17      Do.                         
                                                                                                                
     Track Laying and Surfacing--Switching                                                                      
                                                                                                                
  Salaries and Wages..........................             220        11-12-17      Do.                         
  Materials...................................  ..............        21-12-17      Do.                         
  Repairs by Others--DR.......................  ..............        39-12-17      Do.                         
  Repairs for Others--CR......................  ..............        40-12-17      Do.                         
  Purchased Services..........................  ..............        41-12-17      Do.                         
  Other Expenses..............................  ..............        61-12-17      Do.                         
                                                                                                                
        Road Property Damaged--Running                                                                          
                                                                                                                
  Salaries and Wages..........................        202-220,        11-11-48      Do.                         
                                                       and 249                                                  
  Materials...................................  ..............        21-11-48      Do.                         
  Repairs by Others--DR.......................  ..............        39-11-48      Do.                         
  Repairs for Others--CR......................  ..............        40-11-48      Do.                         
  Purchased Services..........................  ..............        41-11-48      Do.                         
  Other Expenses..............................  ..............        61-11-48      Do.                         
                                                                                                                
       Road Property Damaged--Switching                                                                         
                                                                                                                
  Salaries and Wages..........................        202-220,        11-12-48      Do.                         
                                                       and 249                                                  
  Materials...................................  ..............        21-12-48      Do.                         
  Repairs by Others--DR.......................  ..............        39-12-48      Do.                         
  Repairs for Others--CR......................  ..............        40-12-48      Do.                         
  Purchased Services..........................  ..............        41-12-48      Do.                         
  Other Expenses..............................  ..............        61-12-48      Do.                         
                                                                                                                
         Road Property Damaged--Other                                                                           
                                                                                                                
  Salaries and Wages..........................       221, 227-        11-13-48      Do.                         
                                                           247                                                  
  Materials...................................        253, 257        21-13-48      Do.                         
  Repairs by Others--DR.......................        265, 269        39-13-48      Do.                         
  Repairs for Others--CR......................  ..............        40-13-48      Do.                         
  Purchased Services..........................  ..............        41-13-48      Do.                         
  Other Expenses..............................  ..............        61-13-48      Do.                         
                                                                                                                
       Signals and Interlockers--Running                                                                        
                                                                                                                
  Salaries and Wages..........................             249        11-11-19      Do.                         
  Materials...................................  ..............        21-11-19      Do.                         
  Repairs by Others--DR.......................  ..............        39-11-19      Do.                         
  Repairs for Others--CR......................  ..............        40-11-19      Do.                         
  Purchased Services..........................  ..............        41-11-19      Do.                         
  Other Expenses..............................  ..............        61-11-19      Do.                         
                                                                                                                
      Signals and Interlockers--Switching                                                                       
                                                                                                                
  Salaries and Wages..........................             249        11-12-19      Do.                         
  Materials...................................  ..............        21-12-19      Do.                         
  Repairs by Others--DR.......................  ..............        39-12-19      Do.                         
  Repairs for Others--CR......................  ..............        40-12-19      Do.                         
  Purchased Services..........................  ..............        41-12-19      Do.                         
  Other Expenses..............................  ..............        61-12-19      Do.                         
                                                                                                                
            Communications Systems                                                                              
                                                                                                                
  Salaries and Wages..........................             247        11-13-20      Do.                         
  Materials...................................  ..............        21-13-20      Do.                         
  Repairs by Others--DR.......................  ..............        39-13-20      Do.                         
  Repairs for Others--CR......................  ..............        40-13-20      Do.                         
  Purchased Services..........................  ..............        41-13-20      Do.                         
  Other Expenses..............................  ..............        61-13-20      Do.                         
                                                                                                                
            Electric Power Systems                                                                              
                                                                                                                
  Salaries and Wages..........................       253, 257,        11-13-21      Do.                         
                                                       and 304                                                  
  Materials...................................  ..............        21-13-21      Do.                         
  Repairs by Others--DR.......................  ..............        39-13-21      Do.                         
  Repairs for Others--CR......................  ..............        40-13-21      Do.                         
  Purchased Services..........................  ..............        41-13-21      Do.                         
  Other Expenses..............................  ..............        61-13-21      Do.                         
                                                                                                                

[[Page 346]]

                                                                                                                
       Highway Grade Crossings--Running                                                                         
                                                                                                                
  Salaries and Wages..........................             273        11-11-22      Do.                         
  Materials...................................  ..............        21-11-22      Do.                         
  Repairs by Others--DR.......................  ..............        39-11-22      Do.                         
  Repairs for Others--CR......................  ..............        40-11-22      Do.                         
  Purchased Services..........................  ..............        41-11-22      Do.                         
  Other Expenses..............................  ..............        61-11-22      Do.                         
                                                                                                                
      Highway Grade Crossings--Switching                                                                        
                                                                                                                
  Salaries and Wages..........................             273        11-12-22      Do.                         
  Materials...................................  ..............        21-12-22      Do.                         
  Repairs by Others--DR.......................  ..............        39-12-22      Do.                         
  Repairs for Other--CR.......................  ..............        40-12-22      Do.                         
  Purchased Services..........................  ..............        41-12-22      Do.                         
  Other Expenses..............................  ..............        61-12-22      Do.                         
                                                                                                                
         Station and Office Buildings                                                                           
                                                                                                                
  Salaries and Wages..........................             227        11-13-23      Do.                         
  Materials...................................  ..............        21-13-23      Do.                         
  Repairs by Others--DR.......................  ..............        39-13-23      Do.                         
  Repairs for Others--CR......................  ..............        40-13-23      Do.                         
  Purchased Services..........................  ..............        41-13-23      Do.                         
  Other Expenses..............................  ..............        61-13-23      Do.                         
                                                                                                                
        Station Buildings--Locomotives                                                                          
                                                                                                                
  Salaries and Wages..........................       235, 253,        11-13-24      Do.                         
                                                       and 257                                                  
  Materials...................................  ..............        21-13-24      Do.                         
  Repairs by Others--DR.......................  ..............        39-13-24      Do.                         
  Repairs for Others--CR......................  ..............        40-13-24      Do.                         
  Purchased Services..........................  ..............        41-13-24      Do.                         
  Other Expenses..............................  ..............        61-13-24      Do.                         
                                                                                                                
         Shop Buildings--Freight Cars                                                                           
                                                                                                                
  Salaries and Wages..........................       235, 253,        11-13-25      Do.                         
                                                       and 257                                                  
  Materials...................................  ..............        21-13-25      Do.                         
  Repairs by Others--DR.......................  ..............        39-13-25      Do.                         
  Repairs for Others--CR......................  ..............        40-13-25      Do.                         
  Purchased Services..........................  ..............        41-13-25      Do.                         
  Other Expenses..............................  ..............        61-13-25      Do.                         
                                                                                                                
        Shop Buildings--Other Equipment                                                                         
                                                                                                                
  Salaries and Wages..........................       235, 253,        11-13-26      Do.                         
                                                       and 257                                                  
  Materials...................................  ..............        21-13-26      Do.                         
  Repairs by Others--DR.......................  ..............        39-13-26      Do.                         
  Repairs for Others--CR......................  ..............        40-13-26  Actual.                         
  Purchased Services..........................  ..............        41-13-26      Do.                         
  Other Expenses..............................  ..............        61-13-26      Do.                         
                                                                                                                
        Locomotive Servicing Facilities                                                                         
                                                                                                                
  Salaries and Wages..........................        231, 233        11-13-27      Do.                         
  Materials...................................  ..............        21-13-27      Do.                         
  Repairs by Otherrs--DR......................  ..............        39-13-27      Do.                         
  Repairs for Others--CR......................  ..............        40-13-27      Do.                         
  Purchased Services..........................  ..............        41-13-27      Do.                         
  Other Expenses..............................  ..............        61-13-27      Do.                         
                                                                                                                
    Miscellaneous Buildings and Structures                                                                      
                                                                                                                
  Salaries and Wages..........................       221, 229,        11-13-28      Do.                         
                                                     239, 265,                                                  
                                                       and 304                                                  
  Materials...................................  ..............        21-13-28      Do.                         
  Repairs by Others--DR.......................  ..............        39-13-28      Do.                         
  Repairs for Others--CR......................  ..............        40-13-28      Do.                         
  Purchased Services..........................  ..............        41-13-28      Do.                         
  Other Expenses..............................  ..............        61-13-28      Do.                         
                                                                                                                
                Coal Terminals                                                                                  
                                                                                                                
  Salaries and Wages..........................             243        11-13-29      Do.                         
  Materials...................................  ..............        21-13-29      Do.                         
  Repairs by Others--DR.......................  ..............        39-13-29      Do.                         
  Repairs for Others--CR......................  ..............        40-13-29      Do.                         
  Purchased Services..........................  ..............        41-13-29      Do.                         
  Other Expenses..............................  ..............        61-13-29      Do.                         
                                                                                                                

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                 Ore Terminals                                                                                  
                                                                                                                
  Salaries and Wages..........................             243        11-13-30      Do.                         
  Materials...................................  ..............        21-13-30      Do.                         
  Repairs by Others--DR.......................  ..............        39-13-30      Do.                         
  Repairs for Others--CR......................  ..............        40-13-30      Do.                         
  Purchased Services..........................  ..............        41-13-30      Do.                         
  Other Expenses..............................  ..............        61-13-30      Do.                         
                                                                                                                
              TOFC/COFC Terminals                                                                               
                                                                                                                
  Salaries and Wages..........................             244        11-13-31      Do.                         
  Materials...................................  ..............        21-13-31      Do.                         
  Repairs by Others--DR.......................  ..............        39-13-31      Do.                         
  Repairs for Others--CR......................  ..............        40-13-31      Do.                         
  Purchased Services..........................  ..............        41-13-31      Do.                         
  Other Expenses..............................  ..............        61-13-31      Do.                         
                                                                                                                
            Other Marine Terminals                                                                              
                                                                                                                
  Salaries and Wages..........................             241        11-13-32      Do.                         
  Materials...................................  ..............        21-13-32      Do.                         
  Repairs by Others--DR.......................  ..............        39-13-32      Do.                         
  Repairs for Others--CR......................  ..............        40-13-32      Do.                         
  Purchased Services..........................  ..............        41-13-32      Do.                         
  Other Expenses..............................  ..............        61-13-32      Do.                         
                                                                                                                
    Motor Vehicle Loading and Distribution                                                                      
                  Facilities                                                                                    
                                                                                                                
  Salaries and Wages..........................             227        11-13-33      Do.                         
  Materials...................................  ..............        21-13-33      Do.                         
  Repairs by Others--DR.......................  ..............        39-13-33      Do.                         
  Repairs for Others--CR......................  ..............        40-13-33      Do.                         
  Purchased Services..........................  ..............        41-13-33      Do.                         
  Other Expenses..............................  ..............        61-13-33      Do.                         
                                                                                                                
   Facilities for Other Specialized Service                                                                     
                  Operations                                                                                    
                                                                                                                
  Salaries and Wages..........................        227, 237        11-13-35      Do.                         
  Materials...................................  ..............        21-13-35      Do.                         
  Repairs by Others--DR.......................  ..............        39-13-35      Do.                         
  Repairs for Others--CR......................  ..............        40-13-35      Do.                         
  Purchased Services..........................  ..............        41-13-35      Do.                         
  Other Expenses..............................  ..............        61-13-35      Do.                         
                                                                                                                
               Roadway Machines                                                                                 
                                                                                                                
  Salaries and Wages..........................             269        11-13-36  Daily repair costs per GMA, for 
                                                                                 each type of machine used on   
                                                                                 the branch line, Sec.          
                                                                                 1155.8(a)(1).                  
  Materials...................................  ..............        21-13-36                                  
  Repairs by Others--DR.......................  ..............        39-13-36                                  
  Repairs for Others--CR......................  ..............        40-13-36                                  
  Purchased Services..........................  ..............        41-13-36                                  
  Other Expenses..............................  ..............        61-13-36                                  
                                                                                                                
           Small Tools and Supplies                                                                             
                                                                                                                
  Salaries and Wages..........................             271        11-13-37  Assign supplies on the daily    
                                                                                 costs per GMA, for each type of
                                                                                 machine used on the branch;    
                                                                                 small tools assign to          
                                                                                 maintenance of way 11-11/12-10 
                                                                                 through 17, and 48, Sec.       
                                                                                 1155.8(a)(2).                  
  Materials...................................  ..............        21-13-37                                  
  Repairs by Others--DR.......................  ..............        39-13-37                                  
  Repairs for Others--CR......................  ..............        40-13-37                                  
  Purchased Services..........................  ..............        41-13-37                                  
  Other Expenses..............................  ..............        61-13-37                                  
                                                                                                                
                 Snow Removal                                                                                   
                                                                                                                
  Salaries and Wages..........................             272        11-13-38  Actual.                         
  Materials...................................  ..............        21-13-38      Do.                         
  Repairs by Others--DR.......................  ..............        39-13-38      Do.                         
  Repairs for Others--CR......................  ..............        40-13-38      Do.                         
  Purchased Services..........................  ..............        41-13-38      Do.                         
  Other Expenses..............................  ..............        61-13-38      Do.                         
Fringe Benefits--Running......................        277, 457        12-11-00  11-11-XX, Sec.  1155.8(a)(3)(i).
Fringe Benefits--Switching....................        277, 457        12-12-00  11-11-XX, Sec.                  
                                                                                 1155.8(a)(3)(ii).              
Fringe Benefits--Other........................        277, 457        12-13-00  11-11-XX, Sec.                  
                                                                                 1155.8(a)(3)(iii).             
                                                                                                                

[[Page 348]]

                                                                                                                
       Casualties and Insurance--Running                                                                        
                                                                                                                
  Other Casualties............................             274        52-11-00  Actual.                         
  Insurance...................................             275        53-11-00      Do.                         
                                                                                                                
      Casualties and Insurance--Switching                                                                       
                                                                                                                
  Other Casualties............................    274, and 420        52-13-00      Do.                         
  Insurance...................................             275        53-13-00      Do.                         
Lease Rentals--Debit--Running.................             542        31-11-00      Do.                         
Lease Rentals--Debit--Switching...............             542        31-12-00      Do.                         
Lease Rentals--Debit--Other...................             542        31-13-00      Do.                         
Lease Rentals--Credit--Running................             509        32-11-00      Do.                         
Lease Rentals--Credit--Switching..............             509        32-12-00      Do.                         
Lease Rentals--Credit--Other..................             509        32-13-00      Do.                         
Joint Facility Rents--Debit--Running..........             541        33-11-00      Do.                         
Joint Facility Rents--Debit--Switching........             541        33-12-00      Do.                         
Joint Facility--Debit--Other..................             541        33-13-00      Do.                         
Joint Facility Rent--Credit--Running..........             508        34-11-00      Do.                         
Joint Facility Rent--Credit--Switching........             508        34-12-00      Do.                         
Joint Facility Rent--Credit--Other............             508        34-13-00      Do.                         
Other Rents--Debit--Running...................             543        35-11-00      Do.                         
Other Rents--Debit--Switching.................             543        35-12-00      Do.                         
Other Rents--Debit--Other.....................             543        35-13-00      Do.                         
Other Rents--Credit--Running..................             510        36-11-00      Do.                         
Other Rents--Credit--Switching................             510        36-12-00      Do.                         
Other Rents--Credit--Other....................             510        36-13-00      Do.                         
Depreciation--Running.........................             266        62-11-00      Do.                         
Depreciation--Switching.......................             266        62-12-00      Do.                         
Depreciation--Other...........................        266, 306        62-13-00      Do.                         
Joint Facility--Debit--Running................             278        37-11-00      Do.                         
Joint Facility--Debit--Switching..............             278        37-12-00      Do.                         
Joint Facility--Debit--Other..................             278        37-13-00      Do.                         
Joint Facility--Credit--Running...............             279        38-11-00      Do.                         
Joint Facility--Credit--Switching.............             279        38-12-00      Do.                         
Joint Facility--Credit--Other.................             279        38-13-00      Do.                         
                                                                                                                
  Dismantling Retired Road Property--Running                                                                    
                                                                                                                
  Salaries and Wages..........................             270        11-11-39      Do.                         
  Materials...................................  ..............        21-11-39      Do.                         
  Purchased Services..........................  ..............        41-11-39      Do.                         
  Other Expenses..............................  ..............        61-11-39      Do.                         
                                                                                                                
 Dismantling Retired Road Property--Switching                                                                   
                                                                                                                
  Salaries and Wages..........................             270        11-12-39      Do.                         
  Materials...................................  ..............        21-12-39      Do.                         
  Purchased Services..........................  ..............        41-12-39      Do.                         
  Other Expenses..............................  ..............        61-12-39      Do.                         
                                                                                                                
   Dismantling Retired Road Property--Other                                                                     
                                                                                                                
  Salaries and Wages..........................             270        11-13-39      Do.                         
  Materials...................................  ..............        21-13-39      Do.                         
  Purchased Services..........................  ..............        41-13-39      Do.                         
  Other Expenses..............................  ..............        61-13-39      Do.                         
                                                                                                                
                Other--Running                                                                                  
                                                                                                                
  Salaries and Wages..........................    281-282, 274        11-11-99      Do.                         
  Materials...................................  ..............        21-11-99      Do.                         
  Purchased Services..........................  ..............        41-11-99      Do.                         
  Other Expenses..............................  ..............        61-11-99      Do.                         
                                                                                                                
               Other--Switching                                                                                 
                                                                                                                
  Salaries and Wages..........................    281-282, 274        11-12-99      Do.                         
  Materials...................................  ..............        21-12-99      Do.                         
  Purchased Services..........................  ..............        41-12-99      Do.                         
  Other Expenses..............................  ..............        61-12-99      Do.                         
                                                                                                                
                 Other--Other                                                                                   
                                                                                                                
  Salaries and Wages..........................         281-282        11-13-99      Do.                         
  Materials...................................  ..............        21-13-99      Do.                         
  Purchased Services..........................  ..............        41-13-99      Do.                         
  Other Expenses..............................  ..............        61-13-99      Do.                         
(b) Maintenance of Equipment                                                                                    
  (1) Locomotives:                                                                                              
                                                                                                                
                Administration                                                                                  
                                                                                                                
  Salaries and Wages..........................             301        11-21-01      Do.                         
  Materials...................................  ..............        21-21-01      Do.                         

[[Page 349]]

                                                                                                                
  Purchased Services..........................  ..............        41-21-01      Do.                         
  Other Expenses..............................  ..............        61-21-01      Do.                         
                                                                                                                
            Repairs and Maintenance                                                                             
                                                                                                                
  Salaries and Wages..........................             311        11-21-41  Road diesel and Road Electric   
                                                                                 locomotive gross ton miles.    
                                                                                 Yard Diesel and Yard Electric  
                                                                                 locomotive unit hours, Sec.    
                                                                                 1155.8(b)(1).                  
  Materials...................................  ..............        21-21-41                                  
  Repairs by Others--DR.......................  ..............        39-21-41                                  
  Repairs for Others--CR......................  ..............        40-21-41                                  
  Purchased Services..........................  ..............        41-21-41                                  
  Other Expenses..............................  ..............        61-21-41                                  
                                                                                                                
               Machinery Repair                                                                                 
                                                                                                                
  Salaries and Wages..........................             302        11-21-40  Actual.                         
  Materials...................................  ..............        21-21-40      Do.                         
  Repairs by Others--DR.......................  ..............        39-21-40      Do.                         
  Repairs for Others--CR......................  ..............        40-21-40      Do.                         
  Purchased Services..........................  ..............        41-21-40      Do.                         
  Other Expenses..............................  ..............        61-21-40      Do.                         
                                                                                                                
               Equipment Damaged                                                                                
                                                                                                                
  Salaries and Wages..........................             311        11-21-48      Do.                         
  Materials...................................  ..............        21-21-48      Do.                         
  Repairs by Others--DR.......................  ..............        39-21-48      Do.                         
  Repairs for Others--CR......................  ..............        40-21-48      Do.                         
  Purchased Services..........................  ..............        41-21-48      Do.                         
  Other Expenses..............................  ..............        61-21-48      Do.                         
Fringe Benefits...............................         335,457        12-21-00  11-21-xx, Sec.  1155.8(b)(3)(i).
                                                                                                                
        Other Casualties and Insurance                                                                          
                                                                                                                
  Other Casualties............................             332        52-21-00  Actual.                         
  Insurance...................................             333        53-21-00      Do.                         
Lease Rentals--Debit..........................             537        31-21-00      Do.                         
Lease Rentals--Credit.........................             504        32-21-00      Do.                         
Joint Facility Rent--Debit....................             541        33-21-00      Do.                         
Joint Facility Rent--Credit...................             508        34-21-00      Do.                         
Other Rents--Debit............................             537        35-21-00      Do.                         
Other Rents--Credit...........................             504        36-21-00      Do.                         
Joint Facility--Debit.........................             336        37-21-00      Do.                         
Joint Facility--Credit........................             337        38-21-00      Do.                         
Depreciation..................................        331, 305        62-21-00  All locomotives, locomotive unit
                                                                                 hours, Sec.  1155.8(b)(2).     
                                                                                                                
         Dismantling Retired Property                                                                           
                                                                                                                
  Salaries and Wages..........................        306, 329        11-21-39  Actual.                         
  Materials...................................  ..............        21-21-39      Do.                         
  Purchased Services..........................  ..............        41-21-39      Do.                         
  Other Expenses..............................  ..............        61-21-39      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and Wages..........................        339, 332        11-21-99      Do.                         
  Materials...................................             339        21-21-99      Do.                         
  Purchased Services..........................             339        41-21-99      Do.                         
  Other Expenses..............................        339, 332        61-21-99      Do.                         
  (2) Freight Cars:                                                                                             
                                                                                                                
                Administration                                                                                  
                                                                                                                
  Salaries and Wages..........................             301        11-22-01      Do.                         
  Materials...................................  ..............        21-22-01      Do.                         
  Purchased Services..........................  ..............        41-22-01      Do.                         
  Other Expenses..............................  ..............        61-22-01      Do.                         
                                                                                                                
               Machinery Repair                                                                                 
                                                                                                                
  Salaries and Wages..........................             302        11-22-40      Do.                         
  Materials...................................  ..............        21-22-40      Do.                         
  Repairs by Others--DR.......................  ..............        39-22-40      Do.                         
  Repairs for Others--CR......................  ..............        40-22-40      Do.                         
  Purchased Services..........................  ..............        41-22-40      Do.                         
  Other Expenses..............................  ..............        61-22-40      Do.                         
                                                                                                                
               Equipment Damage                                                                                 
                                                                                                                
  Salaries and Wages..........................             314        11-22-48      Do.                         
  Materials...................................  ..............        21-22-48      Do.                         
  Repairs by Others--DR.......................  ..............        39-22-48      Do.                         

[[Page 350]]

                                                                                                                
  Repairs for Others--CR......................  ..............        40-22-48      Do.                         
  Purchased Services..........................  ..............        41-22-48      Do.                         
  Other Expenses..............................  ..............        61-22-48      Do.                         
Fringe Benefits...............................        335, 457        12-22-00  11-22-XX, Sec.                  
                                                                                 1155.8(b)(3)(iii).             
                                                                                                                
        Other Casualties and Insurance                                                                          
                                                                                                                
  Other Casualties............................             332        52-22-00  Actual.                         
  Insurance...................................             333        53-22-00      Do.                         
Joint Facility Rent--DR.......................             541        33-22-00      Do.                         
Joint Facility Rent--CR.......................             508        34-22-00      Do.                         
Joint Facility--DR............................             336        37-22-00      Do.                         
Joint Facility--CR............................             337        38-22-00      Do.                         
                                                                                                                
         Dismantling Retired Property                                                                           
                                                                                                                
  Salaries and Wages..........................        306, 329        11-22-39      Do.                         
  Materials...................................  ..............        21-22-39      Do.                         
  Purchased Services..........................  ..............        41-22-39      Do.                         
  Other Expenses..............................  ..............        61-22-39      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and Wages..........................       330, 339,        11-22-99      Do.                         
                                                       and 332                                                  
  Materials...................................  ..............        21-22-99      Do.                         
  Purchased Services..........................  ..............        41-22-99      Do.                         
  Other Expenses..............................  ..............        61-22-99      Do.                         
Freight Car Costs Per Day and Per Mile........                                                                  
                                                                                                                
            Repair and Maintenance                                                                              
                                                                                                                
  Salaries and Wages..........................             314        11-22-42  These accounts are used to      
                                                                                 develop the cost per car day   
                                                                                 and per car mile for each type 
                                                                                 of car. Sec.  1155.7(g).       
  Materials...................................  ..............        21-22-42                                  
  Repairs by Others--DR.......................  ..............        39-22-42                                  
  Repairs for Others--CR......................  ..............        40-22-42                                  
  Purchased Services..........................  ..............        41-22-42                                  
  Other Expenses..............................  ..............        61-22-42                                  
Lease Rentals--DR.............................             536        31-22-00                                  
Lease Rentals--CR.............................             503        32-22-00                                  
Depreciation..................................        331, 305        62-22-00                                  
Other Rents--DR...............................             536        35-22-00                                  
Other Rents--CR...............................             503        36-22-00                                  
  (3) Other Equipment:                                                                                          
                                                                                                                
                Administration                                                                                  
                                                                                                                
  Salaries and Wages..........................             301        11-23-01  Actual.                         
  Materials...................................  ..............        21-23-01      Do.                         
  Purchased Services..........................  ..............        41-23-01      Do.                         
  Other Expenses..............................  ..............        61-23-01      Do.                         
Repair and Maintenance........................                                                                  
                                                                                                                
   Trucks, Trailers and Containers--Revenue                                                                     
                    Service                                                                                     
                                                                                                                
  Salaries and Wages..........................             318        11-23-43      Do.                         
  Materials...................................  ..............        21-23-43      Do.                         
  Repairs by Others--DR.......................  ..............        39-23-43      Do.                         
  Repairs for Others--CR......................  ..............        40-23-43      Do.                         
  Purchased Services..........................  ..............        41-23-43      Do.                         
  Other Expenses..............................  ..............        61-23-43      Do.                         
                                                                                                                
      Floating Equipment--Revenue Service                                                                       
                                                                                                                
  Salaries and Wages..........................             323        11-23-44      Do.                         
  Materials...................................  ..............        21-23-44      Do.                         
  Repairs by Others--DR.......................  ..............        39-23-44      Do.                         
  Repairs for Others--CR......................  ..............        40-23-44      Do.                         
  Purchased Services..........................  ..............        41-23-44      Do.                         
  Other Expenses..............................  ..............        61-23-44      Do.                         
                                                                                                                
         Computer and Data Processing                                                                           
                                                                                                                
  Salaries and Wages..........................           (\1\)        11-23-46      Do.                         
  Materials...................................  ..............        21-23-46      Do.                         
  Repairs by Others--DR.......................  ..............        39-23-46      Do.                         
  Repairs for Others--CR......................  ..............        40-23-46      Do.                         
  Purchased Services..........................  ..............        41-23-46      Do.                         
  Other Expenses..............................  ..............        61-23-46      Do.                         
                                                                                                                
                   Machinery                                                                                    
                                                                                                                
  Salaries and Wages..........................             302        11-23-40      Do.                         

[[Page 351]]

                                                                                                                
  Materials...................................  ..............        21-23-40      Do.                         
  Repairs by Others--DR.......................  ..............        39-23-40      Do.                         
  Repairs for Others--CR......................  ..............        40-23-40      Do.                         
  Purchased Services..........................  ..............        41-23-40      Do.                         
  Other Expenses..............................  ..............        61-23-40      Do.                         
                                                                                                                
      Work and Other Nonrevenue Equipment                                                                       
                                                                                                                
  Salaries and Wages..........................         326,328        11-23-47      Do.                         
  Materials...................................  ..............        21-23-47      Do.                         
  Repairs by Others--DR.......................  ..............        39-23-47      Do.                         
  Repairs for Others--CR......................  ..............        40-23-47      Do.                         
  Purchased Services..........................  ..............        41-23-47      Do.                         
  Other Expenses..............................  ..............        61-23-47      Do.                         
                                                                                                                
               Equipment Damaged                                                                                
                                                                                                                
  Salaries and Wages..........................  318, 323, 326,        11-23-48      Do.                         
                                                       and 328                                                  
  Materials...................................  ..............        21-23-48      Do.                         
  Repairs by Others--DR.......................  ..............        39-23-48      Do.                         
  Repairs for Others--CR......................  ..............        40-23-48      Do.                         
  Purchased Services..........................  ..............        41-23-48      Do.                         
  Other Expenses..............................  ..............        61-23-48      Do.                         
Fringe Benefits...............................        335, 457        12-23-00  11-23-XX, Sec.                  
                                                                                 1155.8(b)(3)(ii).              
                                                                                                                
        Other Casualties and Insurance                                                                          
                                                                                                                
  Other Casualties............................             332        52-23-00      Do.                         
  Insurance...................................             333        53-23-00  Actual.                         
Lease Rentals--DR.............................        539, 540        31-23-00      Do.                         
Lease Rentals--CR.............................        506, 507        32-23-00      Do.                         
Joint Facility Rent--DR.......................             541        33-23-00      Do.                         
Joint Facility Rent--CR.......................             508        34-23-00      Do.                         
Other Rents--DR...............................        539, 540        35-23-00      Do.                         
Other Rents--CR...............................        506, 507        36-23-00      Do.                         
Depreciation..................................        331, 305        62-23-00      Do.                         
Joint Facility--DR............................             336        37-23-00      Do.                         
Joint Facility--CR............................             337        38-23-00      Do.                         
                                                                                                                
         Dismantling Retired Property                                                                           
                                                                                                                
  Salaries and Wages..........................        306, 329        11-23-39      Do.                         
  Materials...................................  ..............        21-23-39      Do.                         
  Purchased Services..........................  ..............        41-23-39      Do.                         
  Other Expenses..............................  ..............        61-23-39      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and Wages..........................        339, 332        11-23-99      Do.                         
  Materials...................................             339        21-23-99      Do.                         
  Purchased Services..........................             339        41-23-99      Do.                         
  Other Expenses..............................        339, 332        61-23-99      Do.                         
(c) Transportation                                                                                              
  (1) Train Operations:                                                                                         
                                                                                                                
                Administration                                                                                  
                                                                                                                
  Salaries and Wages..........................             371        11-31-01      Do.                         
  Materials...................................  ..............        21-31-01      Do.                         
  Purchased Services..........................  ..............        41-31-01      Do.                         
  Other Expenses..............................  ..............        61-31-01      Do.                         
                                                                                                                
                 Engine Crews                                                                                   
                                                                                                                
  Salaries and Wages..........................             392        11-31-56      Do.                         
  Materials...................................             402        21-31-56  Train Hours, Sec.               
                                                                                 1155.8(c)(1)(i).               
  Purchased Services..........................             402        41-31-56  Actual.                         
  Other Expenses..............................             402        61-31-56      Do.                         
                                                                                                                
                  Train Crews                                                                                   
                                                                                                                
  Salaries and Wages..........................             401        11-31-57      Do.                         
  Materials...................................             402        21-31-57  Trains Hours, Sec.              
                                                                                 1155.8(c)(1)(i).               
  Purchased Services..........................             402        41-31-57  Actual.                         
  Other Expenses..............................             402        61-37-57      Do.                         
                                                                                                                
              Dispatching Trains                                                                                
                                                                                                                
  Salaries and Wages..........................             372        11-31-58      Do.                         
  Materials...................................  ..............        21-31-58      Do.                         
  Purchased Services..........................  ..............        41-31-58      Do.                         
  Other Expenses..............................  ..............        61-31-58      Do.                         
                                                                                                                
      Operating Signals and Interlockers                                                                        
                                                                                                                
  Salaries and Wages..........................             404        11-31-59      Do.                         

[[Page 352]]

                                                                                                                
  Materials...................................  ..............        21-31-59      Do.                         
  Purchased Services..........................  ..............        41-31-59      Do.                         
  Other Expenses..............................  ..............        61-31-59      Do.                         
                                                                                                                
             Operating Drawbridges                                                                              
                                                                                                                
  Salaries and Wages..........................             406        11-31-60      Do.                         
  Materials...................................  ..............        21-31-60      Do.                         
  Purchased Services..........................  ..............        41-31-60      Do.                         
  Other Expenses..............................  ..............        61-31-60      Do.                         
                                                                                                                
          Highway Crossing Protection                                                                           
                                                                                                                
  Salaries and Wages..........................             405        11-31-61      Do.                         
  Materials...................................  ..............        21-31-61      Do.                         
  Purchased Services..........................  ..............        41-31-61      Do.                         
  Other Expenses..............................  ..............        61-31-61      Do.                         
                                                                                                                
     Train and Inspection and Lubrication                                                                       
                                                                                                                
  Salaries and Wages..........................        314,402,        11-31-62  Train Hours, Sec.               
                                                       and 311                   1155.8(c)(1)(i).               
  Materials...................................  ..............        21-31-62  Train Hours, Sec.               
                                                                                 1155.8(c)(1)(i).               
  Purchased Services..........................  ..............        41-31-62      Actual.                     
  Other Expenses..............................  ..............        61-31-62      Do.                         
                                                                                                                
                Locomotive Fuel                                                                                 
                                                                                                                
  Salaries and Wages..........................             394        11-31-67  Diesel locomotive unit hours,   
                                                                                 Sec.  1155.8(c)(1)(ii).        
  Materials...................................  ..............        21-31-67                                  
  Purchased Services..........................  ..............        41-31-67                                  
  Other Expenses..............................  ..............        61-31-67                                  
                                                                                                                
   Electric Power Purchased or Produced for                                                                     
                 Motive Power                                                                                   
                                                                                                                
  Salaries and Wages..........................        395, 445        11-31-68  Electric Locomotive unit hours, 
                                                                                 Sec.  1155.8(c)(1)(iii).       
  Materials...................................        395, 445        21-31-68                                  
  Purchased Services..........................   395, 396, 445        41-31-68                                  
  Other Expenses..............................        395, 445        61-31-68                                  
                                                                                                                
             Servicing Locomotives                                                                              
                                                                                                                
  Salaries and Wages..........................             400        11-31-69  Locomotive unit miles, Sec.     
                                                                                 1155.8(c)(1)(iv).              
  Materials...................................  ..............        21-31-69                                  
  Purchased Services..........................  ..............        41-31-69                                  
  Other Expenses..............................  ..............        61-31-69                                  
                                                                                                                
    Freight Lost or Damaged--Solely Related                                                                     
                                                                                                                
                                                      418, 419        51-31-00      Actual.                     
                                                                                                                
                Clearing Wrecks                                                                                 
                                                                                                                
  Salaries and Wages..........................             415        11-31-63      Do.                         
  Materials...................................  ..............        21-31-63      Do.                         
  Purchased Services..........................  ..............        41-31-63      Do.                         
  Other Expenses..............................  ..............        61-31-63      Do.                         
Fringe Benefits...............................        409, 457        12-31-00  11-31-XX, Sec.  1155.8(c)(4)(i).
                                                                                                                
        Other Casualties and Insurance                                                                          
                                                                                                                
  Other Casualties............................   416, 417, 420        52-31-00  Actual.                         
  Insurance...................................             414        53-31-00      Do.                         
  Joint Facility--DR..........................             412        37-31-00      Do.                         
  Joint Facility--CR..........................             413        38-31-00      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and Wages..........................       402, 411,        11-31-99      Do.                         
                                                       and 420                                                  
  Materials...................................  ..............        21-31-99      Do.                         
  Purchased Services..........................  ..............        41-31-99      Do.                         
  Other Expenses..............................  ..............        61-31-99      Do.                         
  (2) Yard Operations:                                                                                          
                                                                                                                
                Administration                                                                                  
                                                                                                                
  Salaries and Wages..........................             371        11-32-01      Do.                         
  Materials...................................  ..............        21-32-01      Do.                         
  Purchased Services..........................  ..............        41-32-01      Do.                         
  Other Expenses..............................  ..............        61-32-01      Do.                         
                                                                                                                
                 Switch Crews                                                                                   
                                                                                                                
  Salaries and Wages..........................        378, 380        11-32-64      Do.                         
  Materials...................................             389        21-32-64  Locomotive unit hours, Sec.     
                                                                                 1155.8(c)(2)(i).               

[[Page 353]]

                                                                                                                
  Purchased Services..........................             389        41-32-64  Actual.                         
  Other Expenses..............................             389        61-32-64      Do.                         
                                                                                                                
            Controlling Operations                                                                              
                                                                                                                
  Salaries and Wages..........................             377        11-32-65      Do.                         
  Materials...................................             389        21-32-65      Do.                         
  Purchased Services..........................             389        41-32-65      Do.                         
  Other Expenses..............................             389        61-32-65      Do.                         
                                                                                                                
          Yard and Terminal Clerical                                                                            
                                                                                                                
  Salaries and Wages..........................             377        11-32-66      Do.                         
  Materials...................................             389        21-32-66      Do.                         
  Purchased Services..........................             389        41-32-66      Do.                         
  Other Expenses..............................             389        61-32-66      Do.                         
                                                                                                                
  Operating Switches, Signals, Retarders and                                                                    
                     Humps                                                                                      
                                                                                                                
  Salaries and Wages..........................             379        11-32-59      Do.                         
  Materials...................................             389        21-32-59      Do.                         
  Purchased Services..........................             389        41-32-59      Do.                         
  Other Expenses..............................             389        61-32-59      Do.                         
                                                                                                                
                Locomotive Fuel                                                                                 
                                                                                                                
  Salaries and Wages..........................             382        11-32-67  Diesel locomotive unit hours,   
                                                                                 Sec.  1155.8(c)(2)(ii).        
  Materials...................................  ..............        21-32-67                                  
  Purchased Services..........................  ..............        41-32-67                                  
  Other Expenses..............................  ..............        61-32-67                                  
                                                                                                                
   Electric Power Purchased or Produced for                                                                     
                 Motive Power                                                                                   
                                                                                                                
  Salaries and Wages..........................        383, 445        11-32-68  Electric locomotive unit hours, 
                                                                                 Sec.  1155.8(c)(2)(iii).       
  Materials...................................        383, 445        21-32-68                                  
  Purchased Services..........................   383, 384, 445        41-32-68                                  
  Other Expenses..............................        383, 445        61-32-68                                  
                                                                                                                
             Servicing Locomotives                                                                              
                                                                                                                
  Salaries and Wages..........................             388        11-32-69  Locomotive unit hours, Sec.     
                                                                                 1155.8(c)(2)(i).               
  Materials...................................  ..............        21-32-69                                  
  Purchased Services..........................  ..............        41-32-69                                  
  Other Expenses..............................  ..............        61-32-69                                  
                                                                                                                
    Freight Lost or Damaged--Solely Related                                                                     
                                                                                                                
                                                      418, 419        51-32-00  Actual.                         
                                                                                                                
                Clearing Wrecks                                                                                 
                                                                                                                
  Salaries and Wages..........................             415        11-32-63  Actual.                         
  Materials...................................  ..............        21-32-63      Do.                         
  Purchased Services..........................  ..............        41-32-63      Do.                         
  Other Expenses..............................  ..............        61-32-63      Do.                         
Fringe Benefits...............................        409, 457        12-32-00  11-32-XX, Sec.                  
                                                                                 1155.8(c)(4)(ii).              
                                                                                                                
        Other Casualties and Insurance                                                                          
                                                                                                                
  Other Casualties............................        416, 420        52-32-00  Actual.                         
  Insurance...................................             414        53-32-00      Do.                         
Joint Facility--DR............................        390, 412        37-32-00      Do.                         
Joint Facility--CR............................        391, 413        38-32-00      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and Wages..........................        411, 420        11-32-99      Do.                         
  Materials...................................  ..............        21-32-99      Do.                         
  Purchased Services..........................  ..............        41-32-99      Do.                         
  Other Expenses..............................  ..............        61-32-99      Do.                         
  (3) Train and Yard Operations Common:                                                                         
                                                                                                                
            Cleaning Car Interiors                                                                              
                                                                                                                
  Salaries and Wages..........................             402        11-33-70      Do.                         
  Materials...................................  ..............        21-33-70      Do.                         
  Purchased Services..........................  ..............        41-33-70      Do.                         
                                                                                                                
       Adjusting and Transferring Loads                                                                         
                                                                                                                
  Salaries and Wages..........................        373, 402        11-33-71      Do.                         
  Materials...................................        376, 402        21-33-71      Do.                         
  Purchased Services..........................        376, 402        41-33-71      Do.                         
                                                                                                                
      Carloading Devices and Grain Doors                                                                        
                                                                                                                
  Salaries and Wages..........................             402        11-33-72      Do.                         
  Materials...................................  ..............        21-33-72      Do.                         
  Purchased Services..........................  ..............        41-33-72      Do.                         

[[Page 354]]

                                                                                                                
Freight Lost or Damaged--All Other............        418, 419        51-33-00      Do.                         
Fringe Benefits...............................             409        12-33-00  11-33-XX, Sec.                  
                                                                                 1155.8(c)(4)(iii).             
  (4) Specialized Service Operations:                                                                           
                                                                                                                
                Administration                                                                                  
                                                                                                                
  Salaries and Wages..........................   371, 408, 443        21-34-01      Do.                         
  Materials...................................  ..............        21-34-01      Do.                         
  Purchased Services..........................  ..............        41-34-01      Do.                         
  Other Expenses..............................  ..............        61-34-01      Do.                         
                                                                                                                
  Pick-up and Delivery, Marine Line Haul, and                                                                   
            Rail Substitute Service                                                                             
                                                                                                                
  Salaries and Wages..........................   408, 421, 422        11-34-73      Do.                         
  Materials...................................  ..............        21-34-73      Do.                         
  Purchased Services..........................  ..............        41-34-73      Do.                         
  Other Expenses..............................  ..............        61-34-73      Do.                         
                                                                                                                
    Loading and Unloading and Local Marine                                                                      
                                                                                                                
  Salaries and Wages..........................   375, 408, 421        11-34-74      Do.                         
  Materials...................................     422 and 443        21-34-74      Do.                         
  Purchased Services..........................  ..............        41-34-74      Do.                         
  Other Expenses..............................  ..............        61-34-74      Do.                         
                                                                                                                
              Protective Services                                                                               
                                                                                                                
  Salaries and Wages..........................   402, 421, 422        11-34-75      Do.                         
                                                       and 443                                                  
  Materials...................................  ..............        21-34-75      Do.                         
  Purchased Services..........................  ..............        41-34-75      Do.                         
  Other Expenses..............................  ..............        61-34-75      Do.                         
                                                                                                                
    Freight Lost or Damaged--Solely Related                                                                     
                                                                                                                
Fringe Benefits...............................   409, 457, and        12-34-00  11-34-XX, Sec.                  
                                                           449                   1155.8(c)(4)(iv).              
                                                                                                                
           Casualties and Insurance                                                                             
                                                                                                                
  Other Casualties............................        416, 420        52-34-00  Actual.                         
  Insurance...................................             414        53-34-00      Do.                         
Joint Facility--DR............................        412, 447        37-34-00      Do.                         
Joint Facility--CR............................        413, 448        38-34-00      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and Wages..........................  411, 442, 446,        11-34-99      Do.                         
                                                       and 420                                                  
  Materials...................................  ..............        21-34-99      Do.                         
  Purchased Services..........................  ..............        41-34-99      Do.                         
  Other Expenses..............................  ..............        61-34-99      Do.                         
  (5) Administrative Support Operations:                                                                        
                                                                                                                
                Administration                                                                                  
                                                                                                                
  Salaries and Wages..........................             371        11-35-01      Do.                         
  Materials...................................  ..............        21-35-01      Do.                         
  Purchased Services..........................  ..............        41-35-01      Do.                         
  Other Expenses..............................  ..............        61-35-01      Do.                         
                                                                                                                
 Employees Performing Clerical and Accounting                                                                   
                   Functions                                                                                    
                                                                                                                
  Salaries and Wages..........................             373        11-35-76      Do.                         
  Materials...................................             376        21-35-76      Do.                         
  Purchased Services..........................             376        41-35-76      Do.                         
  Other Expenses..............................             376        61-35-76      Do.                         
                                                                                                                
        Communication Systems Operation                                                                         
                                                                                                                
  Salaries and Wages..........................        373, 407        11-35-77      Do.                         
  Materials...................................        376, 407        21-35-77      Do.                         
  Purchased Services..........................        376, 407        41-35-77      Do.                         
  Other Expenses..............................        376, 407        61-35-77      Do.                         
                                                                                                                
       Loss and Damage Claims Processing                                                                        
                                                                                                                
  Salaries and Wages..........................        418, 419        11-35-78  Number of Claims, Sec.          
                                                                                 1155.8(c)(3)(i),               
  Materials...................................  ..............        21-35-78                                  
  Purchased Services..........................  ..............        41-35-78                                  
  Other Expenses..............................  ..............        61-35-78                                  
Fringe Benefits...............................        409, 457        12-35-00  11-35-XX, Sec.  1155.8(c)(4)(v).
Joint Facility--DR............................        412, 447        37-35-00  Actual.                         
Joint Facility--CR............................        413, 448        38-35-00      Do.                         
                                                                                                                
           Casualties and Insurance                                                                             
                                                                                                                
  Other Casualties............................        416, 420        52-35-00      Do.                         

[[Page 355]]

                                                                                                                
  Insurance...................................             414        53-35-00      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and Wages..........................        411, 420        11-35-99      Do.                         
  Materials...................................             411        21-35-99      Do.                         
  Purchased Services..........................             411        41-35-99      Do.                         
  Other Expenses..............................        411, 420        61-35-99      Do.                         
(d) General Administrative                                                                                      
                                                                                                                
       Officers--General Administration                                                                         
                                                                                                                
  Salaries and Wages..........................        351, 451        11-61-01      Do.                         
  Materials...................................  ..............        21-61-01      Do.                         
  Purchased Services..........................  ..............        41-61-01      Do.                         
  Other Expenses..............................  ..............        61-61-01      Do.                         
                                                                                                                
       Accounting, Auditing and Finance                                                                         
                                                                                                                
  Salaries and Wages..........................             452        11-61-86      Do.                         
  Materials...................................  ..............        21-61-86      Do.                         
  Purchased Services..........................  ..............        41-61-86      Do.                         
  Other Expenses..............................  ..............        61-61-86      Do.                         
                                                                                                                
    Management Services and Data Processing                                                                     
                                                                                                                
  Salaries and Wages..........................             452        11-61-87      Do.                         
  Materials...................................  ..............        21-61-87      Do.                         
  Purchased Services..........................  ..............        41-61-87      Do.                         
  Other Expenses..............................  ..............        61-61-87      Do.                         
                                                                                                                
                   Marketing                                                                                    
                                                                                                                
  Salaries and Wages..........................             352        11-61-88      Do.                         
  Materials...................................  ..............        21-61-88      Do.                         
  Purchased Services..........................  ..............        41-61-88      Do.                         
  Other Expenses..............................  ..............        61-61-88      Do.                         
                                                                                                                
                     Sales                                                                                      
                                                                                                                
  Salaries and Wages..........................             352        11-61-89      Do.                         
  Materials...................................  ..............        21-61-89      Do.                         
  Purchased Services..........................  ..............        41-61-89      Do.                         
  Other Expenses..............................  ..............        61-61-89      Do.                         
                                                                                                                
            Industrial Development                                                                              
                                                                                                                
  Salaries and Wages..........................       356, 452,        11-61-90      Do.                         
                                                       and 451                                                  
  Materials...................................  ..............        21-61-90      Do.                         
  Purchased Services..........................  ..............        41-61-90      Do.                         
  Other Expenses..............................  ..............        61-61-90      Do.                         
                                                                                                                
         Personnel and Labor Relations                                                                          
                                                                                                                
  Salaries and Wages..........................     452 and 451        11-61-91      Do.                         
  Materials...................................  ..............        21-61-91      Do.                         
  Purchased Services..........................  ..............        41-61-91      Do.                         
  Other Expenses..............................  ..............        61-61-92      Do.                         
                                                                                                                
             Legal and Secretarial                                                                              
                                                                                                                
  Salaries and Wages..........................       452, 454,        11-61-92      Do.                         
                                                     274, 332,                                                  
                                                       and 420                                                  
  Materials...................................  ..............        21-61-92      Do.                         
  Purchased Services..........................  ..............        41-61-92      Do.                         
  Other Expenses..............................  ..............        61-61-92      Do.                         
                                                                                                                
       Public Relations and Advertising                                                                         
                                                                                                                
  Salaries and Wages..........................        353, 354        11-61-93      Do.                         
  Materials...................................  ..............        21-61-93      Do.                         
  Purchased Services..........................  ..............        41-61-93      Do.                         
  Other Expenses..............................  ..............        61-61-93      Do.                         
                                                                                                                
           Research and Development                                                                             
                                                                                                                
  Salaries and Wages..........................           (\1\)        11-61-94      Do.                         
  Materials...................................  ..............        21-61-94      Do.                         
  Purchased Services..........................  ..............        41-61-94      Do.                         
  Other Expenses..............................  ..............        61-61-94      Do.                         
Fringe Benefits...............................    359,456, 457        12-61-00  11-61-XX., Sec.  1155.8(d)(1).  
                                                                                                                
           Casualties and Insurance                                                                             
                                                                                                                
  Other Casualties............................           (\2\)        52-61-00  Actual.                         
  Insurance...................................        357, 455        53-61-00      Do.                         
Writedown of Uncollectible Accounts...........        706, 707        63-61-00      Do.                         
Other Taxes Except on Corporate Income or                  532        65-61-00      Do.                         
 Payroll.                                                                                                       

[[Page 356]]

                                                                                                                
Joint Facility--DR............................             461        37-61-00      Do.                         
Joint Facility--CR............................             462        38-61-00      Do.                         
                                                                                                                
                     Other                                                                                      
                                                                                                                
  Salaries and Wages..........................  355, 360, 460,        11-61-99      Do.                         
                                                351, 451, 452,                                                  
                                                       and 453                                                  
  Materials...................................  ..............        21-61-99      Do.                         
  Purchased Services..........................  ..............        41-61-99      Do.                         
  Other Expenses..............................  ..............        61-61-99      Do.                         
----------------------------------------------------------------------------------------------------------------
\1\Various accounts.                                                                                            
\2\None.                                                                                                        

    (e) Deadheading, taxi, and hotel costs. The costs assigned under 
this subsection shall be the actual costs incurred as a result of 
providing service to the branch line for deadheading, taxi, and hotel 
costs. The amounts included under this subsection shall not be included 
under other subsections of these regulations.
    (f) Overhead movement costs. The costs assigned under this 
subsection shall be the actual costs incurred in moving overhead in 
order to provide service to the branch. The amounts shown under this 
subsection shall not be included under other subsections of these 
regulations.
    (g) Freight car costs. For Class I railroads, the on-branch costs 
for time-mileage freight cars shall be calculated on the basis of the 
railroad's average costs per day and per mile. The costs per day and per 
mile shall be calculated separately for each type of car specified in Ex 
Parte 334 (Car Service Compensation--Basic Per Diem Charges--Formula 
Revision In Accordance with the Railroad Revitalization and Regulatory 
Reform Act of 1976). These costs shall include: Account 11-22-42--
Salaries and wages--freight cars--repairs and maintenance; Account 21-
22-42--Materials--freight cars--repairs and maintenance; Account 39-22-
42--Repairs billed by others (Debit)--freight cars--repairs and 
maintenance; Account 40-22-42--Repairs billed to others (Credit)--
freight cars--repairs and maintenance; Account 41-22-42--Other purchased 
services--freight cars--repairs and maintenance; Account 61-22-42--Other 
expenses--freight cars--repairs and maintenance; Account 31-22-00--Lease 
rentals (Debit) freight cars; Account 32-22-00--Lease Rentals (Credit)--
freight cars; Account 35-22-00--Other rents (Debit)--freight cars; 
Account 36-22-00--Other rents (Credit--freight cars; and Account 62-22-
00--Depreciation--freight cars; and the return on investment in freight 
cars. The system total of the repair and maintenance accounts, all 
accounts designated XX-XX-42, and depreciation shall be divided into 
time related costs and mileage related costs on the basis of the present 
Rail Form A apportionment factors (i.e., 50 percent time and 50 percent 
mileage for repairs, and 60 percent time and 40 percent mileage for 
depreciation). Return on investment shall be treated as a 100 percent 
time-related cost. The system total receipts and payments for the hire 
of time mileage cars and the basic data used in the development of the 
car-day and car-mile factors shall be taken from the railroad's latest 
Form R-1 and company records. The specific steps to complete the 
calculations are as follows:
    (1) The total system car days by car type shall be calculated by 
averaging the railroad's freight car ownership at the beginning and 
ending of the year (R-1, schedule 710, columns (b) and (k)), multiplying 
the average by the standard active number of car days (346) as developed 
in ICC Docket Number 31358; subtracting car days on foreign lines 
(source: Company records) and adding the foreign car days on home line 
(source: Company records). This procedure shall be completed for each 
car type specified in Ex Parte 334.
    (2) The total railroad car miles shall be calculated by adding the 
loaded car miles for railroad owned and leased cars (Form OSA, column 
(d), items 5-010 through 5-027), to the empty car miles for railroad 
owned and leased

[[Page 357]]

cars (Form OSA, column (d), items 5-110 through 5-127). The total car 
miles, loaded and empty shall be calculated for each car type specified 
in Ex Parte 334.
    (3) The cost per car-day shall be calculated for each type of time-
mileage car by adding 50 percent of the total freight car repair costs 
for each car type (R-1, schedule 415, column (b)); 60 percent of the 
depreciation costs for each car type (R-1, schedule 415, column (c)); 
100 percent of return on investment, which is calculated by obtaining 
the net depreciated investment for each car type and multiplying it by 
the cost of capital ratio developed for use in Form 2 of the unrevised 
Rail Form A of the railroad; the time portion of the railroad's payments 
for hire of time-mileage freight cars (R-1, schedule 366, columns (h) 
and (i)); subtracting the time portion of the railroad's receipts for 
hire of time-mileage freight cars (R-1, schedule 366, columns (d) and 
(e)); and dividing the result by the total car days for each car type 
developed in paragraph (1).
    (4) The cost per mile shall be calculated for each type of time-
mileage car by adding 50 percent of the total freight train car repair 
cost for each car type (R-1, schedule 415, column (b)); 40 percent of 
the total depreciation costs for each car type (R-1, schedule 415, 
column (c)); the mileage portion of the railroad's payments for the hire 
of time-mileage freight cars (R-1, schedule 366, column (g)); 
subtracting the mileage portion of the railroad's receipts for hire of 
time-mileage of freight cars (R-1, schedule 366, column (c)); and 
dividing the result by the total car miles for each car type developed 
in paragraph (2).
    (5) The costs per car-day and per car-mile developed in paragraphs 
(3) and (4) of this section shall be applied to the total car-days and 
total car miles for each car type accumulated on the branch for all 
traffic originated and/or terminated on the branch and all bridge 
traffic handled by the branch during the subsidy period which are 
attributed to time-mileage freight-train cars. The car-day and car-mile 
factors shall be furnished by the railroads.
    (6) The on-branch costs for freight cars rented on a straight 
mileage basis shall be the railroad's total payments for mileage cars 
(R-1, schedule 366, column (f)), for each car type; divided by the total 
miles on which the charges were based.
    (7) For Class II railroads, the on-branch costs for time-mileage and 
straight mileage freight cars shall be calculated in the same manner 
prescribed for Class I railroads, using the latest data available.
    (h) Revenue taxes. The amount of revenue taxes shall be computed 
based on the amounts directly paid in those States that subject the 
railroad to a revenue tax.
    (i) Property taxes. (1) The amount of property taxes shall be the 
amount levied against the property on the branch, in those States where 
a true ad valorem tax is levied, based on the value of certain kinds of 
railroad property, such as track, land, buildings, and other facilities.
    (2) In States where property taxes are assessed on the basis of a 
formula of a statewide valuation of property and the branch or branches 
are included in the valuation of the railroad operating the service, the 
tax on each branch shall be based on the distribution of the assessment 
by the State to that branch and the application of the appropriate tax 
rate or rates.
    (3) In States where the real property taxes are assessed and levied 
against the owner of the property but the rolling stock is assessed to 
the railroad operating the service on the basis of a formula of a 
statewide valuation of property, the tax on rolling stock attributable 
to each branch shall be determined as follows:
    (i) Find the percent which the cost of equipment as used in the 
formula is to the total of all property cost as used in the formula;
    (ii) Apply that percentage to the total State assessment to 
determine the portion of the assessment attributable to rolling stock;
    (iii) Allocate the rolling stock assessment thus determined to each 
branch on the basis of car and locomotive unit miles on the branch to 
total car and locomotive unit miles in the State;
    (iv) Apply appropriate tax rate or rates to the allocated assessment 
thus determined.

[[Page 358]]

    (j) Administrative fee. A carrier shall be entitled to receive an 
administrative fee only if the carrier is not entitled to include 
General Administrative Expenses, Sec. 1155.7(d), as an avoidable cost. 
The administrative fee shall be calculated as one percent of the total 
revenues attributed to the branch under Sec. 1155.6 and shall be allowed 
as an avoidable cost to the railroad to cover all costs of administering 
the subsidy program.
    (k) Deferred subsidy payment. If the subsidy estimate or adjustment 
is paid in deferred payments, the railroad shall be compensated for the 
use of its working capital by applying the interest rate established in 
Sec. 1155.9(b) to the deferred payment for the period of time such 
payment is outstanding.
    (l) Casualty reserve account. The costs assigned under this account 
shall be any payment mutually agreed to by the person offering the 
subsidy and the railroad for the purpose of holding the subsidizer 
harmless from any liability under those accounts that are used to record 
any costs incurred by the railroad as a result of personal injury or 
property damage.
    (m) Termination Costs. The costs assigned under this subsection 
shall be the actual costs reasonably and necessarily incurred as a 
result of terminating service to the subsidized branch. These costs 
shall not include any costs which the railroad would have incurred had 
the branch not been operated under the subsidy program. The 15 percent 
ceiling contained in Sec. 1155.5 is not applicable to those costs unless 
such costs were included in the estimated subsidy payment.
    (n) Off-Branch Costs. Until the ICC revises the Rail Form A cost 
procedure to facilitate the incorporation of the new USOA as well as 
review and if necessary change the theories contained within the present 
formula the procedure for determining the off-branch costs will use the 
existing Rail Form A formula applied to the latest Annual Report, Form 
R-1, that has been filed by the railroad using the prior unrevised 
accounting system. The development of the off-branch costs shall be as 
follows:
    (1) Terminal costs, line-haul car costs, and interchange costs shall 
be considered as the off-branch avoidable costs of providing service 
over the remainder of the railroad's system. These costs shall be 
computed by applying variable unit costs to the service units attributed 
to the branch traffic during the subsidy period.
    (2) The following through-train, single-line, variable unit costs 
shall be developed by a Class I railroad by applying Rail Form A to data 
contained in its latest Form R-1 filed with the Commission:
    (i) Normal Rail Form A carload terminal cost per carload by car 
type.
    (ii) Modified Rail Form A carload terminal cost per carload by car 
type (i.e., (a) substitute an intertrain switching cost separated 
between mileage and other than mileage cars, in place of a roadtrain to 
industry switching cost; (b) substitute modified car ownership costs per 
car-day for two days developed in accordance with Sec. 1155.7(g), above, 
for the standard Rail Form A car ownership cost).
    (iii) Rail Form A per hundredweight terminal cost.
    (iv) Rail Form A cost per car-mile by car type.
    (v) Rail Form A cost per ton-mile.
    (vi) Rail Form A cost per car interchanged, separated between 
mileage and other than mileage cars.

These costs shall be applied by Class I railroads in accordance with the 
procedure set forth below in Sec. 1155.7(n)(3).
    (3) Calculations by car type: (i) The sum of all terminal costs 
incurred off the branch line shall be calculated by multiplying the 
modified terminal cost per carload by car type, paragraph (n)(2)(ii) 
above, by the total number of carloads originated or terminated on the 
branch line during the subsidy year. To this amount add the normal 
terminal cost per carload by car type, paragraph (n)(2)(i) above, times 
the number of carloads which originated or terminated on the branch that 
are local to the railroad serving the branch.
    (ii) The sum of the hundredweight terminal costs incurred off the 
branch line shall be calculated by multiplying the hundredweight of 
freight originated or terminated on the branch that are local to the 
railroad serving the branch.

[[Page 359]]

    (iii) The sum of the line-haul car-mile costs incurred off the 
branch line shall be calculated by multiplying the car-mile cost by car 
type, paragraph (n)(2)(iv) above, by the loaded car-miles generated off 
the branch line by cars originated or terminated on the branch during 
the subsidy year. Where overhead movements to and from the branch have 
been included in the on-branch cost calculation under other sections of 
Sec. 1155.7, the related loaded car-miles shall be excluded from this 
calculation.
    (iv) The sum of the line-haul ton-mile costs shall be determined by 
multiplying the ton-mile cost, paragraph (n)(2)(v) above, by the total 
ton-miles of revenue freight incurred by the railroad on its lines, 
other than the branch lines, for revenue freight originated or 
terminated on the branch during the subsidy year.
    (v) The interchange cost shall be calculated by multiplying the cost 
per car interchanged, paragraph (n)(2)(vi) above, by the number of 
carloads of traffic interchanged at a point off the branch line and 
originated or terminated on the branch.
    (4) Class II and Class III line-haul railroads shall calculate off-
branch costs as follows (based on: The carrier's latest Form R-2 or R-3 
filed with the ICC; the ICC's latest Rail Carload Cost Scales; and the 
carrier's own records):
    (i) A carrier that has only freight operations shall calculate the 
estimated system variable expenses by multiplying the total operating 
expenses by .78, the three-year composite variability ratio for all 
Class I railroads. If a carrier has passenger and freight service, the 
freight portion of the total estimated system variable expenses shall be 
calculated by multiplying the total estimated system variable expenses, 
calculated as above, by the ratio of freight related operating expenses 
to total railway operating expenses [freight related operating expenses 
divided by total railway operating expenses].
    (ii) The total number of revenue carload terminal handlings shall be 
determined from company records [originating and terminating (local) 
revenue carloads multiplied by 2, plus originating or terminating and 
interchange (interline) revenue carloads].
    (iii) The total number of revenue carload interchange handlings 
shall be determined from company records [bridge (interchange to 
interchange) revenue carloads multiplied by 2, plus revenue carloads 
that are originated or terminated and interchanged (interline)].
    (iv) The average load per car shall be determined from company 
records [ton-miles-revenue freight, divided by loaded freight car-
miles].
    (v) The ratios employed to separate the estimated system variable 
expenses between interchange, terminal and line-haul operations are 
calculated as follows:
    (A) Theoretical interchange expenses are calculated by multiplying 
the number of revenue carload interchange handlings, paragraph 
(n)(4)(iii) of this section, by the interchange variable cost per 
carload for other than box, unequipped, refrigerator, tank and TOFC cars 
(ICC Rail Carload Cost Scales, Table 12, Line 6 or 14, appropriate 
region, multiplied by 100).
    (B) Theoretical terminal carload expenses are calculated by 
multiplying the number of revenue carload terminal handlings, paragraph 
(n)(4)(ii) of this section, by the average train variable terminal cost 
per carload for box-general service, equipped (one half of the terminal 
cost per carload ICC Rail Carload Scales, Table 3, appropriate region, 
line 2, col. (6)).
    (C) Theoretical terminal lading expenses are calculated by 
multiplying the total terminal tons [terminal carload handlings, 
paragraph (n)(4)(ii) of this section, multiplied by average load per 
car, paragraph (n)(4)(iv) of this section] by the average train variable 
terminal cost per ton for box-general service, equipped [one half of the 
terminal cwt. cost, ICC Rail Carload Cost Scales, Table 3, appropriate 
region, line 2 col. (7), multiplied by 20].
    (D) Theoretical line-haul car expenses are calculated by multiplying 
the carrier's loaded car-miles by the average train variable cost per 
car-mile excluding interchange, for box-general service, equipped [ICC 
Rail Carload Cost Scales, Table 3, appropriate region, Line 2, col. (4) 
minus Appendix B, appropriate region, Line 2, col. (4)].

[[Page 360]]

    (E) Theoretical line-haul lading expenses are calculated by 
multiplying the carrier's total ton-miles of revenue freight by the 
average train variable ton-mile cost for a box-general service, equipped 
[wt-mile cost ICC Rail Carload Cost Scales, Table 3, appropriate region, 
Line 2, col. (5), multiplied by 20].
    (F) Theoretical station clerical expenses are calculated by 
multiplying total revenue carload terminal handlings, paragraph 
(n)(4)(ii) of this section, by the variable station clerical cost per 
carload [one half of the station clerical cost per carload, ICC Rail 
Carload Cost Scales, Table 18, appropriate region, Line (2) multiplied 
by 100].
    (G) Total theoretical system variable expenses are calculated by 
adding paragraph (n)(4)(v)(A) plus (n)(4)(v)(B) plus (n)(4)(v)(C) plus 
(n)(4)(v)(D) plus (n)(4)(v)(E) of this section.
    (H) The ratio for interchange variable expenses is calculated by 
dividing total theoretical interchange variable expenses, paragraph 
(n)(4)(v)(A) of this section, by the total theoretical system variable 
expenses, paragraph (n)(4)(v)(G) of this section.
    (I) The ratio for terminal variable expenses is calculated by 
dividing the total theoretical terminal variable expenses, paragraph 
(n)(4)(v)(B) plus (n)(4)(v)(C) of this section, by the total theoretical 
system variable expenses, paragraph (n)(4)(v)(G) of this section.
    (J) The ratio for line-haul variable expenses is calculated by 
dividing total theoretical line-haul variable expenses, paragraph 
(n)(4)(v)(D) plus (n)(4)(v)(E) of this section, divided by the total 
theoretical system variable expenses, paragraph (n)(4)(v)(G) of this 
section.
    (K) The ratio for station clerical variable expenses is calculated 
by dividing total theoretical station clerical variable expenses, 
paragraph (n)(4)(v)(F) above, by the total theoretical system variable 
expenses, paragraph (n)(4)(v)(G) above.
    (vi) The carrier's total system variable expenses are separated as 
follows:
    (A) Total interchange variable expenses are calculated by 
multiplying the total system variable expenses, paragraph (n)(4)(i) of 
this section, by the interchange variable expense ratio, paragraph 
(n)(4)(v)(H) of this section.
    (B) Total terminal variable expenses are calculated by multiplying 
the total system variable expenses, paragraph (n)(4)(i) of this section, 
by the terminal variable expense ratio, paragraph (n)(4)(v)(i) of this 
section.
    (C) Total line-haul variable expenses are calculated by multiplying 
the total system variable expenses, paragraph (n)(4)(i) of this section, 
by the line-haul variable expense ratio, paragraph (n)(4)(v)(J) of this 
section.
    (D) Total station clerical variable expenses are calculated by 
multiplying the total system variable expenses, paragraph (n)(4)(i) of 
this section by the station clerical expense ratio, paragraph 
(n)(4)(v)(K) of this section.
    (vii) The carrier's unit costs shall be determined as follows:
    (A) The interchange cost per carload shall be calculated by dividing 
the total interchange variable expense, paragraph (n)(4)(vi)(A) above by 
the total number of interchange handlings, paragraph (n)(4)(iii) of this 
section.
    (B) The terminal cost per carload shall be calculated the total 
terminal variable expenses, paragraph (n)(4)(vi)(B) above, by the total 
number of terminal handlings, paragraph (n)(4)(ii) of this section.
    (C) The line-haul cost per car-mile shall be calculated by dividing 
the total line-haul variable expenses, paragraph (n)(4)(vi)(C) of this 
section, by the total number of loaded car-miles.
    (D) The modified terminal cost per carload shall be calculated by 
adding the interchange cost per carload, paragraph (n)(4)(vii)(A) of 
this section, to the station clerical cost per carload total station 
clerical variable expense, paragraph (n)(4)(vi)(D) of this section, 
divided by the total number of terminal handlings, paragraph (n)(4)(ii) 
of this section].
    (viii) The interchange costs shall be calculated by multiplying the 
interchange cost per carload, paragraph (n)(4)(vii)(A) above, by the 
number of carloads of traffic interchanged with other railroads.
    (ix) The terminal costs shall be calculated by multiplying the 
modified terminal cost per carload, paragraph (n)(4)(vii)(D) of this 
section, times the number of carloads which originated or terminated on 
the branch during the

[[Page 361]]

subsidy year. To this amount add the normal terminal cost per carload, 
paragraph (n)(4)(vii)(B) of this section, times the number of carloads 
which originated or terminated on the branch that are local to the 
railroad serving the branch.
    (x) The line-haul costs shall be calculated by multiplying the line-
haul cost per car-mile, paragraph (n)(4)(vii)(C) of this section, by the 
loaded car-miles generated off the branch by cars originated or 
terminated on the branch during the subsidy year.
    (5) The railroad shall be entitled to recover the impact of 
inflation on off-branch costs that occur during the period between the 
calendar year which is used for developing subsidy year unit costs and 
the 12 month period covered by the subsidy agreement. Calendar year used 
in this section shall mean the January 1 to December 31 period used to 
develop unit costs that are applied to the subsidy year operations. The 
impact of inflation on off-branch costs shall be calculated as follows:
    (i) The railroad shall determine the following calendar year items 
from its Annual Report Form R-1 that was used in developing unit costs 
for the subsidy year and company records, (Class II and Class III 
railroads shall adapt the procedure using similar data from Forms R-2 or 
R-3 or company records).
    (A) Total, railroad's Salaries and Wages, [Schedule 410, col. (b)];
    (B) U.S. Government old-age retirement and unemployment insurance 
taxes (including medicare and supplemental annuities), [Schedule 451, 
Section (B)];
    (C) Employee Health and Welfare expenses, [company records];
    (D) Transportation: Train Operations; Locomotive Fuel, Materials, 
tools, supplies and lubricants; plus Transportation: Yard Operations; 
Locomotive Fuel, Materials, tools, supplies, fuels, and lubricants, 
[Schedule 410, col. (c)];
    (E) Transportation: Train Operations; Electric Power Purchased or 
Produced for Motive Power, Materials, tools, fuel and lubricants and 
Purchased Services; plus Transportation: Yard Operations; Electric 
Power, Purchased or Produced for Motive Power, Materials, tools, fuels, 
and lubricants and Purchased Services, [Schedule 410, col. (c) and (d)];
    (F) Equipment: Locomotives; Repair and Maintenance, Materials, 
tools, supplies, fuels, and lubricants; Freight Cars; Repair and 
Maintenance, Materials, tools, supplies, fuels, and lubricants; plus 
Transportation; Train Operations; Train Inspection and Lubrication, 
Materials, tools, supplies, fuels, and lubricants; Train Crews, 
Materials, tools, supplies, fuels, and lubricants; Servicing 
Locomotives, Materials, tools, supplies, fuels, and lubricants; plus 
Yard Operations; Switch Crews, Materials, tools, supplies, fuels, and 
lubricants; Servicing Locomotives, Materials, tools, supplies, fuels, 
and lubricants, [Schedule 410, col. (c)];
    (G) Railway Tax Accruals (excluding Federal Income Taxes and Payroll 
Taxes), [Schedule 451, Section (b)];
    (H) Total operating expenses, freight portion, [Schedule 410, col. 
(f)];
    (I) Total--All other operating expenses, paragraphs (N)(5)(i)(H) 
minus the sum of paragraphs (n)(5)(i)(A), (n)(5)(i)(B), (n)(5)(i)(C), 
(n)(5)(i)(D), (n)(5)(i)(E), and (n)(5)(i)(F).
    (ii) The Railroad shall determine the following ratios:
    (A) Employee Compensation Update Ratio. (1) The calendar year 
average straight-time compensation per hour is determined by: Adding the 
total straight-time compensation for transportation employees to the 
total straight-time compensation for train and engine employees; divided 
by the total straight-time service hours for transportation employees 
plus the total straight-time service hours for train and engine 
employees, [ICC Annual Report of Employees, Service and Compensation, 
Forms A and B];
    (2) The subsidy year average straight-time compensation per hour is 
determined by: Adding the total straight-time compensation for 
transportation employees to the total straight-time compensation for 
train and engine employees, for the twelve months of the subsidy year; 
divided by the total straight-time service hours for transportation 
employees plus the total straight-time service hours for train and 
engine employees, for the twelve months of the subsidy year,

[[Page 362]]

[ICC Monthly Report of Employees, Service and Compensation Forms A and 
B];
    (3) The Employee Compensation Update ratio is determined by dividing 
the subsidy year average straight-time compensation per hour, paragraph 
(n)(5)(ii)(A)(2); by the calendar year average straight-time 
compensation per hour, paragraph (n)(5)(ii)(A)(1) of this section.
    (B) Payroll Taxes Update Ratio. (1) The calendar year employer 
contribution rate per hour is determined by: Adding the employer maximum 
annual tax per employee for Railroad Retirement to the employer paid 
maximum annual tax per employee for Railroad Unemployment Insurance, 
[Bureau of the Actuary, U.S. Railroad Retirement Board]; divided by 
2080, the average annual number of working hours per year. The quotient 
is added to the hourly rate for supplemental annuities, [National 
Railway Labor Conference];
    (2) The subsidy year employer contribution rate per hour is 
determined by: Multiplying the employer's monthly rate for Railroad 
Retirement and Railroad Unemployment Insurance by the maximum monthly 
individual employee's wage base, respectively, for the twelve months of 
the subsidy year, [Bureau of the Actuary, U.S. Railroad Retirement 
Board]; and dividing by 2080, the average annual number of working hours 
per year. The quotient is added to the hourly rate for supplemental 
annuities, [National Railway Labor Conference];
    (3) The Payroll Taxes Update Ratio is determined by: Dividing the 
subsidy year contribution rate per hour, paragraph (n)(5)(ii)(B)(2) by 
the calendar year contribution rate per hour, paragraph (n)(5)(ii)(B)(1) 
of this section.
    (C) Health and Welfare Costs Update Ratio. (1) Calendar year Health 
and Welfare costs shall be determined by dividing total monthly costs 
for each month, company records, by the total employees, middle of the 
month count for each month, [ICC Monthly Report of Employees, Service, 
and Compensation, Forms A and B]. The total Calendar year health and 
welfare costs is the sum of the twelve monthly average costs per 
employee developed in this subsection.
    (2) Subsidy year Health and Welfare costs are determined by dividing 
total monthly costs for each month, company records, by total employees, 
middle of the month count, [ICC Monthly Report of Employees, Service, 
and Compensation, Forms A and B]. The total subsidy year health and 
welfare costs is the sum of the twelve monthly average costs per 
employee developed in this subsection.
    (3) The Health and Welfare Costs Update Ratio is determined by: 
Dividing the subsidy year costs per employee, paragraph (n)(5)(ii)(C)(2) 
by the calendar year costs per employee, paragraph (n)(5)(ii)(C)(1) of 
this section.
    (D) [Reserved]
    (E) Fuel Cost Update Ratio. (1) The calendar year average fuel cost 
per gallon is determined by: Dividing the cost of Fuel, Diesel Oil, 
schedule 750, col. (b), by the number of gallons, Diesel Oil, consumed 
in freight, passenger and yard switching service, schedule 750, col. 
(b);
    (2) The subsidy year average fuel cost per gallon is determined by: 
Dividing the cost of fuel, diesel oil, company records, for the subsidy 
year, by the number of gallons, diesel oil consumed in freight, 
passenger and yard switching operations, company records, for the 
subsidy year.
    (3) The Fuel Cost Update Ratio is determined by: Dividing the 
subsidy year fuel cost per gallon, paragraph (n)(5)(ii)(E)(2) by the 
calendar year fuel cost per gallon, paragraph (n)(5)(ii)(E)(1) of this 
section.
    (F) Electric Power Cost Update Ratio. (1) The calendar year cost per 
kilowatt hour is determined by: Dividing the cost of electric kilowatt 
hours [schedule 750, col. (c)] by the kilowatt hours consumed by 
freight, passenger, and yard switching operations [schedule 750, col. 
(c)];
    (2) The subsidy year cost per kilowatt hour is determined by: 
Dividing the cost of electric kilowatt hours [company records], by the 
kilowatt hours consumed by freight, passenger, and yard switching 
operations [company records];
    (3) The Electric Power Cost Ratio is determined by: Dividing the 
subsidy year cost per kilowatt hour, paragraph (n)(5)(ii)(F)(2) by the 
calendar year cost

[[Page 363]]

per kilowatt hour, paragraph (n)(5)(ii)(F)(1) of this section.
    (G) Materials and Supplies Cost Update Ratio. (1) The calendar year 
materials and supplies index is an average of the four calendar year 
quarterly indices [Association of American Railroads (AAR), Economics 
and Finance Department, series Quarterly Material, Price and Wages 
(QMPW), applicable region].
    (2) The subsidy year materials and supplies ratio is an average of 
the four subsidy year quarterly indices [Association of American 
Railroads (AAR), Economics and Finance Department, Series Quarterly 
Material, Price, and Wages (QMPW), applicable region].
    (3) The Materials and Supplies Cost Update Ratio is determined by: 
Dividing the subsidy year ratio, paragraph (n)(5)(ii)(G)(2) by the 
calendar year ratio, paragraph (n)(5)(ii)(G)(1) of this section.
    (iii) The Railroad shall determine the following subsidy year 
expense items:
    (A) Total subsidy year salaries and wages [calendar year total 
railroad salaries and wages, paragraph (n)(5)(i)(A) multiplied by the 
Employee Compensation Update Ratio, paragraph (n)(5)(ii)(A)(3)].
    (B) U.S. Government old-age retirement and unemployment insurance 
(including medicare and supplemental annuities), [calendar year U.S. 
Government old-age retirement and unemployment insurance (including 
medicare and supplemental annuities), paragraph (n)(5)(i)(B) multiplied 
by the Payroll Taxes Update Ratio, paragraph (n)(5)(ii)(B)(3)].
    (C) Employee Health and Welfare Expenses [calendar year, Employee 
Health and Welfare expenses, paragraph (n)(5)(i)(C) multiplied by the 
Health and Welfare Costs Update Ratio, paragraph (n)(5)(ii)(C)(3)].
    (D) Total employee compensation would be the sum of: The subsidy 
year total railroad's salaries and wages, paragraph (n)(5)(iii)A) of 
this section; plus U.S. Government old age retirement and unemployment 
insurance (including medicare and supplemental annuities), paragraph 
(n)(5)(iii)(B) of this section; plus Employee Health and Welfare 
Expenses, paragraph (n)(5)(iii)(C) of this section.
    (E) Transportation: Train Operations; Locomotive Fuel, Materials, 
tools supplies, fuels, and lubricants; plus Transportation: Yard 
Operations: Locomotive Fuel, Materials, tools, supplies, fuels, and 
lubricants [calendar year expenses, paragraph (n)(5)(i)(D) multiplied by 
the Fuel Cost Update Ratio, paragraph (n)(5)(ii)(E)(3)].
    (F) Transportation: Train Operations; Electric Power Purchased or 
Produced for Motive Power, Materials, tools, supplies, fuels, and 
lubricants and Purchased Services; plus Transportation: Yard operations: 
Electric Power Purchased or Produced for Motive Power, Materials, tools, 
supplies, fuels, and lubricants and Purchased Services [calendar year 
expenses, paragraph (n)(5)(i)(E) multiplied by the Electric Power Cost 
Update Ratio, paragraph (n)(5)(ii) (F)(3)].
    (G) Equipment: Locomotives; Repair and Maintenance, Materials, 
tools, supplies, fuels, and lubricants; Freight Cars; Repair and 
Maintenance, Materials, tools, supplies, fuels, and lubricants; plus 
Transportation: Train Operations; Train Inspection and Lubrication, 
Materials, tools, supplies, fuels, and lubricants; Train Crews, 
Materials, tools, supplies, fuels, and lubricants; Servicing 
Locomotives, Materials, tools, supplies, fuels, and lubricants; plus 
Transportation Yard Operations; Switch Crews, Materials, tools, 
supplies, fuels, and lubricants; Servicing Locomotives, Materials, 
tools, supplies, fuels, and lubricants, [calendar year expenses, 
paragraph (n)(5)(i)(F) multiplied by the Materials and Supplies Costs 
Update Ratio, Paragraph (n)(5)(ii)(G)(3)].
    (H) Railway Tax Accruals (excluding Federal Income Taxes and Payroll 
taxes), [calendar year expenses, paragraph (n)(5)(i)(G) multiplied by 
1.0].
    (I) Total all other operating expenses, [Total calendar year all 
other operating expenses, paragraph (n)(5)(i)(I) multiplied by 1.0].
    (iv) The railroad shall develop a composite index as follows:
    (A) Total calendar year expenses [paragraph (n)(5)(i)(H)] plus 
calendar year Railway Tax Accruals (excluding Income Taxes and Payroll 
Taxes), paragraph (n)(5)(i)(G)];

[[Page 364]]

    (B) Total subsidy year expenses [sum of paragraphs (n)(5)(iii)(D), 
(n)(5)(iii)(E), (n)(5)(iii)(F), (n)(5) (iii)(G), (n)(5)(iii)(H), (n)(5) 
(iii)(I)].
    (C) Composite Index [Total subsidy year expenses, paragraph 
(n)(5)(iv)(B), divided by total calendar year operating expenses, 
paragraph (n)(5)(iv)(A).
    (v) The composite index, paragraph (n)(5)(iv)(C) above, shall be 
applied to the off-branch costs for twelve months of the subsidy year, 
as provided in Sec. 1155.7(n). The difference between the off-branch 
costs as increased for inflation and the off-branch costs previously 
calculated by the railroad shall be included in the railroad's year-end 
Financial Status Report, as provided in Sec. 1155.5(a).
    (o) Reasonable Management Fee. Four and one-half percent of the 
total annual revenues attributable to the branch as determined pursuant 
to Sec. 1155.6 shall be paid to the railroad as a reasonable management 
fee. If the railroad and the person offering the subsidy agree to an 
additional fee designed as an incentive to maximize revenues, minimize 
expenses, promote efficient service, or otherwise achieve public 
interest objectives, the railroad shall be paid such fee as determined 
in accordance with such agreement.
    (p) Return on investment--locomotives. The return on investment in 
locomotives shall be separated between yard and road with a further 
separation between diesel and other (electric). The return on investment 
for each category of locomotives shall be calculated in accordance with 
the following procedure.
    (1) The net investment for each category of locomotives shall be 
determined from the carrier's records.
    (2) The cost of capital used in the calculation of return on 
investment for locomotives shall be the rate of interest developed for 
use in form 2 of the unrevised rail form A of the railroad.
    (3) The return on investment for all categories of locomotives is 
calculated by multiplying the net investment in step (1) above by the 
costs of capital as determined in step (2).
    (4) The return on investment shall be assigned to the branch on the 
basis of the ratio of locomotive unit hours on the branch to total 
locomotive unit hours on the system for the appliable classification of 
locomotive.

[43 FR 1692, Jan. 11, 1978, as amended at 43 FR 8530, Mar. 2, 1978; 43 
FR 30065, July 13, 1978; 44 FR 35228, June 19, 1979; 45 FR 19560, Mar. 
26, 1980; 45 FR 27447, Apr. 23, 1980. Redesignated at 47 FR 49582, Nov. 
1, 1982, and amended at 49 FR 2901, Jan. 24, 1984]



Sec. 1155.8  Apportionment rules for the assignment of expenses to on-branch costs.

    The accounts specified under Sec. 1155.7(a), (b), (c), and (d) as 
having an assignment basis other than ``Actual'' shall be apportioned 
according to the rules contained in this section.
    (a) Maintenance of way and structures--(1) Roadway machines. All 
accounts designated XX-13-36 shall be assigned to the branch on the 
basis of the average repair cost, for each type of machine, included in 
the daily rental fees charged by the operating railroad or as published 
by the General Manager's Association of Chicago (GMA), based on the 
actual number of days each type of machine is used on the branch.
    (2) Small tools and supplies. All accounts designated XX-13-37 shall 
be assigned to the branch as follows: (i) The costs of supplies, 
consumed in the operation of roadway machines, shall be assigned to the 
branch on the basis of the average costs of supplies per day, included 
in the daily rental fees charged by the operating railroad or as 
published by the GMA, multiplied by the actual number of days that the 
machine is used on the branch; (ii) the costs of small tools shall be 
assigned to the branch on the basis of the ratio that the branch amounts 
in Accounts 11-11-10 through 11-11-17 and 11-11-48 plus 11-12-10 through 
11-12-17 and 11-12-48 bear to the railroad's system total for the same 
accounts.
    (3) Fringe benefits. Fringe benefits shall be assigned to the branch 
separated between running, switching and other, on the ratio that the 
total branch salaries and wages bear to the total system salaries and 
wages for each activity as follows:
    (i) Fringe Benefits--Running, Account 12-11-00, total of all 11-11-
XX accounts branch to system;

[[Page 365]]

    (ii) Fringe Benefits--Switching, Account 12-12-00, total of all 11-
12-XX accounts branch to system; and
    (iii) Fringe Benefits--Other, Account 12-13-00, total of all 11-13-
XX accounts branch to system.
    (b) Maintenance of equipment--(1) Locomotive repairs and 
maintenance. All accounts designated XX-21-41 shall be separated between 
yard and road with a further separation between diesel and other 
(electric). The costs for these accounts for yard locomotives shall be 
assigned to the branch separately for diesel and electric locomotives on 
the basis of the ratio of branch diesel and electric yard locomotive 
unit-hours to the total system diesel and electric yard locomotive unit-
hours. The costs for these accounts for road locomotives shall be 
assigned to the branch separately for diesel and electric locomotives on 
the basis of the ratio of branch diesel and electric locomotive gross 
ton-miles in road service to the total system diesel and electric 
locomotive gross ton-miles in road service. The costs assigned under 
these accounts for specialized equipment devoted exclusively to branch 
line service shall be the actual costs for the specific equipment used.
    (2) Locomotive Depreciation--Account 61-22-00, shall be separated 
between yard and road with a further separation between diesel and other 
(electric). The cost shall be assigned to the branch on the ratio of 
locomotive unit hours on the branch to the total locomotive unit hours 
on the system for the particular type of locomotive used to serve the 
branch The cost assigned under this account for specialized equipment 
devoted exclusively to branch line service shall be the actual cost for 
the specific equipment used.
    (3) Fringe benefits. Fringe benefits for locomotives and other 
equipment shall be assigned to the branch on the ratio that the total 
branch salaries and wages bear to the system total salaries and wages 
for each type of equipment as follows:
    (i) Locomotives--Account 12-21-00, total of all 11-21-XX accounts 
branch to system.
    (ii) Other Equipment--Account 12-23-00, total of all 11-23-XX 
accounts branch to system.
    (iii) Fringe benefits for freight cars shall be calculated by first 
estimating the total in Account 11-22-42, Freight car repairs--salaries 
and wages, that is included in the total on branch costs for freight 
cars as determined from the car day and car mile cost calculations, in 
Sec. 1155.77(g) of these regulations.

To this amount is added the branch totals in the balance of all 11-22-XX 
accounts. The ratio of this total branch amount to the system total for 
all 11-22-XX accounts is applied to Account 12-22-00, Fringe Benefits--
Freight Cars.
    (c) Transportation--(1) Train operations--(i) Engine Crews-
Materials, Account 21-31-56; Train Crews-Materials, Account 21-31-57; 
Train Inspection and Lubrication-Salaries and Wages, Account 11-31-62; 
and Train Inspection and Lubrication-Materials, Account 21-31-62. If the 
branch is served by a local/way or through train, the costs in these 
accounts shall be assigned to the branch on the weighted ratio of the 
loaded freight train cars on the branch to the total system loaded 
freight train cars, and the loaded and empty car-miles on the branch to 
the total system loaded and empty car-miles. This shall be calculated as 
follows:
    (A) To determine the car-mile portion of these accounts,
    (1) Multiply the total amounts in these accounts (from the R-1 
Annual Report, Schedule 410) by 69 percent (the ratio of train-mile and 
running expenses from Rail Form A),
    (2) Divide the amount in paragraph (c)(1)(i)(A)(1) of this section 
by the total system loaded and empty car-miles, and
    (3) Multiply the car-mile unit cost factor from paragraph 
(c)(1)(i)(A)(2) of this section by the on-branch car-miles (loaded and 
empty).
    (B) To determine the carload portion of these accounts,
    (1) Multiply the total amounts in these accounts by 31 percent (the 
ratio of terminal expenses from Rail Form A),
    (2) Divide the amount in paragraph (c)(1)(i)(B)(1) of this section 
by the total system carloads, and
    (3) Multiply the carload unit cost factor from paragraph 
(c)(1)(i)(B)(2) of this section by the onbranch carloads.

[[Page 366]]

    (C) To determine the total costs assignable to the branch for these 
accounts, add the amounts developed in paragraphs (c)(1)(i)(A)(3) and 
(c)(1)(i)(B)(3) of this section.
    (ii) Locomotive fuel. All accounts designated XX-31-67 shall be 
assigned to the branch line in accordance with the following procedure. 
The dollar amounts used in the determination of locomotive fuel costs 
shall be based on data contained in the most recent publication issued 
by the General Managers Association (GMA) relating to the rental of 
locomotives. The total number of locomotive unit hours incurred by the 
locomotive(s) shall then be categorized according to the applicable GMA 
horsepower classification group. The fuel cost is derived from the 
Repairs and Supplies Expenses element of the locomotive rental rates 
published by the GMA. The fuel cost per locomotive unit hour shall be 
determined for each GMA horsepower classification group by multiplying 
the latest GMA fuel cost percentage by the Repairs and Supplies Expense 
per hour included in each group. The fuel cost per locomotive unit hour 
for each applicable GMA group shall be multiplied by the number of 
locomotive unit hours incurred in serving the branch by locomotives of 
that GMA horsepower classification group. The total cost developed under 
this procedure for each horsepower classification shall be the 
locomotive fuel cost assignable to the branch line.
    (iii) Electric power purchased or produced for motive power. All 
accounts designated XX-31-68 shall be assigned to the branch on the 
ratio of road electric locomotive unit hours on the branch to the total 
system road electric locomotive unit hours.
    (iv) Servicing locomotives. All accounts designated XX-31-69 shall 
be assigned to the branch on the ratio of road locomotive unit miles on 
the branch to the total system road locomotive unit miles.
    (2) Yard operations--(i) Switch Crews--Materials, Account 21-32-64, 
and Servicing Locomotives, all accounts designated XX-32-69. The costs 
for these accounts shall be assigned to the branch on the ratio of yard 
locomotive unit hours on the branch to the system total yard locomotive 
unit hours.
    (ii) Locomotive fuel. All accounts designated XX-32-67 shall be 
assigned to the branch on the ratio of yard diesel locomotive unit hours 
on the branch to the total system yard diesel locomotive unit hours.
    (iii) Electric power purchased or produced for motive power. All 
accounts designated XX-32-68 shall be assigned to the branch on the 
ratio of yard electric locomotive unit hours on the branch to the total 
system yard electric locomotive unit hours.
    (3) Administrative support operations--(i) Loss and damage claims 
processing. All accounts designated XX-35-78 shall be assigned to the 
branch on the ratio of the number of claims processed for loss or damage 
occurring on the branch to the total number of claims processed by the 
railroad.
    (4) Transportation fringe benefits. Fringe benefits shall be 
assigned to the branch separated between train operations, yard 
operations, train and yard operations common, specialized service 
operations, and administrative support operations. The costs for each 
activity shall be assigned to the branch on the ratio that the total 
branch salaries and wages bear to the total system salaries and wages 
for each activity shown below.
    (i) Train operations, account 12-31-00, total of all 11-31-XX 
accounts branch to system.
    (ii) Yard operations, account 12-32-00, total of all 11-32-XX 
accounts branch to system.
    (iii) Train and yard operations common, account 12-33-00, total of 
all 11-33-XX accounts branch to system.
    (iv) Specialized service operations, account 12-34-00, total of all 
11-34-XX accounts branch to system.
    (v) Administrative support, account 12-35-00, total of all 11-35-XX 
accounts branch to system.
    (d) General administrative. (1) Fringe benefits, account 12-61-00, 
shall be assigned to the branch on the ratio that the total branch 
salaries and wages in all 11-61-XX accounts bear to the system total 
salaries and wages in all 11-61-XX accounts.
    (2) [Reserved]

[[Page 367]]

    (e) The railroad shall be entitled to recover the impact of 
inflation on on-branch costs that occur during the period between the 
calendar year which is used for developing subsidy year unit costs and 
the 12 month period covered by the subsidy agreement. Calendar year used 
in this section shall mean the January 1, to December 31, period used to 
develop unit costs that are applied to the subsidy year operations.
    (1) The updating procedures described in paragraphs (e)(1)(A), 
(e)(1)(B) and (e)(1)(C), of this section, shall be applied to the 
applicable categories of total on-branch costs as provided in 
Sec. 1155.8(b) and (c). The on-branch updated costs shall be calculated 
as follows:
    (A) The increase in fuel costs shall be determined by multiplying 
the on-branch costs for Locomotive Fuel-Materials, [account 21-31-67 
plus account 21-32-67] by the Fuel Cost Update Ratio, [Section 
1155.7(n)(5)(ii)(E)(3), minus one].
    (B) The increase in the Electric Power Costs shall be determined by: 
Multiplying the on-branch costs for Electric Power Purchased or 
Produced-Materials, and Purchased Services [accounts, 21-31-68, 21-32-
68, 41-31-68 and 41-32-68] by the Electric Power Cost Update Ratio, 
[Section 1155.7(n)(5)(ii)(F)(3), minus one].
    (C) The increase in materials and supplies cost shall be determined 
by multiplying the on-branch materials and supplies costs, [the sum of 
accounts: Engine Crews-Materials (21-31-56); plus Train Crews-Materials 
(21-31-57); plus Train Inspection and Lubrication-Materials (21-31-62); 
plus Locomotive Repairs and Maintenance-Materials (21-21-41); plus 
Servicing Locomotive-Materials--(21-31-69); plus Switch Crews-Materials 
(21-32-64); plus Yard Operations: Servicing of Locomotives-Material (21-
32-69)] by the Materials and Supplies costs Update Ratio, [Section 
1155.7(n)(5)(ii)(G)(3), minus one].
    (2) The railroad shall recalculate on-branch car-day and car-mile 
costs as described in Sec. 1155.7(g) to reflect inflation occurring in 
Materials-Freight Cars-Repairs and Maintenance Account (21-22-42) for 
the period between the calendar year used for developing subsidy year 
unit costs and the 12-month period covered by the subsidy agreement.
    (A) The increase in freight car repairs and maintenance costs shall 
be determined by multiplying the on-branch costs for these materials 
[Account 21-22-42--Materials-Freight Cars-Repairs and Maintenance] by 
the Materials and Supplies Cost Update Ratio [section 
1155.7(n)(5)(ii)(G)(3)].
    (B) The amount in paragraph (e)(1)(A) is substituted for Account 21-
22-42--Freight Train Car-Repair and Maintenance calculated in 
Sec. 1155.7(g). Then, the total freight train car costs per car-day and 
car-mile are recalculated. The recalculated car-day and car-mile costs 
are then applied to the appropriate service units incurred during the 
subsidy year, using the procedure described in Sec. 1155.7(g).
    (C) The railroad shall calculate the net increase in freight train 
car costs by subtracting the on-branch freight train car costs, as 
provided in Sec. 1155.7(G), from the adjusted amount described in 
paragraph (e)(2)(B).
    (3) The net inflationary impact developed for a on-branch costs 
described in paragraphs (e)(1)(A), (e)(1)(B), (e)(1)(C) and (e)(2)(C) 
shall be included in the railroad's year-end Financial Status Report as 
provided in Sec. 1155.5(a).

[43 FR 1692, Jan. 11, 1978, as amended at 45 FR 27449, Apr. 23, 1980; 47 
FR 5008, Feb. 3, 1982; 47 FR 25974, June 16, 1982. Redesignated at 47 FR 
49582, Nov. 1, 1982, and amended at 49 FR 7241, Feb. 28, 1984]



Sec. 1155.9  Return on the value of rail properties.

    (a) Valuation of rail properties. The value of the rail properties 
on a branch shall be determined in accordance with the following:
    (1) Only the following properties on a branch may be considered:
    (i) Those that are used and useful to provide the rail services 
requested by the person offering a subsidy.
    (ii) In the absence of a request for specific services by that 
person, those properties that are used and useful to provide the rail 
service performed on the branch at the time the final system plan became 
effective, or if no service was being performed at that time, the

[[Page 368]]

services that were last performed on the branch.
    (2) The value of the properties shall be their net liquidation value 
for their highest and best use, consistent with applicable zoning and 
land use regulations, determined by computing their current market value 
for other than rail transportation purposes, less all costs of 
dismantling, and disposition of improvements necessary to make the 
remaining property available for its highest and best use.
    (3) If the railroad and person offering a subsidy cannot, within a 
period of time that either of them considers reasonable after the 
beginning of negotiations for the payment of the subsidy, agree on the 
properties that are used and useful or the net liquidation value, or 
both, the one that considers that a reasonable period of time has 
elapsed may notify the other of its intention to have the matter 
arbitrated. Each of the parties shall then appoint a representative and 
the representatives shall select an arbitrator or arbitrators mutually 
acceptable to them. The decision of the arbitrator or arbitrators shall 
be final.
    (4) If either party fails to appoint a representative within five 
days after receiving notice from the other party of its representative, 
or if the appointed representatives fail, within five days after the 
last one of them is appointed, to agree upon a mutually acceptable 
arbitrator or arbitrators, either party may submit the matter for 
arbitration to the American Arbitration Association pursuant to its 
commercial arbitration rules, and the decision of its arbitrator or 
arbitrators shall be final.
    (5) In considering the value of properties under this section, the 
arbitrator or arbitrators shall consider, among other factors, any bona 
fide offer for the properties, or a part thereof, recent sales of 
adjoining or similar properties, any available appraisals, by a 
reputable appraiser, of the properties, or a part thereof.
    (6) If the person offering a subsidy is a public body, each meeting 
of an arbitrator or arbitrators with the parties for the purpose of 
receiving information or evidence or to hear arguments or views shall be 
open to the public. Any interested member of the public may file written 
views, argument, or information with the arbitrator or arbitrators at 
any time within three days after the closing of the sessions that are 
open to the public.
    (b) Reasonable return on the value of the properties. The reasonable 
return on the value of rail properties, as determined under 
Sec. 1155.9(a) shall be the interest rate that is equal to the publicly 
quoted yield, to maturity or earliest call date, on the first business 
day of the month in which the subsidy agreement is entered into, for 
U.S. Treasury bonds or notes maturing or having an earliest call date 
approximately coterminous with the end of the subsidy period. United 
States Treasury bonds, redeemable at par before call or maturity for the 
sole purpose of applying the proceeds to payment of Federal estate 
taxes, and Treasury notes Series EA or EO shall be excluded from 
consideration for this purpose.

         Appendix I--Format for Presentation of Subsidy Estimate

    The following information is required to be furnished under 
Sec. 1155.3(a)(1). All data shall be developed in accordance with the 
methodology set forth in Sec. 1155.3.

                           revenues estimated

    1. Freight revenues.
    2. All other revenues and income.
    3. Total estimated revenues (line 1 plus 2).

                        avoidable cost estimates

    4. On-branch costs (lines 4A through 4L):
    A. Maintenance of way and structures.
    B. Rehabilitation.
    C. Maintenance of equipment.
    D. Transportation.
    E. General administrative expenses.
    F. Deadheading, taxi, and hotel costs.
    G. Overhead movement costs.
    H. Freight car costs.
    I. Taxes.
    J. Administrative fee.
    K. Casualty reserve account.
    L. Termination costs.
    5. Off-branch costs (ratio times line 1).
    6. Management fee.
    7. Total avoidable cost estimate (lines 4, 5, and 6).

                        return on value estimate

    8. Valuation of property.
    9. Rate of return.
    10. Total return on value (line 8 times line 9).

[[Page 369]]

                        estimated subsidy payment

    11. Estimated subsidy payment (line 3 minus lines 7 and 10).
    12. Preexisting subsidy agreement payments included in line 2 above.

[43 FR 1692, Jan. 11, 1978, as amended at 43 FR 30065, July 13, 1978. 
Redesignated at 47 FR 49582, Nov. 1, 1982]

            Appendix II--Format for Financial Status Reports

    The following information is required to be furnished under 
Sec. 1155.4(b). All data shall be developed in accordance with the 
methodology set forth in Secs. 1155.6, 1155.7, and 1155.9. The actual 
data for the year to date and a projection to the end of the subsidy 
year shall be shown for each item, except that off-branch costs shall be 
estimated during the subsidy year by applying the ratio developed in the 
interim formula under Sec. 1155.3(d) to the actual revenues shown in 
item 1.

                                revenues

    1. Freight revenues.
    2. All other revenues and income.
    3. Total revenues (line 1 plus line 2).

                             avoidable cost

    4. On-branch costs (lines 4A through 4L):
    A. Maintenance of way and structures.
    B. Rehabilitation.
    C. Maintenance of equipment.
    D. Transportation.
    E. General administrative expenses.
    F. Deadheading, taxi, and hotel costs.
    G. Overhead movement costs.
    H. Freight car costs.
    I. Taxes.
    J. Administrative fee.
    K. Casualty reserve account.
    L. Termination costs.
    5. Off-branch costs.
    6. Management fee.
    7. Total avoidable cost (lines 4, 5, and 6).

                             return on value

    8. Valuation of property.
    9. Rate of return.
    10. Total return of value (line 8 times line 9).

                             subsidy payment

    11. Subsidy payment (line 3 minus lines 7 and 10).
    12. Preexisting subsidy agreement payments included in line 2 above.

[43 FR 1692, Jan. 11, 1978, as amended at 43 FR 30065, July 13, 1978. 
Redesignated at 47 FR 49582, Nov. 1, 1982]



PART 1156--SUBMISSION OF COST DATA TO JUSTIFY REIMBURSEMENT FOR DIRECTED SERVICE--Table of Contents




Sec.
1156.1  Scope of rules in this part.
1156.2  Cost form and certification.
1156.3  Optional Cash Funding Procedures.

    Authority: 49 U.S.C. 10321 and 10905; 5 U.S.C. 559.

    Source: 44 FR 6157; Jan. 31, 1979, unless otherwise noted. 
Redesignated at 47 FR 49582, Nov. 1, 1982.



Sec. 1156.1  Scope of rules in this part.

    The rules in this part govern the procedures for the submission of 
costs and revenues to be followed by carriers subject to the 
jurisdiction of the Interstate Commerce Commission under subchapter I of 
chapter 105, subtitle IV, title 49, U.S. Code, which are directed by the 
Commission to perform service over the lines of other carriers under the 
provisions of 49 U.S.C. 11125 (formerly 49 U.S.C. 1(16)(b)). The 
Commission's report in Regional Rail Reorg. Act--Submission of Cost 
Data, 348 I.C.C. 251 (1975), should be used by directed carriers for 
guidance in the preparation of the cost form. The report and its 
appendix set forth the Commission's policy as to the costs and revenues, 
incurred in or attributable to the conduct of directed operations, are 
allowable for inclusion in the cost form. Only such allowable costs and 
revenues will be considered by the Commission in its computation of 
payments due to the directed carrier under the provisions of section 
11125.



Sec. 1156.2  Cost form and certification.

    The expenses and revenues incurred in the conduct of directed 
service shall be recorded in accordance with the cost form and 
instructions below:

                        Instructions to Cost Form

    1. Enter in column (7) the expenses directly assignable to the 
directed traffic moved. This includes wages, rentals and other expenses 
paid or incurred by the applicant and chargeable only to the directed 
traffic.
    2. Enter in column (8) the portion of common expenses allocable to 
the directed traffic. Common expenses are those expenses paid or 
incurred for the movement of the directed traffic which are common or 
jointly incurred for the movement of other traffic.

[[Page 370]]

All expenses should be assigned directly wherever possible. Expenses not 
directly assignable should be apportioned on the basis of the factor 
suggested in column (10) or if necessary, on the basis of a more readily 
available and equitable factor, if such use is justified to the 
Commission. The relationship of the carriers' own revenues and the 
directed traffic revenues is an acceptance apportionment factor in cases 
where there are no other available apportionment factors.
    3. Enter in column (9) the total of columns (7) and (8).
    4. The cost of rehabilitation of the line necessary to permit 
operation should be shown in the way and structures accounts. 
Expenditures for substantial improvements shall require authorization by 
the Commission.
    5. Expenses included in lines 53, 54, 55, 131, 140, 159, 169, 176, 
183, 190, 249, and 262 should be identified on a separate sheet.

                                                                        Cost Form                                                                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Account Number                                          Directed Traffic                     
                                       -----------------------------------------------------------------------------------------------------------------
          Line No.            Account               Materials                        Total                                                   Suggested  
                                Name     Salaries      and      Purchased  General   Cols.    Direct     Common      Total Cols. (7)+(8)   Apportionment
                                        and Wages   Supplies    Services            (2)-(5)           Apportioned                             Factors   
                                   (1)        (2)         (3)         (4)     (5)      (6)       (7)        (8)    (9)...................     (10)      
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
                             Operating                                                                                                                  
                              Expenses                                                                                                                  
                               Way and                                                                                                                  
                             Structure                                                                                                                  
                                     s                                                                                                                  
1..........................  Administr   11-13-02    21-13-02    41-13-02  61-13-0               XXX        XXX    XXX...................      XXX      
                             ation--Tr                                          2                                                                       
                                   ack                                                                                                                  
2..........................    Roadway   11-11-10    21-11-10   39/40/41-  61-11-1               XXX        XXX    XXX...................      XXX      
                             Maint.--R                              11-10       0                                                                       
                                unning                                                                                                                  
3..........................    Roadway   11-12-10    21-12-10   39/40/41-  61-12-1               XXX        XXX    XXX...................      XXX      
                             Maint.--S                              12-10       0                                                                       
                              witching                                                                                                                  
4..........................       Road   11-11-48    21-11-48   39/40/41-  61-11-4               XXX        XXX    XXX...................      XXX      
                              Property                              11-48       8                                                                       
                             Damaged--                                                                                                                  
                               Running                                                                                                                  
5..........................       Road   11-12-48    21-12-48   39/40/41-  61-12-4               XXX        XXX    XXX...................      XXX      
                              Property                              12-48       8                                                                       
                             Damaged--                                                                                                                  
                             Switching                                                                                                                  
6..........................  Ties--Run        XXX    21-11-13         XXX     XXX                XXX        XXX    XXX...................      XXX      
                                  ning                                                                                                                  
7..........................  Ties--Swi        XXX    21-12-13         XXX     XXX                XXX        XXX    XXX...................      XXX      
                                tching                                                                                                                  
8..........................  Rails--Ru        XXX    21-11-14         XXX     XXX                XXX        XXX    XXX...................      XXX      
                                 nning                                                                                                                  
9..........................  Rails--Sw        XXX    21-12-14         XXX     XXX                XXX        XXX    XXX...................      XXX      
                               itching                                                                                                                  
10.........................      Other        XXX    21-11-15         XXX     XXX                XXX        XXX    XXX...................      XXX      
                                 Track                                                                                                                  
                             Material-                                                                                                                  
                              -Running                                                                                                                  
11.........................      Other        XXX    21-12-15         XXX     XXX                XXX        XXX    XXX...................      XXX      
                                 Track                                                                                                                  
                             Material-                                                                                                                  
                             -Switchin                                                                                                                  
                                     g                                                                                                                  
12.........................  Ballast--        XXX    21-11-16         XXX     XXX                XXX        XXX    XXX...................      XXX      
                               Running                                                                                                                  
13.........................  Ballast--        XXX    21-12-16         XXX     XXX                XXX        XXX    XXX...................      XXX      
                             Switching                                                                                                                  
14.........................      Track   11-11-17    21-11-17   39/40/41-  61-11-1               XXX        XXX    XXX...................      XXX      
                              Laying &                              11-17       7                                                                       
                             Surfacing                                                                                                                  
                              -Running                                                                                                                  
15.........................      Track   11-12-17    21-12-17   39/40/41-  61-12-1               XXX        XXX    XXX...................      XXX      
                              Laying &                              12-17       7                                                                       
                             Surfacing                                                                                                                  
                             -Switchin                                                                                                                  
                                     g                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
16.........................  Total--Ls                                                                                                     Equated Track
                              . 1 thru                                                                                                       Miles      
                                    15                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
17.........................  Administr   11-13-04    21-13-04    41-13-04  61-13-0               XXX        XXX    XXX...................      XXX      
                             ation--Si                                          4                                                                       
                                 gnals                                                                                                                  
18.........................    Station   11-13-23    21-13-23   39/40/41-  61-13-2               XXX        XXX    XXX...................      XXX      
                                   and                              13-23       3                                                                       
                                Office                                                                                                                  
                                 Bldgs                                                                                                                  
19.........................      Motor   11-13-33    21-13-33   39/40/41-  61-13-3               XXX        XXX    XXX...................      XXX      
                                  Veh.                              13-33       3                                                                       
                             Loading &                                                                                                                  
                             Distribut                                                                                                                  
                                   ion                                                                                                                  
                             Facilitie                                                                                                                  
                                     s                                                                                                                  
20.........................  Facilitie   11-13-35    21-13-35   39/40/41-  61-13-3               XXX        XXX    XXX...................      XXX      
                                 s for                              13-35       5                                                                       
                                 Other                                                                                                                  
                             Specializ                                                                                                                  
                               ed Ser.                                                                                                                  
                                  Opns                                                                                                                  
21.........................  Signals &   11-11-19    21-11-19   39/40/41-  61-11-1               XXX        XXX    XXX...................      XXX      
                             Interlock                              11-19       9                                                                       
                             ers--Runn                                                                                                                  
                                   ing                                                                                                                  
22.........................    Signals   11-12-19    21-12-19   39/40/41-  61-12-1               XXX        XXX    XXX...................      XXX      
                                   and                              12-19       9                                                                       
                             Interlock                                                                                                                  
                             ers--Swit                                                                                                                  
                                 ching                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
23.........................  Total--Ls                                                                                                     Carloads     
                             . 17 thru                                                                                                     Handled      
                                    22                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
24.........................  Administr   11-13-05    21-13-05    41-13-05  61-13-0               XXX        XXX    XXX...................      XXX      
                             ation--Co                                          5                                                                       
                             mmunicati                                                                                                                  
                                   ons                                                                                                                  
25.........................      Loco.   11-13-27    21-13-27   39/40/41-  61-13-2               XXX        XXX    XXX...................      XXX      
                                 Serv.                              13-27       7                                                                       
                             Facilitie                                                                                                                  
                                     s                                                                                                                  

[[Page 371]]

                                                                                                                                                        
26.........................  Communica   11-13-20    21-13-20   39/40/41-  61-13-2               XXX        XXX    XXX...................      XXX      
                                  tion                              13-20       0                                                                       
                               Systems                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
27.........................  Total--Ls                                                                                                     Revenue Tons 
                             . 24 thru                                                                                                                  
                                    26                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
28.........................       Shop   11-13-24    21-13-24   39/40/41-  61-13-2               XXX        XXX    XXX...................      XXX      
                             Bldgs.--L                              13-24       4                                                                       
                             ocomotive                                                                                                                  
                                     s                                                                                                                  
29.........................       Shop   11-13-25    21-13-25   39/40/41-  61-13-2               XXX        XXX    XXX...................      XXX      
                             Bldgs.--F                              13-25       5                                                                       
                                reight                                                                                                                  
                                  Cars                                                                                                                  
30.........................       Shop   11-13-26    21-13-26   39/40/41-  61-13-2               XXX        XXX    XXX...................      XXX      
                             Bldgs.--O                              13-26       6                                                                       
                                  ther                                                                                                                  
                                 Equip                                                                                                                  
31.........................       Road   11-13-48    21-13-48   39/40/41-  61-13-4               XXX        XXX    XXX...................      XXX      
                              Property                              13-48       8                                                                       
                             Damaged--                                                                                                                  
                                 Other                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
32.........................  Total--Ls                                                                                                     Total Repair 
                             . 28 thru                                                                                                     Expenses     
                                    31                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
33.........................      Misc.   11-13-28    21-13-28   39/40/41-  61-13-2               XXX        XXX    XXX...................      XXX      
                              Bldgs. &                              13-28       8                                                                       
                             Structure                                                                                                                  
                                     s                                                                                                                  
34.........................      Other   11-13-32    21-13-32   39/40/41-  61-13-3               XXX        XXX    XXX...................      XXX      
                                Marine                              13-32       2                                                                       
                             Terminals                                                                                                                  
35.........................       Coal   11-13-29    21-13-29   39/40/41-  61-13-2               XXX        XXX    XXX...................      XXX      
                             Terminals                              13-29       9                                                                       
36.........................        Ore   11-13-30    21-13-30   39/40/41-  61-13-3               XXX        XXX    XXX...................      XXX      
                             Terminals                              11-30       0                                                                       
                            ----------------------------------------------------------------------------------------------------------------------------
37.........................  Totals--L                                                                                                     Miles of Rd. 
                                 s. 33                                                                                                     Trailers     
                               thru 36                                                                                                     Handled,     
                                                                                                                                           Loaded &     
                                                                                                                                             Empty      
                            ----------------------------------------------------------------------------------------------------------------------------
38.........................  TOFC/COFC   11-13-31    21-13-31   39/40/41-  61-13-3                                   ....................               
                             Terminals                              13-31       1                                                                       
39.........................  Administr   11-13-03    21-13-03    41-13-03  61-13-0               XXX        XXX    XXX...................      XXX      
                             ation--Br                                          3                                                                       
                               idges &                                                                                                                  
                                 Bldgs                                                                                                                  
40.........................  Tunnels &   11-11-11    21-11-11   39/40/41-  61-11-1               XXX        XXX    XXX...................      XXX      
                             Subways--                              11-11       1                                                                       
                               Running                                                                                                                  
41.........................  Tunnels &   11-12-11    21-12-11   39/40/41-  61-12-1               XXX        XXX    XXX...................      XXX      
                             Subways--                              12-11       1                                                                       
                             Switching                                                                                                                  
42.........................  Bridges &   11-11-12    21-11-12   39/40/41-  61-11-1               XXX        XXX    XXX...................      XXX      
                             Culverts-                              11-12       2                                                                       
                              -Running                                                                                                                  
43.........................  Bridges &   11-12-12    21-12-12   39/40/41-  61-12-1               XXX        XXX    XXX...................      XXX      
                             Culverts-                              12-12       2                                                                       
                             -Switchin                                                                                                                  
                                     g                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
44.........................  Total--Ls                                                                                                     Equated Track
                             . 39 thru                                                                                                       Miles      
                                    43                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
45.........................     Sum of                                                                                                         XXX      
                               Ls. 16,                                                                                                                  
                               23, 27,                                                                                                                  
                               32, 37,                                                                                                                  
                               38, and                                                                                                                  
                                    44                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
46.........................  Administr   11-13-06    21-13-06    41-13-06  61-13-0               XXX        XXX    XXX...................      XXX      
                             ation--Ot                                          6                                                                       
                                   her                                                                                                                  
47.........................     Fringe        XXX         XXX         XXX  12-11-0               XXX        XXX    XXX...................      XXX      
                             Benefits-                                          0                                                                       
                              -Running                                                                                                                  
48.........................     Fringe        XXX         XXX         XXX  12-12-0               XXX        XXX    XXX...................      XXX      
                             Benefits-                                          0                                                                       
                             -Switchin                                                                                                                  
                                     g                                                                                                                  
49.........................     Fringe        XXX         XXX         XXX  12-13-0               XXX        XXX    XXX...................      XXX      
                             Benefits-                                          0                                                                       
                                -Other                                                                                                                  
50.........................  Casualtie        XXX         XXX         XXX  52/53-                XXX        XXX    XXX...................      XXX      
                                   s &                                      11-00                                                                       
                             Insurance                                                                                                                  
                             s--Runnin                                                                                                                  
                                     g                                                                                                                  

[[Page 372]]

                                                                                                                                                        
51.........................  Casualtie        XXX         XXX         XXX  52/53-                XXX        XXX    XXX...................      XXX      
                                   s &                                      12-00                                                                       
                             Insurance                                                                                                                  
                             s--Switch                                                                                                                  
                                   ing                                                                                                                  
52.........................  Casualtie        XXX         XXX         XXX  52/53-                XXX        XXX    XXX...................      XXX      
                                   s &                                      13-00                                                                       
                             Insurance                                                                                                                  
                              s--Other                                                                                                                  
53.........................  Other--Ru   11-11-90    21-11-99    41-11-99  61-11-9               XXX        XXX    XXX...................      XXX      
                                 nning                                          0                                                                       
54.........................  Other--Sw   11-12-99    21-12-99    41-12-99  61-12-9               XXX        XXX    XXX...................      XXX      
                               itching                                          9                                                                       
55.........................  Other--Ot   11-13-99    21-13-99    41-13-99  61-13-9               XXX        XXX    XXX...................      XXX      
                                   her                                          9                                                                       
                            ----------------------------------------------------------------------------------------------------------------------------
56.........................  Total--Ls                                                                                                     Line 45      
                             . 46 thru                                                                                                                  
                                    55                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
57.........................  Depreciat        XXX         XXX         XXX  62-11-0               XXX        XXX    XXX...................      XXX      
                             ion--Runn                                          0                                                                       
                                   ing                                                                                                                  
58.........................  Depreciat        XXX         XXX         XXX  62-12-0               XXX        XXX    XXX...................      XXX      
                             ion--Swit                                          0                                                                       
                                 ching                                                                                                                  
59.........................  Depreciat        XXX         XXX         XXX  62-13-0               XXX        XXX    XXX...................      XXX      
                             ion--Othe                                          0                                                                       
                                     r                                                                                                                  
60.........................    Roadway   11-13-36    21-13-36   39/40/41-  61-13-3               XXX        XXX    XXX...................      XXX      
                              Machines                              13-36       6                                                                       
61.........................    Highway   11-11-22    21-11-22   39/40/41-  61-11-2               XXX        XXX    XXX...................      XXX      
                                 Grade                              11-22       2                                                                       
                             Crossings                                                                                                                  
                              -Running                                                                                                                  
62.........................    Highway   11-12-22    21-12-22   39/40/41-  61-12-2               XXX        XXX    XXX...................      XXX      
                                 Grade                              12-22       2                                                                       
                             Crossings                                                                                                                  
                             -Switchin                                                                                                                  
                                     g                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
63.........................  Total--Ls                                                                                                     Miles of Road
                             . 57 thru                                                                                                                  
                                    62                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
64.........................   Electric   11-13-21    21-13-21   39/40/41-  61-13-2                                                         Electric     
                                 Power                              13-21       1                                                          Locomotive   
                               Systems                                                                                                     Unit Miles or
                                                                                                                                           Line 96, 105,
                                                                                                                                             & 116      
                            ----------------------------------------------------------------------------------------------------------------------------
65.........................      Joint        XXX         XXX    37-11-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                             -Debit--R                                                                                                                  
                                unning                                                                                                                  
66.........................      Joint        XXX         XXX    37-12-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                             -Debit--S                                                                                                                  
                              witching                                                                                                                  
67.........................      Joint        XXX         XXX    37-13-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                             -Debit--O                                                                                                                  
                                  ther                                                                                                                  
68.........................      Joint        XXX         XXX    38-11-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                             -(Credit)                                                                                                                  
                              -Running                                                                                                                  
69.........................      Joint        XXX         XXX    38-12-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                             -(Credit)                                                                                                                  
                             -Switchin                                                                                                                  
                                     g                                                                                                                  
70.........................      Joint        XXX         XXX    38-13-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                             -(Credit)                                                                                                                  
                                -Other                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
71.........................  Total--Ls                                                                                                     Miles of     
                             . 65 thru                                                                                                       Track      
                                    70                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
72.........................      Small   11-13-37    21-13-37   39/40/41-  61-13-3               XXX        XXX    XXX...................      XXX      
                               Tools &                              13-37       7                                                                       
                              Supplies                                                                                                                  
73.........................       Snow   11-13-38    21-13-38   30/40/41-  61-13-3               XXX        XXX    XXX...................      XXX      
                               Removal                              13-38       8                                                                       
74.........................      Lease        XXX         XXX    31-11-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rentals--                                                                                                                  
                             Debit--Ru                                                                                                                  
                                 nning                                                                                                                  
75.........................      Lease        XXX         XXX    31-12-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rentals--                                                                                                                  
                             Debit--Sw                                                                                                                  
                               itching                                                                                                                  
76.........................      Lease        XXX         XXX    31-13-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rentals--                                                                                                                  
                             Debits--O                                                                                                                  
                                  ther                                                                                                                  
77.........................      Lease        XXX         XXX    32-11-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rentals--                                                                                                                  
                             (Credit)-                                                                                                                  
                              -Running                                                                                                                  

[[Page 373]]

                                                                                                                                                        
78.........................      Lease        XXX         XXX    32-12-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rentals--                                                                                                                  
                             (Credit)-                                                                                                                  
                             -Switchin                                                                                                                  
                                     g                                                                                                                  
79.........................      Lease        XXX         XXX    32-13-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rentals--                                                                                                                  
                             (Credit)-                                                                                                                  
                                -Other                                                                                                                  
80.........................      Joint        XXX         XXX    33-11-00     XXX                XXX        XXX    XXX...................      XXX      
                              Facility                                                                                                                  
                             Rents--De                                                                                                                  
                             bit--Runn                                                                                                                  
                                   ing                                                                                                                  
81.........................      Joint        XXX         XXX    33-12-00     XXX                XXX        XXX    XXX...................      XXX      
                              Facility                                                                                                                  
                             Rents--De                                                                                                                  
                             bt--Switc                                                                                                                  
                                  hing                                                                                                                  
82.........................      Joint        XXX         XXX    33-13-00     XXX                XXX        XXX    XXX...................      XXX      
                              Facility                                                                                                                  
                             Rents--De                                                                                                                  
                             bit--Othe                                                                                                                  
                                     r                                                                                                                  
83.........................      Joint        XXX         XXX    34-11-00     XXX                XXX        XXX    XXX...................      XXX      
                              Facility                                                                                                                  
                             Rents--(C                                                                                                                  
                             redit)--R                                                                                                                  
                                unning                                                                                                                  
84.........................      Joint        XXX         XXX    34-12-00     XXX                XXX        XXX    XXX...................      XXX      
                              Facility                                                                                                                  
                             Rents--(C                                                                                                                  
                             redit)--S                                                                                                                  
                              witching                                                                                                                  
85.........................      Joint        XXX         XXX    34-13-00     XXX                XXX        XXX    XXX...................      XXX      
                              Facility                                                                                                                  
                             Rents--(C                                                                                                                  
                             redit)--O                                                                                                                  
                                  ther                                                                                                                  
86.........................      Other        XXX         XXX    35-11-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rents--De                                                                                                                  
                             bit--Runn                                                                                                                  
                                   ing                                                                                                                  
87.........................      Other        XXX         XXX    35-12-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rents--De                                                                                                                  
                             bit--Swit                                                                                                                  
                                 ching                                                                                                                  
88.........................      Other        XXX         XXX    35-13-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rents--De                                                                                                                  
                             bit--Othe                                                                                                                  
                                     r                                                                                                                  
89.........................      Other        XXX         XXX    36-11-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rents--(C                                                                                                                  
                             redit)--R                                                                                                                  
                                unning                                                                                                                  
90.........................      Other        XXX         XXX    36-12-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rents--(C                                                                                                                  
                             redit)--S                                                                                                                  
                              witching                                                                                                                  
91.........................      Other        XXX         XXX    36-13-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rents--(C                                                                                                                  
                             redit)--O                                                                                                                  
                                  ther                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
92.........................  Total--Ls                                                                      XXX                             Direct      
                             . 72 thru                                                                                                                  
                                    91                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
93.........................  TOTAL--Wa                                                           XXX        XXX                                XXX      
                                   y &                                                                                                                  
                             Structure                                                                                                                  
                             s--Sum of                                                                                                                  
                               Ls. 16,                                                                                                                  
                               23, 27,                                                                                                                  
                               32, 37,                                                                                                                  
                               38, 44,                                                                                                                  
                               56, 63,                                                                                                                  
                               64, 71,                                                                                                                  
                                and 92                                                                                                                  
                             Equipment                                                                                                                  
                             Locomotiv                                                                                                                  
                                    es                                                                                                                  
94.........................      Lease        XXX         XXX    31-21-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rentals--                                                                                                                  
                                 Debit                                                                                                                  
95.........................      Other        XXX         XXX    35-21-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rents--De                                                                                                                  
                                   bit                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
96.........................  Totals--L                                                                                                     Locomotive   
                             s. 94 and                                                                                                     Unit Miles   
                                    95                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
97.........................   Repair &   11-21-41    21-21-41   39/41-21-  61-21-4               XXX        XXX    XXX...................      XXX      
                             Maintenan                                 41       1                                                                       
                                    ce                                                                                                                  
98.........................    Repairs        XXX         XXX    40-21-41     XXX                XXX        XXX    XXX...................      XXX      
                             Billed to                                                                                                                  
                             Others--(                                                                                                                  
                               Credit)                                                                                                                  
99.........................  Equipment   11-21-48    21-21-48   39/41-21-  61-21-4               XXX        XXX    XXX...................      XXX      
                               Damaged                                 48       8                                                                       
100........................    Repairs        XXX         XXX    40-21-48     XXX                XXX        XXX    XXX...................      XXX      
                             Billed to                                                                                                                  
                             Others--(                                                                                                                  
                               Credit)                                                                                                                  
101........................      Joint        XXX         XXX    37-21-00     XXX                XXX        XXX    XXX...................      XXX      
                              Facility                                                                                                                  
                             Rents--De                                                                                                                  
                                   bit                                                                                                                  
102........................      Joint        XXX         XXX    34-21-00     XXX                XXX        XXX    XXX...................      XXX      
                              Facility                                                                                                                  
                             Rents--(C                                                                                                                  
                                redit)                                                                                                                  
103........................      Lease        XXX         XXX    32-21-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rents--(C                                                                                                                  
                                redit)                                                                                                                  
104........................      Other        XXX         XXX    36-21-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rents--(C                                                                                                                  
                                redit)                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
105........................  Total--Ls                                                                                                     Gross Ton-   
                             . 97 thru                                                                                                       Miles      
                                   104                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------

[[Page 374]]

                                                                                                                                                        
                               Freight                                                                                                                  
                                  Cars                                                                                                                  
106........................   Repair &   11-22-42    21-22-42   39/41-22-  61-22-4               XXX        XXX    XXX...................      XXX      
                             Maintenan                                 42       2                                                                       
                                    ce                                                                                                                  
107........................    Repairs        XXX         XXX    40-22-42     XXX                XXX        XXX    XXX...................      XXX      
                             Billed to                                                                                                                  
                             Others--(                                                                                                                  
                               Credit)                                                                                                                  
108........................  Equipment   11-22-48    21-22-48   39/41-22-  61-22-4               XXX        XXX    XXX...................      XXX      
                               Damaged                                 48       8                                                                       
109........................    Repairs        XXX         XXX    40-22-48     XXX                XXX        XXX    XXX...................      XXX      
                             Billed to                                                                                                                  
                             Others--(                                                                                                                  
                               Credit)                                                                                                                  
110........................      Lease        XXX         XXX    31-22-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rentals--                                                                                                                  
                                 Debit                                                                                                                  
111........................      Lease        XXX         XXX    32-22-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rentals--                                                                                                                  
                              (Credit)                                                                                                                  
112........................      Joint        XXX         XXX    33-22-00     XXX                XXX        XXX    XXX...................      XXX      
                              Facility                                                                                                                  
                             Rents--De                                                                                                                  
                                   bit                                                                                                                  
113........................      Joint        XXX         XXX    34-22-00     XXX                XXX        XXX    XXX...................      XXX      
                              Facility                                                                                                                  
                             Rents--(C                                                                                                                  
                                redit)                                                                                                                  
114........................      Other        XXX         XXX    35-22-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rents--De                                                                                                                  
                                   bit                                                                                                                  
115........................      Other        XXX         XXX    36-22-00     XXX                XXX        XXX    XXX...................      XXX      
                             Rents--(C                                                                                                                  
                                redit)                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
116........................  Total--Ls                                                                                                     Freight-Train
                                 . 106                                                                                                     Car Miles;   
                              thru 115                                                                                                     Cars-loaded &
                                                                                                                                             empty      
                            ----------------------------------------------------------------------------------------------------------------------------
                                 Other                                                                                                                  
                             Equipment                                                                                                                  
117........................   Repair &   11-23-43    21-23-43   39/41-23-  61-23-4               XXX        XXX    XXX...................      XXX      
                             Maint.--T                                 43       3                                                                       
                                rucks,                                                                                                                  
                             Trailers,                                                                                                                  
                                     &                                                                                                                  
                             Container                                                                                                                  
                             s--Revenu                                                                                                                  
                             e Service                                                                                                                  
118........................    Repairs        XXX         XXX    40-23-43     XXX                XXX        XXX    XXX...................      XXX      
                             Billed to                                                                                                                  
                             Others--(                                                                                                                  
                               Credit)                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
119........................  Total--Ls                                                                                                     Veh.-Miles-- 
                             . 117 and                                                                                                     Loaded &     
                                   118                                                                                                       Empty      
                            ----------------------------------------------------------------------------------------------------------------------------
120........................   Floating   11-23-44    21-23-44   39/41-23-  61-23-4               XXX        XXX    XXX...................      XXX      
                             Equip.--R                                 44       4                                                                       
                                evenue                                                                                                                  
                               Service                                                                                                                  
121........................    Repairs        XXX         XXX    40-23-44     XXX                XXX        XXX    XXX...................      XXX      
                             Billed to                                                                                                                  
                             Others--(                                                                                                                  
                               Credit)                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
122........................  Total--Ls                                                                                                      No. of      
                             . 120 and                                                                                                     Carloads     
                                   121                                                                                                     Handled      
                            ----------------------------------------------------------------------------------------------------------------------------
123........................  Administr   11-21-01    21-21-01    41-21-01  61-21-0               XXX        XXX    XXX...................      XXX      
                                 ation                                          1                                                                       
124........................  Machinery   11-21-40    21-21-40   39/41-21-  61-20-4               XXX        XXX    XXX...................      XXX      
                                Repair                                 40       0                                                                       
125........................    Repairs        XXX         XXX    40-21-40     XXX                XXX        XXX    XXX...................      XXX      
                             Billed to                                                                                                                  
                             Others--(                                                                                                                  
                               Credit)                                                                                                                  
126........................     Fringe        XXX         XXX         XXX  12-21-0               XXX        XXX    XXX...................      XXX      
                              Benefits                                          0                                                                       
127........................      Other        XXX         XXX         XXX  52/53-                XXX        XXX    XXX...................      XXX      
                             Casualtie                                      21-00                                                                       
                                   s &                                                                                                                  
                             Insurance                                                                                                                  
128........................      Joint        XXX         XXX    37-21-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                                -Debit                                                                                                                  
129........................      Joint        XXX         XXX    38-21-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                             -(Credit)                                                                                                                  
130........................  Depreciat        XXX         XXX         XXX  62-21-0               XXX        XXX    XXX...................      XXX      
                                   ion                                          0                                                                       
131........................      Other   11-21-99    21-21-99    41-21-99  61-21-9               XXX        XXX    XXX...................      XXX      
                                                                                9                                                                       
132........................  Administr   11-22-01    21-22-01    41-22-01  61-22-0               XXX        XXX    XXX...................      XXX      
                                 ation                                          1                                                                       
133........................  Machinery   11-22-40    21-22-40   39/41-22-  61-22-4               XXX        XXX    XXX...................      XXX      
                                Repair                                 40       0                                                                       
134........................    Repairs        XXX         XXX    40-22-40     XXX                XXX        XXX    XXX...................      XXX      
                             Billed to                                                                                                                  
                             Others--(                                                                                                                  
                               Credit)                                                                                                                  

[[Page 375]]

                                                                                                                                                        
135........................     Fringe        XXX         XXX         XXX  12-22-0               XXX        XXX    XXX...................      XXX      
                              Benefits                                          0                                                                       
136........................  Other--Ca        XXX         XXX         XXX  52/53-                XXX        XXX    XXX...................      XXX      
                              sualties                                      22-00                                                                       
                                     &                                                                                                                  
                             Insurance                                                                                                                  
137........................      Joint        XXX         XXX    37-22-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                                -Debit                                                                                                                  
138........................      Joint        XXX         XXX    38-22-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                             -(Credit)                                                                                                                  
139........................  Depreciat        XXX         XXX         XXX  62-22-0               XXX        XXX    XXX...................      XXX      
                                   ion                                          0                                                                       
140........................      Other   11-22-99    21-22-99    41-22-99  61-22-9               XXX        XXX    XXX...................      XXX      
                                                                                9                                                                       
141........................  Administr   11-23-01    21-23-01    41-23-01  61-23-0               XXX        XXX    XXX...................      XXX      
                                 ation                                          1                                                                       
142........................    Pass. &   11-23-45    21-23-45   39/41-23-  61-23-4               XXX        XXX    XXX...................      XXX      
                                 Other                                 45       5                                                                       
                                  Rev.                                                                                                                  
                                 Equip                                                                                                                  
143........................    Repairs        XXX         XXX    40-23-45     XXX                XXX        XXX    XXX...................      XXX      
                             Billed to                                                                                                                  
                             Others--(                                                                                                                  
                               Credit)                                                                                                                  
144........................   Repair &   11-23-40    21-23-40   39/41-23-  61-23-4               XXX        XXX    XXX...................      XXX      
                             Maint.--M                                 40       0                                                                       
                              achinery                                                                                                                  
145........................    Repairs        XXX         XXX    40-23-40     XXX                XXX        XXX    XXX...................      XXX      
                             Billed to                                                                                                                  
                             Others--(                                                                                                                  
                               Credit)                                                                                                                  
146........................   Repair &   11-23-46    21-23-46   39/41-23-  61-23-4               XXX        XXX    XXX...................      XXX      
                             Maint.--C                                 46       6                                                                       
                              omputers                                                                                                                  
                                & Data                                                                                                                  
                             Processin                                                                                                                  
                             g Systems                                                                                                                  
147........................    Repairs        XXX         XXX    40-23-46     XXX                XXX        XXX    XXX...................      XXX      
                             Billed to                                                                                                                  
                             Others--(                                                                                                                  
                               Credit)                                                                                                                  
148........................   Repair &   11-23-47    21-23-47   39/41-23-  61-23-4               XXX        XXX    XXX...................      XXX      
                             Maint.--W                                 47       7                                                                       
                                 ork &                                                                                                                  
                             Other Non-                                                                                                                 
                                  Rev.                                                                                                                  
                                 Equip                                                                                                                  
149........................    Repairs        XXX         XXX    40-23-47     XXX                XXX        XXX    XXX...................      XXX      
                             Billed to                                                                                                                  
                             Others--(                                                                                                                  
                               Credit)                                                                                                                  
150........................  Equipment   11-23-48    21-23-48   39/41-23-  61-23-4               XXX        XXX    XXX...................      XXX      
                               Damaged                                 48       8                                                                       
151........................    Repairs        XXX         XXX    40-23-48     XXX                XXX        XXX    XXX...................      XXX      
                             Billed to                                                                                                                  
                             Others--(                                                                                                                  
                               Credit)                                                                                                                  
152........................     Fringe        XXX         XXX         XXX  12-23-0               XXX        XXX    XXX...................      XXX      
                              Benefits                                          0                                                                       
153........................  Other--Ca        XXX         XXX         XXX  52/53-                XXX        XXX    XXX...................      XXX      
                              sualties                                      23-00                                                                       
                                     &                                                                                                                  
                             Insurance                                                                                                                  
154........................      Joint        XXX         XXX    33-23-00     XXX                XXX        XXX    XXX...................      XXX      
                              Facility                                                                                                                  
                             Rents--De                                                                                                                  
                                   bit                                                                                                                  
155........................      Joint        XXX         XXX    34-23-00     XXX                XXX        XXX    XXX...................      XXX      
                              Facility                                                                                                                  
                             Rents--(C                                                                                                                  
                               redits)                                                                                                                  
156........................      Joint        XXX         XXX    37-23-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                                -Debit                                                                                                                  
157........................      Joint        XXX         XXX    38-23-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                             -(Credit)                                                                                                                  
158........................  Depreciat        XXX         XXX         XXX  62-23-0               XXX        XXX    XXX...................      XXX      
                                   ion                                          0                                                                       
159........................      Other   11-23-99    21-23-99    41-23-99  61-23-9               XXX        XXX    XXX...................      XXX      
                                                                                9                                                                       
                            ----------------------------------------------------------------------------------------------------------------------------
160........................  Total--Ls                                                                                                     Total Repair 
                                 . 123                                                                                                     Expenses     
                              thru 159                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
161........................      Lease        XXX         XXX    31-23-00     XXX                                                          Assign where 
                             Rentals--                                                                                                     Applicable   
                                 Debit                                                                                                                  
162........................      Lease        XXX         XXX    32-23-00     XXX                                                          Assign where 
                             Rentals--                                                                                                     Applicable   
                              (Credit)                                                                                                                  
163........................      Other        XXX         XXX    35-23-00     XXX                                                          Assign where 
                             Rents--De                                                                                                     Applicable   
                                   bit                                                                                                                  
164........................      Other        XXX         XXX    36-23-00     XXX                                                          Assign where 
                             Rents--(C                                                                                                     Applicable   
                                redit)                                                                                                                  

[[Page 376]]

                                                                                                                                                        
165........................  Miscellan        XXX         XXX         543     XXX                                                          Assign where 
                                  eous                                                                                                     Applicable   
                                 Rents                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
166........................      Total                                                           XXX        XXX                                XXX      
                             Equipment                                                                                                                  
                               -Sum of                                                                                                                  
                               Ls. 96,                                                                                                                  
                             105, 116,                                                                                                                  
                             119, 122,                                                                                                                  
                             160, 161-                                                                                                                  
                                   165                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
                             Transport                                                                                                                  
                                 ation                                                                                                                  
                                 Train                                                                                                                  
                             Operation                                                                                                                  
                                     s                                                                                                                  
167........................  Administr   11-31-01    21-31-01    41-31-01  61-31-0               XXX        XXX    XXX...................      XXX      
                                 ation                                          1                                                                       
168........................     Fringe        XXX         XXX         XXX  12-31-0               XXX        XXX    XXX...................      XXX      
                              Benefits                                          0                                                                       
169........................      Other   11-31-99    21-31-99    41-31-99  61-31-9               XXX        XXX    XXX...................      XXX      
                                                                                9                                                                       
170........................      Other        XXX         XXX         XXX  52/53-                XXX        XXX    XXX...................      XXX      
                             Casualtie                                      31-00                                                                       
                                   s &                                                                                                                  
                             Insurance                                                                                                                  
171........................  Dispatchi   11-31-58    21-31-58    41-31-58  61-31-5               XXX        XXX    XXX...................      XXX      
                             ng Trains                                          8                                                                       
                            ----------------------------------------------------------------------------------------------------------------------------
172........................  Total--Ls                                                                                                     Train-Miles  
                                 . 167                                                                                                                  
                              thru 171                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
                             Administr                                                                                                                  
                                 ative                                                                                                                  
                               Support                                                                                                                  
                                 Opns.                                                                                                                  
173........................  Administr   11-35-01    21-35-01    41-35-01  61-35-0               XXX        XXX    XXX...................      XXX      
                                 ation                                          1                                                                       
174........................     Fringe        XXX         XXX         XXX  12-35-0               XXX        XXX    XXX...................      XXX      
                              Benefits                                          0                                                                       
175........................  Casualtie        XXX         XXX         XXX  52/53-                XXX        XXX    XXX...................      XXX      
                                   s &                                      35-00                                                                       
                             Insurance                                                                                                                  
176........................      Other   11-35-99    21-35-99    41-35-99  61-35-9               XXX        XXX    XXX...................      XXX      
                                                                                9                                                                       
177........................  Employees   11-35-76    21-35-76    41-35-76  61-35-7               XXX        XXX    XXX...................      XXX      
                             Performin                                          6                                                                       
                                     g                                                                                                                  
                              Clerical                                                                                                                  
                             & Acctng.                                                                                                                  
                             Functions                                                                                                                  
178........................  Communica   11-35-77    21-35-77    41-35-77  61-35-7               XXX        XXX    XXX...................      XXX      
                                  tion                                          7                                                                       
                               Systems                                                                                                                  
                                  Oper                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
179........................  Total--Ls                                                                                                     Revenue Tons 
                                 . 173                                                                                                                  
                              thru 178                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
                                  Yard                                                                                                                  
                             Operation                                                                                                                  
                                     s                                                                                                                  
180........................  Administr   11-32-01    21-32-01    41-32-01  61-32-0               XXX        XXX    XXX...................      XXX      
                                 ation                                          1                                                                       
181........................     Fringe        XXX         XXX         XXX  12-32-0               XXX        XXX    XXX...................      XXX      
                              Benefits                                          0                                                                       
182........................      Other        XXX         XXX         XXX  52/53-                XXX        XXX    XXX...................      XXX      
                             Casualtie                                      32-00                                                                       
                                   s &                                                                                                                  
                             Insurance                                                                                                                  
183........................      Other   11-32-99    21-32-99    41-32-99  61-32-9               XXX        XXX    XXX...................      XXX      
                                                                                9                                                                       
184........................      Oper.        XXX    21-32-59    41-32-59  61-32-5               XXX        XXX    XXX...................      XXX      
                             Switches,                                          9                                                                       
                              Signals,                                                                                                                  
                             Retarders                                                                                                                  
                               & Humps                                                                                                                  
185........................     Switch        XXX    21-32-64    41-32-64  61-32-6               XXX        XXX    XXX...................      XXX      
                                 Crews                                          4                                                                       
186........................  Controlli        XXX    21-32-65    41-32-65  61-32-6               XXX        XXX    XXX...................      XXX      
                                    ng                                          5                                                                       
                             Operation                                                                                                                  
                                     s                                                                                                                  
187........................     Yard &        XXX    21-32-66    41-32-66  61-32-6               XXX        XXX    XXX...................      XXX      
                              Terminal                                          6                                                                       
                              Clerical                                                                                                                  
188........................  Administr   11-34-01    21-34-01    41-34-01  61-34-0               XXX        XXX    XXX...................      XXX      
                             ation--Sp                                          1                                                                       
                                 ecial                                                                                                                  
                               Service                                                                                                                  
189........................     Fringe        XXX         XXX         XXX  12-34-0               XXX        XXX    XXX...................      XXX      
                             Benefits-                                          0                                                                       
                              -Special                                                                                                                  
                               Service                                                                                                                  
190........................  Other--Sp   11-34-99    21-34-99    41-34-99  61-34-9               XXX        XXX    XXX...................      XXX      
                                 ecial                                          9                                                                       
                               Service                                                                                                                  
191........................  Casualtie        XXX         XXX         XXX  52/53-                XXX        XXX    XXX...................      XXX      
                                   s &                                      34-00                                                                       
                             Insurance                                                                                                                  
                              -Special                                                                                                                  
                               Service                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------

[[Page 377]]

                                                                                                                                                        
192........................  Total--Ls                                                                                                     Yd. Switching
                                 . 180                                                                                                     Loco. unit-  
                              thru 191                                                                                                       miles      
                            ----------------------------------------------------------------------------------------------------------------------------
193........................  Operating   11-31-59    21-31-59    41-31-59  61-31-5               XXX        XXX    XXX...................      XXX      
                             Signals &                                          9                                                                       
                             Interlock                                                                                                                  
                                   ers                                                                                                                  
194........................    Highway   11-31-61    21-31-61    41-31-61  61-31-6               XXX        XXX    XXX...................      XXX      
                             Crossing,                                          1                                                                       
                             Protectio                                                                                                                  
                                     n                                                                                                                  
195........................  Operating   11-31-60    21-31-60    41-31-60  61-31-6               XXX        XXX    XXX...................      XXX      
                             Drawbridg                                          0                                                                       
                                    es                                                                                                                  
196........................   Clearing   11-31-63    21-31-63    41-31-63  61-31-6               XXX        XXX    XXX...................      XXX      
                                Wrecks                                          3                                                                       
197........................   Clearing   11-32-63    21-32-63    41-32-63  61-23-6               XXX        XXX    XXX...................      XXX      
                                Wrecks                                          3                                                                       
198........................  Frt. Lost        XXX         XXX         XXX  51-31-0               XXX        XXX    XXX...................      XXX      
                                    or                                          0                                                                       
                             Damaged--                                                                                                                  
                                Solely                                                                                                                  
                               Related                                                                                                                  
199........................  Frt. Lost        XXX         XXX         XXX  51-32-0               XXX        XXX    XXX...................      XXX      
                                    or                                          0                                                                       
                             Damaged--                                                                                                                  
                                Solely                                                                                                                  
                               Related                                                                                                                  
200........................  Frt. Lost        XXX         XXX         XXX  51-33-0               XXX        XXX    XXX...................      XXX      
                                    or                                          0                                                                       
                             Damaged--                                                                                                                  
                             All Other                                                                                                                  
201........................  Frt. Lost        XXX         XXX         XXX  51-34-0               XXX        XXX    XXX...................      XXX      
                                    or                                          0                                                                       
                             Damaged--                                                                                                                  
                                Solely                                                                                                                  
                               Related                                                                                                                  
202........................     Loss &   11-35-78    21-35-78    41-35-78  61-35-7               XXX        XXX    XXX...................      XXX      
                               Damage,                                          8                                                                       
                                Claims                                                                                                                  
                             Processin                                                                                                                  
                                     g                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
203........................  Total--Ls                                                                                                     Train-Miles  
                                 . 193                                                                                                                  
                              thru 202                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
204........................   Loading,   11-34-74    21-34-74    41-34-74  61-34-7               XXX        XXX    XXX...................      XXX      
                             Unloading                                          4                                                                       
                               & Local                                                                                                                  
                                Marine                                                                                                                  
205........................       P&D,   11-34-73    21-34-73    41-34-73  61-34-7               XXX        XXX    XXX...................      XXX      
                                Marine                                          3                                                                       
                             Line--Hau                                                                                                                  
                              l & Rail                                                                                                                  
                             Substitut                                                                                                                  
                             e Service                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
206........................  Total--Ls                                                                                                     Trailers     
                             . 204 and                                                                                                     handled--Load
                                   205                                                                                                     ed & Empty   
                            ----------------------------------------------------------------------------------------------------------------------------
207........................  Controlli   11-32-65         XXX         XXX     XXX                XXX        XXX    XXX...................      XXX      
                                    ng                                                                                                                  
                             Operation                                                                                                                  
                                     s                                                                                                                  
208........................      Yd. &   11-32-66         XXX         XXX     XXX                XXX        XXX    XXX...................      XXX      
                              Terminal                                                                                                                  
                              Clerical                                                                                                                  
209........................     Switch   11-32-64         XXX         XXX     XXX                XXX        XXX    XXX...................      XXX      
                                 Crews                                                                                                                  
210........................  Operating   11-32-59         XXX         XXX     XXX                XXX        XXX    XXX...................      XXX      
                             Switches,                                                                                                                  
                              Signals,                                                                                                                  
                             Retarders                                                                                                                  
                               & Humps                                                                                                                  
211........................  Locomotiv   11-32-67    21-32-67    41-32-67  61-32-6               XXX        XXX    XXX...................      XXX      
                                e Fuel                                          7                                                                       
212........................   Electric   11-32-68    21-32-68    41-32-68  61-32-6               XXX        XXX    XXX...................      XXX      
                                 Power                                          8                                                                       
                             Purchased/                                                                                                                 
                              Produced                                                                                                                  
                                   for                                                                                                                  
                                Motive                                                                                                                  
                                 Power                                                                                                                  
213........................  Servicing   11-32-69    21-32-69    41-32-69  61-32-6               XXX        XXX    XXX...................      XXX      
                             Locomotiv                                          9                                                                       
                                    es                                                                                                                  
214........................      Joint        XXX         XXX    37-32-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                                -Debit                                                                                                                  
215........................      Joint        XXX         XXX    38-32-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                             -(Credit)                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------

[[Page 378]]

                                                                                                                                                        
216........................  Total--Ls                                                                                                         Yd.      
                                 . 207                                                                                                     Switching,   
                              thru 215                                                                                                     Loco. Unit-  
                                                                                                                                             Miles      
                            ----------------------------------------------------------------------------------------------------------------------------
217........................     Engine   11-31-56         XXX         XXX     XXX                XXX        XXX    XXX...................      XXX      
                                 Crews                                                                                                                  
218........................      Train   11-31-57         XXX         XXX     XXX                XXX        XXX    XXX...................      XXX      
                                 Crews                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
219........................  Total--Ls                                                                                                     Accts. 11-31-
                             . 217 and                                                                                                     66 & 11-31-57
                                   218                                                                                                     Dir. Assign.*
                            ----------------------------------------------------------------------------------------------------------------------------
220........................  Locomotiv   11-31-67    21-31-67    41-31-67  61-31-6               XXX        XXX    XXX...................      XXX      
                                e Fuel                                          7                                                                       
221........................   Electric   11-31-68    21-31-68    41-31-68  61-31-6               XXX        XXX    XXX...................      XXX      
                                 Power                                          8                                                                       
                             Purchased/                                                                                                                 
                              Produced                                                                                                                  
                                   for                                                                                                                  
                                Motive                                                                                                                  
                                 Power                                                                                                                  
222........................  Servicing   11-31-69    21-31-69    41-31-69  61-31-6               XXX        XXX    XXX...................      XXX      
                             Locomotiv                                          9                                                                       
                                    es                                                                                                                  
223........................      Joint        XXX         XXX    37-31-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                                -Debit                                                                                                                  
224........................      Joint        XXX         XXX    38-31-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                             -(Credit)                                                                                                                  
225........................      Joint        XXX         XXX    37-34-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                                -Debit                                                                                                                  
226........................      Joint        XXX         XXX    38-34-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                             -(Credit)                                                                                                                  
227........................      Joint        XXX         XXX    37-35-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                                -Debit                                                                                                                  
228........................      Joint        XXX         XXX    38-35-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                             -(Credit)                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
229........................  Total--Ls                                                                                                     Loco. unit-- 
                                 . 220                                                                                                     miles incl.  
                              thru 228                                                                                                       train      
                                                                                                                                           switching    
                            ----------------------------------------------------------------------------------------------------------------------------
230........................     Engine        XXX    21-31-56    41-31-56  61-31-5               XXX        XXX    XXX...................      XXX      
                                 Crews                                          6                                                                       
231........................      Train        XXX    21-31-57    41-31-57  51-31-5               XXX        XXX    XXX...................      XXX      
                                 Crews                                          7                                                                       
232........................      Train   11-31-62    21-31-62    41-31-62  61-31-6               XXX        XXX    XXX...................      XXX      
                             Inspectio                                          2                                                                       
                                   n &                                                                                                                  
                             Lubricati                                                                                                                  
                                    on                                                                                                                  
233........................   Cleaning   11-33-70    21-33-70    41-33-70     XXX                XXX        XXX    XXX...................      XXX      
                                   Car                                                                                                                  
                             Interiors                                                                                                                  
234........................  Adjusting   11-33-71    21-33-71    41-33-71     XXX                XXX        XXX    XXX...................      XXX      
                                     &                                                                                                                  
                             Transferr                                                                                                                  
                             ing Loads                                                                                                                  
235........................        Car   11-33-72    21-33-72    41-33-72     XXX                XXX        XXX    XXX...................      XXX      
                               Loading                                                                                                                  
                             Devices &                                                                                                                  
                                 Grain                                                                                                                  
                                 Doors                                                                                                                  
236........................  Protectiv   11-34-75    21-34-75    41-34-75  61-34-7               XXX        XXX    XXX...................      XXX      
                                     e                                          5                                                                       
                              Services                                                                                                                  
237........................     Fringe        XXX         XXX         XXX  12-33-0               XXX        XXX    XXX...................      XXX      
                              Benefits                                          0                                                                       
                            ----------------------------------------------------------------------------------------------------------------------------
238........................  Total--Ls                                                                                                     Frt. Train   
                             . 230-237                                                                                                     Car-Miles    
                                                                                                                                           Loaded &     
                                                                                                                                           Empty incl.  
                                                                                                                                           Caboose      
                            ----------------------------------------------------------------------------------------------------------------------------
239........................      TOTAL                                                           XXX        XXX                                XXX      
                             TRANSPORT                                                                                                                  
                             ATION--Su                                                                                                                  
                              m of Ls.                                                                                                                  
                             172, 179,                                                                                                                  
                             192, 203,                                                                                                                  
                             206, 216,                                                                                                                  
                             219, 229,                                                                                                                  
                                 & 238                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------

[[Page 379]]

                                                                                                                                                        
                               General                                                                                                                  
                                   and                                                                                                                  
                             Administr                                                                                                                  
                                 ative                                                                                                                  
240........................  Officers-   11-61-01    21-61-01    41-61-01  61-61-0               XXX        XXX    XXX...................      XXX      
                              -General                                          1                                                                       
                             Superinte                                                                                                                  
                                ndence                                                                                                                  
241........................    Acctg.,   11-61-86    21-61-86    41-61-86  61-61-8               XXX        XXX    XXX...................      XXX      
                              Auditing                                          6                                                                       
                             & Finance                                                                                                                  
242........................  Managemen   11-61-87    21-61-87    41-61-87  61-61-8               XXX        XXX    XXX...................      XXX      
                                     t                                          7                                                                       
                              Services                                                                                                                  
                                & Data                                                                                                                  
                             Processin                                                                                                                  
                                     g                                                                                                                  
243........................  Industria   11-61-90    21-61-90    41-61-90  61-61-9               XXX        XXX    XXX...................      XXX      
                                     l                                          0                                                                       
                             Developme                                                                                                                  
                                    nt                                                                                                                  
244........................  Personnel   11-61-91    21-61-91    41-61-91  61-61-9               XXX        XXX    XXX...................      XXX      
                               & Labor                                          1                                                                       
                             Relations                                                                                                                  
245........................    Legal &   11-61-92    21-61-92    41-61-92  61-61-9               XXX        XXX    XXX...................      XXX      
                             Secretari                                          2                                                                       
                                    al                                                                                                                  
246........................   Research   11-61-94    21-61-94    41-61-94  61-61-9               XXX        XXX    XXX...................      XXX      
                                     &                                          4                                                                       
                             Developme                                                                                                                  
                                    nt                                                                                                                  
247........................  Casualtie        XXX         XXX         XXX  52/53-                XXX        XXX    XXX...................      XXX      
                                   s &                                      61-00                                                                       
                             Insurance                                                                                                                  
248........................     Fringe        XXX         XXX         XXX  12-61-0               XXX        XXX    XXX...................      XXX      
                              Benefits                                          0                                                                       
249........................      Other   11-61-99    21-61-99    41-61-99  61-61-9               XXX        XXX    XXX...................      XXX      
                                                                                9                                                                       
250........................      Joint        XXX         XXX    37-61-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                                -Debit                                                                                                                  
251........................      Joint        XXX         XXX    38-61-00     XXX                XXX        XXX    XXX...................      XXX      
                             Facility-                                                                                                                  
                             -(Credit)                                                                                                                  
252........................      Write        XXX         XXX         XXX  63-61-0               XXX        XXX    XXX...................      XXX      
                               down of                                          0                                                                       
                             uncollect                                                                                                                  
                                  ible                                                                                                                  
                              Accounts                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
253........................  Total--Ls                                                                                                     Apportion on 
                                 . 240                                                                                                     the basis of 
                              thru 252                                                                                                       total      
                                                                                                                                           expenses, Ls.
                                                                                                                                           93, 166, &   
                                                                                                                                               239      
                            ----------------------------------------------------------------------------------------------------------------------------
254........................  Marketing   11-61-88    21-61-88    41-61-88  61-61-8               XXX        XXX    XXX...................      XXX      
                                                                                8                                                                       
255........................      Sales   11-61-89    21-61-89    41-61-89  61-61-8               XXX        XXX    XXX...................      XXX      
                                                                                9                                                                       
256........................     Public   11-61-93    21-61-93    41-61-93  61-61-9               XXX        XXX    XXX...................      XXX      
                             Relations                                          3                                                                       
                                     &                                                                                                                  
                             Advertisi                                                                                                                  
                                    ng                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
257........................  Total--Ls                                                                                                     Line 253     
                                 . 254                                                                                                                  
                              thru 256                                                                                                                  
258........................      Total                                                           XXX        XXX                                XXX      
                             General &                                                                                                                  
                             Administr                                                                                                                  
                                ative,                                                                                                                  
                               Ls. 253                                                                                                                  
                               and 257                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
259........................      TOTAL                                                           XXX        XXX                                XXX      
                             EXPENSES-                                                                                                                  
                              -Ls. 93,                                                                                                                  
                             166, 239,                                                                                                                  
                               and 258                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
260........................   Property        XXX         XXX         XXX  64-61-0                                                         Miles of Road
                                 Taxes                                          0                                                                       
261........................      State        XXX         XXX         XXX     556                           XXX      ....................  Direct Miles 
                                Income                                                                                                     of Road      
                                 Taxes                                                                                                                  
262........................      Other        XXX         XXX         XXX  65-61-0                                                                      
                                 Taxes                                          0                                                                       
                             Except on                                                                                                                  
                             Corporate                                                                                                                  
                             Income or                                                                                                                  
                              Payrolls                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
263........................      TOTAL        XXX         XXX         XXX                        XXX        XXX      ....................      XXX      
                             TAXES--Ls                                                                                                                  
                                . 260,                                                                                                                  
                              261, 262                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
264........................  Miscellan        XXX         XXX         XXX     551                           XXX      ....................   Direct      
                                  eous                                                                                                                  
                                Income                                                                                                                  
                               Charges                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------

[[Page 380]]

                                                                                                                                                        
265........................  TOTAL--Ex                                                           XXX        XXX                                XXX      
                               penses,                                                                                                                  
                               Rents &                                                                                                                  
                             Taxes Sum                                                                                                                  
                                of Ls.                                                                                                                  
                             259, 263,                                                                                                                  
                               and 264                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
                              Revenues                                                                                                                  
266........................    Freight        XXX         XXX         XXX     XXX                XXX        XXX      ....................   Actual      
                              (Account                                                                                                                  
                                  101)                                                                                                                  
267........................  All other        XXX         XXX         XXX     XXX                XXX        XXX      ....................   Actual      
                            ----------------------------------------------------------------------------------------------------------------------------
268........................      Total        XXX         XXX         XXX     XXX                XXX        XXX      ....................      XXX      
                             Revenues-                                                                                                                  
                              -Ls. 266                                                                                                                  
                               and 267                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
269........................     Local/        XXX         XXX         XXX     XXX                XXX        XXX      ....................   Actual      
                                 State                                                                                                                  
                             Subsidies                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
270........................      TOTAL        XXX         XXX         XXX     XXX                XXX        XXX      ....................      XXX      
                             INCOME--L                                                                                                                  
                              s. 268 &                                                                                                                  
                                   269                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
271........................      TOTAL        XXX         XXX         XXX     XXX                XXX        XXX      ....................      XXX      
                              EXPENSES                                                                                                                  
                                  OVER                                                                                                                  
                             INCOME--L                                                                                                                  
                                s. 265                                                                                                                  
                              less 270                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
                             Computati                                                                                                                  
                                 on of                                                                                                                  
                             Reimburse                                                                                                                  
                                  ment                                                                                                                  
272........................  Allowance        XXX         XXX         XXX     XXX                XXX        XXX      ....................      XXX      
                                   for                                                                                                                  
                               profit,                                                                                                                  
                                L. 268                                                                                                                  
                             multiplie                                                                                                                  
                                  d by                                                                                                                  
                                .06\1\                                                                                                                  
273........................    Working        XXX         XXX         XXX     XXX                XXX        XXX      ....................      XXX      
                             Capital\2                                                                                                                  
                                     \                                                                                                                  
274........................    Section        XXX         XXX         XXX     XXX                XXX        XXX      ....................      XXX      
                                1126.3                                                                                                                  
                               Funding                                                                                                                  
                              Received                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
275........................      Total        XXX         XXX         XXX     XXX                XXX        XXX      ....................      XXX      
                             deficienc                                                                                                                  
                                y plus                                                                                                                  
                               working                                                                                                                  
                               capital                                                                                                                  
                              minus S.                                                                                                                  
                                1126.3                                                                                                                  
                               Funding                                                                                                                  
                             Received-                                                                                                                  
                               -L. 271                                                                                                                  
                               plus L.                                                                                                                  
                             273 minus                                                                                                                  
                                L. 274                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
276........................     Amount        XXX         XXX         XXX     XXX                XXX        XXX      ....................      XXX      
                             borrowed\                                                                                                                  
                                    3\                                                                                                                  
277........................   Interest        XXX         XXX         XXX     XXX                XXX        XXX      ....................      XXX      
                             allowed\4                                                                                                                  
                                     \                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
278........................      Total        XXX         XXX         XXX     XXX                XXX        XXX      ....................      XXX      
                              expenses                                                                                                                  
                                  plus                                                                                                                  
                                profit                                                                                                                  
                                  plus                                                                                                                  
                             interest-                                                                                                                  
                             -Ls. 265,                                                                                                                  
                               272 and                                                                                                                  
                                   277                                                                                                                  
                            ----------------------------------------------------------------------------------------------------------------------------
279........................  Reimburse        XXX         XXX         XXX     XXX                XXX        XXX      ....................      XXX      
                                  ment                                                                                                                  
                             including                                                                                                                  
                                    an                                                                                                                  
                             allowance                                                                                                                  
                                   for                                                                                                                  
                                profit                                                                                                                  
                               less S.                                                                                                                  
                                1126.3                                                                                                                  
                               funding                                                                                                                  
                             received-                                                                                                                  
                               -L. 278                                                                                                                  
                              minus L.                                                                                                                  
                             270 minus                                                                                                                  
                             L. 274\5\                                                                                                                  
*Assign engine and train crew expenses direct to carrier's own traffic and directed traffic. Apportion common expenses on the basis of direct           
  assignments to Accounts 11-31-56 and 11-31-57.                                                                                                        
\1\Profit is based on 6% of total revenues (line 268). A profit from actual operations above 6% of total revenues may be retained by the directed       
  carrier and no amount for profit will be paid by the Federal Government. Should a profit of less than 6% be earned, the difference between 6% and that
  % will be paid.                                                                                                                                       
\2\Total expenses in line 265 divided by the total days of the directed operation. Multiply these expenses by a factor of 15 (days) to represent the lag
  between cash receipts and cash payments.                                                                                                              
\3\The amount borrowed should not exceed the permissible limits established in the Ex Parte No. 293 (Sub No. 3) report, unless specifically approved by 
  the Commission.                                                                                                                                       
\4\Apply the average prime rate (per annum) in effect at New York City to line 275, or the prime rate (per annum) in effect at New York City on the date
  of the loan agreement to line 276, whichever is greater. However, the interest allowed on amounts actually borrowed shall not exceed the amount of    
  interest charged on the loan, if less than the applicable prime rate.                                                                                 

[[Page 381]]

                                                                                                                                                        
\5\If amount on Line 279 is less than zero, any amount up to the funded amount will be due and payable to the Commission within 30 days. If not paid    
  within the 30-day period the amount due will begin to accrue interest at the average prime rate (per annum) in effect at New York City.               
                                                                                                                                                        
Note: If directed service is passenger service, use passenger account numbers anywhere applicable. For accounts 11-25-45, 21-45-45, 39/40/41-25-46, 61- 
  25-45, 11-25-48, 21-25-48, 39/40/41-25-48, 61-25-48, 32-25-00, 31-25-00, and 35-25-00, include in Maintenance of Equipment total and apportion common 
  expenses on the basis of Passenger Train Car-Miles. For accounts 11-41-01, 21-41-01, 41-41-01, 61-41-01, 11-41-57, 21-41-57, 41-41-57, 61-41-57, 11-45-
  76, 21-45-76, 41-45-76, 61-45-76, 11-41-99, 21-41-99, 41-41-99, and 61-41-99, include in Transportation total and apportion common expenses on the    
  basis of Passenger Train Car-Mile. Include account 102 and all other passenger related revenues with total revenues.                                  

                                attention

    Knowing and willful misstatements or omissions of material facts 
constitute federal criminal violations punishable by up to five years 
imprisonment and fines of up to $10,000 for each offense. (See 18 U.S.C. 
1001, 1003, 287.)
    Each person by whom this document is signed certifies that the 
representations appearing herein and in the appendices attached hereto 
(including any accompanying schedules and statements) are, to the best 
of his knowlege and belief, true, correct, and complete, based upon all 
the information required to be included therein, of which he has any 
knowledge.
    Dated this ______ day of ____________, 19____
________________________________________________________________________
                                                (Signature of Accounting
                                                      Officer)          
                                  By------------------------------------
                                    ------------------------------------
________________________________________________________________________
                                                     (Title)            



Sec. 1156.3  Optional Cash Funding Procedures.

    (a) The directed carrier may elect to obtain cash funding from the 
Commission following the procedure set forth below. The funding 
procedure is separated into three phases. The first is designed to meet 
the directed carrier's immediate requirements to institute service. The 
second is an interim accounting and adjustment under which any serious 
cash flow problems will be remedied. The third phase is the final 
accounting after completion of the service and computation of the total 
account reimbursable.

All reports filed should refer to the appropriate ICC account numbers. 
The records of the directed carrier relating to the directed service 
will be subject to continuing audit by the Commission.
    (b) Initial Funding. (1) The initial funding is intended to cover 
the immediate deficit to be incurred through cash expenditures that must 
be made before compensating revenues can be generated. Permissible costs 
which might require lead funding include:
    (i) Payroll costs necessary for assignment of crews;
    (ii) Immediate maintenance of way or line repairs necessary to make 
a line operational or in compliance with safety standards;
    (iii) Fuel and supplies;
    (iv) Immediate rental or maintenance costs for equipment to be used 
(other than rental payments to the defaulting carrier);
    (v) That portion of overhead allocable to developing the initial 
operation plan; and
    (vi) Any other immediate cash requirements.
    (2) To enable the Commission to determine initial cash requirements, 
the directed carrier is required to submit the following items.
    (i) A brief description of its initial operating plan for the 
directed service, outlining the frequency and schedule of service 
planned, the personnel and equipment to be utilized, the crew change and 
interchange points to be observed, any immediate maintenance and repair 
work required, and its fuel and supply needs.
    (ii) A statement of its immediate cash requirements, with any 
supporting evidence deemed necessary.
    (iii) A statement of the forecasted costs and revenues attributable 
to the directed service for the 60 day period with appropriate 
explanatory notes.

These are to be submitted as soon as possible, but not later than 15 
days after the issuance of the directed service order. After the 
Commission has determined the initial cash requirements (and within 30 
days after the directed carrier's submission), it will certify to the 
Treasury Department that this amount is immediately payable.
    (c) Interim Accounting. The interim accounting procedure consists of 
a report filed by the directed carrier at the

[[Page 382]]

end of each 30 day period following institution of the directed service. 
In addition, the carrier may file a report whenever it is experiencing 
severe cash flow difficulties and desires additional interim funding. 
The interim reports must contain:
    (1) A statement of any revisions to the operating plan.
    (2) An unaudited cash flow statement for the period since its last 
report, and an explanation of any requests for additional cash.
    (3) An unaudited statement of costs and revenues attributable to the 
directed service since its institution, and a statement of the 
forecasted costs and revenues for the remainder of the directed service 
period.

Within 30 days after receipt of an interim financing request with 
supporting data, the Commission will certify to the Treasury Department 
the amount to be paid the directed carrier.
    (d) Final Accounting. (1) The final accounting report, to be filed 
within 180 days after completion of the directed service, should conform 
to the requirements of Sec. 1156.2 of this part. Any monies paid under 
the optional cash funding procedures must be deducted from the amount to 
be reimbursed (line 279). Also, the base for computation of allowable 
interest (line 277) must be reduced by the amount paid.
    (2) After auditing the claim, the Commission will determine the 
allowable reimbursement. It will certify to the Treasury Department that 
the directed carrier be paid that amount by which the allowable 
reimbursement exceeds the amount paid. Should the amount paid exceed the 
allowable reimbursement, the difference will be due and payable by the 
directed carrier to the Commission within 30 days. It not paid within 
the 30-day period, the amount due will then begin to accrue interest at 
the prevailing prime rate.


PART 1157--STANDARDS FOR DETERMINING COMMUTER RAIL SERVICE CONTINUATION SUBSIDIES--Table of Contents



Subpart A--Determination of Commuter Rail Service Continuation Subsidies
Sec.
1157.1  Definitions.
1157.2  Purpose and scope.
1157.3  Subsidy agreement.
1157.4  Interpretations of the Standards.
1157.5  Access to records, audit and inspection.
1157.6  Revenues attributable to commuter rail service.
1157.7  Avoidable costs of providing service.
1157.8  Valuation of rail properties.
1157.9  Reasonable return on the value of the properties.
1157.10  Additional rail passenger service.

Appendix I--Subsidy Estimate
Appendix II--Financial Status Report
Appendix III--Speed Factored Gross Tons Formula (SFGT)

   Subpart B--Notice of Discontinuance of Commuter Service by Amtrak 
                      Commuter Services Corporation

1157.20  Purpose.
1157.21  Content and form of the notice.
1157.22  Service and posting.

    Authority: 49 U.S.C. 10321 and 10362; 5 U.S.C. 559, unless otherwise 
noted.

    Source: 44 FR 16411, Mar. 19, 1979, unless otherwise noted. 
Redesignated at 47 FR 49582, Nov. 1, 1982.



Subpart A--Determination of Commuter Rail Service Continuation Subsidies



Sec. 1157.1  Definitions.

    Unless otherwise required by the context, the following definitions 
apply in this part:
    Account means an account in the ICC's Uniform System of Accounts for 
Railroad Companies (49 CFR Part 1201).
    3R Act means the Regional Rail Reorganization Act of 1973 (Pub. L. 
93-236 (45 U.S.C. 701 et seq.)) as amended by the Railroad 
Revitalization and Regulatory Reform Act of 1976 (Pub. L. 94-210 (90 
Stat. 31 et seq.)) and the Local Rail Service Assistance Act of 1978 
(Pub. L. 95-607 (92 Stat. 3059 et seq.)).
    Actual means charges for rail facilities, properties and services 
which are directly identified with commuter service excluding those 
costs which are apportioned under Sec. 1157.7(f). Such charges shall be 
included in the proper account whether incurred by the subsidizer or the 
railroad.
    Amtrak means the National Railroad Passenger Corporation.

[[Page 383]]

    Base costs means all costs that are specifically related to a rail 
property and/or facility, except those costs which could be avoided if 
the minority user(s) service(s) were not present.
    Base period means a minimum of three months and a maximum of twelve 
months for which the latest traffic, revenue and cost data are 
available.
    Common costs means charges for rail facilities, properties and 
services in the designated area which are not solely for the benefit of 
a particular user. Such charges shall be included in the proper account.
    Commuter service means the specific service for which the subsidizer 
has offered or agreed to make continuation payments.
    Conrail means the Consolidated Rail Corporation.
    Designated area means a portion of the rail facilities such as track 
segments, buildings and yards, for which costs are collected and 
apportioned between commuter and other services. A designated area may 
extend beyond or outside the commuter service area.
    Dominant user means the person, railroad, State, or local or 
regional transportation authority who is the owner of a rail property 
and/or facility.
    Facilities Utilization Plan means a document identifying and 
itemizing the road and equipment properties used in providing commuter 
passenger service.
    Form R-1 means the railroad's annual report filed with the ICC in 
accordance with the requirements of section 20 of the Interstate 
Commerce Act.
    ICC means Interstate Commerce Commission.
    Manpower Utilization Plan means a document identifying the labor 
forces used in providing commuter passenger service.
    Minority user means a user other than the dominant user of a rail 
property and/or facility on an incremental (use) basis.
    4R Act means the Railroad Revitalization and Regulatory Reform Act 
of 1976, Pub. L. 94-210 (90 Stat. 31 et seq.).
    Railroad means a common carrier by railroad, as defined in section 
1(3) of the Interstate Commerce Act (49 U.S.C. 1(3)), including Conrail 
and Amtrak.
    RSPO means the Rail Services Planning Office of the ICC.
    Secretary means the Secretary of Transportation or his designated 
representative.
    Standards means 49 CFR part 1157 Standards for Determining Commuter 
Rail Service Continuation Subsidies.
    Subsidizer means a State or a local or regional transportation 
authority which offers to make or makes a payment to continue commuter 
rail service pursuant to sections 304(c) and 304(e) of the 3R Act as 
amended.
    Subsidy period means the term for which a subsidy agreement has been 
negotiated and is in operation.
    XX means that where this notation precedes the last four digits of 
an account number (e.g. XX-16-02), all accounts with identical last four 
digits (e.g. 11-16-02, 21-16-02, 41-16-02 and 61-16-02) are to be 
included.

[44 FR 16411, Mar. 19, 1979, as amended at 45 FR 45, Jan. 2, 1980. 
Redesignated at 47 FR 49582, Nov. 1, 1982]



Sec. 1157.2  Purpose and scope.

    (a) Section 304(e)(1), as amended, of the 3R Act requires Conrail 
(or a profitable railroad) to provide commuter rail service for a period 
of 180 days commencing April 1, 1976, on all rail properties over which 
a railroad in reorganization in the Northeast and Midwest Region, or a 
person leased, operated, or controlled by such a railroad, was providing 
service as of that date regardless of whether or not the properties were 
designated in the Final System Plan of the United States Railway 
Association as rail properties over which rail service is required to be 
operated.
    (b) Section 304(c)(2)(A) and section 304(e)(4) of the 3R Act, as 
amended, provide that no commuter rail service may be discontinued, and 
no rail properties may be abandoned, if a subsidizer offers financial 
assistance in the form of a rail service continuation payment which is 
designed to cover the difference between the avoidable costs of 
providing commuter rail service on the rail properties and the revenues 
attributable to such properties, together with a reasonable return on 
the value of the properties.

[[Page 384]]

    (c) Section 205(d)(6) of the 3R Act, as amended, authorizes RSPO to 
determine and publish Standards for defining (1) the ``revenue 
attributable to the rail properties'', (2) the ``avoidable cost of 
providing service'', and (3) a ``reasonable return on value'', as those 
phrases are used in section 304 of the 3R Act, as amended.
    (d) Section 205(d)(5) of the 3R Act, as amended, directs RSPO to 
determine and publish Standards for the computation of subsidies for 
commuter rail service (except passenger service compensation disputes 
subject to the jurisdiction of the ICC) which are consistent with the 
compensation principles described in the Final System Plan and which 
avoid cross subsidization among commuter, intercity, and freight rail 
services.
    (e) These regulations set forth a method for establishing an 
estimated subsidy payment, which will enable a prospective subsidizer to 
formulate a subsidy offer within the context of section 304 of the 3R 
Act, as amended, and provide a basis for subsidy payment pending the 
negotiation of a subsidy agreement. When an agreement is concluded, 
subsequent payments shall be based on the negotiated subsidy. The final 
payment shall be adjusted to reflect the actual revenues derived, 
avoidable costs incurred and value of the properties used in the subsidy 
period.
    (f) Section 304(e)(4)(C) of the 3R Act, as amended, provides that 
the Commuter Standards published as 49 CFR part 1157, Standards For 
Determining Commuter Rail Service Continuation Subsidies under section 
205(d)(5)(A) and (6) of the 3R Act, as amended, shall apply to rail 
passenger service provided under an agreement or lease pursuant to 
sections 303(b)(2) or 304(c)(2)(B) of the 3R Act, as amended, when an 
offer is made for the continuation of rail passenger service beyond the 
period required by such agreement or lease.



Sec. 1157.3  Subsidy agreement.

    (a) Notice of Intention. A prospective subsidizer shall notify the 
railroad of its intention to offer financial assistance for the 
continuation of commuter service no later than 40 days before the offer 
is to be tendered. The Notice shall specify:
    (1) All modifications in the fares to be charged and in the existing 
level of service, including changes in routes, schedules, train seating 
capacity, performance standards, equipment units, and such other 
dimensions of service as the subsidizer may specify;
    (2) The length of the subsidy period; and
    (3) The name and address of the prospective subsidizer.

A copy of the Notice shall be served concurrently on RSPO and the 
Secretary.
    (b) Subsidy Estimate. The railroad shall compute a subsidy estimate 
predicated on the information contained in the Notice and the revenues 
attributable, avoidable costs of providing service, and reasonable 
return on value for the based period in accordance with the methodology 
prescribed in Secs. 1157.6 through 1157.9 and in the format specified in 
appendix I to this part. The estimate shall be adjusted as necessary to 
allow for any actual or projected variations in service, e.g. seasonal 
fluctuations in traffic or extraordinary events affecting service 
levels. The bases of any adjustments shall be stated with particularity. 
The railroad's estimate and the general terms it proposes for an 
agreement shall be served on the prospective subsidizer (with copies to 
RSPO and the Secretary) as soon as possible but not later than 30 days 
after the Notice is received.
    (c) Offer of Financial Assistance. The prospective subsidizer must 
formulate an offer of subsidy predicated on the railroad's estimate, but 
may propose modifications which are consistent with these Standards. 
Subsidy offers must be served on the railroad (with copies to RSPO and 
the Secretary) not less than 60 days before the end of the subsidy 
period. The offer shall contain:
    (1) A subsidy estimate in the form prescribed in Appendix I to this 
part;
    (2) A resolution, authorization or other evidence that the 
prospective subsidizer has, or within a reasonable time will have, the 
authority to execute and fulfill an agreement to subsidize the service;

[[Page 385]]

    (3) Information demonstrating that the prospective subsidizer has, 
or within a reasonable time will have, the financial resources to 
subsidize the service and otherwise fulfill its contractual obligations; 
and
    (4) A subsidy payment for the first month of service.
    (d) Negotiations--(1) General. The railroad and the prospective 
subsidizer shall negotiate an initial subsidy agreement as soon as 
possible. The parties may agree in arm's-length negotiations to 
provisions which modify the Standards, subject to review of such 
modifications by RSPO. RSPO would not expect to disapprove variations 
from the Standards which are the product of arm's-length negotiations 
and which are shown to be reasonable in the light of the pertinent facts 
and circumstances. When an agreement has been reached, a copy shall be 
filed promptly with RSPO for its review.
    (2) Significant Use. Unless the parties agree otherwise, the 
subsidizer shall be deemed a significant user of the rail properties in 
the areas designated on the facilities utilization plan, and shall be 
assigned the directly identifiable and common costs, including base 
costs as applicable, of providing the commuter passenger service.
    (3) Insignificant Use. A minority user, who is proposing incidential 
use of rail properties in the designated area, may be assigned the 
directly identifiable costs incurred in providing the service, plus an 
allowance for overhead as negotiated by the parties. If the parties are 
unable to agree on an overhead allowance, the methodology for 
apportioning common costs specified in Sec. 1157.7 shall apply.
    (4) Mediation. Upon request of either party, RSPO will mediate 
disagreements concerning the facilities utilization plan, the manpower 
utilization plan, the subsidy agreement and the application of these 
Standards.
    (e) Subsidy Payments. The subsidizer shall make subsidy payments 
monthly in advance, based either upon the negotiated estimate, or in the 
absence of a subsidy agreement, upon the subsidizer's offer of financial 
assistance. The payment shall be determined by dividing the total 
subsidy by the number of months in the subsidy period. Interest on 
overdue subsidy payments shall accrue, at a rate of 100 basis points (1 
percentage point) above the prime rate currently quoted at a principal 
bank in the commuter service area, for such period as they remain unpaid 
and the railroad has not terminated the service. The final subsidy 
payment shall be adjusted retroactively within 60 days of the filing of 
the final Financial Status Report required by paragraph (f) of this 
section to reflect the actual revenues derived, avoidable costs incurred 
and value of the properties used in providing rail commuter service 
during the subsidy period. The railroad shall establish a system to 
collect the data necessary to make the adjustment. If the subsidizer is 
entitled to a refund, the railroad shall pay interest on the 
overpayment, at a rate of 100 basis points (1 percentage point) above 
the prime rate currently quoted at a principal bank in the commuter 
service area, accruing from the end of the subsidy period until the 
refund is made.
    (f) Financial Status Report. The railroad shall submit to the 
subsidizer and RSPO a Financial Status Report in the form prescribed in 
appendix II to this part within 60 days after the end of each three 
months of the subsidy period. Significant deviations from the subsidy 
estimate must be explained. Unless the parties otherwise agree, the 
second-to-last report shall be the basis for negotiating the subsequent 
subsidy agreement. The final report shall be the basis of the subsidy 
payment adjustment.

[44 FR 16411, Mar. 19, 1979, as amended at 45 FR 45, Jan. 2, 1980. 
Redesignated at 47 FR 49582, Nov. 1, 1982]



Sec. 1157.4  Interpretations of the Standards.

    Parties desiring an interpretation of the Standards should file a 
written petition citing the section involved and setting forth their 
position and rationale. If the request arises from a dispute with other 
parties, the petitioner should identify those parties and serve each of 
them with a copy. Parties desiring to file a reply must do so within 10 
days of their receipt of the petition. RSPO will issue an 
interpretation, unless it concludes that the matter raised requires 
amendment of the Standards,

[[Page 386]]

in which case RSPO will institute a rulemaking proceeding.



Sec. 1157.5  Access to records, audit and inspection.

    (a) The subsidizer, RSPO, Conrail and the Secretary of 
Transportation shall have reasonable access to the records, accounts, 
working papers, and other documents and to the properties and equipment 
of any railroad or subsidizer which provides commuter passenger service 
or whose properties and equipment are used in providing commuter 
passenger service for the following purposes:
    (1) To verify the accuracy and completeness of the subsidy estimate, 
the facilities utilization plan, the manpower utilization plan, and the 
Financial Status Reports;
    (2) To audit the actual revenues attributable, costs incurred and 
service units maintained during the subsidy period;
    (3) To inspect the properties and equipment used in providing the 
commuter passenger service and to measure the performance of the 
railroad under the offer of financial assistance and the subsidy 
agreement; or
    (b) The properties and records described in paragraph (a) shall be 
made available for inspection and examination by the subsidizer, RSPO, 
Conrail or the Secretary of Transportation during regular business hours 
at a time and place mutually agreeable to the parties. The railroad or 
the subsidizer shall also reproduce such records, providing the 
requesting party pays the reasonable cost thereof.

[44 FR 16411, Mar. 19, 1979, as amended at 45 FR 45, Jan. 2, 1980. 
Redesignated at 47 FR 49582, Nov. 1, 1982]



Sec. 1157.6  Revenues attributable to commuter rail service.

    The revenues attributable to commuter rail service shall be the 
total of the revenues, rentals and allowances assigned in accordance 
with this section. Where a third party controls revenues or rents 
attributable to the commuter service, the railroad shall credit the 
commuter service with the amounts of such revenues or rents credited to 
it by the third party, and shall use its best efforts to negotiate 
equitable apportionments. Revenues attributable to two or more commuter 
services shall be apportioned between them on the basis of car-miles 
operated under the respective offers of financial assistance or subsidy 
agreements. The revenues, rentals and allowances assigned shall be 
derived from the following accounts.
    (a) Revenue Accounts. (1) Account 101--Freight (Mail portion) 
Account 102--Passenger; Account 103--Passenger Related; Account 104--
Switching; Account 105--Water Transfers. The revenues assigned to these 
accounts shall be the actual revenues attributable to commuter service 
that are directly identified with the operation of commuter trains, 
excluding rail service continuation payments.
    (2) Account 110--Incidental. The revenues assigned to this account 
earned on commuter trains shall be credited directly to the commuter 
service. The commuter service portion of revenues generated at fixed 
facilities used in common with other services shall be determined from 
the relative passenger on-off counts (including pass riders) at those 
facilities. Special studies of on-off counts may be substituted for 
continuous records of such counts where desired. Any amounts included in 
this account from the sale of electric current or power shall be 
assigned to commuter service in accordance with Sec. 1157.7(f)(3)(v) if 
related to train operations and (Sec. 1157.7(f)(3)(ix)) if related to 
yard operations.
    (3) Account 121--Joint facility--Cr.; Account 122--Joint facility--
Dr. To the extent that the terms of joint facility agreements yield 
apportionments of revenues to commuter services, the amounts so yielded 
shall be credited or debited directly to the commuter service. If the 
terms of the agreements do not yield such apportionments, passenger on-
off counts (including pass riders) shall be the basis of apportionment 
at joint facilities where passengers are boarded or discharged; and at 
other facilities counts of cars handled as developed from special 
studies or continuous records shall be the basis of apportionment.
    (b) Rentals--Account 510--Miscellaneous rent income. The rentals 
assigned to this account which are attributable to

[[Page 387]]

commuter service shall be the actual amount derived from the rental of 
commuter service equipment or other property including property owned by 
the subsidizer, Conrail, Amtrak or other parties.
    (c) Pass Rider Allowance. Attributable revenues of the commuter 
service shall be credited with an allowance for passengers using passes 
or reduced fare tickets issued by the railroad (or predecessor 
companies). The parties may continue existing practices for crediting 
such allowances. In the absence of an agreement, the amount of such 
credit shall be determined on the basis of currently applicable fares 
charged revenue commuter passengers.
    (d) Conversion chart for Revenue Accounts.

------------------------------------------------------------------------
                                                                Present 
        Revenue account title             Previous account      account 
                                               number            number 
------------------------------------------------------------------------
Freight (Mail portion)...............  101...................        101
Passenger............................  102...................        102
Passenger Related....................  103, 104, 105, 108,           103
                                        131.                            
Switching............................  110...................        104
Water Transfers......................  113...................        105
Incidental...........................  132, 133, 138, 141,           110
                                        142, 143.                       
Joint Facility-Cr....................  151...................        121
Joint Facility-Dr....................  152...................        122
Miscellaneous Rent Income............  510...................        510
------------------------------------------------------------------------



Sec. 1157.7  Avoidable costs of providing service.

    (a) Assignment of costs. To the maximum extent practicable, the 
directly identifiable and common costs for each designated area shall be 
developed from a facilities utilization plan and a manpower utilization 
plan. The base costs shall be assigned to the dominant user. The 
facilities and manpower utilization plans, developed on the basis of 
dominant and minority user(s), are to be completed with the assistance 
of available and appropriate cost and accounting records such as time 
sheets, material requisitions, charge cards, vouchers, and the like. 
[All accounts shall be separated between labor and material (non-labor) 
charges.] Otherwise, costs may be assigned to the minority service in a 
manner agreed to by the parties. The parties may rely on historical 
data; conduct special studies; develop their own apportionment formulae 
based on use; or agree on a combination of these methods. Upon request 
of either party, RSPO will mediate disputes concerning the proper 
methodology for assigning costs. Any costs which are not assigned under 
the foregoing procedure shall be assigned in accordance with the 
methodology prescribed in paragraph (e) and (f) of this section, subject 
to the condition that either party may request a special study. The 
requesting party will be responsible for designing the study and 
obtaining the other party's approval of the design. The results of the 
study will be binding on both parties unless they mutually agree to 
disregard the results. Where commuter service is not the dominant user 
the avoidable costs common to two or more commuter services shall be 
apportioned between them on the basis of car-miles operated under the 
respective offers of financial assistance or subsidy agreements. In 
assigning costs to the minority user(s) it is understood that the 
amounts charged to a particular function shall include both the directly 
attributable expenses and the minority user's portion of the common 
expenses for that function. Also, the assignment of common costs 
associated with some supervision of overhead functions that relate to 
both dominant user and minority user(s) activities requires the 
inclusion of the applicable dominant user account in the apportionment 
base.
    (b) Facilities Utilization Plan. The parties shall develop a 
facilities utilization plan which shall identify the dominant and 
minority user(s). The facilities utilization plan shall identify and 
itemize the road and equipment properties used by the minority user(s) 
and assign to each property or group of properties the agreed percentage 
of use devoted to the minority user(s). In the event that there is only 
one service being operated, the facilities utilization plan shall 
identify only those properties used and useful to that service. The plan 
shall identify those road properties which are avoidable upon 
discontinuance of the minority user(s) service for the purposes of 
determining road depreciation, retirement and dismantling charges 
[Sec. 1157.7(e) through (f)] and value of road properties 
[Sec. 1157.8(b) and (c)]. The roadway properties and facilities should 
be divided

[[Page 388]]

into areas or segments consisting of stretches of property where 
operations or use remain fairly constant and pinpointing those places 
where the operations or use change (e.g., number of tracks change, 
diverging or entering branch lines and other similar changes). 
Properties and equipment normally covered in a facilities utilization 
plan include: Trackage; signal system; electrification system; 
interlocking plants; bridges and drawbridges; stations and platforms; 
rail-highway crossings; yards; power plants; shops; enginehouses and 
servicing facilities; storehouses; land; rolling stock; and other 
facilities or equipment. Source data normally include equipment rosters, 
track diagrams or maps of the properties in the above categories, and 
usage measures for each class of facility and equipment by specific 
facility or segment (e.g., track density charts, trains sheets, 
timetables, blocking records, yarding programs, station workloads, etc.) 
to determine the percentage of use of facilities or equipment in 
providing the minority service(s).
    (c) Manpower Utilization Plan. The parties shall also develop a 
manpower utilization plan separated between designated areas in which 
the commuter authority is the dominant user and designated areas in 
which the commuter authority is the minority user. Where the commuter 
service is the dominant user, the plan shall identify the labor forces 
used in providing both the commuter service and any minority service(s). 
The plan shall list all persons employed according to job title, work 
location, account and percentage of time devoted to dominant and 
minority service(s) duties. Where the commuter service is the minority 
user the plan shall identify the labor forces used in providing the 
commuter service. The plan shall list the persons employed according to 
the job title, work location, account and percentage of time devoted to 
commuter service duties.
    (d) Special studies. All special studies shall be conducted jointly 
by the railroad and the subsidizer. The length and frequency of the 
studies and the standardized measurement procedures utilized in the 
studies shall be negotiated by the parties. In the event of impasse, 
either party may submit the dispute to RSPO for resolution and its 
decision shall be final. The cost of studies which are prescribed by 
these Standards or which the parties voluntarily agree to perform shall 
be attributed to the commuter service. The cost of studies performed at 
the request of only one party shall be borne exclusively by that party 
and shall not be attributed to the commuter service.

----------------------------------------------------------------------------------------------------------------
                                                Previous         Present       Basis of assignment to commuter  
    Operating expense group and accounts       account No.     account No.                 service              
----------------------------------------------------------------------------------------------------------------
   (1) Maintenance of Way and Structures                                                                        
                                                                                                                
               administration                                                                                   
                                                                                                                
Track......................................             201        XX-16-02  Various accounts                   
                                                                   XX-19-02   (1157.7(f)(1)(ix)).               
Bridges and buildings......................             201        XX-16-03  Various accounts (1157.7(f)(1)(x)).
                                                                   XX-19-03                                     
Signals....................................             201        XX-16-04  Various accounts                   
                                                                   XX-19-04   (1157.7(f)(1)(xi)).               
Communications.............................             201        XX-16-05  Various accounts                   
                                                                   XX-19-05   (1157.7(f)(1)(xiv)).              
Other......................................             201        XX-16-06  Various accounts                   
                                                                   XX-19-06   (1157.7)(f)(1)(xii)).             
                                                                                                                
           repair and maintenance                                                                               
                                                                                                                
                  Running                                                                                       
                                                                                                                
Roadway....................................             202        XX-14-10  Speed factored gross tons SFGT     
                                                                   XX-17-10   (1157.7(f)(1)(ii)).               
Tunnels and subways........................             206  XX-14-11-PXX-1      Do.                            
                                                                       7-11                                     

[[Page 389]]

                                                                                                                
Bridges and culverts.......................        208, 210        XX-14-12      Do.                            
                                                                   XX-17-12                                     
Ties.......................................             212        21-14-13      Do.                            
                                                                   21-17-13                                     
Rails......................................             214        21-14-14      Do.                            
                                                                   21-17-14                                     
Other track material.......................             216        21-14-15      Do.                            
                                                                   21-17-15                                     
Ballast....................................             218        21-14-16      Do.                            
                                                                   21-17-16                                     
Track laying and surfacing.................             220        XX-14-17      Do.                            
                                                                   XX-17-17                                     
Road property damaged......................         202-220        XX-14-48      Do.                            
                                                                   XX-17-48                                     
Highway grade crossings....................             273        XX-14-22      Do.                            
                                                                   XX-17-22                                     
                                                                                                                
                 Switching                                                                                      
                                                                                                                
Roadway....................................             202        XX-15-10  Cars dispatched (1157.7)(f)(1)(i)).
                                                                   XX-18-10                                     
Tunnels and subways........................             206        XX-15-11      Do.                            
                                                                   XX-18-11                                     
Bridges and culverts.......................        208, 210        XX-15-12      Do.                            
                                                                   XX-18-12                                     
Ties.......................................             212        21-15-13      Do.                            
                                                                   21-18-13                                     
Rails......................................             214        21-15-14      Do.                            
                                                                   21-18-14                                     
Other track material.......................             216        21-15-15      Do.                            
                                                                   21-18-15                                     
Ballast....................................             218        21-15-16      Do.                            
                                                                   21-18-16                                     
Track laying and surfacing.................             220        XX-15-17      Do.                            
                                                                   XX-18-17                                     
Road property damaged......................         202-220        XX-15-48      Do.                            
                                                                   XX-18-48                                     
Highway grade crossings....................             273        XX-15-22      Do.                            
                                                                   XX-18-22                                     
Station and office buildings...............             227        XX-16-23  Square feet and passenger--on-off  
                                                                   XX-19-23   count (1157.7(f)(1)(iii)).        
Road property damaged--other...............         221-265        XX-16-48  Repair and maintenance--running    
                                                                   XX-19-48   plus switching                    
                                                                              (1157.7(f)(1)(viii)).             
Signals and interlockers...................             249  ..............                                     
  Running..................................  ..............        XX-14-19  Train movements (1157.7(f)(1)(iv)).
                                                                   XX-17-19                                     
  Switching................................  ..............        XX-15-19  Actual.                            
                                                                   XX-18-19                                     
Communications system......................             247        XX-16-20  Various accounts                   
                                                                   XX-19-20   (1157.7(f)(1)(xiii)).             
Power systems..............................        253, 257        XX-16-21  Kilowatt hours (1157.7(f)(1)(v)).  
                                                                   XX-19-21                                     
Shop buildings.............................       235, 253,  ..............                                     
                                                        257                                                     
  Locomotives..............................  ..............        XX-16-24  Labor charges (1157.7(f)(1)(vi)).  
                                                                   XX-19-24                                     
  Other equipment..........................  ..............        XX-16-26      Do.                            
                                                                   XX-19-26                                     
Locomotives servicing facilities...........        231, 233        XX-16-27  Unit miles, fuel dispensed         
                                                                   XX-19-27   (1157.7(f)(1)(vii)).              
Miscellaneous buildings and structures.....        221, 229        XX-16-28  Repair and maintenance--running    
                                                   239, 265        XX-19-28   plus switching                    
                                                                              (1157.7(f)(1)(viii)).             
Roadway machines...........................             269        XX-16-36      Do.                            
                                                                   XX-19-36                                     
Small tools and supplies...................             271        XX-16-37      Do.                            
                                                                   XX-19-37                                     
Snow removal...............................             272        XX-16-38      Do.                            
                                                                   XX-19-38                                     
Dismantling retired road property..........        270, 306     Actual. See                                     
                                                                footnote 2.                                     
  Running..................................  ..............        XX-14-39  See footnote 2.                    
                                                                   XX-17-39                                     
  Switching................................  ..............        XX-15-39  Actual. See footnote 2.            
                                                                   XX-18-39  See footnote 2.                    

[[Page 390]]

                                                                                                                
  Other....................................  ..............        XX-16-39  Actual. See footnote 2.            
                                                                   XX-19-39                                     
Fringe benefits............................        277, 457  ..............                                     
  Running..................................        12-14-00  ..............  Various accounts                   
                                                   12-17-00  ..............   (1157.7(f)(1)(xvi)).              
  Switching................................                        12-15-00      Do.                            
                                                                   12-18-00                                     
  Other....................................                        12-16-00      Do.                            
                                                                   12-19-00                                     
Casualties and insurance...................        274, 275  ..............                                     
  Running..................................                        52-14-00  Various accounts                   
                                                                   52-17-00   (1157.7(f)(1)(xv)).               
                                                                   53-14-00                                     
                                                                   53-17-00                                     
  Switching................................                        52-15-00      Do.                            
                                                                   52-18-00                                     
                                                                   53-15-00                                     
                                                                   53-18-00                                     
  Other....................................                        52-16-00      Do.                            
                                                                   52-19-00                                     
                                                                   53-16-00                                     
                                                                   53-19-00                                     
Lease rentals--Dr..........................             542  ..............                                     
  Running..................................                        31-14-00  Actual.                            
                                                                   31-17-00                                     
  Switching................................                        31-15-00      Do.                            
                                                                   31-18-00                                     
  Other....................................                        31-16-00      Do.                            
                                                                   31-19-00                                     
Lease rentals--Cr..........................             509  ..............                                     
  Running..................................                        32-14-00      Do.                            
                                                                   32-17-00                                     
  Switching................................                        32-15-00      Do.                            
                                                                   32-18-00                                     
  Other....................................                        32-16-00      Do.                            
                                                                   32-19-00                                     
Joint facility rents--Dr...................             541  ..............                                     
  Running..................................                        33-14-00  Agreement or passenger on-off count
                                                                   33-17-00   (1157.6(a)(3)).                   
  Switching................................                        33-15-00      Do.                            
                                                                   33-18-00                                     
  Other....................................                        33-16-00      Do.                            
                                                                   33-19-00                                     
Joint facility rents--Cr...................             508  ..............                                     
  Running..................................                        34-14-00      Do.                            
                                                                   34-17-00                                     
  Switching................................                        34-15-00      Do.                            
                                                                   34-18-00                                     
  Other....................................                        34-16-00      Do.                            
                                                                   34-19-00                                     
Other rents--Dr............................             543  ..............                                     
  Running..................................                        35-14-00  Actual.                            
                                                                   35-17-00                                     
  Switching................................                        35-15-00  Actual.                            
                                                                   35-18-00                                     
  Other....................................                        35-16-00  Actual.                            
                                                                   35-19-00                                     
Other rents--Cr............................             510  ..............                                     
  Running..................................                        36-14-00  Actual.                            
                                                                   36-17-00                                     
  Switching................................                        36-15-00      Do.                            
                                                                   36-18-00                                     
  Other....................................                        36-16-00      Do.                            
                                                                   36-19-00                                     
Depreciation...............................             266  ..............                                     
  Running..................................                        62-14-00  Actual--restricted to properties   
                                                                   62-17-00   identified in section (1157.8(b)).
                                                                              See footnote 2.                   
  Switching................................                        62-15-00      Do.                            
                                                                   62-18-00                                     
    Other..................................             305        62-16-00      Do. See footnote 3.            
                                                                   62-19-00  See footnote 3.                    
Joint facility--Dr.........................             278  ..............                                     

[[Page 391]]

                                                                                                                
  Running..................................  ..............        37-14-00  Agreement or passenger on-off count
                                                                   37-17-00   (1157.6(a)(3)).                   
  Switching................................  ..............        37-15-00      Do.                            
                                                                   37-18-00                                     
  Other....................................  ..............        37-16-00      Do.                            
                                                                   37-19-00                                     
Joint facility--Cr.........................             279  ..............                                     
  Running..................................  ..............        38-14-00      Do.                            
                                                                   38-17-00                                     
  Switching................................  ..............        38-15-00      Do.                            
                                                                   38-18-00                                     
  Other....................................  ..............        38-16-00      Do.                            
                                                                   38-19-00                                     
Other......................................       267, 274,  ..............                                     
                                                   281, 282                                                     
  Running..................................  ..............        XX-14-99  Various accounts (1157.7(f)(1)(xv))
                                                                   XX-17-99   (any amounts in this category     
                                                                              which were charged to previous    
                                                                              account No. 267 shall be assigned 
                                                                              on an actual basis). See footnote 
                                                                              2.                                
  Switching................................  ..............        XX-15-99      Do.                            
                                                                   XX-18-99      Do.                            
  Other....................................  ..............        XX-16-99      Do.                            
                                                                   XX-19-99      Do.                            
                                                                                                                
         (2) Equipment Locomotives                                                                              
                                                                                                                
Administration.............................             301        XX-24-01  Various accounts                   
                                                                   XX-26-01   (1157.7(f)(2)(ii)).               
Repair and maintenance.....................             311        XX-24-41  Special study and actual           
                                                                   XX-26-41   (1157.7(f)(2)(i)).                
Machinery repair...........................             302        XX-24-40  Various accounts                   
                                                                   XX-26-40   (1157.7(f)(2)(ii)).               
Equipment damaged..........................             311        XX-24-48  Special study and actual           
                                                                   XX-26-48   (1157.7(f)(2)(i)).                
Dismantling retired property...............        306, 329        XX-24-39  Actual. See footnote 3.            
                                                                   XX-26-39                                     
Fringe benefits............................        335, 457        12-24-00  Various accounts                   
                                                                   12-26-00   (1157.7(f)(2)(iii)).              
Other casualties and insurance.............        332, 333        52-24-00  Various accounts                   
                                                                   52-26-00   (1157.7(f)(2)(ii)).               
                                                                   53-24-00      Do.                            
                                                                   53-26-00                                     
Lease rentals--Dr..........................             537        31-24-00  Actual.                            
                                                                   31-26-00                                     
Lease rentals--Cr..........................             504        32-24-00  Actual.                            
                                                                   32-26-00                                     
Other rents--Dr............................             537        35-24-00  Actual.                            
                                                                   35-26-00                                     
Other rents--Cr............................             504        36-24-00  Actual.                            
                                                                   36-26-00                                     
Depreciation...............................             331        62-24-00  Actual.                            
                                                                   62-26-00                                     
Joint facility--Dr.........................             336        37-24-00  Agreement or passenger on-off count
                                                                   37-26-00   (1157.6(a)(3)).                   
Joint facility--Cr.........................             337        38-24-00      Do.                            
                                                                   38-26-00                                     
Repairs billed to others--Cr.:                                                                                  
  Machinery................................             302        40-24-00  Actual.                            
                                                                   40-26-40                                     
  Locomotives..............................             311        40-24-41  Actual.                            
                                                                   40-26-41                                     
  Road property and equipment damaged......       311, 317,        40-24-48  Actual.                            
                                                  318, 323,        40-26-48                                     
                                                   326, 328                                                     
Other......................................        332, 339        XX-24-99  Various accounts                   
                                                                   XX-26-99   (1157.7(f)(2)(ii)).               
                                                                                                                
              other equipment                                                                                   
                                                                                                                
Administration.............................             301        XX-25-01  Various accounts (1157.7(f)(2)(v)).
                                                                   XX-27-01                                     
Passenger and other revenue equipment......             317        XX-25-45  Actual.                            
                                                                   XX-27-45                                     
Computers and data processing systems......         Various        XX-25-46      Do.                            
                                                   accounts        XX-27-46                                     

[[Page 392]]

                                                                                                                
Machinery..................................             302        XX-25-40  Various accounts (1157.7(f)(2)(v)).
                                                                   XX-27-40                                     
Work and other non-revenue equipment.......        326, 328        XX-25-47  Various accounts                   
                                                                   XX-27-47   (1157.7(f)(2)(iv)).               
Equipment damaged..........................       317, 318,        XX-25-48  Actual.                            
                                                  323, 326,        XX-27-48                                     
                                                        328                                                     
Dismantling retired property...............        306, 329        XX-25-39      Do.\3\                         
                                                                   XX-27-39  See footnote 3.                    
Fringe benefits............................        335, 457        12-25-00  Various accounts                   
                                                                   12-27-00   (1157.7(f)(2)(vi)).               
Other casualties and insurance.............        332, 333        52-25-00  Various accounts (1157.7(f)(2)(v)).
                                                                   52-27-00                                     
                                                                   53-25-00      Do.                            
                                                                   53-27-00                                     
Lease rentals--Dr..........................             538        31-25-00  Actual.                            
                                                                   31-27-00                                     
Lease rentals--Cr..........................             505        32-25-00      Do.                            
                                                                   32-27-00                                     
Joint facility rents--Dr...................             541        33-25-00  Agreement or passenger on-off count
                                                                   33-27-00   (1157.6(a)(3)).                   
Joint facility rents--Cr...................             508        34-25-00      Do.                            
                                                                   34-27-00                                     
Other rents--Dr............................             538        35-25-00  Actual.                            
                                                                   35-27-00                                     
Other rents--Cr............................             505        36-25-00      Do.                            
                                                                   36-27-00                                     
Depreciation...............................             331        62-25-00      Do.                            
                                                                   62-27-00                                     
Joint facility--Dr.........................             336        37-25-00  Agreement or passenger on-off count
                                                                   37-27-00   (1157.6(a)(3)).                   
Joint facility--Cr.........................             337        38-25-00      Do.                            
                                                                   38-27-00                                     
Repairs billed to others--Cr. passenger and             317        40-25-45  Actual.                            
 other revenue equipment.                                          40-27-45                                     
Computer and data processing equipment.....           (\5\)        40-25-46      Do.                            
                                                                   40-27-46                                     
Work and other nonrevenue equipment........        326, 328        40-25-47  Various accounts                   
                                                                   40-27-47   (1157.7(f)(2)(iv)).               
Road property and equipment damaged........  317, 318, 323,        40-25-48  Actual.                            
                                                    326,328        40-27-48                                     
Other......................................   330, 332, 339        XX-25-99  Actual/various accounts (1157.7(f) 
                                                                   XX-27-99   (2)(vii)).                        
                                                                                                                
    (3) Transportation train operations                                                                         
                                                                                                                
Administration.............................             371        XX-41-01  Various accounts                   
                                                                   XX-51-01   (1157.7(f)(3)(xi)).               
Engine crews...............................        392, 402        XX-41-56  Actual, cars dispatched            
                                                                   XX-51-56   (1157.7(f)(3)(i)).                
Train crews................................   401, 402, 403        XX-41-57      Do.                            
                                                                   XX-51-57                                     
Dispatching trains.........................             372        XX-41-58  Train hours (1157.7(f)(3)(ii)).    
                                                                   XX-51-58                                     
Operating signals and interlockers.........             404        XX-41-59  Train movements                    
                                                                   XX-51-59   (1157.7(f)(3)(iii)).              
Operating drawbridges......................             406        XX-41-60      Do.                            
                                                                   XX-51-60                                     
Highway crossing protection................             405        XX-41-61      Do.                            
                                                                   XX-51-61                                     
Train inspection and lubrication...........        311, 402        XX-41-62  Cars dispatched (1157.7(f)(3)(iv)).
                                                                   XX-51-62                                     
Locomotive fuel............................             394        XX-41-67  Actual.                            
                                                                   XX-51-67                                     
Electric power purchased/produced for         395, 396, 445        XX-41-68  Actual-weighted (1157.7(f)(3)(v)). 
 motive power.                                                     XX-51-68                                     
Servicing locomotives......................             400        XX-41-69  Locomotive units                   
                                                                   XX-51-69   (1157.7(f)(3)(vi)).               
Freight lost or damaged--solely related....        418, 419        51-41-00  Responsibility/reserve account     
                                                                   51-51-00   (1157.7(f) (3)(vii)).             
Clearing wrecks............................             415        XX-41-63      Do.                            
                                                                   XX-51-63                                     
Fringe benefits............................        409, 457        12-41-00  Various accounts                   
                                                                   12-51-00   (1157.7(f)(3)(viii)).             

[[Page 393]]

                                                                                                                
Other casualties and insurance.............       414, 416,        52-41-00  Responsibility/reserve account     
                                                   417, 420        52-51-00   (1157.7(f) (3)(vii)).             
                                                                   53-41-00                                     
                                                                   53-51-00                                     
Joint facility--Dr.........................             412        37-41-00  Agreement or passenger on-off count
                                                                   37-51-00   (1157.6(a)(3)).                   
Joint facility--Cr.........................             413        38-41-00      Do.                            
                                                                   38-51-00                                     
Other......................................       402, 403,        XX-41-99  Actual.                            
                                                  411, 420,        XX-51-99                                     
                                                        441                                                     
                                                                                                                
              yard operations                                                                                   
                                                                                                                
Administration.............................             371        XX-42-01  Various accounts                   
                                                                   XX-52-01   (1157.7(f)(3)(xi)).               
Switch crews...............................   378, 380, 389        XX-42-64  Unit hours, special study          
                                                                   XX-52-64   (1157.7(f) (3)(ix)).              
Controlling operations.....................        377, 389        XX-42-65      Do.                            
                                                                   XX-52-65                                     
Yard and terminal clerical.................        377, 389        XX-42-66      Do.                            
                                                                   XX-52-66                                     
Operating switches, signals, retarders, and        379, 389        XX-42-59      Do.                            
 humps.                                                            XX-52-59                                     
Locomotive fuel............................             382        XX-42-67      Do.                            
                                                                   XX-52-67                                     
Electric power purchased/produced for         383, 384, 445        XX-42-68      Do.                            
 motive power.                                                     XX-52-68                                     
Servicing locomotives......................             388        XX-42-69      Do.                            
                                                                   XX-52-69                                     
Freight lost or damaged solely related.....        418, 419        51-42-00  Responsibility/reserve account     
                                                                   51-52-00   (1157.7(f) (3)(vii)).             
Clearing wrecks............................             415        XX-42-63      Do.                            
                                                                   XX-52-63                                     
Fringe benefits............................        409, 457        12-42-00  Various accounts                   
                                                                   12-52-00   (1157.7(f)(3)(viii)).             
Other casualties and insurance.............   414, 416, 420        52-42-00  Responsibility/reserve account     
                                                                   52-52-00   (1157.7(f) (3)(vii)).             
                                                                   53-42-00                                     
                                                                   53-52-00                                     
Joint facility--Dr.........................        390, 412        37-42-00  Agreement or passenger on-off count
                                                                   37-52-00   (1157.6(a)(3)).                   
Joint facility--Cr.........................        391, 413        38-42-00      Do.                            
                                                                   38-52-00                                     
Other......................................        411, 420        XX-42-99  Actual.                            
                                                                   XX-52-99                                     
                                                                                                                
      train and yard operations common                                                                          
                                                                                                                
Cleaning car interiors.....................             402        XX-43-70      Do.                            
                                                                   XX-53-70                                     
Freight lost or damaged--all other.........        418, 419        51-43-00  Responsibility/reserve account     
                                                                   51-53-00   (1157.7(f) (3)(vii))              
Fringe benefits............................             409        12-43-00  Various accounts                   
                                                                   12-53-00   (1157.7(f)(3)(viii)).             
                                                                                                                
     administrative support operations                                                                          
                                                                                                                
Administration.............................             371        XX-45-01  Various accounts                   
                                                                   XX-55-01   (1157.7(f)(3)(xi)).               
Employees performing clerical and                  373, 376        XX-45-76  Various accounts (1157.7(f)(3)(x)).
 accounting functions.                                             XX-55-76                                     
Communication systems operations...........   373, 376, 407        XX-45-77  Administrative accounts (1157.7(f) 
                                                                   XX-55-77   (3)(xii)).                        
Loss and damage claims processing..........        418, 419        XX-45-78  Responsibility/reserve account     
                                                                   XX-55-78   (1157.7(f) (3)(vii)).             
Fringe benefits............................        409, 457        12-45-00  Various accounts                   
                                                                   12-55-00   (1157.7(f)(3)(viii)).             
Casualties and insurance...................   414, 416, 420        52-45-00  Responsibility/reserve account     
                                                                   52-55-00   (1157.7(f) (3)(vii)).             
                                                                   53-45-00                                     
                                                                   53-55-00                                     
Joint facility--Dr.........................        412, 447        37-45-00  Agreement or passenger on-off count
                                                                   37-55-00   (1157.6(a)(3)).                   
Joint facility--Cr.........................        413, 448        38-45-00      Do.                            
                                                                   38-55-00                                     

[[Page 394]]

                                                                                                                
Other......................................        411, 420        XX-45-99  Actual.                            
                                                                   XX-55-99                                     
                                                                                                                
       (4) General and Administrative                                                                           
                                                                                                                
Officers--General Superintendence..........  351, 451, 452,        XX-62-01  Actual.\1\                         
                                                        453        XX-63-01                                     
Accounting, auditing and finance...........        451, 452        XX-62-86      Do.                            
                                                                   XX-63-86                                     
Management services and data processing....        451, 452        XX-62-87      Do.                            
                                                                   XX-63-87                                     
Marketing..................................             352        XX-62-88      Do.                            
                                                                   XX-63-88                                     
Sales......................................             352        XX-62-89      Do.                            
                                                                   XX-63-89                                     
Personnel and labor relations..............        451, 452        XX-62-91      Do.                            
                                                                   XX-63-91                                     
Legal and secretarial......................  274, 332, 420,        XX-62-92      Do.                            
                                                   452, 454        XX-63-92                                     
Public relations and advertising...........        353, 354        XX-62-93      Do.                            
                                                                   XX-63-93                                     
Research and Development...................           (\5\)        XX-62-94      Do.                            
                                                                   XX-63-94                                     
Other......................................       351, 360,        XX-62-99      Do.                            
                                                  451, 452,        XX-63-99                                     
                                                   453, 460                                                     
Casualties and insurance...................        357, 455        52-62-00      Do.                            
                                                                   52-63-00                                     
                                                                   53-62-00                                     
                                                                   53-63-00                                     
Writedown of uncollectible accounts........         Various        63-62-00      Do.                            
                                                   Accounts        63-63-00                                     
Fringe benefits............................   359, 456, 457        12-62-00  Various accounts (1157.7(f)(4)).   
                                                                   12-63-00                                     
Property taxes.............................             532        64-62-00  Actual--as determined under section
                                                                   64-63-00   1157.8(b). See footnote 4.        
Other taxes except on corporate income or               532        65-62-00  Actual.                            
 payrolls.                                                         65-63-00                                     
Joint facility--Dr.........................             461        37-62-00  Agreement or passenger on-off count
                                                                   37-63-00   5.                                
Joint facility--Cr.........................             462        38-62-00      Do.                            
                                                                   38-63-00                                     
----------------------------------------------------------------------------------------------------------------
\1\These costs may include the actual expenses incurred in administering the subsidy program. There shall be no 
  apportionment of common costs charged to these accounts.                                                      
\2\In those situations where the commuter service is the dominant user, the minority user(s) shall be assigned  
  any charges to these accounts on an actual basis.                                                             
\3\The minority user(s) shall pay for units of shop and powerplant machinery which could be disposed of if the  
  minority service were discontinued.                                                                           
\4\On line segments which are owned by a state, local or regional transportation authority, the minority user(s)
  shall be charged with those property taxes including in lieu of tax payments which would not be incurred in   
  the absence of the minority service(s).                                                                       
\5\Various accounts.                                                                                            

    (f) Apportionment Rules For Assigning Common Costs to Commuter 
Service. The accounts specified under Sec. 1157.7(e) which have an 
assignment basis other than ``Actual'' shall be apportioned according to 
the rules contained in this section.
    (1) Maintenance of Way and Structures--(i) Repair and Maintenance-
Switching. The common costs assigned to these accounts shall be 
apportioned on the ratio of the commuter service cars dispatched in the 
designated area to the total cars dispatched in the designated area.
    (ii) Repair and Maintenance--Running. For a designated area, the 
common costs assigned to these accounts shall be apportioned on the 
ratio of the commuter service Speed Factored Gross Tons (SFGT) for the 
designated area to the total SFGT for all traffic in the designated 
area. Where the commuter service is the minority user, the commuter 
service SFGT shall be derived by subtracting the SFGT for freight and/or 
intercity passenger from the total SFGT for all traffic. Where the 
commuter service is the dominant user, the commuter service SFGT shall 
be derived as if the commuter service was

[[Page 395]]

the only service; the SFGT shall be calculated in accordance with the 
formula set forth in appendix III.
    (iii) Station and Office Buildings. The common costs assigned to 
these accounts shall be first apportioned on the ratio of total square 
feet devoted to passenger service to the total square feet used in the 
facility. The passenger portion shall then be apportioned on the ratio 
of the commuter service on-off passenger count (including pass riders) 
in the designated area to the total on-off passenger count (including 
pass riders) in the designated area.
    (iv) Signals and Interlockers. The common costs assigned to these 
accounts shall be apportioned on the ratio of the number of commuter 
service train movements through these facilities to the total of all 
train movements through these facilities.
    (v) Power Systems. The common costs assigned to these accounts shall 
be apportioned on the ratio of the kilowatt hours consumed by the 
commuter service to the total kilowatt hours consumed by all services in 
the designated area.
    (vi) Shop Buildings. The common costs assigned to these accounts 
shall be apportioned on the ratio of the labor charges expended 
servicing commuter service equipment in the designated area to the 
railroad's total labor charges expended servicing all equipment in the 
designated area.
    (vii) Locomotive Servicing Facilities. The common costs assigned to 
fuel stations shall be kept separate from the common costs assigned to 
the balance of the locomotive servicing facilities. The common costs 
assigned to fuel stations shall be apportioned on the ratio of the 
amount of fuel dispensed in commuter service to the total amount of fuel 
dispensed for all services using these facilities. The common costs 
assigned to the balance of the locomotive servicing facilities shall be 
apportioned on the ratio of the locomotive unit miles (diesel and 
electric) generated from commuter service using these facilities in the 
designated area to the railroad's total locomotive unit miles in the 
designated area (diesel and electric) for all services.
    (viii) Road Property Damaged--Other; Miscellaneous Buildings and 
Structures. The common costs assigned to these accounts shall be 
apportioned on the ratio of the amounts assigned to commuter service to 
the railroad's total in the designated area for the following accounts:

XX-11-10                                     XX-14-10           XX-17-10
XX-12-10                                     XX-15-10           XX-18-10
XX-11-11                                     XX-14-11           XX-17-11
XX-12-11                                     XX-15-11           XX-18-11
XX-11-12                                     XX-14-12           XX-17-12
XX-12-12                                     XX-15-12           XX-18-12
21-11-13                                     21-14-13           21-17-13
21-12-13                                     21-15-13           21-18-13
21-11-14                                     21-14-14           21-17-14
21-12-14                                     21-15-14           21-18-14
21-11-15                                     21-14-15           21-17-15
21-12-15                                     21-15-15           21-18-15
21-11-16                                     21-14-16           21-17-16
21-12-16                                     21-15-16           21-18-16
XX-11-17                                     XX-14-17           XX-17-17
XX-12-17                                     XX-15-17           XX-18-17
XX-11-48                                     XX-14-48           XX-17-48
XX-12-48                                     XX-15-48           XX-18-48
                                                                        

    (ix) Administration--Track. The common costs assigned to these 
accounts shall be apportioned on the ratio of the amounts assigned to 
commuter service to the railroad's total in the designated area for the 
following accounts:

XX-11-10                                     XX-14-10           XX-17-10
XX-12-10                                     XX-15-10           XX-18-10
XX-11-11                                     XX-14-11           XX-17-11
XX-12-11                                     XX-15-11           XX-18-11
21-11-13                                     21-14-13           21-17-13
21-12-13                                     21-15-13           21-18-13
21-11-14                                     21-14-14           21-17-14
21-12-14                                     21-15-14           21-18-14
21-11-15                                     21-14-15           21-17-15
21-12-15                                     21-15-15           21-18-15
21-11-16                                     21-14-16           21-17-16
21-12-16                                     21-15-16           21-18-16
XX-11-17                                     XX-14-17           XX-17-17
XX-12-17                                     XX-15-17           XX-18-17
XX-11-48                                     XX-14-48           XX-17-48
XX-12-48                                     XX-15-48           XX-18-48
XX-11-22                                     XX-14-22           XX-17-22
XX-12-22                                     XX-15-22           XX-18-22
XX-13-36                                     XX-16-36           XX-19-36
XX-13-37                                     XX-16-37           XX-19-37
XX-13-38                                     XX-16-38           XX-19-38
XX-11-39                                     XX-14-39           XX-17-39
XX-12-39                                     XX-15-39           XX-18-39
XX-13-39                                     XX-16-39           XX-19-39
XX-13-21                                     XX-16-21           XX-19-21
                                                                        

    (x) Administration--Bridges and Buildings. The common cost assigned 
to these accounts shall be apportioned on the ratio of the amounts 
assigned to commuter service to the railroad's total in the designated 
area for the following accounts:

XX-11-12                                     XX-14-12           XX-17-12
XX-12-12                                     XX-15-12           XX-18-12
XX-13-23                                     XX-16-23           XX-19-23
XX-13-24                                     XX-16-24           XX-19-24

[[Page 396]]

                                                                        
XX-13-25                                                                
XX-13-26                                     XX-16-26           XX-19-26
XX-13-27                                     XX-16-27           XX-19-27
XX-13-28                                     XX-16-28           XX-19-28
XX-13-29                                                                
XX-13-30                                                                
XX-13-31                                                                
XX-13-32                                                                
XX-13-33                                                                
XX-13-35                                                                
XX-13-48                                     XX-16-48           XX-19-48
XX-11-48                                     XX-14-48           XX-17-48
XX-12-48                                     XX-15-48           XX-18-48
                                                                        

    (xi) Administration--Signals. The common costs assigned to these 
accounts shall be apportioned on the ratio of amounts in accounts XX-11-
19, XX-12-19, XX-14-19, XX-15-19, XX-17-19, XX-18-19, assigned to 
commuter service to the railroad's total in these accounts for the 
designated area.
    (xii) Administration--Other. The common costs assigned to these 
accounts shall be apportioned on the ratio of the amounts in all of the 
accounts under Sec. 1157.7(e)(1) assigned to commuter service (excluding 
accounts XX-13-20, XX-16-20, XX-19-20, 12-11-00, 12-12-00, 12-13-00, 12-
14-00, 12-15-00, 12-16-00, 12-17-00, 12-18-00, 12-19-00 all rentals 
accounts, joint facility accounts, fringe benefits accounts, casualties 
and insurance accounts and depreciation accounts) to the railroad's 
total for all accounts (freight, passenger, common) under maintenance of 
way and structures in the designated area.
    (xiii) Communications Systems. The common costs assigned to these 
accounts shall be apportioned on the ratio of the amounts assigned to 
commuter service to the railroad's total in the designated area for the 
following accounts:

XX-13-02                                     XX-16-02           XX-19-02
XX-13-03                                     XX-16-03           XX-19-03
XX-13-04                                     XX-16-04           XX-19-04
XX-13-06                                     XX-16-06           XX-19-06
XX-32-65                                     XX-42-65           XX-52-65
XX-32-66                                     XX-42-66           XX-52-66
XX-21-01                                     XX-24-01           XX-26-01
XX-22-01                                                                
XX-23-01                                     XX-25-01           XX-27-01
XX-31-01                                     XX-41-01           XX-51-01
XX-32-01                                     XX-42-01           XX-52-01
XX-33-01                                     XX-43-01           XX-53-01
XX-34-01                                                                
XX-35-01                                     XX-45-01           XX-55-01
XX-61-01                                     XX-62-01           XX-63-01
XX-31-58                                     XX-41-58           XX-51-58
                                                                        

    (xiv) Administration--Communications. The common costs assigned to 
these accounts shall be apportioned on the ratio of amounts in the 
following accounts: XX-13-20, XX-16-20, XX-19-20 assigned to commuter 
service to the railroad's total in these accounts for the designated 
area.
    (xv) Casualties and Insurance; Other. The common costs assigned to 
these accounts shall be apportioned, separated between running, 
switching and other, on the ratio of the amounts in all of the accounts 
under Sec. 1157.7(e)(1) assigned to commuter service (excluding accounts 
12-11-00, 12-12-00, 12-13-00, 12-14-00, 12-15-00, 12-16-00, 12-17-00, 
12-18-00, 12-19-00, all rental accounts, joint facility accounts and 
depreciation accounts) to the railroad's total in these accounts for the 
designated area.
    (xvi) Fringe Benefits. Fringe benefits shall be separated between 
pensions and Health and Welfare benefits with a further separation 
between running, switching and other. The costs assigned to these 
accounts for pensions shall be the actual costs that are directly 
attributable to commuter service. Health and Welfare benefits shall be 
assigned to commuter service on the ratio of the commuter service 
amounts in the respective salary and wage accounts to the railroad's 
system total for these accounts. Expenses for entertainment facilities 
for personal use shall only be included in Health and Welfare benefit 
costs where it can be clearly demonstrated that the cost was commuter 
service related.
    (2) Equipment--Locomotives--(i) Repair and Maintenance; Equipment 
Damaged. These accounts shall be separated between yard and other (road) 
with a further separation between diesel and other (electric). The 
common costs assigned to these accounts for yard locomotives shall be 
based on the results of the special study described in 
Sec. 1157.7(f)(3)(ix). The costs assigned to these accounts for other 
locomotives (road) shall be the actual costs that are directly 
attributable to commuter service.
    (ii) Administration; Machinery Repairs; Other Casualties and 
Insurance; Other. The common costs assigned to these accounts shall be 
apportioned on the ratio of the amounts assigned to commuter service to 
the railroad's total in the designated area for the following accounts:

XX-21-39                                     XX-24-39           XX-26-39

[[Page 397]]

                                                                        
XX-21-41                                     XX-24-41           XX-26-41
XX-21-48                                     XX-24-48           XX-26-48
37-21-00                                     37-24-00           37-26-00
38-21-00                                     38-24-00           38-26-00
                                                                        

    (iii) Fringe Benefits--Locomotives. Fringe benefits shall be 
separated between pensions and Health and Welfare benefits with a 
further separation between running, switching and other. The costs 
assigned to these accounts for pensions shall be the actual costs that 
are directly attributable to commuter service. Health and Welfare 
benefits shall be assigned to commuter service on the ratio of the 
commuter service amounts in the respective salary and wage accounts to 
the railroad's system total for these accounts. Expenses for 
entertainment facilities for personal use shall only be included in 
Health and Welfare benefit costs where it can be clearly demonstrated 
that the cost was commuter service related.
    (iv) Other Equipment--Work and Other Non-Revenue Equipment. The 
common costs assigned to these accounts shall be apportioned on the 
ratio of the commuter service amounts in the repair and maintenance 
running and switching accounts, identified in Sec. 1157.7(f)(1)(viii) to 
the railroad's total for these accounts in the designated area.
    (v) Administration; Machinery; Other Casualties and Insurance. The 
common costs assigned to these accounts shall be apportioned on the 
ratio of the amounts assigned to the railroad's total in the designated 
area for the following accounts:

XX-23-43                                                                
XX-23-44                                                                
XX-23-45                                     XX-25-45           XX-27-45
XX-23-46                                     XX-25-46           XX-27-46
XX-23-47                                     XX-25-47           XX-27-47
XX-23-48                                     XX-25-48           XX-27-48
37-23-00                                     37-25-00           37-27-00
38-23-00                                     38-25-00           38-27-00
XX-23-39                                     XX-25-39           XX-27-39
XX-22-42                                                                
                                                                        

    (vi) Fringe Benefits--Other Equipment. Fringe benefits shall be 
separated between pensions and Health and Welfare benefits with a 
further separation between running, switching and other. The costs 
assigned to these accounts for pensions shall be the actual costs that 
are directly attributable to commuter service. Health and Welfare 
benefits shall be assigned to commuter service on the ratio of the 
commuter service amounts in the respective salary and wage accounts to 
the railroad's system total for these accounts. Expenses for 
entertainment facilities for personal use shall only be included in 
Health and Welfare benefits costs where it can be clearly demonstrated 
that the cost was commuter service related.
    (vii) Other. Equipment retirements shall be assigned to commuter 
service on an actual basis. The balance of the common costs assigned to 
these accounts shall be apportioned on the ratio of the amounts assigned 
to commuter service to the railroad's total in the designated area for 
the following accounts:

XX-23-43                                                                
XX-23-44                                                                
XX-23-45                                     XX-25-45           XX-27-45
XX-23-46                                     XX-25-46           XX-27-46
XX-23-47                                     XX-25-47           XX-27-47
XX-23-48                                     XX-25-48           XX-27-48
37-23-00                                     37-25-00           37-27-00
38-23-00                                     38-25-00           38-27-00
XX-23-39                                     XX-25-39           XX-27-39
XX-22-42                                                                
                                                                        

    (3) Transportation--(i) Engine Crews; Train Crews. These accounts 
shall be separated between salary and wages and train supplies and 
expenses. The salary and wage portion shall be assigned to commuter 
service on an actual basis. The common costs assigned to these accounts 
for train supplies and expenses shall be apportioned on the ratio of 
commuter cars dispatched in the designated area to the railroad's total 
cars dispatched in the designated area. Commuter cars shall include 
passenger cars and motor cars.
    (ii) Dispatching trains. The common costs assigned to these accounts 
shall be apportioned on the ratio of the commuter train hours in the 
designated area to the total train hours in the designated area.
    (iii) Operating Signals and Interlockers; Operating Drawbridges; 
Highway Crossing Protection. The common costs assigned to these accounts 
shall be apportioned on the ratio of the number of commuter service 
train movements through these facilities to the total of all train 
movements through these facilities.
    (iv) Train Inspection and Lubrication. The common costs assigned to 
these accounts shall be apportioned on the

[[Page 398]]

ratio of commuter cars dispatched in the designated area to the 
railroad's total cars dispatched in the designated area. Commuter cars 
shall include passenger cars and motor cars.
    (v) Electric Power Purchased/Produced for Motive Power. The cost of 
kilowatt hours consumed for commuter service shall be based on the 
kilowatt hours developed for commuter service in Sec. 1157.7(f)(1)(v) 
weighed to reflect the peak period power demands, i.e., time of day and 
volume of power demanded. A special study may be conducted to develop 
the peak power demand factor.
    (vi) Servicing Locomotives. The common costs assigned to these 
accounts shall be apportioned on the ratio of the total locomotive units 
(road) serviced in commuter service in the designated area to the 
railroad's total locomotive units (road) serviced in the designated 
area.
    (vii) Freight Lost or Damaged--Solely Related; Clearing Wrecks; 
Other Casualties and Insurance. The minority user shall be responsible 
for any costs incurred under these accounts resulting from the operation 
of the minority service. The dominant user is responsible only for those 
costs incurred under these accounts resulting from an incident that 
solely involves the operation of the dominant service. The railroad 
shall, if the subsidizer agrees, establish a reserve for the purpose of 
holding the subsidizer harmless from any liabilities under these 
accounts arising out of the operation of commuter services. Where the 
commuter service is the minority user, the costs assigned to these 
accounts for commuter service insurance shall be determined by 
ascertaining from the railroad's underwriters:
    (A) The difference in the current premium if commuter service were 
not operated and
    (B) The additional premium required to hold the railroad and the 
subsidizers harmless from any liability.

Such amounts shall be apportioned between the several commuter services 
operated by the railroad either on the basis of the relative passenger-
miles (including pass riders) or on the basis of the relative passenger 
revenues (including pass rider allowances). Where the commuter service 
is the dominant user, the costs assigned to these accounts for commuter 
service insurance shall be determined by ascertaining from the 
railroad's underwriters the premium if the commuter service were 
operated as the sole user of the properties involved.
    (viii) Fringe Benefits. Fringe benefits shall be separated between 
pensions and Health and Welfare benefits with a further separation 
between running, switching and other. The costs assigned to these 
accounts for pensions shall be the actual costs that are directly 
attributable to commuter service. Health and Welfare benefits shall be 
assigned to commuter service on the ratio of the commuter service 
amounts in the respective salary and wage accounts to the railroad's 
system total for these accounts. Expenses for entertainment facility for 
personal use shall only be included in Health and Welfare benefit costs 
where it can be clearly demonstrated that the cost was commuter service 
related.
    (ix) Switch Crews; Controlling Operations; Yard and Terminal 
Clerical: Operating Switches, Signals, Retarders, and Humps; Locomotive 
Fuel; Electric Power Purchased/Produced For Motive Power; Servicing 
Locomotives. A special study shall be conducted to determine the ratio 
of the commuter service (diesel, electric) yard locomotive unit hours in 
the designated area to the railroad's total (diesel, electric) yard 
locomotive unit hours in the designated area. The common costs assigned 
to these accounts shall be the amounts in the railroad's accounts for 
the designated area multiplied by the ratio determined from the study. 
For this purpose, the term ``locomotive'' shall include motor cars. In 
conducting such a study, the railroad should recognize the variances of: 
(A) Weekend versus weekday demand; (B) required yard crew manning to 
perform the switching services for various users; and (C) the effect of 
peak service on yard manning.
    (x) Employees Performing Clerical and Accounting Functions; 
Communication System Operations. (A) The common costs assigned to these 
accounts, exclusive of material, shall be subdivided into 4 categories:
    (1) Ticket sales and service;
    (2) Other station costs;

[[Page 399]]

    (3) Station master; and
    (4) Mail and baggage.
    (B) The common costs in these subaccounts, exclusive of material, 
shall be apportioned on the ratio of commuter service units in the 
designated area to the total units in the designated area for the 
respective units:
    (1) Weighted ticket sales;
    (2) Passenger on-off count (including pass riders);
    (3) Trains stopping at stations in the designated area; and
    (4) Units of mail and baggage handled.

The common material costs assigned to these accounts shall be 
apportioned on the ratio of the commuter service amounts in these 
accounts exclusive of material determined above to the railroad's total 
for these accounts in the designated area.
    (xi) Administration. The common costs assigned to these accounts 
shall be apportioned on the ratio of the commuter service amounts in all 
other transportation accounts in each subcategory except Fringe Benefits 
and Communication Systems Operations to the railroad's total for these 
accounts (including the applicable freight accounts) in the designated 
area.
    (xii) Communication System Operations. The common costs assigned to 
these accounts shall be apportioned on the ratio of the total commuter 
service amounts in the Administration accounts section 
(Sec. 1157.7(f)(3)(xi)) assigned to commuter service to the railroad's 
total for these accounts (including the applicable freight accounts) in 
the designated area.
    (4) General and Administrative--Fringe Benefits. Fringe benefits 
shall be separated between pensions and Health and Welfare benefits with 
a further separation between running, switching and other. The costs 
assigned to these accounts for pensions shall be the actual costs that 
are directly attributable to commuter service. Health and Welfare 
benefits shall be assigned to commuter service on the ratio of the 
commuter service amounts in the respective salary and wage accounts to 
the railroad's system total for these accounts. Expenses for 
entertainment facilities for personal use shall only be included in 
Health and Welfare benefit costs where it can be clearly demonstrated 
that the cost was commuter service related.
    (g) Performance Standards--Penalties and Incentives. The subsidy 
agreements may include reasonable provisions as agreed by the parties 
for penalties for service inferior to stipulated performance standards 
and incentive payments for superior performance. Penalties withheld from 
subsidy payments by the subsidizer under such agreements shall be 
treated as reductions of avoidable costs and incentive payments shall be 
treated as additions to avoidable costs.

[44 FR 16411, Mar. 19, 1979, as amended at 45 FR 45, Jan. 2, 1980; 45 FR 
20107, Mar. 27, 1980. Redesignated at 47 FR 49582, Nov. 1, 1982; 54 FR 
38998, Sept. 22, 1989]



Sec. 1157.8  Valuation of rail properties.

    The value of rail properties on which a reasonable return is allowed 
shall consist of:
    (a) The net book value of equipment furnished by the contracting 
carrier for commuter service, after deduction of accrued depreciation; 
and
    (b) The value of rail properties on which a reasonable return is 
allowed when the commuter service is the minority user shall consist of 
the net book value of those roadway and structures properties which are 
used in commuter service and could be disposed of if the commuter 
service were discontinued. The net book value shall include the net 
liquidation value of the properties as of April 1, 1976, determined for 
their highest and best use for other than rail transportation purposes, 
plus the value of additions and betterments completed after that date 
for commuter service. From this amount is subtracted any depreciation 
accrued from that date and all costs of modifying remaining properties 
so that non-commuter operations can be continued over them. It shall not 
include the value of properties owned by public bodies; or of properties 
owned by the trustees of debtor estates if such properties are entitled 
to a return computed under Sec. 1155.9;
    (c) When the commuter service is the dominant user, it shall be 
entitled to a return on the values of properties and equipment which 
could be disposed of if the minority service(s) were discontinued. The 
value applied to each line

[[Page 400]]

segment shall be the acquisition price paid by the commuter authority to 
Conrail, plus the value of additions and betterments after acquisition 
for the minority service, less depreciation accrued from the time of 
acquisition. From this amount is subtracted all costs of modifying 
remaining properties so that commuter operations can be continued over 
them.
    (d) If the book values of road or equipment property are adjusted 
upward or downward as a result of final orders of the special court, 
such adjusted values shall be reflected in future subsidy payments, but 
without retroactive effect.

[45 FR 47, Jan. 2, 1980. Redesignated at 47 FR 49582, Nov. 1, 1982]



Sec. 1157.9  Reasonable return on the value of the properties.

    The reasonable return shall be 7.5 percent per annum on the sum of 
the appropriate elements of the investment base computed in accordance 
with Sec. 1157.8. When the commuter authority is the owner, the 7.5 
percent per annum return represents a charge to the other user(s).

[45 FR 47, Jan. 2, 1980. Redesignated at 47 FR 49582, Nov. 1, 1982]



Sec. 1157.10  Additional rail passenger service.

    (a) As used in this section, the term ``additional rail passenger 
service'' means rail passenger service other than rail passenger service 
provided pursuant to sections 304(e)(2) and (4) of the 3R Act, as 
amended. It includes extended or expanded service and modified routings, 
which is to be provided over rail properties conveyed to Conrail 
pursuant to Section 303(b)(1) of the 3R Act, as amended, or over rail 
properties contiguous to properties conveyed to Amtrak, or any other 
rail properties contiguous to properties to which a State (or local or 
regional transportation authority) has obtained access.
    (b) If a State (or a local or regional transportation authority in 
the region offers to provide payment for the provision of additional 
rail passenger service, Conrail shall undertake to provide the 
additional service consistent with the discontinuance provisions 
contained in section 304(e)(2) of the 3R Act, as amended.
    (c) An offer to provide payment for the provision of additional rail 
service shall be made in accordance with section 304(c)(2)(A) of the 3R 
Act, as amended, and pursuant to Secs. 1157.6-1157.9 of these 
regulations. The offer shall be designed to avoid any additional costs 
to Conrail arising from the construction or modification of capital 
facilities or from any additional operating delays or costs arising from 
the absence of such construction or modification.
    (d) The State (or local or regional transportation authority) shall 
demonstrate that it has acquired, leased, or otherwise obtained access 
to all rail properties other than those designated for conveyance to 
Amtrak pursuant to section 206(c)(1)(C) and 206(c)(1)(D) of the 3R Act, 
as amended, and to Conrail pursuant to section 303(b)(1) of the 3R Act, 
as amended, necessary to provide the additional rail passenger service. 
The State shall also demonstrate that it has completed or will complete 
prior to the inception of the additional rail passenger service, all 
capital improvements necessary to avoid significant costs which cannot 
be avoided by improved scheduling or other means on other existing rail 
service, including rail freight service. Assurance is required that the 
additional service will not detract from the level and quality of 
existing rail passenger and freight service.
    (e) Conrail shall not be required to operate additional rail 
passenger service over rail properties leased or acquired from or owned 
or leased by a profitable railroad in the region.

                      Appendix I--Subsidy Estimate

    The following information is required to be furnished under 
Sec. 1157.3(b) in accordance with the methodology set forth in 
Secs. 1157.3 through 1157.9. The base period data shall be shown for 
each item.

                  revenues attributable for base period

    1. Passenger
    2. All Other
    3. Total Revenues Attributable (lines 1 plus 2)

                           avoidable costs for

    4. Maintenance of Way and Structures

[[Page 401]]

    5. Maintenance of Equipment
    6. Transportation
    7. General and Administrative
    8. Casualty Reserve Account
    9. Performance Standards
    10. Total Avoidable Costs (lines 4 through 9)

                           return on value for

    11. Valuation of Property (lines 11a plus 11b)
    a. Book Value of Equipment
    b. Book Value of Roadway and Structures
    12. Rate of Return
    13. Total Return on Value (line 11 times line 12)

                        estimated subsidy payment

    14. Subsidy Estimate (line 3 minus lines 10 and 13)
    15. Financial Assistance from Subsidizer
    16. Estimated Emergency Operating Assistance from the Secretary 
(line 14 minus line 15)

                       traffic and operating data

    1. Number of Passengers Carried
    2. Total Car Miles

                  Appendix II--Financial Status Report

    A railroad entering into a subsidy agreement shall compile the 
information prescribed below in accordance with the standards set forth 
in Secs. 1157.3 through 1157.9. The actual data for the period to date 
and a projection to the end of the subsidy period shall be shown for 
each item.

             revenues attributable for actual and projected

    1. Passenger
    2. All Other
    3. Total Revenues Attributable (lines 1 plus 2)

                           avoidable costs for

    4. Maintenance of Way and Structures
    5. Maintenance of Equipment
    6. Transportation
    7. General and Administrative
    8. Casualty Reserve Account
    9. Performance Standards
    10. Total Avoidable Costs (lines 4 through 9)

                           return on value for

    11. Valuation of Property (lines 11a plus 11b)
    a. Book Value of Equipment
    b. Book Value of Roadway and Structures
    12. Rate of Return
    13. Total Return on Value (line 11 times line 12)

                             subsidy payment

    14. Subsidy Payment (line 3 minus lines 10 and 13)
    15. Financial Assistance from Subsidizer
    16. Emergency Operating Assistance from the Secretary (line 14 minus 
15)

                       traffic and operating data

    1. Number of Passengers Carried
    2. Total Car Miles

         Appendix III--Speed Factored Gross Tons Formula (SFGT)

    The following formula is required to calculate the SFGT to be used 
under Sec. 1157.7(f)(1)(B) of this part.
    All Track and Roadbed Maintenance:
    [GRAPHIC] [TIFF OMITTED] TC03MR91.048
    

[[Page 402]]


where:
GT=Total gross tons of traffic (in millions) per track mile per year.
GTF=Freight traffic gross tons (in millions) per track mile per year.
GTP=Passenger traffic gross tons (in millions) per track mile per year.
N=Number of tracks per route mile.\1\
---------------------------------------------------------------------------

    \1\ In calculating total SFGT, the value of N shall reflect the 
total number of tracks presently in place. Any tracks constituting 
present excess capacity shall be included in this value of N.
    Where the commuter authority is the minority user the value of N, 
used in calculating SFGT for freight and/or intercity passenger service, 
shall reflect the total number of tracks less the number of tracks (if 
any) which could be eliminated if commuter service were discontinued. 
Any tracks constituting present excess capacity shall be included in the 
value of N when computing SFGT for freight and/or intercity passenger.
    Where the commuter authority is the dominant user, the value of N 
shall reflect the total number of tracks less the number of tracks (if 
any) which could be eliminated if freight and/or intercity passenger 
service were discontinued. Any tracks constituting present excess 
capacity shall be included in the value of N when computing SFGT for 
commuter service.
    The speed factors used shall be governed by the highest authorized 
speed in the designated area for the respective types of service.
    Special studies may be conducted from time to time to update the 
constants used in the formula.
---------------------------------------------------------------------------

V=Speed factor (the larger of freight speed or 0.8 times passenger 
          speed).
VF=Freight speed.
VP=Passenger speed.
J=1 for welded rail.
   1.5 for bolted rail.

                           [Y=As shown below]                           
------------------------------------------------------------------------
                                                        Value of Y      
                                                 -----------------------
    FRA class of tracks and type of operation                      Yard 
                                                   Main   Branch    and 
                                                   line    line   switch
------------------------------------------------------------------------
Class 1, 2, 3; freight only up to MGT per mile                          
 per year.......................................    1.00    0.56    0.14
Class 1, 3; passenger, or Class 1, 2, 3; freight                        
 more than 10 MGT per mile per year.............    1.12    0.66  ......
Class 3; passenger, or Class 4, 5, 6; all                               
 traffic........................................    1.15    0.69  ......
------------------------------------------------------------------------

[44 FR 16411, Mar. 19, 1979, as amended at 45 FR 47, Jan. 2, 1980. 
Redesignated at 47 FR 49582, Nov. 1, 1982]



   Subpart B--Notice of Discontinuance of Commuter Service by Amtrak 
                      Commuter Services Corporation

    Authority: 49 U.S.C. 504(d)(2).

    Source: 48 FR 414, Jan. 5, 1983, unless otherwise noted.



Sec. 1157.20  Purpose.

    Section 1137 of the Northeast Rail Service Act, 45 U.S.C. 504(d)(2), 
directs the Rail Services Planning Office (RSPO) to issue regulations 
prescribing the necessary contents of a notice by Amtrak Commuter 
Services Corporation (Commuter Services Corporation) to discontinue 
commuter service operations. Commuter Services Corporation may 
discontinue commuter service upon 60 days notice if (a) a commuter 
service operating payment (subsidy payment) is not made by a commuter 
authority in accordance with the Standards For Determining Commuter Rail 
Service Continuation Subsidies issued by RSPO, or (b) an applicable 
subsidy payment is not paid when it is due.



Sec. 1157.21  Content and form of the notice.

    The notice to discontinue commuter service operations shall contain 
the following information and shall be in the following form:

Notice of Discontinuance of Commuter Services Corporation's Operation of 
               [Name of Subsidizer] Commuter Rail Service

    Commuter Services Corporation hereby gives 60 days notice that on 
[date of proposed discontinuance] it intends to discontinue the 
operation of commuter rail service currently subsidized by [name of 
subsidizer] in [identify general area to be affected].
    Commuter Services Corporation intends to discontinue the service 
because [name of subsidizer] has [cite reason for discontinuance in 
accordance with 45 U.S.C. 504(d)(1)(A) or (B)] as required by section 
1137 of the Northeast Rail Service Act of 1981.
    Timetables for the commuter service to be discontinued are [list 
timetables for the affected commuter service]. For further information 
contact [specify name and telephone number of a designated 
representative for Commuter Services Corporation and the subsidizer].

Commuter Services Corporation.


[[Page 403]]


    By: (Commuter Services Corporation Authorizing Official and Title).

[Date of Notice]



Sec. 1157.22  Service and posting.

    (a) The notice shall be served by certified mail on the subsidizer, 
the governor, and the designated state agency, and by first class mail 
on the Rail Services Planning Office and the National Railroad Passenger 
Corporation. Service shall be made no less than 3 days prior to the date 
of the notice.
    (b) The notice shall be posted in a conspicuous place in each car of 
all trains affected by the proposed discontinuance and in each station, 
depot, and other facility involved. The posting of the notice shall be 
completed prior to the date of the notice.



PARTS 1158-1159--[RESERVED]






PARTS 1160-1174--NONRAIL LICENSING PROCEDURES--Table of Contents






PART 1160--RULES GOVERNING APPLICATIONS FOR OPERATING AUTHORITY--Table of Contents




             Subpart A--How to Apply for Operating Authority

Sec.
1160.1  Applications governed by these rules.
1160.2  Modified procedure.
1160.3  Starting the application process: Form OP-1.
1160.4  Types of applications.
1160.5  Commission review of the application.
1160.6  Appeals to rejections of the application.
1160.7  Changing the request for authority or filing supplementary 
          evidence after the application is filed.
1160.8  After publication in the ICC Register.
1160.9  Obtaining a copy of the application.
1160.10  Opposed applications.
1160.11  Filing a reply statement.
1160.12  Applicant withdrawal.

             Subpart B--How to Oppose Requests for Authority

1160.40  Definitions.
1160.41  Time for filing.
1160.42  Contents of the protest.
1160.43  Withdrawal.

       Subpart C--General Rules Governing the Application Process

1160.60  Applicable rules.
1160.61  Contacting another party.
1160.62  Serving copies of pleadings.
1160.63  Replies to motions.
1160.64  FAX filings.

    Authority: 5 U.S.C. 553 and 559; 16 U.S.C. 1456; 49 U.S.C. 10101, 
10305, 10321, 10921, 10922, 10923, 10924, 10928, and 11102.

    Source: 59 FR 63728, Dec. 9, 1994, unless otherwise noted.



             Subpart A--How to Apply for Operating Authority



Sec. 1160.1  Applications governed by these rules.

    These rules govern the handling of applications for operating 
authority of the following type:
    (a) Applications for certificates and permits to operate as a motor 
common or contract carrier of property or passengers.
    (b) Applications for permits to operate as a household goods freight 
forwarder.
    (c) Applications for certificates, permits, and exemptions for water 
carrier transportation of property and passengers.
    (d) Applications for licenses to operate as a broker of motor 
vehicle transportation.
    (e) Applications for certificates under 49 U.S.C. 10922(c)(2)(A) to 
operate as a motor common carrier of passengers in intrastate commerce 
on a route over which applicant holds interstate authority as of 
November 19, 1982.
    (f) Applications for certificates under 49 U.S.C. 10922(c)(2)(B) to 
operate as a motor common carrier of passengers in intrastate commerce 
on a route over which applicant has been granted or will be granted 
interstate authority after November 19, 1982.
    (g) Applications for temporary motor and water carrier authority.
    (h) Applications for Mexican carriers to operate in foreign commerce 
as common, contract or private motor carriers of property (including 
exempt items) between the U.S./Mexico border,

[[Page 404]]

and points in California, Arizona, New Mexico and Texas.

[59 FR 63728, Dec. 9, 1994, as amended at 60 FR 63981, Dec. 13, 1995]



Sec. 1160.2  Modified procedure.

    The Commission will handle licensing application proceedings using 
the modified procedure, if possible. The applicant and protestants send 
statements made under oath (verified statements) to each other and to 
the ICC. There are no personal appearances or formal hearings.



Sec. 1160.3  Starting the application process: Form OP-1.

    (a) All applicants shall file the appropriate form in the OP-1 
series, effective January 1, 1995. Form OP-1 for motor property carriers 
and brokers of general freight and household goods; Form OP-1(P) for 
motor passenger carriers; Form OP-1 (FF) for freight forwarders of 
household goods; Form OP-1(W) for water carriers and Form OP-1MX for 
Mexican motor property carriers. A separate filing fee in the amount at 
49 CFR 1002.2(f) is required for each type of authority sought in each 
transportation mode.
    (b) Obtain the form at Commission regional and field offices, or 
call the Commission's automated response number at (202) 927-7600.

[59 FR 63728, Dec. 9, 1994, as amended at 60 FR 63981, Dec. 13, 1996]



Sec. 1160.4  Types of applications.

    (a) Fitness applications. Motor property applications and certain 
types of motor passenger applications require only the finding that the 
applicant is fit, willing and able to perform the involved operations 
and to comply with all applicable statutory and regulatory provisions. 
These applications can be opposed only on the grounds that applicant is 
not fit [e.g., is not in compliance with applicable financial 
responsibility and safety fitness requirements]. These applications are:
    (1) Motor common and contract carrier of property (except household 
goods) , Mexican motor property carriers that perform private carriage 
and transport exempt items, and motor contract carrier of passengers 
transportation.
    (2) Motor carrier brokerage of general commodities (except household 
goods).
    (3) Certain types of motor passenger applications as described in 
Form OP-1 (P).
    (b) Motor passenger ``public interest'' applications as described in 
Form OP-1 (P).
    (c) Intrastate motor passenger applications under 49 U.S.C. 
10922(c)(2)(A) as described in Form OP-1, Schedule B.
    (d) Motor common carrier of household goods applications, including 
Mexican carrier applicants. These applications require a finding that:
    (1) The applicant is fit, willing, and able to provide the involved 
transportation and to comply with all applicable statutory and 
regulatory provisions; and
    (2) The service proposed will serve a useful public purpose, 
responsive to a public demand or need.
    (e) Motor contract carrier of household goods, water contract 
carrier, household goods property broker, and household goods freight 
forwarder applications. These applications require a finding that:
    (1) The applicant is fit, willing, and able to provide the involved 
transportation and to comply with all applicable statutory and 
regulatory provisions; and
    (2) The transportation to be provided will be consistent with the 
public interest and the national transportation policy of 49 U.S.C. 
10101.
    (f) Water common carrier applications. These applications require a 
finding that:
    (1) The applicant is fit, willing, and able to provide the involved 
transportation and to comply with all applicable statutory and 
regulatory provisions; and
    (2) The transportation to be provided is or will be required by 
present or future public convenience and necessity.
    (g) Temporary authority (TA) for motor and water carriers. These 
applications require a finding that there is or soon will be an 
immediate transportation need that cannot be met by existing carrier 
service.


[[Page 405]]


    Note: In view of the expedited time frames established in this part 
for processing requests for permanent authority, applications for TA 
will be entertained only in exceptional circumstances (i.e., natural 
disasters or national emergencies) when evidence of immediate service 
need can be specifically documented in a narrative supplement appended 
to Form OP-1 for motor property carriers, Form OP-1MX for Mexican 
property carriers, Form OP-1(P) for motor passenger carriers, and Form 
OP-1(W) for water carriers. TA applications must be filed with the 
Regional Office which has jurisdiction over the area in which 
applicant's headquarters are located. Initial determinations of TA 
applications will be made by a Regional Motor Carrier Board.

[59 FR 63728, Dec. 9, 1994, as amended at 60 FR 63981, Dec. 13, 1995]



Sec. 1160.5  Commission review of the application.

    (a) ICC staff will review the application for correctness, 
completeness, and adequacy of the evidence (the prima facie case).
    (1) Minor errors will be corrected without notification to the 
applicant.
    (2) Materially incomplete applications will be rejected. 
Applications that are in substantial compliance with these rules may be 
accepted.
    (3) All motor carrier applications will be reviewed for consistency 
with the Commission's operational safety fitness policy. Applicants with 
``Unsatisfactory'' safety fitness ratings from DOT will have their 
applications rejected.
    (4) An employee board of the Commission appointed under 
Sec. 1011.6(g) will review completed applications that conform with the 
Commission's safety fitness policy and that are accompanied by evidence 
of adequate financial responsibility.
    (5) Financial responsibility is indicated by filing within 20 days 
from the date an application notice is published in the ICC Register:
    (i) Form BMC-91 or 91X or BMC 82 surety bond--Bodily injury and 
property damage (motor property and passenger carriers; household goods 
freight forwarders that provide pickup or delivery service directly or 
by using a local delivery service under their control).
    (ii) Form BMC-84--Surety bond or Form BMC-85--trust fund agreement 
(property brokers of general commodities and household goods).
    (iii) Form BMC-34 or BMC 83 surety bond--Cargo liability (motor 
property common carriers and household goods freight forwarders).
    (6) Applicants also must submit Form BOC-3--designation of legal 
process agents--within 20 days from the date an application notice is 
published in the ICC Register.
    (7) Applicants seeking to conduct operations for which tariffs are 
required may not commence such operations until tariffs are on file with 
the Commission and in effect.
    (8) All applications must be completed in English.
    (b) A summary of the application will be published as a preliminary 
grant of authority in the ICC Register to give notice to the public in 
case anyone wishes to oppose the application.

[59 FR 63728, Dec. 9, 1994, as amended at 60 FR 63981, Dec. 13, 1995]



Sec. 1160.6  Appeals to rejections of the application.

    (a) An applicant has the right to appeal rejection of the 
application. The appeal must be filed at the Commission within 10 days 
of the date of the letter of rejection.
    (b) If the appeal is successful and the filing is found to be 
proper, the application shall be deemed to have been properly filed as 
of the decision date of the appeal.



Sec. 1160.7  Changing the request for authority or filing supplementary evidence after the application is filed.

    (a) Once the application is filed, the applicant may supplement 
evidence only with approval of the Commission.
    (b) Amendments to the application generally are not permitted, but 
in appropriate instances may be entertained at the discretion of the 
Commission.



Sec. 1160.8  After publication in the ICC Register.

    (a) Interested persons have 10 days from the date of ICC Register 
publication to file protests. See Subpart B of this part.
    (b) If no one opposes the application, the grant published in the 
ICC Register

[[Page 406]]

will become effective by issuance of a certificate, permit, or license.



Sec. 1160.9  Obtaining a copy of the application.

    After publication, interested persons may request a copy of the 
application by contacting the Commission-designated contract agent (as 
identified in the ICC Register), Room 2229, Interstate Commerce 
Commission Building.



Sec. 1160.10  Opposed applications.

    If the application is opposed, opposing parties are required to send 
a copy of their protest to the applicant.



Sec. 1160.11  Filing a reply statement.

    (a) If the application is opposed, applicant may file a reply 
statement. This statement is due within 20 days after ICC Register 
publication.
    (b) The reply statement may not contain new evidence. It shall only 
rebut or further explain matters previously raised.
    (c) The reply statement need not be notarized or verified. Applicant 
understands that the oath in the application form applies to all 
evidence submitted in the application. Separate legal arguments by 
counsel need not be notarized or verified.



Sec. 1160.12  Applicant withdrawal.

    If the applicant wishes to withdraw an application, it shall request 
dismissal in writing.



             Subpart B--How to Oppose Requests For Authority



Sec. 1160.40  Definitions.

    A person wishing to oppose a request for permanent authority files a 
protest. A person filing a valid protest becomes a protestant.



Sec. 1160.41  Time for filing.

    A protest shall be filed (received at the Commission) within 10 days 
after notice of the application appears in the ICC Register. A copy of 
the protest shall be sent to applicant's representative at the same 
time. Failure timely to file a protest waives further participation in 
the proceeding.



Sec. 1160.42  Contents of the protest.

    (a) All information upon which the protestant plans to rely is put 
into the protest.
    (b) A protest must be verified, as follows:

    I, ____________________, verify under penalty of perjury under laws 
of the United States of America, that the information above is true and 
correct. Further, I certify that I am qualified and authorized to file 
this protest. (See 18 U.S.C. 1001 and 18 U.S.C. 1621 for penalties.)

(Signature and Date)

    (c) A protest not in substantial compliance with applicable 
statutory standards or these rules may be rejected.
    (d) Protests must respond directly to the statutory standards for 
Commission review of the application. As these standards vary for 
particular types of applications, potential protestants should refer to 
the general criteria addressed at Sec. 1160.4 of this part and may 
consult the Commission at (202) 927-7600 for further assistance in 
developing their evidence.



Sec. 1160.43  Withdrawal.

    A protestant wishing to withdraw from a proceeding shall inform the 
Commission and applicant in writing.



       Subpart C--General Rules Governing the Application Process



Sec. 1160.60  Applicable rules.

    Generally, all application proceedings are governed by the 
Commission's Rules of Practice at 49 CFR parts 1100-1105 and 1112-1117, 
except as designated below.



Sec. 1160.61  Contacting another party.

    When a person wishes to contact a party or serve a pleading or 
letter on that party, it shall do so through its representative. The 
phone and FAX numbers and address of applicant's representative shall be 
listed in the ICC Register.



Sec. 1160.62  Serving copies of pleadings.

    (a) An applicant must serve all pleadings and letters on the 
Commission and

[[Page 407]]

all known participants in the proceeding, except that a reply to a 
motion need only be served on the moving party.
    (b) A protestant need serve only the Commission and applicant with 
pleadings or letters.



Sec. 1160.63  Replies to motions.

    Replies to motions filed under this part are due within 5 days of 
the date the motion is filed at the Commission.



Sec. 1160.64  FAX filings.

    FAX filings of applications and supporting evidence are not 
permitted. To assist parties in meeting the expedited time frames 
established for protesting an application, however, the Commission will 
accept FAX filings of protests and any reply or rebuttal evidence. FAX 
filings of these pleadings must be followed by the original document, 
plus one copy for Commission recordkeeping purposes.



PART 1166--EXTENSION OF OPERATIONS BY WATER COMMON CARRIER--Table of Contents




Sec.
1166.1  Applicability.
1166.2  Issuance of a certificate without proof of public convenience 
          and necessity.
1166.3  Conditions and procedures.

    Authority: 49 U.S.C. 10321 and 10922; 5 U.S.C. 559.

    Source: 47 FR 49590, Nov. 1, 1982, unless otherwise noted.



Sec. 1166.1  Applicability.

    The rules in this part provide special procedures by which water 
common carriers subject to the Commission's jurisdiction under 
subchapter III of chapter 105 of title 49 of the United States Code 
operating over a given waterway may extend their operations over newly 
completed sections of that waterway as they are opened to navigation. 
These rules implement 49 U.S.C. 10922(f)(3)(B).



Sec. 1166.2  Issuance of a certificate without proof of public convenience and necessity.

    If a water carrier complies with the conditions and procedures set 
forth in Sec. 1166.3 of this part, a certificate of public convenience 
and necessity covering extended operations over a newly opened section 
of a waterway will be issued without proof of public convenience and 
necessity.



Sec. 1166.3  Conditions and procedures.

    To obtain a certificate under this part, a water carrier must:
    (a) Hold authority to operate over a previously opened portion of 
the waterway involved;
    (b) Institute service over the newly completed portion of the 
waterway within 120 days after it is opened to navigation; and
    (c) File its application, on Commission Form OP-1(W), not later than 
the date of the filing of tariffs establishing rates and charges for 
transportation of passengers or property over the portion of the 
waterway embraced in the application, and in no event later than the 
date on which the extended operations are instituted.

[47 FR 49590, Nov. 1, 1982, as amended at 59 FR 63730, Dec. 9, 1994]



PART 1167--COMPENSATED INTERCORPORATE HAULING--Table of Contents




Sec.
1167.1  Applicability.
1167.2  Notification.
1167.3  Change in participation.

    Authority: 49 U.S.C. 10321 and 10524; 5 U.S.C. 559.

    Source: 55 FR 11204, Mar. 27, 1990, unless otherwise noted.



Sec. 1167.1  Applicability.

    Compensated transportation service by a member of a corporate family 
for other members of the same family (Compensated Intercorporate Hauling 
or CIH) is exempt from Interstate Commerce Commission regulation if 
proper notice is given. To qualify for the exemption, the participants 
must be members of a corporate family in which the parent owns, either 
directly or indirectly, a 100 percent interest in the subsidiaries. 
However, no corporation operating chiefly as a for-hire carrier may use 
an affiliate operating under the exemption of 49 U.S.C.

[[Page 408]]

10524(b) to transport freight tendered to it as a carrier.



Sec. 1167.2  Notification.

    (a) General requirements. The corporate parent seeking to initiate 
CIH must submit a Federal Register notice as follows:

    Notice of Intent to Engage in Compensated Intercorporate Hauling 
                               Operations

    This is to provide notice as required by 49 U.S.C. 10524(b)(1) that 
the named corporations intend to provide or use compensated 
intercorporate hauling operations as authorized in 49 U.S.C. 10524(b).
    1. Parent corporation and address of principal office:
    2. Wholly owned subsidiaries which will participate in the 
operations, and State(s) of incorporation:

    (b) Affidavit and declaration. The notice shall include the 
following affidavit and declaration (which need not be notarized) by a 
person legally qualified to act for the parent:

    I, ____________, affirm that ____________________ is a corporation 
which directly or indirectly owns a 100 percent interest in the 
subsidiaries participating in compensated intercorporate hauling under 
49 U.S.C. 10524(b), listed in the attached notice.
    I declare under penalty of perjury under the laws of the United 
States that the foregoing is true.
_______________________________________________________________________
    (Signature and date)

    (c) To whom notice sent. The original and one copy of the notice of 
intent to engage in CIH shall be sent to the Commission in an envelope 
marked: ``CIH Notice.'' The Secretary's Office will issue an 
acknowledgment indicating whether the submission is in order, and giving 
a projected publication date. CIH operations may commence as soon as the 
required notice is placed in the mails or, if hand-delivered, upon 
receipt at the Commission's office.
    (d) Cover letter requirement. Where the office that has prepared a 
notice for a corporate family differs from the one executing the notice, 
that office shall be identified in a cover letter attached to the 
tendered notice.
    (e) Miscellaneous. The filing of a CIH notice does not initiate a 
proceeding before the Commission. Publication of a notice is a 
ministerial function and does not indicate Commission investigation or 
affirmation of the representations appearing in the notice concerning 
corporate affiliation nor does it create a right of protest.
    (f) Fees. All required filings shall include the appropriate fee. 
See 49 CFR part 1002.

[55 FR 11204, Mar. 27, 1990, as amended at 55 FR 47338, Nov. 13, 1990]



Sec. 1167.3  Change in participation.

    (a) If the parent intends that an additional subsidiary participate 
in CIH, it shall file an updated notice.
    (b) Whenever the corporate parent's interest in a subsidiary 
participating in CIH becomes less than 100 percent, operations under 49 
U.S.C. 10524(b) by or for that subsidiary shall be discontinued and the 
parent shall file an updated notice within 10 days.
    (c) Updated notices shall be submitted in the format required by 
Sec. 1167.3(a), and will be published in the Federal Register.
    (d) An updated notice need not be filed where an action by a 
corporate family affects the status of a member participating in CIH, 
but the scope of the operations remains unchanged--e.g., absorption of a 
subsidiary into a parent resulting in extinction of its separate 
corporate status. However, name changes require an updated notice.



PART 1170--EMPLOYEE PROTECTION FOR MOTOR PASSENGER CARRIERS--Table of Contents




Sec.
1170.1  Applicability.
1170.2  Application.
1170.3  Opposition.
1170.4  Commission action.
1170.5  List of available jobs.

    Authority: 49 U.S.C. 10321; 5 U.S.C. 553; and Pub. L. 97-261, sec. 
27.

    Source: 55 FR 11206, Mar. 27, 1990, unless otherwise noted.



Sec. 1170.1  Applicability.

    Section 27 of the Bus Regulatory Reform Act of 1982 is designed to 
protect employees of bus companies who lose their jobs because of 
reduction or discontinuance of regular-route bus service. These rules 
govern applications

[[Page 409]]

under section 27 by individuals seeking a determination of eligibility 
for protection. To be eligible for protection in the form of priority in 
seeking reemployment, the individual must have worked for a bus company 
on or before September 20, 1980, and have been fired after September 20, 
1982 because of a reduction or discontinuance of regular-route bus 
operations. Furloughed personnel who have a right of recall by their 
employer are not eligible.



Sec. 1170.2  Application.

    (a) The application shall contain the following information:
    (1) The caption ``Bus Employment Protection Application'', at the 
top of page one;
    (2) The individual's name and address;
    (3) The full name and ``MC'' number of the carrier by whom the 
individual was employed;
    (4) The dates on which the individual's employment with that carrier 
began and terminated;
    (5) The reason(s) for the termination;
    (6) The specific discontinuance or reduction of service that caused 
the termination; and
    (7) The individual's occupational specialty.
    (b) The lower left corner of the envelope should be marked: ``Bus 
Employment Protection Application:'', followed by applicant's full name. 
(If there is more than one applicant, list only one name and indicate 
the number of others.)
    (c) A copy of the application must be sent to the carrier by whom 
the individual was employed.



Sec. 1170.3  Opposition.

    (a) Any interested person may contest the application within 20 days 
after its filing.
    (b) A letter or other written statement contesting an application 
shall include evidence showing that discontinuance or reduction in 
service was not a contributing factor to the termination of applicant's 
employment, and/or that the applicant or the circumstances are not 
covered by the statutory criteria.
    (c) The lower left corner of the envelope should be marked: ``Bus 
Employment Protection Opposition:'', followed by the applicant's name as 
prescribed at Sec. 1170.2(b).
    (d) Applicant may reply to any opposition within 15 days after it is 
filed. A motion must be filed within 15 days after the pleading it 
addresses is filed.



Sec. 1170.4  Commission action.

    A decision disposing of an unopposed application will be served 
within 30 days after the application is filed. If the application is 
contested, a decision will be served within 60 days after the 
application is filed. Appeals are governed by 49 CFR 1115.2.



Sec. 1170.5  List of available jobs.

    (a) Every carrier having annual gross revenues of over $3,000,000 
derived from motor passenger common carrier operations shall, and any 
other motor passenger common carrier may, furnish to any Commission 
regional office a monthly list of available jobs, unless the carrier has 
no new job openings. The list must include a job description, job 
location, and the skills required for each available position.
    (b) The Commission will publish and make available at all its 
offices a comprehensive list of available jobs, entitled Jobs Available 
From Class I Motor Passenger Carriers. A copy of the list will be mailed 
to each applicant, and to each eligible individual for 6 months 
following the Commission's determination of his eligibility, subject to 
renewal at his request. Additional copies will be available by paid 
subscription. Information may be obtained from the Office of the 
Secretary, room 2221, Interstate Commerce Commission, 12th & 
Constitution Avenue, NW., Washington, DC 20423.



PART 1171--APPLICATIONS FOR CERTIFICATES OF REGISTRATION BY FOREIGN MOTOR CARRIERS AND FOREIGN MOTOR PRIVATE CARRIERS UNDER 49 U.S.C. 10530--Table of Contents




Sec.
1171.1  Controlling legislation.
1171.2  Definitions.
1171.3  Procedures used generally.
1171.4  Information on Form OP-2.
1171.5  Where to send the application.

[[Page 410]]

1171.6  Commission review of the application.
1171.7  Appeals.

    Authority: 49 U.S.C. 10922 and 10530, 5 U.S.C. 553.



Sec. 1171.1  Controlling legislation.

    (a) These rules govern applications filed under 49 U.S.C. 10530. 
Under this section certain foreign motor carriers and motor private 
carriers must hold a certificate of registration to provide certain 
interstate transportation services otherwise outside the jurisdiction of 
the Commission. Neither a foreign motor carrier nor a foreign motor 
private carrier may provide interstate transportation of property unless 
the Commission has issued the carrier a certificate of registration. The 
service allowable under a certificate of registration is described in 49 
U.S.C. 10922(1)(2)(B).
    (b) These rules apply only to carriers of a contiguous foreign 
country with respect to which a moratorium is in effect under 49 U.S.C. 
10922(l)(1).

[50 FR 20773, May 20, 1985, as amended at 54 FR 42958, Oct. 19, 1989]



Sec. 1171.2  Definitions.

    (a) The Act. The Truck and Bus Safety and Regulatory Reform Act of 
1988.
    (b) Foreign motor carrier. A person transporting the goods of others 
for hire (including a motor carrier of property):
    (1) Which does not hold a certificate or permit issued under 49 
U.S.C. 10922 or 10923;
    (2) Which is domiciled in any contiguous foreign country, or is 
owned or controlled by persons of any contiguous foreign country, and is 
not domiciled in the United States; and
    (3) In the case of a person which is not a motor carrier of 
property, which provides interstate transportation of property under an 
agreement or contract with a motor carrier of property (except a motor 
carrier described in (b)(2) of this section).
    (c) Foreign motor private carrier. A person transporting its own 
goods (including a motor private carrier):
    (1) Which is domiciled in any contiguous foreign country;
    (2) Which is owned or controlled by persons of any contiguous 
foreign country, and is not domiciled in the United States; and
    (3) In the case of a person which is not a motor private carrier 
which provided interstate transportation of property by motor vehicle 
under an agreement or contract entered into with a person (other than a 
motor private carrier described in (c) (1) and (2) of this section).
    (d) Exempt items. Commodities described in detail at or transported 
under 49 U.S.C. 10526(a)(4), (5), (6), (11), (12), (13), and (15).
    (e) Interstate transportation. Transportation described at 49 U.S.C. 
10521, and transportation in the United States otherwise exempt from the 
Commission's jurisdiction under 49 U.S.C. 10526(b)(1).
    (f) Fit, willing, and able. Safety fitness and proof of minimum 
financial responsibility as defined in 49 U.S.C. 10530(e).
    (g) Motor vehicle taxes. Taxes imposed under 26 U.S.C. 4481.
    (h) Most recent taxable period. Same as defined in 26 U.S.C. 
4482(c).

[50 FR 20773, May 20, 1985, as amended at 54 FR 42959, Oct. 19, 1989]



Sec. 1171.3  Procedures used generally.

    (a) All applicants must file a completed Form OP-2. All required 
information must be submitted in English on the Form OP-2. The 
application will be decided based on the submitted Form OP-2 and any 
attachments. Notice of the authority sought will not be published in 
either the Federal Register or the ICC Register. Protests or comments 
will not be allowed (except for intervention by the Department of 
Transportation). There will be no oral hearings.
    (b) Under the statute, the carriers covered must have a copy of a 
valid certificate of registration in any vehicle providing 
transportation within the scope of the statute.
    (c) Form OP-2 may be obtained at any of the Commission's Regional 
Offices or by contacting the Commission's Office of Public Assistance.
    (d) Applicants must concurrently serve a copy of their completed 
applications on the United States Department of Transportation, Federal 
Highway Administration, Office of Motor

[[Page 411]]

Carriers (DOT). DOT may intervene in any proceeding on the issue of 
safety fitness by filing an appropriate pleading detailing its reasons 
for opposing a grant of authority. The pleading must be filed within 20 
days of receiving a copy of the application. Applicant may respond to 
any such pleading within 20 days of its filing.

[50 FR 20773, May 20, 1985, as amended at 54 FR 42959, Oct. 19, 1989; 58 
FR 29361, May 20, 1993]



Sec. 1171.4  Information on Form OP-2.

    (a) Applicants must furnish all information required on Form OP-2 by 
completing all spaces on the form and providing any necessary 
attachments. Failure to do so will result in rejection of the 
application.
    (b) Notarization of the application is not required; however, 
applicants are subject to applicable Federal penalties for filing false 
information.

[50 FR 20773, May 20, 1985]



Sec. 1171.5  Where to send the application.

    (a) The original and one copy of the application shall be filed with 
the Regional Office that has jurisdiction over applicant's point of 
domicile (the instructions to the application provide more specific 
information), or at such other location as the Commission may designate 
in special circumstances. A check or money order for the amount of the 
filing fee set forth at 49 CFR 1002.2(f)(1), payable to the Interstate 
Commerce Commission in United States dollars, must be submitted.
    (b) One copy of the application shall be sent to the U.S. Department 
of Transportation, Federal Highway Administration, Office of Motor 
Carriers, Washington, DC 20590.

[58 FR 29361, May 20, 1993]



Sec. 1171.6  Commission review of the application.

    (a) Commission staff will review the application for correctness, 
completeness, and adequacy of the evidence.
    (1) Minor errors will be corrected without notification to the 
applicant.
    (2) Materially incomplete applications will be rejected.
    (b) Except in those proceedings in which the Department of 
Transportation intervenes under Sec. 1171.3(d), compliance will be 
determined solely on the basis of the application. An employee review 
board will decide whether the authority sought falls under the statute, 
and whether and to what extent the evidence warrants a grant of 
authority.
    (1) If the authority sought does not require a certificate of 
registration, or if the evidence does not warrant a grant of the 
authority sought, the employee review board will deny the application in 
whole or in part. In the case of a full or partial denial of an 
application, the Commission will inform the applicant by letter setting 
forth the reasons for the denial.
    (2) If the employee board grants all or part of the application, the 
Commission will issue a certificate of registration authorizing 
specified operations provided that applicant has demonstrated compliance 
with 49 CFR 1044 (designation of process agent). If applicant has not 
complied with this requirement, the Commission will issue a notice 
stating that a certificate of registration will be issued upon such 
compliance. No certificate of registration shall be issued prior to 
compliance.
    (c) If the Department of Transportation intervenes under 49 CFR 
1171.3(d), the proceeding will be decided by the Commission. If the 
Commission grants all or part of the application, it will issue a 
certificate in accordance with the procedure described in 49 CFR 
1171.6(b)(2).

[50 FR 20773, May 20, 1985, as amended at 50 FR 40030, Oct. 1, 1985; 54 
FR 42959, Oct. 19, 1989; 54 FR 52035, Dec. 20, 1989; 55 FR 47338, Nov. 
13, 1990]



Sec. 1171.7  Appeals.

    A decision disposing of an application subject to these rules is a 
final action of the Commission. Review of such an action on appeal is 
governed by the Commission's appeal regulations at Sec. 1115.2.

[50 FR 20773, May 20, 1985]

[[Page 412]]



PARTS 1172-1174--[RESERVED]






PART 1176--[RESERVED]






PARTS 1177-1199--FINANCE PROCEDURES--Table of Contents






PARTS 1177-1179--SECURITIES, SECURITY INTERESTS AND FINANCIAL STRUCTURES--Table of Contents






PART 1177--RECORDATION OF DOCUMENTS--Table of Contents




Sec.
1177.1  Definitions and classifications of documents.
1177.2  To whom documents should be submitted for recordation.
1177.3  Requirements for submission.
1177.4  Sample forms.
1177.5  Administrative procedure.

    Authority: 49 U.S.C. 10321 and 11303; 5 U.S.C. 559.

    Source: 46 FR 54946, Nov. 5, 1981, unless otherwise noted. 
Redesignated at 47 FR 49592, Nov. 1, 1982.



Sec. 1177.1  Definitions and classifications of documents.

    (a) A ``primary document'' is a mortgage (excluding those under the 
Ship Mortgage Act of 1920, as amended--46 U.S.C. et seq.), lease, 
equipment trust agreement, conditional sales agreement, assignment of a 
lease or leases which have not previously been filed, or other 
instrument evidencing the mortgage, lease, conditional sale, or bailment 
of one or more vessels operated subject to Interstate Commerce 
Commission jurisdiction, railroad cars, locomotives, or other rolling 
stock for a use related to interstate commerce.
    (b) A ``secondary document'' is any assignment of rights or 
interest, supplement, or amendment to any primary or other secondary 
document. These include releases, discharges, or satisfactions, either 
total or partial.



Sec. 1177.2  To whom documents should be submitted for recordation.

    Documents to be recorded shall be submitted in person or by mail 
addressed to the Secretary, Interstate Commerce Commission, Washington, 
DC 20423. All documents submitted by mail should clearly state 
``Documents for Recordation'' on the envelope.



Sec. 1177.3  Requirements for submission.

    In order to be accepted for recordation, an original of any primary 
or secondary document must:
    (a) Be in writing and executed by the parties to the document, and 
acknowledged or verified either in a form:
    (1) Authorized by the law of the state, territory, district or 
possession where executed for the acknowledgement or verification of 
deeds of land; or
    (2) Substantially as follows:

                   Individual Form of Acknowledgement

    I, (name of signor), certify that I am the person described in and 
who executed the foregoing instrument and that I acknowledge that I 
executed the same as my free act and deed. I further declare (certify, 
verify or state) under penalty of perjury (``under the laws of the 
United States of America'' if executed outside the United States) that 
the foregoing is true and correct. Executed on (date).

    Signature.

or;

                    Corporate Form of Acknowledgement

    I, (name of signor), certify that I am (title of office) of (name of 
corporation), that the seal affixed to the foregoing instrument is the 
corporate seal of said corporation, that the instrument was signed and 
sealed on behalf of the corporation by authority of its Board of 
Directors, and that I acknowledge that the execution of the foregoing 
instrument was the free act and deed of the corporation. I further 
declare (certify, verify or state) under penalty of perjury (``under the 
laws of the United States of America'' if executed outside the United 
States of America) that the foregoing is true and correct. Executed on 
(date).

    Signature.

or;
    (3) Substantially as follows:

                   Individual Form of Acknowledgement

                  State of ____________________________

                County of __________________________, ss:

    On this ________ day of ________, 19____, before me, personally 
appeared (name of signor), to me known to be the person described in and 
who executed the foregoing instrument and (s)he acknowledged that (s)he 
executed the same as his/her free act and deed.
(SEAL)

[[Page 413]]

_______________________________________________________________________
Signature of Notary Public
My commission expires___________________________________________________

                    Corporate Form of Acknowledgement

State of _______________________________________________________________
County of __________________________, ss:_______________________________
    On this ________ day of ________, 19____ before me personally 
appeared (name of signor), to me personally known, who being by me duly 
sworn, says that (s)he is the (title of office) of (name of 
corporation), that the seal affixed to the foregoing instrument is the 
corporate seal of said corporation, that said instrument was signed and 
sealed on behalf of said corporation by authority of its Board of 
Directors, and (s)he acknowledged that the execution of the foregoing 
instrument was the free act and deed of said corporation.
(SEAL)
_______________________________________________________________________
Signature of Notary Public
My commission expires___________________________________________________
    (b) Be accompanied by at least one fully executed and acknowledged 
or verified counterpart, or if no counterpart has been executed and 
acknowledged by the parties, one certified true copy. A certified true 
copy of an original document is a complete and identical copy in all 
respects to the original attached with:
    (1) A certificate executed by a notary public, stating that he or 
she has compared the copy with the original and has found the copy to be 
complete and identical in all respects to the original document; or
    (2) A certification of the filer stating that he or she has compared 
the copy with the original and found the copy to be complete and 
identical in all respects to the original document and that he or she 
declares under penalty of perjury (``under the laws of the United States 
of America'' if executed outside the United States) that the foregoing 
is true and correct; or
    (3) There may be attached to the copy, affidavits, wherein the 
affidavit states that he or she has compared the copy with the original 
document and found the copy to be complete and identical in all respects 
to the original documents.
    (c) Be accompanied by the fee set forth in 49 CFR 1002.2(f)(84). 
However, assignments which are executed prior to the filing of the 
primary document and which are submitted concurrently will be treated 
along with the primary document as one for fee purposes and will be 
assessed only one fee. A lease and agreement (Philadelphia Plan) shall 
be similarly treated.
    (d) Be accompanied by a letter of transmittal requesting the 
recording of the document. For a sample of a letter, see Sec. 1177.4 
Documents submitted concurrently under the same recordation number may 
be included in a single transmittal letter. Otherwise, each document 
must have its own letter of transmittal. The letter should be addressed 
to the Secretary and include the following information:
    (1) Type of Agreement. (equipment trust, mortgage, assignment, 
etc.).
    (2) Whether document is a primary document or a secondary document 
(see Sec. 1177.1). If the document is a secondary document, it must 
contain the recordation number of the primary document to which it is 
connected, unless it is being filed concurrently with a primary document 
to which a recordation number has not yet been assigned.
    (3) A request for cross-indexing. If the document is an assignment, 
parties may request the listing of the assignment in the index under the 
name(s) of parties with continuing interest not involved in this 
particular assignment.
    (4) A description of the equipment covered in the document--(i) For 
railway equipment--The type of equipment; whether locomotives, cars, or 
other rolling stock; with any A.A.R. mechanical designation; the number 
of each type; any identifying marks such as the name or initials of the 
lessee, mortgagee, or vendee, and the road or serial number, or if more 
than one for each type of equipment, the first and last inclusive 
numbers.
    (ii) For water carrier equipment--Whether tow boats, barges or other 
vessels; type of equipment; description as contained in the United 
States Coast Guard certificate of enrollment; number of each type of 
equipment; and any identifying marks such as the name or initial of the 
lessee, mortgagee, or vendee.
    (5) Parties to the agreement, as follows:
    (i) Conditional sale-vendor, purchaser, guarantor.
    (ii) Mortgage--mortgagor, mortgagee, guarantor.

[[Page 414]]

    (iii) Equipment Trust--vendor, trustee, lessor, lessee, guarantor of 
lease.
    (iv) Lease--lessee, lessor, guarantor.
    (v) Bailment--bailor, bailee, guarantor.
    (vi) Other transactions--principal debtor, trustee, guarantor, and 
other parties.
    (6) Parties to whom original document should be returned.
    (7) The amount of the enclosed fee.
    (8) A short summary (1 or 2 sentences) of the type of document and a 
very brief description of the equipment and identifying numbers. This 
summary will be entered into the index as an aid to researching the 
encumbrances to title. (For a sample of a summary, see Sec. 1177.4).
    (9) The letter must be signed by an executive officer of one of the 
parties having knowledge of the matters described in the letter, or 
their attorney or representative in fact.

    Note: If the document is a mortgage or deed of trust which contains 
a ``hereafter acquired'' or similar clause, the following statement may 
be included in the letter of transmittal in lieu of the equipment 
description above:

    ``Included in the property covered by the aforesaid mortgage (or 
deed of trust) are (here identify generally the equipment such as 
``barges, tow boats, or other vessels, railroad cars, locomotives and 
other rolling stock'') intended for use related to interstate commerce, 
or interests therein, owned by (name of mortgagor) at the date of said 
mortgage or thereafter acquired by it or its successors as owners of the 
water carriers or the lines of railway covered by the mortgage.''

When such a mortgage or deed of trust is filed, it is not necessary to 
refile the document whenever additional rolling stock is acquired in 
order to perfect the lien of the document upon the addition of vessels 
or rolling stock.

(5 U.S.C. 553, 31 U.S.C. 9701; 49 U.S.C. 10321)

[46 FR 54946, Nov. 5, 1981. Redesignated at 47 FR 49592, Nov. 1, 1982 
and amended at 52 FR 46484, Dec. 8, 1987; 56 FR 10520, Mar. 13, 1991; 56 
FR 12423, Mar. 25, 1991]



Sec. 1177.4  Sample forms.

    (a) Sample short summary for the Index.
    (1) Primary documents. [Type of document] between [name and address 
of lessor, mortgagor, bailor, etc.] and [name and address of lessee, 
mortgagee, bailee, etc.] dated [date], and covering [briefly list amount 
and types of equipment].
    (2) Secondary documents. (i) If an assignment--Assignment between 
[name and address of assignor] and [name and address of assignee] dated 
[date of assignment] and covering [list amount and types of equipment], 
and connected to [type of document primary document is] with Recordation 
No. [recordation number of the primary document if known, at time 
recorded].
    (ii) Other secondary documents--[Type of document] to [type of 
primary document] with Recordation No. [Recordation number of the 
primary document], dated [date of amendment, supplement, release, etc.] 
and covering [list amount and types of equipment].
    (b) Sample Letter of Transmittal.

[Secretary's Name] Secretary, Interstate Commerce Commission, 
Washington, D.C.

    Dear Secretary: I have enclosed an original and one copy/counterpart 
of the document(s) described below, to be recorded pursuant to Section 
11303 of Title 49 of the U.S. Code.
    This document is a [mortgage, lease, equipment trust, supplement, 
etc.], a [primary or secondary] document, dated [date].
    (If a secondary document)--The primary document to which this is 
connected is recorded under Recordation No. ____.
    (If an assignment)--We request that this assignment be cross-
indexed.
    The names and addresses of the parties to the documents are as 
follows:

    Vendor, Lessor, Mortgagor, etc: [name and address]
    Vendee, Lessee, Mortgagee, etc: [name and address].

    A description of the equipment covered by the document follows:

    [Type of equipment, amount of each, AAR designation if any, 
identifying marks, road or serial numbers, etc., as outlined in 
1177.3(d)(4).]

    A fee of ____________ is enclosed. Please return the original and 
any extra copies not needed by the Commission for recordation to [party 
to whom documents should be returned].
    A short summary of the document to appear in the index follows: [a 
short summary as described in 1177.4(a).).
      Very truly yours,

_______________________________________________________________________

[signature of an executive officer of one of the parties, their 
attorney, or representative in fact.]

[[Page 415]]



Sec. 1177.5  Administrative procedure.

    (a) At the time of filing of a document with the Commission for 
recordation, a consecutive number will be stamped upon the original 
document and upon the copies or the counterparts, with the date and hour 
of the filing. A notation acknowledging that the document has been filed 
pursuant to 49 U.S.C. 11303 will be made. The original document, along 
with the notation, will be returned to the party named in the 
transmittal letter and a copy or counterpart will be retained by the 
Commission. For a secondary document, the number assigned will be the 
recordation number of the primary document plus the next available 
letter suffix.
    (b) The Commission will maintain an index for public use as required 
by 49 U.S.C 11303(b). There will be an index of parties to documents 
recorded at the Commission in alphabetical order by the party's name. If 
requested by the letter of transmittal, this index will also be amended 
to reflect an assignment under the name of the party other than the 
assignor or assignee to the document. There will also be an index of 
documents by number, which will list secondary documents referenced to 
the primary ones. The indexes will contain the pertinent information 
furnished by the parties in the transmittal letter.
    (c) The Commission cannot judge the validity of documents, nor judge 
the status of encumbrances to property as reflected by documents 
recorded at the Commission. The public is welcome to research the 
records or use an agent or attorney to do so, provided that Commission 
rules concerning handling of the documents are respected.
    (d) The public should note that filing documents with the Commission 
is discretionary and encumbrances exist which are not on file with the 
Commission.



PARTS 1178-1179--[RESERVED]






PARTS 1180-1189--COMBINATIONS AND OWNERSHIP--Table of Contents






PART 1180--RAILROAD ACQUISITION, CONTROL, MERGER, CONSOLIDATION PROJECT, TRACKAGE RIGHTS, AND LEASE PROCEDURES--Table of Contents




                Subpart A--General Acquisition Procedures

Sec.
1180.0  Scope and purpose.
1180.1  General policy statement for merger or control of at least two 
          Class I railroads.
1180.2  Types of transactions.
1180.3  Definitions.
1180.4  Procedures.
1180.5  [Reserved]
1180.6  Supporting information.
1180.7  Market analyses.
1180.8  Operational data.
1180.9  Financial information.

Subpart B--Transfer or Operation of Lines of Railroads in Reorganization

1180.20  Procedures.

    Authority: 49 U.S.C. 10321, 10505, 11341, 11343-11346; 5 U.S.C. 553 
and 559; and 11 U.S.C. 1172.



                Subpart A--General Acquisition Procedures

    Source: 47 FR 9844, Mar. 8, 1982, unless otherwise noted. 
Redesignated at 47 FR 49592, Nov. 1, 1982.



Sec. 1180.0  Scope and purpose.

    These regulations set out the information to be filed and the 
procedures to be followed in control, merger, acquisition, lease, 
trackage rights, and any other consolidation transaction involving more 
than one railroad that is initiated under 49 U.S.C. 11343. Section 
1180.2 separates these transactions into four types: Major, significant, 
minor, and

[[Page 416]]

exempt. The informational requirements for these types of transactions 
differ. Before an application is filed, the designation of type of 
transaction may be clarified or certain of the information required may 
be waived upon petition to the Commission. This procedure is explained 
in Sec. 1180.4. The required contents of an application are set out in 
Secs. 1180.6 (general information supporting the transaction), 1180.7 
(competitive and market information), 1180.8 (operational information) 
and 1180.9 (financial data). A major application must contain the 
information required in Secs. 1180.6(a), 1180.6(b), 1180.7, 1180.8(a), 
and 1180.9. A significant application must contain the information 
required in Secs. 1180.6(a), 1180.6(c), 1180.7, and 1180.8(a). A minor 
application must contain the information required in Secs. 1180.6(a) and 
1180.8(b). Procedures (including time limits, filing requirements, 
participation requirements, and other matters) are contained in 
Sec. 1180.4. Index I lists all exhibits and indicates the type of 
application for which the exhibit is required. Index II is a table of 
contents of this subpart. All applicants must comply with the 
Commission's Rules of General Applicability, 49 CFR parts 1100-1129, 
unless otherwise specified. These regulations may be cited as the 
Railroad Consolidation Procedures.

[47 FR 9844, Mar. 8, 1982. Redesignated at 47 FR 49592, Nov. 1, 1982, 
and amended at 58 FR 63104, Nov. 30, 1993]



Sec. 1180.1  General policy statement for merger or control of at least two Class I railroads.

    (a) General. The Interstate Commerce Commission encourages private 
industry initiative that leads to the rationalization of the nation's 
rail facilities and reduction of its excess capacity. One means of 
accomplishing these ends is rail consolidation. However, the Commission 
does not favor consolidations through the exercise of managerial and 
financial control if the controlling entity does not assume full 
responsibility for carrying out the controlled carrier's common carrier 
obligation to provide adequate service upon reasonable demand. 
Furthermore, the Commission does not favor consolidations that 
substantially reduce the transport alternatives available to shippers 
unless there are substantial and demonstrable benefits to the 
transaction that cannot be achieved in a less anticompetitive fashion. 
Our analysis of the competitive impacts of a consolidation is especially 
critical in light of the Congressionally mandated commitment to give 
railroads greater freedom to price without regulatory interference.
    (b) Consolidation criteria. The Commission's consideration of the 
merger or control of at least two class I railroads is governed by the 
criteria prescribed in 49 U.S.C. 11344 and by the rail transportation 
policy set forth in 49 U.S.C. 10101a.
    (1) Section 11344 directs the Commission to approve consolidations 
which are consistent with the public interest. In examining a proposed 
transaction, the Commission must consider, at a minimum:
    (i) The effect on the adequacy of transportation to the public;
    (ii) The effect of including, or failing to include, other rail 
carriers in the area involved in the proposed transaction;
    (iii) The total fixed charges that would result;
    (iv) The interest of affected carrier employees; and
    (v) The effect on competition among rail carriers in the affected 
region.
    (2) The Commission must also consider the impact of any transaction 
on the quality of the human environment and the conservation of energy 
resources.
    (c) Public interest considerations. In determining whether a 
transaction is in the public interest, the Commission performs a 
balancing test. It weighs the potential benefits to applicants and the 
public against the potential harm to the public. The Commission will 
consider whether the benefits claimed by applicants could be realized by 
means other than the proposed consolidation that would result in less 
potential harm to the public.
    (1) Potential benefits. Both the consolidated carrier and the public 
can benefit from a consolidation if the result is a financially sound 
competitor better able to provide adequate service on demand. This 
beneficial result can

[[Page 417]]

occur if the consolidated carrier is able to realize operating 
efficiencies and increased marketing opportunities. Since consolidations 
can lead to a reduction in redundant facilities and thereby to an 
increase in traffic density on underused lines, operating efficiencies 
may be realized. Furthermore, consolidations are the only feasible way 
for rail carriers to enter many new markets other than by contractual 
arrangement, such as for joint use of rail facilities or run-through 
trains. In some markets where there is sufficient existing rail capacity 
the construction of new rail line is prohibitively expensive and does 
not represent a feasible means of entry into the market.
    (2) Potential harm. There are two potential results from 
consolidations which would ill serve the public--reduction of 
competition and harm to essential services. In analyzing these impacts, 
we must consider, but are not limited by, the policies embodied in 
antitrust laws.
    (i) Reduction of competition. If two carriers serving the same 
market consolidate, the result would be the elimination of the 
competition between the two. Even if the consolidating carriers do not 
serve the same market, there may be a lessening of potential competition 
in other markets. While the reduction in the number of competitors 
serving a market is not in itself harmful, a lessening of competition 
resulting from the elimination of a competitor may be contrary to the 
public interest. The Commission recognizes that rail carriers face not 
only intramodal competition, but also intermodal competition from motor 
and water carriers. The Commission's competitive analysis depends on the 
relevant market(s). In some markets the Commission's focus will be on 
the preservation of effective intermodal competition, while in other 
markets (such as long-haul movements of bulk commodities) effective 
intramodal competition may also be important.
    (ii) Harm to essential service. Consolidations often result in 
shifts of market patterns. Sometimes the carrier losing its share of the 
market may not be able to withstand the loss of traffic. In assessing 
the probable impacts, the Commission's concern is the preservation of 
essential services, not the survival of particular carriers. A service 
is essential if there is a sufficient public need for the service and 
adequate alternative transportation is not available.
    (d) Conditions. (1) The Commission has broad authority to impose 
conditions on consolidations, including those that might be useful in 
ameliorating potential anticompetitive effects of a consolidation. 
However, the Commission recognizes that conditions may lessen the 
benefits of a consolidation to both the carrier and the public. 
Therefore, the Commission will not normally impose conditions on a 
consolidation to protect a carrier unless essential services are 
affected and the condition: (i) Is shown to be related to the impact of 
the consolidation; (ii) is designed to enable shippers to receive 
adequate service; (iii) would not pose unreasonable operating or other 
problems for the consolidated carrier; and (iv) would not frustrate the 
ability of the consolidated carrier to obtain the anticipated public 
benefits. Moreover, the Commission believes that indemnification is 
ordinarily not an appropriate remedy in consolidation proceedings. 
Indemnification conditions can be anticompetitive by requiring the 
consolidated carrier to subsidize carriers who are no longer able to 
compete efficiently in the marketplace.
    (2) As of July 1, 1982, Conditions previously imposed are revoked 
unless the parties to specific consolidation proceedings demonstrate a 
public interest in continuing the Conditions in those proceedings.
    (e) Inclusion of other carriers. The Commission will consider 
requiring inclusion of another carrier as a condition to approval only 
where there is no other reasonable alternative for providing essential 
services, the facilities fit operationally into the new system, and 
inclusion can be accomplished without endangering the operational or 
financial success of the new company.
    (f) Labor protection. The Commission is required to provide 
applicants' employees affected by a consolidation with adequate 
protection. Similarly situated employees on the applicants' system 
should be given equal protection. Therefore, absent a negotiated

[[Page 418]]

agreement, the Commission will provide for protection at the level 
mandated by law (49 U.S.C. 11347), unless it can be shown that because 
of unusual circumstances more stringent protection is necessary to 
provide employees with a fair and equitable arrangement. The Commission 
will review negotiated agreements to assure fair and equitable treatment 
of affected employees.
    (g) Cumulative impacts and crossover effects. The Commission 
recognizes that events can occur during its consideration of a 
consolidation that can have an effect on various of the concerned 
parties. However, the Commission is mindful of the need to meet its 
statutory deadlines and make timely administratively final decisions. 
Therefore, the Commission will not reopen pending proceedings in order 
to assess the impact of potential or hypothetical combinations or 
transactions. The proper forum for considering cumulative impacts and 
crossover effects is in a later proceeding. In this manner, 
consideration will be limited to the impacts of transactions which have 
already been approved and are, therefore, reasonably certain to occur. 
Furthermore, the Commission will have the benefit of its findings from 
the prior proceeding to identify more precisely the impacts of that 
transaction. Proceedings will remain manageable in scope and size, 
statutory time limits will be met, and all parties will be assured of 
timely, administratively final decisions.
    (h) Public participation. To assure a fully developed record on the 
impacts of a proposed railroad consolidation, the Commission encourages 
public participation from Federal, State, and local government 
departments and agencies, affected shippers and carriers, and other 
interested persons.

[47 FR 9844, Mar. 8, 1982, as amended at 47 FR 11876, Mar. 19, 1982. 
Redesignated at 47 FR 49592, Nov. 1, 1982]



Sec. 1180.2  Types of transactions.

    Transactions proposed under 49 U.S.C. 11343 involving more than one 
common carrier by railroad are of four types: Major, significant, minor, 
and exempt.
    (a) A major transaction is a control or merger involving two or more 
class I railroads.
    (b) A significant transaction is a transaction not involving the 
control or merger of two or more class I railroads that is of regional 
or national transportation significance as that phrase is used in 49 
U.S.C. 11345(a)(2) and (c). A transaction not involving the control or 
merger of two or more class I railroads is not significant if a 
determination can be made either:
    (1) That the transaction clearly will not have any anticompetitive 
effects, or
    (2) That any anticompetitive effects of the transaction will clearly 
be outweighed by the transaction's anticipated contribution to the 
public interest in meeting significant transportation needs.
    A transaction not involving the control or merger of two or more 
class I railroads is significant if neither such determination can 
clearly be made.
    (c) A minor transaction is one which involves more than one railroad 
and which is not a major, significant, or exempt transaction.
    (d) A transaction is exempt if it is within one of the seven 
categories described below. The Commission has found that its prior 
review and approval of these transactions is not necessary to carry out 
the rail transportation policy of 49 U.S.C. 10101a; and is of limited 
scope or unnecessary to protect shippers from market abuse. See 49 
U.S.C. 10505. A notice must be filed to use one of these class 
exemptions. The procedures are set out in Sec. 1180.4(g). These class 
exemptions do not relieve a carrier of its statutory obligation to 
protect the interests of employees. See 49 U.S.C. 10505(g)(2) and 11347. 
The enumeration of the following categories of transactions as exempt 
does not preclude a carrier from seeking an exemption of specific 
transactions not falling into these categories.
    (1) Acquisition of a line of railroad which would not constitute a 
major market extension where the Commission has found that the public 
convenience and necessity permit abandonment.
    (2) Acquisition or continuance in control of a nonconnecting carrier 
or one

[[Page 419]]

of its lines where (i) the railroads would not connect with each other 
or any railroads in their corporate family, (ii) the acquisition or 
continuance in control is not part of a series of anticipated 
transactions that would connect the railroads with each other or any 
railroad in their corporate family, and (iii) the transaction does not 
involve a class I carrier.
    (3) Transactions within a corporate family that do not result in 
adverse changes in service levels, significant operational changes, or a 
change in the competitive balance with carriers outside the corporate 
family.
    (4) Renewal of leases and any other matters where the Commission has 
previously authorized the transaction, and only an extension in time is 
involved.
    (5) Joint projects involving the relocation of a line of railroad 
which does not disrupt service to shippers.
    (6) Reincorporation in a different State.
    (7) Acquisition of trackage rights and renewal of trackage rights by 
a rail carrier over lines owned or operated by any other rail carrier or 
carriers that are: (i) based on written agreements, and (ii) not filed 
or sought in responsive applications in rail consolidation proceedings.

[47 FR 9844, Mar. 8, 1982. Redesignated at 47 FR 49592, Nov. 1, 1982, 
and amended at 50 FR 15751, Apr. 22, 1985; 51 FR 24669, July 8, 1986; 58 
FR 63104, Nov. 30, 1993]



Sec. 1180.3  Definitions.

    (a) Applicant. The parties initiating a transaction. Parties who are 
considered applicants, but for whom the information normally required of 
an applicant need not be submitted, are (1) in minor trackage rights 
applications, the transferor and (2) in responsive applications, a 
primary applicant.
    (b) Applicant carriers. Applicant, all carriers related to the 
applicant, and all other carriers involved in the transaction. This does 
not include carriers who are involved in an existing trackage rights 
agreement with applicants.
    (c) Major market extension. A major market extension is a 
transaction which may significantly increase competition by extending 
service into a new market, expanding service in a currently served 
market when another carrier concurrently contracts its service to that 
market as part of the same transaction, or providing significantly more 
efficient and effective competitive service to a market presently being 
served. Criteria which can be used to determine if a railroad is 
proposing to provide a more competitive service to a currently served 
area include: (1) Creating a shorter route; (2) providing enhanced 
service capabilities (speed is not the only factor); (3) entering an 
interchange or market generating more than 5,000 cars per year or 5 
percent of applicant's traffic; (4) filing the application as a 
condition of relief to a pending proceeding; and (5) permitting a 
carrier to become more competitive (extending its length of haul) See. 
Burlington Northern, Inc.--Control & Merger--St. L., 354 I.C.C. 616, 617 
(1978).
    (d) Petition for clarification. A request that the Commission 
clarify the applicability of any part of these regulations to a 
particular situation or explain the type of material needed to comply 
with these regulations.
    (e) Petition for waiver. A request that the Commission either 
dispense with material required by the regulations, or accept material 
in place of that required by these regulations.
    (f) Primary application. A proposal for approval filed under 49 
U.S.C. 11343 which begins a new proceeding and is not proposed either as 
a condition to or as an alternative to Commission approval of another 
pending application.
    (g) Railroad. Any common carrier by railroad as defined in 49 U.S.C. 
10102(18)-(19).
    (h) Responsive applications. Applications filed in response to a 
primary application seeking affirmative relief either as a condition to 
or in lieu of the approval of the primary application. Responsive 
applications include inconsistent applications, inclusion applications, 
and any other affirmative relief that requires an application to be 
filed with the Commission (such as trackage rights, purchases, 
construction, operation, pooling, terminal operations, abandonment, 
etc.).
    (i) Transferee. The transferee is:
    (1) The acquiring corporation in a control proceeding,

[[Page 420]]

    (2) The surviving corporation in a merger,
    (3) The resulting corporation in a consolidation,
    (4) The leasee in a lease,
    (5) The purchaser in an acquisition, and
    (6) The grantee of trackage rights in a trackage rights proceeding.
    (j) Transferor. The transferor is:
    (1) The corporation acquired in a control proceeding,
    (2) The merging corporation in a merger,
    (3) All corporations to be consolidated in a consolidation,
    (4) The lessor in a lease,
    (5) The seller in an acquisition, and
    (6) The grantor of trackage rights in a trackage rights proceeding.



Sec. 1180.4  Procedures.

    (a) General. (1) The original and 20 copies of all documents shall 
be filed in major proceedings. The original and 10 copies shall be filed 
in significant and minor proceedings.
    (2) Each party to a proceeding shall choose a unique acronym of four 
letters or less for itself. It shall number each document filed in the 
proceeding consecutively, prefixed by its acronym.
    (3) Any document filed with the Commission (including applications, 
pleadings, etc.) shall be promptly furnished to interested persons on 
request, unless subject to a protective order. At any time, the 
Commission may require the submission of additional copies of any 
document previously filed by any party to the proceeding.
    (4) The Commission shall issue a list of all parties to the 
proceeding within 55 days of the application's acceptance in a major 
transaction, and within 45 days in a significant or minor transaction.
    (b) Prefiling notification. (1) Between 3 to 6 months prior to the 
proposed filing of an application in a major transaction, and 2 to 4 
months prior to the proposed filing of an application in a significant 
transaction, applicant shall file a notice with the Commission. The 
notice shall:
    (i) Briefly describe the transaction,
    (ii) Indicate the year to be used for the impact analyses,
    (iii) Indicate the approximate filing date of the application, and
    (iv) Indicate why the transaction is major or significant.
    (2) The Commission will publish a notice in the Federal Register 
within 30 days of receipt of the applicant's notice. The publication 
shall contain:
    (i) A brief description of the transaction,
    (ii) The year to be used for the impact analysis,
    (iii) The approximate filing date,
    (iv) A determination that the transaction is major, significant, or 
minor, and
    (v) A statement of any additional information which must be filed 
with the application in order for the application to be considered 
complete.
    (3) A prefiling notice may be amended to indicate a change in the 
anticipated filing date.
    (c) Application. (1) The fees for filing applications or notices 
under these procedures are set forth in 49 CFR 1002.2. There is no 
filing fee for a directly related application filed by a party that 
filed the primary application.
    (2) Filing requirements.
    (i) The original of all applications shall be signed in ink by the 
applicant, if an individual; by all partners, if a partnership; and if a 
corporation, association, or other similar form of organization, by its 
president, or such other executive officer having knowledge of the 
matters therein contained and duly designated for that purpose by the 
applicant. Applications shall be made under oath and shall contain an 
appropriate certification (if a corporation, by its secretary) showing 
that the affiant is duly authorized to verify and file the application. 
Any person controlling an applicant shall also sign the application.
    (ii) The application shall be filed with Secretary, Interstate 
Commerce Commission, Washington, DC 20423.
    (iii) Each copy of the application shall conform in all respects to 
the original and shall be complete in itself except that the signature 
in the copies may be stamped or typed and the notarial seal may be 
omitted. In like manner, where certified copies of documents are filed 
with the application,

[[Page 421]]

conformed copies thereof, showing certification in stamped or 
typewritten form, will be sufficient to accompany the additional copies 
of the application.
    (iv) All applications required to be filed with the Commission or 
served on designated persons shall include all exhibits, except as 
otherwise specifically noted. Information from other documents may be 
incorporated by reference in the application. However, the documents 
must have been filed with the Commission within three years prior to 
filing of the application, the information must be up to date, and 
applicant must be prepared to supply copies of this information to 
interested persons on specific request.
    (v) The applicant shall submit such additional information to 
support its application as the Commission may require.
    (vi) Applicant shall file concurrently all directly related 
applications, e.g., those seeking authority to construct or abandon rail 
lines, to issue securities, control motor carriers, obtain terminal 
operations, acquire trackage rights, et cetera.
    (vii) The application shall contain a certificate of service 
indicating that all persons designated in Sec. 1180.4(c)(5) have been 
served with a copy of the application.
    (3) In a major or significant transaction, and in all responsive 
applications, all of the direct testimony of applicants, in the form of 
verified statements, shall be filed and served with each application.
    (4) The application and all exhibits shall be considered part of the 
evidentiary record upon acceptance. Any portion of an application and 
exhibits will remain subject to motions to strike. However, no motion 
need be made to have the application and exhibits admitted to the 
evidentiary record. If a major or significant transaction is designated 
for oral hearing the presiding Administrative Law Judge shall have 
discretion in extraordinary circumstances to allow for the presentation 
of oral or written direct testimony not previously submitted with the 
application.
    (5) Service. The applicant shall serve a conformed copy of an 
application filed under these procedures by first-class mail upon:
    (i) The Governor (or Executive Officer), Public Service Commission, 
and the Department of Transportation of each State in which any part of 
the properties of the applicant carriers involved in the proposed 
transaction is situated;
    (ii) The Secretary of the United States Department of Transportation 
(Docket Clerk, Office of Chief Counsel, Federal Railroad Administration, 
Room 5101, 400 Seventh Street, SW., Washington, DC 20590).
    (iii) The Attorney General of the United States;
    (iv) The Federal Trade Commission; and
    (v) In major or significant transactions, all persons requesting a 
copy after the prefiling notice is published in the Federal Register.
    (6) Application format. (i) The application shall be in the same 
sequence as the information is requested in these procedures, and shall 
be numbered to correspond to the numbering in the procedures.
    (ii) If any material required in the application would lend itself 
to being placed in an appendix, this should be done. The appendix and 
application shall be tabulated and cross-referenced in an index for ease 
in locating and referring to the information. The appendixes shall be in 
the same sequence as the information required by these procedures. If 
certain information required in the application is not applicable, 
provide an explanation. The application should be bound, and it may be 
bound in more than one volume. If an application is more than one 
volume, the cover of each volume should be in a different color. The 
pages in each volume shall begin with 1, and be sequentially numbered.
    (iii) The Commission's Office of the Secretary will provide informal 
opinions and interpretations, which are not binding on the Commission, 
regarding the format of or information to be included in the 
application.
    (iv) All filing, service, or other requirements of these procedures 
must be complied with when filing the application. Copies of the 
application filed with the Commission shall be marked

[[Page 422]]

in red ``Railroad Consolidation Application'' on the transmittal 
envelope or package.
    (v) The application shall conform to the typographical 
specifications of Sec. 1104.2.
    (7) Acceptance or rejection of an application.
    (i) The Commission shall accept a complete application no later than 
30 days after the application is filed with the Commission by publishing 
a notice in the Federal Register. A complete application contains all 
information for all applicant carriers required by these procedures, 
except as modified by advance waiver. The publication shall indicate the 
applicable time limits for processing the application. (These are the 
time limits of 49 U.S.C. 11345(b) for a major transaction, 49 U.S.C. 
11345(c) for a significant transaction, and 49 U.S.C. 11345(d) for a 
minor transaction.)
    (ii) The Commission shall reject an incomplete application by 
serving a decision no later than 30 days after the application is filed 
with the Commission. The decision shall explain specifically why the 
application was incomplete. A revised application may be submitted, 
incorporating portions of the prior application by reference. The 
resubmission or refiling of an application shall be considered a de novo 
filing for the purpose of computation of the time periods, provided that 
the resubmitted application is accepted as complete.
    (8) The application must present a prima facie case. Applicants can 
fail to meet their burden of proof and thus not present a prima facie 
case either by (i) disclosing facts that, even if construed in their 
most favorable light, are insufficient to support a finding that the 
proposal is consistent with the public interest, or by (ii) disclosing 
facts that affirmatively demonstrate that the proposal is not in the 
public interest. See Ex Parte No. 282 (Sub-No. 3A), Railroad 
Consolidation Procedures Expedited Processing, 363 I.C.C. 767 (1980).
    (d) Response to application. (1) Written comments.
    (i) Time to file. (A) Written comments on a major transaction must 
be filed no later than 45 days after an application is accepted.
    (B) Written comments on significant or minor transactions must be 
filed within 30 days of the application's acceptance.
    (ii) Service. Written comments shall be concurrently served by 
first-class mail on:
    (A) The applicants (at each address given in the application),
    (B) The United States Secretary of Transportation,
    (C) The Attorney General of the United States, and
    (D) All parties of record within 10 days of service of the service 
list by the Commission.
    (iii) Contents. Written comments must contain:
    (A) The docket number and title of the proceeding.
    (B) The name, address, and telephone number of the commenting party 
and its representative upon whom service shall be made.
    (C) The commenting party's position (in support, opposition, or 
undetermined).
    (D) If the commenting party intends to participate formally in a 
proceeding or merely comment upon the proposal.
    (E) If desired, a request for an oral hearing with reasons 
supporting this request. The request must indicate the disputed material 
facts that can only be resolved at a hearing.
    (F) A list of all information sought to be discovered from applicant 
carriers.
    (G) A detailed statement of the issues in major and significant 
transactions reflecting the relevant underlying statutory criteria, 
policy statement (for major transactions), and antitrust policy which 
the Commission must consider in the proceeding.
    (H) An initial list of specific protective conditions sought by 
nonrailroads in major and significant transactions.
    (I) The following information by railroads filing written comments 
in major, and significant transactions:
    (1) Any existing preferential solicitation agreements.
    (2) A list of all run-through train operations.
    (3) An initial list of specific protective conditions sought and a 
statement concerning whether the commenting railroad intends to file 
responsive applications, along with a description of

[[Page 423]]

the proposed transactions. This will be considered a prefiling notice 
without which the Commission will not entertain responsive applications.
    (iv) Party. All persons who file timely written comments shall be a 
party of record if they so indicate in their comments. In this event, no 
petition for leave to intervene need be filed.
    (2) The Secretary of Transportation and Attorney General of the 
United States shall file written comments with the Commission within 60 
days of the date of acceptance of the application in a major 
transaction. For significant and minor transactions these comments are 
due within 45 days of the date of acceptance of the application. These 
comments shall comply with paragraphs (d)(1)(ii) and (d)(1)(iii) of this 
section as to service and contents.
    (3) A second list of protective conditions shall be filed with the 
Commission within 75 days of acceptance of the application in a major 
transaction, and within 60 days of acceptance of the application in a 
significant transaction. It shall be concurrently served by first-class 
mail on all parties of record. The second list of protective conditions 
shall modify the first list based upon changing conditions, such as 
protective conditions sought by other parties to the proceeding. Parties 
to the proceeding shall not be permitted to seek any protective 
conditions not contained in the second list of protective conditions. 
This does not preclude refinements in conditions sought, particularly 
when stipulations to conditions are reached.
    (4) Responsive applications.
    (i) All responsive applications in major transactions shall be filed 
90 days, and in significant transactions 60 days, after acceptance of 
the primary application. No responsive applications shall be permitted 
to minor transactions.
    (ii) Responsive applications which are not major are presumed to be 
significant transactions.
    (iii) Responsive applications shall comply as fully as possible with 
appropriate Commission regulations. Extensions of time for filing are 
not permitted. The filing of an incomplete application, coupled with an 
extension of time to complete the application, may be permitted if 
authorized by the Commission in advance.
    (iv) Any petitions for waiver, clarification, extension of time, or 
for leave to file an incomplete application, or to rebut the presumption 
of a significant transaction, must be filed in advance of the filing of 
the responsive application (at least 45 days in advance in major 
transactions and 30 days in significant transactions).
    (v) Each responsive application filed and accepted (if required) is 
considered consolidated with the primary application.
    (e) Evidentiary proceeding. (1) The Commission may order an oral 
public hearing, a hearing by written submissions, or another kind of 
evidentiary proceeding. The determination will generally be made on the 
basis of the needs indicated by the written comments.
    (2) The evidentiary proceeding will be completed:
    (i) In 24 months (after the primary application is accepted) for a 
major transaction,
    (ii) In 180 days for a significant transaction, and
    (iii) In 105 days for a minor transaction;
    (3) A final decision on the primary application and on all 
consolidated cases will be issued;
    (i) In 180 days (after the conclusion of the evidentiary proceeding) 
for a major transaction,
    (ii) In 90 days for a significant transaction, and
    (iii) In 45 days for a minor transaction.
    (4) The Secretary of Transportation may propose modifications to any 
transaction and shall have standing to appear before the Commission in 
support of any such proposed modification.
    (f) Waiver or clarification. (1) Upon petition of a prospective 
applicant, the Commission may waive or clarify a portion of these 
procedures. A petition to waive all of the procedures will not be 
entertained.
    (2) Except as otherwise provided in paragraph (d)(4)(iv) of this 
section, petitions for waiver or clarification must be filed at least 45 
days before the application is filed.

[[Page 424]]

    (3) No replies to a petition for waiver will be permitted, except 
where a proceeding involving the same parties and a related transaction 
is pending before us.1 When a reply is permitted, the petition 
shall be served by first-class mail on all parties to the pending 
proceedings, with a reply due within 10 days of service. Replies to a 
petition for clarification shall be permitted within 10 days of the 
petition's filing.
---------------------------------------------------------------------------

    1 See Itel Corp.--Control-Green Bay and W. R. Co., 354 I.C.C. 
232, 233 (1978).
---------------------------------------------------------------------------

    (4) A waiver or clarification granted to any applicant in a 
proceeding shall apply to any other party to the proceeding unless 
otherwise indicated.
    (5) All petitions for waiver or clarification must specify the 
sections for which waiver or clarification is sought and give the 
specific reasons why each waiver or clarification is necessary.
    (g) Notice of exemption. (1) To qualify for an exemption under 
Sec. 1180.2(d), a railroad must file a verified notice of the 
transaction with the Commission at least one week before the transaction 
is consummated indicating the proposed consummation date. Before a 
notice is filed, the railroad shall obtain a docket number from the 
Commission's Office of the Secretary.
    (i) The notice shall contain the information required in 
Sec. 1180.6(a)(1)(i)-(iii), (a)(5)-(6), and (a)(7)(ii), and indicate the 
level of labor protection to be imposed.
    (ii) The Commission shall publish a notice in the Federal Register 
within 30 days of the filing of the notice of exemption. The publication 
will indicate the labor protection required. If the notice of exemption 
contains false or misleading information which is brought to the 
Commission's attention, the Commission shall summarily revoke the 
exemption for that carrier and require divestiture.
    (iii) Other exemptions that may be relevant to a proposal under this 
provision are 49 CFR part 1150, subpart D for transactions under 49 
U.S.C. 10901, and 49 CFR part 1175, for securities.
    (2)(i) To qualify for an exemption under Sec. 1180.2(d)(7) 
(acquisition or renewal of trackage rights agreements), in addition to 
the notice, the railroad must file a caption summary suitable for 
publication in the Federal Register. The caption summary must be in the 
following form:

                     Interstate Commerce Commission

                           Notice of Exemption

                           Finance Docket No.

    (1)--Trackage Rights--(2)
    (2) (3) to grant (4) trackage rights to (1) between (5). The 
trackage rights will be effective on (6).
    This notice is filed under Sec. 1180.2(d)(7). Petitions to revoke 
the exemption under 49 U.S.C. 10505(d) may be filed at any time. The 
filing of a petition to revoke will not stay the transaction.
    Dated:
    By the Commission.
James H. Bayne,
Secretary.

    The following key identifies the information symbolized in the 
summary.
    (1) Name of the tenant railroad.
    (2) Name of the landlord railroad.
    (3) If an agreement has been entered use ``has agreed'', but if an 
agreement has been reached but not entered use ``will agree.''
    (4) Indicate whether ``overhead'' or ``local'' trackage rights are 
involved.
    (5) Describe the trackage rights.
    (6) State the date the trackage rights agreement is proposed to be 
consummated.

    (ii) The Commission will publish the caption summary in the Federal 
Register within 20 days of the date that it is filed with the 
Commission. The filing of a petition to revoke under 49 U.S.C. 10505(d) 
does not stay the effectiveness of an exemption.
    (3) Some transactions may be subject to environmental review 
pursuant to the Commission's environmental rules at 49 CFR part 1105.
    (h) Official notice. In connection with any application or request 
for relief under these procedures, the Commission may take official 
notice of any or all of the following information. These data will be 
presumed valid unless discredited by any party. A party relying on 
information to be noticed officially shall list the information. Upon 
request, the party shall make the official notice material available. 
Any party is free to challenge the relevance or application of any such 
data, or the weight that should be accorded it.
    (1) Annual ICC Form R-1 Reports submitted by rail carriers.
    (2) Quarterly Commodity Statistics submitted by rail carriers.

[[Page 425]]

    (3) ICC Monthly Labor Statistics.
    (4) Quarterly Financial Statements of Rail Carriers.
    (5) All other reports submitted to the ICC under oath.
    (6) Annual 1-percent Waybill Sample.
    (7) Federal Reserve Board Production Statistics.
    (8) AAR compilations of bad order ratios, equipment ownership and 
repair statistics, and freight car order figures.
    (i) Untimely decision. If the Commission does not issue a timely 
decision that is a final action under 49 U.S.C. 10327, it will send 
written notice to Congress that the decision was not issued and the 
reasons why it was not issued.

[47 FR 9844, Mar. 8, 1982. Redesignated at 47 FR 49592, Nov. 1, 1982 and 
amended at 49 FR 15088, Apr. 17, 1984; 50 FR 15751, Apr. 22, 1985; 51 FR 
4928, Feb. 10, 1986; 51 FR 25207, July 11, 1986; 52 FR 46484, Dec. 8, 
1987; 56 FR 36111, July 31, 1991; 56 FR 41806, Aug. 23, 1991; 58 FR 
29362, May 20, 1993; 58 FR 63104, Nov. 30, 1993]
Sec. 1180.5  [Reserved]



Sec. 1180.6  Supporting information.

    (a) All applications filed under 49 U.S.C. 11343 shall show in the 
title the names of the applicants and the nature of the proposed 
transaction. Beneath the title indicate the name, title, business 
address, and telephone number of the person(s) to whom correspondence 
with respect to the application should be addressed. The following 
information shall be included in all applications:
    (1) A description of the proposed transaction, including appropriate 
references to any supporting exhibits and statements contained in the 
application and discussing the following:
    (i) A brief summary of the proposed transaction, the name of 
applicants, their business address, telephone number, and the name of 
the counsel to whom questions regarding the transaction can be 
addressed.
    (ii) The proposed time schedule for consummation of the proposed 
transaction.
    (iii) The purpose sought to be accomplished by the proposed 
transaction, e.g., operating economies, eliminating excess facilities, 
improving service, or improving the financial viability of the 
applicants.
    (iv) The nature and amount of any new securities or other financial 
arrangements.
    (2) A detailed discussion of the public interest justifications in 
support of the application, indicating how the proposed transaction is 
consistent with the public interest, with particular regard to the 
relevant statutory criteria, including
    (i) The effect of the transaction on inter- and intramodal 
competition, including a description of the relevant markets (see 
Sec. 1180.7). Include a discussion of whether, as a result of the 
transaction, there is likely to be any lessening of competition, 
creation of a monopoly, or restraint of trade in freight surface 
transportation in any region of the United States.
    (ii) The financial consideration involved in the proposed 
transaction, and any economies, to be effected in operations, and any 
increase in traffic, revenues, earnings available for fixed charges, and 
net earnings, expected to result from the consummation of the proposed 
transaction.
    (iii) The effect of the increase, if any, of total fixed charges 
resulting from the proposed transaction.
    (iv) The effect of the proposed transaction upon the adequacy of 
transportation service to the public, as measured by the continuation of 
essential transportation services by applicants and other carriers.
    (v) The effect of the proposed transaction upon applicant carriers' 
employees (by class or craft), the geographic points where the impact 
will occur, the time frame of the impact (for at least 3 years after 
consolidation), and whether any employee protection agreements have been 
reached.
    (vi) The effect of inclusion (or lack of inclusion) in the proposed 
transaction of other railroads in the territory, under 49 U.S.C. 11344.
    (3) Any other supporting or descriptive statements applicants deem 
material.
    (4) An opinion of applicants' counsel that the transaction meets the 
requirements of the law and will be legally authorized and valid, if 
approved by the

[[Page 426]]

Commission. This should include specific references to any pertinent 
provisions of applicants' bylaws or charter or articles of 
incorporation.2
---------------------------------------------------------------------------

    2 An opinion of counsel is not required in a control transaction for 
the party sought to be controlled, or in a responsive application for 
the party against whom relief is sought.
---------------------------------------------------------------------------

    (5) A list of the State(s) in which any part of the property of each 
applicant carrier is situated.
    (6) Map (exhibit 1). Submit a general or key map indicating clearly, 
in separate colors or otherwise, the line(s) of applicant carriers in 
their true relations to each other, short line connections, other rail 
lines in the territory, and the principal geographic points in the 
region traversed. If a geographically limited transaction is proposed, a 
map detailing the transaction should also be included. In addition to 
the map accompanying each application, 20 unbound copies of the map 
shall be filed with the Commission.
    (7) Explanation of the transaction.
    (i) Describe the nature of the transaction (e.g., merger, control, 
purchase, trackage rights), the significant terms and conditions, and 
the consideration to be paid (monetary or otherwise).
    (ii) Agreement (exhibit 2). Submit a copy of any contract or other 
written instrument entered into, or proposed to be entered into, 
pertaining to the proposed transaction.3 In addition, parties to 
exempt trackage rights agreements and renewal of agreements described at 
Sec. 1180.2(d)(7) must submit one copy of the executed agreement or 
renewal agreement with the notice of exemption, or within 10 days of the 
date that the agreement is executed, whichever is later.
---------------------------------------------------------------------------

    3 A final signed contract or agreement need not be filed with a 
responsive application. However, a draft contract or agreement should be 
submitted containing the significant terms proposed.
---------------------------------------------------------------------------

    (iii) If a consolidation or merger is proposed, indicate: (A) The 
name of the company resulting from the consolidation or merger; (B) the 
State or territory under the laws of which the consolidated company is 
to be formed or the merged company is to file its certificate of 
amendment; (C) the capitalization proposed for the resulting company; 
and (D) the amount and character of capital stock and other securities 
to be issued.
    (iv) Court order (exhibit 3). If a trustee, receiver, assignee, or 
personal representative of the real party in interest is an applicant, 
submit a certified copy of the order, if any, of the court having 
jurisdiction, authorizing the contemplated action.
    (v) State whether the property involved in the proposed transaction 
includes all the property of the applicant carriers and, if not, 
describe what property is included in the proposed transaction.
    (vi) Briefly describe the principal routes and termini of the lines 
involved, the principal points of interchange on the routes, and the 
amount of main-line mileage and branch line mileage involved.
    (vii) State whether any governmental financial assistance is 
involved in the proposed transaction and, if so, the form, amount, 
source, and application of such financial assistance.
    (8) Environmental data (exhibit 4). Submit information and data with 
respect to environmental matters prepared in accordance with 49 CFR part 
1105. In major and significant transaction, applicants shall, as soon as 
possible, and no later than the filing a notice of intent, consult with 
the Commission's Section of Energy and Environment for the proper format 
of the environmental report.
    (b) In a major transaction, submit the following information:
    (1) Form 10-K (exhibit 6). Submit applicant carriers' most recent 
filing with the Securities and Exchange Commission (SEC) under 17 CFR 
249.310. This shall not be incorporated by reference, and shall be 
updated with any Form 10-K subsequently filed with the SEC over the 
duration of the proceeding.
    (2) Form S-14 (exhibit 7). Submit applicant carriers' most recent 
filing with the SEC under 17 CFR 239.23. This shall not be incorporated 
by reference, and shall be updated with any Form S-14 subsequently filed 
with the SEC over the duration of the proceeding.
    (3) Change in control (exhibit 8). Indicate any change in ownership, 
control, or officers not indicated in the most recent annual report Form 
R-1.

[[Page 427]]

    (4) Annual reports (exhibit 9). Submit applicant carriers' two most 
recent annual reports to stockholders. This shall not be incorporated by 
reference, and shall be updated with any annual or quarterly report to 
stockholders issued over the duration of the proceeding.
    (5) Issues (exhibit 10). Submit a discussion of any other issues 
relevant to the transaction.
    (6) Corporate chart (exhibit 11). Submit a corporate chart 
indicating all relationships between applicant carriers and all 
affiliates and subsidiaries and also companies controlling applicant 
carriers directly, indirectly or through another entity (each chart 
shall indicate the percentage ownership of every company on the chart by 
any other company on the chart). For each company include a statement 
indicating (i) any common officers or directors for every entity on the 
chart (with reference to the Commission decision by docket number and 
date authorizing the holding of such positions, or an explanation of why 
such authorization was not required) and (ii) whether each company is a 
non-carrier or carrier (by railroad, motor, or water, including the 
number of any Commission certificate or permit, and the docket number of 
any proceeding pending before the Commission). Such information may be 
referenced through notes to the chart.
    (7) If applicant is not a carrier, indicate (i) the type of business 
in which it is engaged, (ii) the length of time so engaged, and (iii) 
its present and prospective activities which have or may have a relation 
to transportation subject to 49 U.S.C. Subtitle IV.
    (8) Indicate whether there are any direct or indirect intercorporate 
or financial relationships at the time the application is filed, not 
disclosed elsewhere in the application, through holding companies, 
ownership of securities, or otherwise, between (i) applicant carriers 
and any carrier or person affiliated with any carrier or (ii) a person 
affiliated with applicant carriers and any carrier or person affiliated 
with any other carrier. Indicate the nature and extent of such 
relationships, if they exist, and, if an applicant carrier owns 
securities of a carrier subject to 49 U.S.C. Subtitle IV provide the 
carrier's name, a description of securities, par value of each class of 
securities held, and the applicant carriers' percentage of total 
ownership.
    (c) In a significant transaction, submit the information specified 
in paragraphs (b)(3), (b)(5), (b)(6), (b)(7), and (b)(8) of this 
section.

[47 FR 9844, Mar. 8, 1982. Redesignated at 47 FR 49592, Nov. 1, 1982, 
and amended at 50 FR 15751, Apr. 22, 1985; 56 FR 41806, Aug. 3, 1991; 57 
FR 28641, June 26, 1992; 58 FR 63104, Nov. 30, 1993]



Sec. 1180.7  Market analyses.

    Impact analyses (exhibit 12). In major and significant transactions 
applicants shall submit analyses of the impacts of the proposed 
transaction--both adverse and beneficial--on inter- and intramodal 
competition for freight surface transportation in the regions affected 
by the transaction and on the provision of essential services by 
applicants and other carriers. An impact analysis should include 
underlying data, a study of the implications of that data, and a 
description of the resulting likely effects of the transaction on 
transportation alternatives available to the shipping public. Each 
aspect of the analysis should specifically address significant impacts 
as they relate to the statutory criteria (49 U.S.C. 11344(b) or (d), 
essential services, and competition). The Commission may identify 
particular markets and issues that it believes warrant further study. If 
appropriate, the Commission will also indicate the format of such 
analyses. Applicants must address markets and issues identified by the 
Commission, but also any others they consider relevant. Specific 
regulations on impact analyses are not provided so that parties will 
have the greatest leeway to develop the best evidence on the impacts of 
each individual transaction. General guidelines follow:
    (a) Applicants shall prepare analyses of the anticipated effects of 
the transaction on traffic patterns, market concentrations, or 
transportation alternatives available to the shipping public.

[[Page 428]]

    (b) Applicants (and any other party submitting such analyses) must 
demonstrate both the relevancy of the market and issues analyzed and the 
validity of the methodology. All underlying assumptions must be clearly 
stated.
    (c) Supporting data may (but need not) include: Current and 
projected traffic flows; data underlying sales forecasts or marketing 
goals; interchange data; market share analysis; diversion studies; and/
or shipper surveys. It is important to note that these types of studies 
are neither limiting nor all inclusive. The parties must provide 
supporting data, but are free to choose the type(s) and format.
    (d) Analyses should reflect the consolidated company's marketing 
plan and existing and potential competitive alternatives (inter- as well 
intramodal). They can address:
    (1) City pairs, interregional movements, movements through a point, 
or other factors;
    (2) A particular commodity, group of commodities, or other commodity 
factor that will be significantly affected by the transaction; or
    (3) Other effects of the transaction (such as on a particular type 
of service offered).



Sec. 1180.8  Operational data.

    (a) For major and significant transactions: Operating plan (exhibit 
13). Submit a summary of the proposed operating plan changes, based on 
the impact analyses, that will result from the transaction, and their 
anticipated timing, allowing for any time required to complete 
rehabilitation, upgrading, yard construction, or other major operational 
changes following consummation of the proposed transaction. The plan 
should make clear the gains in service, operating efficiencies, and 
other benefits anticipated from the merger. The plan should include:
    (1) The patterns of service on the properties, including the 
proposed principal routes, proposed consolidations of main-line 
operations, and the anticipated traffic density and general categories 
of traffic (including numbers of trains) on all main and secondary lines 
in the system. Identify all yards expected to have an increase in 
activity greater than 20 percent. Changes in operations may be 
summarized in a pro forma density chart.
    (2) If commuter or other passenger services are operated over the 
lines of applicant carriers, detail any impacts anticipated on such 
services, including delays which may be occasioned because a line is 
scheduled to handle increased traffic due to route consolidations.
    (3) The anticipated equipment requirements of the proposed system, 
including locomotives, rolling stock by type, and maintenance-of-way 
equipment; plans for acquisition and retirement of equipment; projected 
improvements in equipment utilization and their relation to operating 
changes; and how these will lead to the financial and service benefits 
described in the summary.
    (4) A description of the effect of any deferred maintenance or 
delayed capital improvements on any road or equipment properties 
involved, the schedule for eliminating such deferrals, details of 
general system rehabilitation including rehabilitation relating to the 
transaction (including proposed yard and terminal modifications), and 
how these activities will lead to the service improvements or operating 
economies anticipated from the transaction.
    (5) Density charts (exhibit 14). Gross ton-mile traffic density 
charts shall be filed for applicant carriers containing a map 
geographically showing those lines handling 1 million gross ton-miles 
per mile road or more per year and respective densities, expressed in 
gross ton-miles per year, in each direction, in segments of such lines 
between major freight yards and terminals, including major intramodal 
and intermodal interchange points, using the corporate or political 
subdivision name of the points shown as well as the railroad station 
name. The mileage of each segment of line shall be provided, and should 
be shown on the chart. Data shown in the density chart shall be for the 
latest available full calendar year preceding the filing of the 
application. At applicants' option data may be shown on the density 
chart or an explanatory list.
    (b) For minor transactions: Operating plan-minor (exhibit 15). 
Discuss any

[[Page 429]]

significant changes in patterns or types of service as reflected by the 
operating plan expected to be used after consummation of the 
transaction. Where relevant, submit information related to the 
following:
    (1) Traffic level density on lines proposed for joint operations.
    (2) Impacts on commuter or other passenger service operated over a 
line which is to be downgraded, eliminated, or operated on a 
consolidated basis.
    (3) Operating economies, which include, but are not limited to, 
estimated savings.
    (4) Any anticipated discontinuances or abandonments.



Sec. 1180.9  Financial information.

    The following information shall be provided for major transactions, 
and for carriers shall conform to the Commission's Uniform System of 
Accounts, 49 CFR part 1201:
    (a) Pro forma balance sheet (exhibit 16). Where the transaction 
involves a proceeding other than a control, a pro forma balance sheet 
statement giving effect to the proposed transaction commencing for the 
first year of the Impact Analysis in exhibit 12. The data shall be 
presented in columnar form showing:
    (1) In the first column, the balance sheet of transferee on a 
corporate entity basis,
    (2) In the second column, a balance sheet of transferor, on a 
corporate entity basis,
    (3) In the third column, pro forma adjustments and eliminations; and
    (4) In the fourth column, transferee's balance sheet giving effect 
to consumation of the proposed transaction. \4\ 
---------------------------------------------------------------------------

    \4\ Where the purchase of a line or line segment is involved, a 
procedure utilizing three columns should be followed. The first column 
should show transferee's actual balance sheet on a corporate entity 
basis for the latest available 12-month period, the second column should 
show the adjustments necessitated by the purchase, and the third is a 
compilation of the first two columns into a pro forma balance sheet.
    The transferor shall file a balance sheet similar to the one filed 
by the transferee, with the second column reflecting the adjustments 
resulting from the sale.
    If the parent company (if any) of the transferee or transferor is 
affected, a similar balance sheet shall be filed for each.
    All adjustments to these balance sheets shall be supported in 
footnotes to the appropriate balance sheet.

Each adjustment and elimination shall be properly footnoted and fully 
explained. A pro forma balance sheet shall be submitted for the number 
of years following consummation necessary to effect the operating plan.
    (b) Pro forma income statement (exhibit 17). Where the transaction 
involves a proceeding other than a control, submit a pro forma income 
statement showing transferee's estimate of revenues, expenses, and net 
income for at least each of the 3 years following consummation of the 
transaction.5 The pro forma data shall be presented in columnar 
form, showing
---------------------------------------------------------------------------

    5 If the operating plan requires more than 3 years to be put 
into effect, the pro forma income statement shall be prepared for as 
many years as necessary to implement fully the operating plan.
---------------------------------------------------------------------------

    (1) in the first column, transferee's actual income statement on a 
corporate entity basis for the year indicated in the impact analysis in 
exhibit 12;
    (2) in the second column, a similar income statement for the 
transferor;
    (3) in the third column, forecasted adjustments to the combined 
revenues, expenses, and net income to reflect increases or decreases 
anticipated under the unified operations, and
    (4) in the fourth column, a compilation of the first three columns 
into a pro forma income statement.6
---------------------------------------------------------------------------

    6 Where the purchase of a line or line segment is involved, a 
procedure utilizing three columns should be followed. The first column 
should show transferee's actual income statement on a corporate entity 
basis for the latest available 12-month period, the second column should 
show the adjustment necessitated by the purchase, and the third column 
is a compilation of the first two columns into a pro forma income 
statement.
    The transferor shall file an income statement similar to the one 
filed by the transferee, with the second column reflecting the 
adjustments resulting from the sale.
    If the parent company (if any) of the transferor or transferee is 
affected, a similar statement shall be filed for each.

---------------------------------------------------------------------------

[[Page 430]]

    All adjustments to these income statements shall be supported in 
footnotes to the appropriate income statements.
---------------------------------------------------------------------------

The adjustments are to be supported by a statement explaining the basis 
used in determining the estimated changes in revenues, expenses, and net 
income appearing in the third column. Additionally, if the major 
financial advantages to be derived from the proposed transaction will 
not occur within 3 years after consummation, then applicant shall 
furnish additional information to reflect the number of years within 
which the financial advantages will be realized. The basis for all such 
data furnished shall be fully explained and supported.
    (c) Sources and application of funds (exhibit 18). Transferor's and 
transferee's statement of sources and application of funds for the 
current year, and a forecast 7 of sources and application of funds 
for each carrier (if a merger or consolidation, the surviving or 
resulting corporation) for the year following consummation of the 
proposed transaction, and the years necessary to effectuate the 
operating plan.8 The form and content of these statements should be 
constructed in accordance with the schedule: ``Statement of Changes in 
Financial Position'' required in the most recently filed Annual Report 
R-1 for Class I railroads.
---------------------------------------------------------------------------

    7 The forecast should reflect only changes anticipated to 
result from the proposed transaction. Forecasts are not required to 
reflect general economic conditions unrelated to the proposed 
transaction.
    8 The pro forma balance sheets (exhibit 16), pro forma income 
statements (exhibit 17), and sources and application of funds (exhibit 
18) shall cover the same years.
---------------------------------------------------------------------------

    (d) Property encumbrance (exhibit 19). If any of the property 
covered by the application is encumbered and applicant has agreed to 
assume obligation or liability in respect thereof, submit:
    (1) A description of the property encumbered.
    (2) Amount of encumbrance and full description thereof, including 
maturity, interest rate, and other terms and conditions.
    (3) Amount of encumbrance assumed or to be assumed by applicant.
    (e) The Commission will incorporate by reference the current balance 
sheets and income statements of Class I railroads which are on file with 
the Commission. Class II and Class III railroads, and non-carrier 
entities shall submit balance sheets (exhibit 20) and income statements 
(exhibit 21) covering a period ending within 6 months before the 
application is filed.

[47 FR 9844, Mar. 8, 1982. Redesignated at 47 FR 49592, Nov. 1, 1982, 
and amended at 58 FR 63104, Nov. 30, 1993]



Subpart B--Transfer or Operation of Lines of Railroads in Reorganization



Sec. 1180.20  Procedures.

    (a) Transactions under 11 U.S.C. 1172, for the transfer or operation 
of lines of bankrupt railroads under a plan of reorganization are 
governed by the following procedures:
    (1) If the buyer or operator is not a carrier, the Notice of 
Exemption procedures in subpart D of part 1150 of this title.
    (2) If the buyer or operator is a carrier, either:
    (i) The application procedures in subpart A of this part; or,
    (ii) The procedures in part 1121 of this title for a petition to 
exempt the transaction from prior approval requirements of 49 U.S.C. 
11343, et seq.
    (b) The Commission will establish or modify its existing procedures 
and deadlines as necessary in each proceeding to comply with appropriate 
orders of the Bankruptcy Court.
    (c) Under 11 U.S.C. 1172(c)(1), the Commission is required to 
provide affected employees with adequate protection. The Commission will 
impose the minimum levels required by 49 U.S.C. 11347, unless a need is 
shown for greater levels of protection.
    (d) All applications, notices, and petitions for exemption within 
the scope of Sec. 1180.20(a) shall advise the Commission that the 
proposed transaction involves the transfer or operation of lines in 
reorganization.

[57 FR 57112, Dec. 3, 1992; 57 FR 61585, Dec. 28, 1992]

[[Page 431]]



PART 1181--TRANSFERS OF OPERATING RIGHTS UNDER 49 U.S.C. 10926--Table of Contents




Sec.
1181.0  Scope of rules.
1181.1  Definitions.
1181.2  Applications.
1181.3  Notice.
1181.4  Commission action and criteria for approval.
1181.5  Responsive pleadings.
1181.6  Procedures for changing the name or business form of a motor or 
          water carrier, household goods freight forwarder, or property 
          broker.

    Authority: 5 U.S.C. 553, and 49 U.S.C. 10321 and 10926.

    Source: 53 FR 4852, Feb. 18, 1988, unless otherwise noted.



Sec. 1181.0  Scope of rules.

    These rules define the procedures that enable motor passenger and 
property carriers, water carriers, property brokers, and household goods 
freight forwarders to obtain approval from the Interstate Commerce 
Commission to merge, transfer, or lease their operating rights in 
financial transactions not subject to 49 U.S.C. 11343. Transactions 
covered by these rules are governed by 49 U.S.C. 10321 and 10926. The 
filing fee is set forth at 49 CFR 1002.2(f)(25).



Sec. 1181.1  Definitions.

    For the purposes of this part, the following definitions apply:
    (a) Transfer. Transfers include all transactions (i.e., the sale or 
lease of interstate operating rights,\1\ or the merger of two or more 
carriers or a carrier into a noncarrier) subject to 49 U.S.C. 10926, as 
well as the sale of property brokers' licenses under 49 U.S.C. 10321.
---------------------------------------------------------------------------

    \1\ The execution of a chattel mortgage, deed of trust, or other 
similar document does not constitute a transfer or require the 
Commission's approval. However, a foreclosure for the purpose of 
transferring an operating right to satisfy a judgment or claim against 
the record holder may not be effected without approval of the 
Commission.
---------------------------------------------------------------------------

    (b) Operating rights. Operating rights include:
    (1) Certificates and permits issued to motor and water carriers;
    (2) Permits issued to household goods freight forwarders;
    (3) Licenses issued to property brokers; and
    (4) Certificates of Registration issued to motor carriers. The term 
also includes authority held by virtue of the gateway elimination 
regulations published in the Federal Register as letter-notices.
    (c) Certificate of registration. The evidence of a motor carrier's 
right to engage in interstate or foreign commerce within a single State 
is established by a corresponding State certificate.
    (d) Person. An individual, partnership, corporation, company, 
association, or other form of business, or a trustee, receiver, 
assignee, or personal representative of any of these.
    (e) Record holder. The person shown on the records of the Commission 
as the legal owner of the operating rights.
    (f) Control. A relationship between persons that includes actual 
control, legal control, and the power to exercise control, through or by 
common directors, officers, stockholders, a voting trust, a holding or 
investment company, or any other means.
    (g) Category 1 transfers. Transactions in which the person to whom 
the operating rights would be transferred is not an ICC carrier and is 
not affiliated with any ICC carrier.
    (h) Category 2 transfers. Transactions in which the person to whom 
the operating rights would be transferred is an ICC carrier and/or is 
affiliated with an ICC carrier.



Sec. 1181.2  Applications.

    (a) Procedural requirements. (1) At least 10 days before 
consummation, an original and two copies of a properly completed Form 
OP-FC-1 and any attachments (see paragraph (b)(1)(viii) of this section) 
must be filed with the Office of the Secretary, Applications and Fees 
Unit, Interstate Commerce Commission, Washington, DC 20423. The original 
must show that an additional copy has been furnished to the Commission's 
Regional Director for the Region(s) in which the applicants' 
headquarters are located. The nonrefundable filing fee prescribed by 49 
CFR 1002.2(f)(25) must accompany the application.

[[Page 432]]

    (2) At any time after the expiration of the 10-day waiting period, 
applicants may consummate the transaction, subject to the subsequent 
approval of the application by the Commission, as described below. The 
transferee may commence operations under the rights acquired from the 
transferor upon its compliance with the Commission's regulations 
governing insurance, tariffs (if applicable), and process agents. See 49 
CFR parts 1043, 1312 and 1044, respectively. In addition, contract 
carriers must comply with the Commission's regulations concerning 
contracts at 49 CFR part 1053. In the alternative, applicants may wait 
until the Commission has issued a decision on their application before 
transferring the operating rights. If the transferee wants the 
transferor's operating authority to be reissued in its name, it should 
furnish the Commission with a statement executed by both transferor and 
transferee indicating that the transaction has been consummated. 
Authority will not be reissued until after the Commission has approved 
the transaction.
    (b) Information required. (1) In category 1 and category 2 
transfers, applicants must furnish the following information:
    (i) Full name, address, and signatures of the transferee and 
transferor.
    (ii) A copy of that portion of the transferor's operating authority 
involved in the transfer proceeding.
    (iii) A short summary of the essential terms of the transaction.
    (iv) If relevant, the status of proceedings for the transfer of 
State certificate(s) corresponding to the Certificates of Registration 
being transferred.
    (v) A statement as to whether the transfer will or will not 
significantly affect the quality of the human environment.
    (vi) Certification by transferor and transferee of their current 
respective safety ratings by the United States Department of 
Transportation (i.e., satisfactory, conditional, unsatisfactory, or 
unrated).
    (vii) Certification by the transferee that it has sufficient 
insurance coverage under 49 U.S.C. 10927 for the service it intends to 
provide.
    (viii) Information to demonstrate that the proposed transaction is 
consistent with the national transportation policy and satisfies the 
criteria for approval set forth at Sec. 1181.4 of this part. (Such 
information may be appended to the application form and, if provided, 
would be embraced by the oath and verification contained on that form.)
    (ix) If motor carrier operating rights are being transferred, 
certification by the transferee that it is not domiciled in Mexico nor 
owned or controlled by persons of that country.
    (2) Category 2 applicants must also submit the following additional 
information:
    (i) Name(s) of the carrier(s), if any, with which the transferee is 
affiliated.
    (ii) Aggregate revenues of the transferor, transferee, and their 
carrier affiliates from interstate transportation sources for a 1-year 
period ending not earlier than 6 months before the date of the agreement 
of the parties concerning the transaction. If revenues exceed $2 
million, the transfer may be subject to 49 U.S.C. 11343 rather than 
these rules.

[53 FR 4852, Feb. 18, 1988, as amended at 54 FR 35343, Aug. 25, 1989]



Sec. 1181.3  Notice.

    The Commission will give notice of approved transfer applications 
through publication in the ICC Register.



Sec. 1181.4  Commission action and criteria for approval.

    A transfer will be approved under this section if:
    (a) The transaction is not subject to 49 U.S.C. 11343; and
    (b) The transaction is consistent with the public interest; however,
    (c) If the transferor or transferee has an ``Unsatisfactory'' safety 
fitness rating from DOT, the transfer may be denied. If an application 
is denied, the Commission will set forth the basis for its action in a 
decision or letter notice. If parties with ``Unsatisfactory'' safety 
fitness ratings consummate a transaction pursuant to the 10-day rule at 
Sec. 1181.2 of this part prior to the notification of Commission action, 
they do so at their own risk and subject to any conditions we may impose 
subsequently. Transactions that have been consummated but later are 
denied by

[[Page 433]]

the Commission are null and void and must be rescinded. Similarly, if 
applications contain false or misleading information, they are void ab 
initio.

[53 FR 4852, Feb. 18, 1988, as amended at 56 FR 46735, Sept. 16, 1991]



Sec. 1181.5  Responsive pleadings.

    (a) Protests must be filed within 20 days after the date of 
publication of an approved transfer application in the ICC Register. 
Protests received prior to the notice will be rejected. Applicants may 
respond within 20 days after the due date of protests. Petitions for 
reconsideration of decisions denying applications must be filed within 
20 days after the date of service of such decisions.
    (b) Protests and petitions for reconsideration must be filed with 
the Office of the Secretary, Case Control Branch, Interstate Commerce 
Commission, Washington, DC 20423, and be served on appropriate parties.



Sec. 1181.6  Procedures for changing the name or business form of a motor or water carrier, household goods freight forwarder, or property broker.

    (a) Scope. These procedures (and not the transfer rules at 49 CFR 
parts 1181, 1182, 1183 and 1186) apply in the following circumstances:
    (1) A change in the form of a business, such as the incorporation of 
a partnership or sole proprietorship;
    (2) A change in the legal name of a corporation or partnership or 
change in the trade name or assumed name of any entity;
    (3) A transfer of operating rights from a deceased or incapacitated 
spouse to the other spouse;
    (4) A reincorporation and merger for the purpose of effecting a name 
change;
    (5) An amalgamation or consolidation of a carrier and a noncarrier 
into a new carrier having a different name from either of the 
predecessor entities; and
    (6) A change in the State of incorporation accomplished by 
dissolving the corporation in one State and reincorporating in another 
State.
    (b) Procedures. To accomplish these changes, a letter must be sent 
to the Office of the Secretary, Applications and Fees Unit, Interstate 
Commerce Commission, Washington, DC 20423. The envelope should be marked 
``NAME CHANGE''. The applicant must provide:
    (1) The docket number(s) and name of the carrier requesting the 
change;
    (2) A copy of the articles of incorporation and the State 
certificate reflecting the incorporation;
    (3) The name(s) of the owner(s) of the stock and the distribution of 
the shares;
    (4) The names of the officers and directors of the corporation; and
    (5) A statement that there is no change in the ownership, 
management, or control of the business. When this procedure is being 
used to transfer operating rights from a deceased or incapacitated 
spouse to the other spouse, documentation that the other spouse has the 
legal right to effect such change must be included with the request. The 
fee for filing a name change request is in 49 CFR 1002.2(f)(11).

[53 FR 4852, Feb. 18, 1988, as amended at 54 FR 47364, Nov. 14, 1989]



PART 1182--PURCHASE, MERGER, AND CONTROL OF MOTOR PASSENGER CARRIERS AND WATER CARRIERS--Table of Contents




                         Subpart A--Applications

Sec.
1182.1  Applications covered by these rules.
1182.2  Starting the application process.
1182.3  Content of applications.
1182.4  Directly related applications.
1182.5  Filing the application.
1182.6  Commission review of the application.

                           Subpart B--Protests

1182.7  Protests.
1182.8  Notice.
1182.9  Contents of a protest.
1182.10  Filing a protest.
1182.11  Withdrawing a protest.

                     Subpart C--General Requirements

1182.12  Amendments.
1182.13  Replies.
1182.14  Withdrawing an application.
1182.15  Copies.
1182.16  Certificate of service.
1182.17  Verification of statements.
1182.18  Statutory findings.


[[Page 434]]


    Authority: 5 U.S.C. 559, 49 U.S.C. 10321, 11321, 11341, 11343, 
11344, and 11345a; 21 U.S.C. 853a.

    Source: 54 FR 35343, Aug. 25, 1989, unless otherwise noted.



                         Subpart A--Applications



Sec. 1182.1  Applications covered by these rules.

    These rules govern applications for authority under 49 U.S.C. 11343-
11344 to consolidate, merge, purchase, or lease operating rights and 
properties of a motor carrier of passengers or a water carrier, or to 
acquire control of one or more motor carriers of passengers or water 
carriers through ownership of stock or otherwise.



Sec. 1182.2  Starting the application process.

    There is no application form for these proceedings. Applicants for 
authority under 49 U.S.C. 11343-11344 to consolidate, merge, purchase, 
or lease operating rights and properties of a motor carrier of 
passengers or a water carrier, or to acquire control of one or more 
motor carriers of passengers or water carriers, through ownership of 
stock, or otherwise, shall file a pleading containing the information 
described in 49 CFR 1182.3. See 49 CFR 1002.2(f)(21) for filing fees.



Sec. 1182.3  Content of applications.

    (a) The application must contain the following information:
    (1) Full name, address, and signature of each of the parties to the 
transaction.
    (2) Copies or descriptions of the pertinent operating authorities of 
the parties.
    (3) A description of the proposed transaction.
    (4) Identification of any ICC-regulated carriers affiliated with the 
parties, a brief description of their operations, and a summary of the 
intercorporate structure of the corporate family from top to bottom.
    (5) If applicants are motor carriers, a jurisdictional statement 
that the aggregate gross operating revenues from interstate operations 
conducted by them and their motor carrier affiliates, if any, exceeded 
$2 million for a period of 12 consecutive months, ending not more than 
six months preceding the date of the parties' agreement covering the 
transaction. See 49 CFR part 1188.
    (6) A statement indicating whether the transaction will or will not 
significantly affect the quality of the human environment and the 
conservation of energy resources.
    (7) Information to demonstrate that the proposed transaction is 
consistent with the national transportation policy and the public 
interest, including particularly:
    (i) The effect of the proposed transaction on competition within the 
involved transportation markets;
    (ii) The effect of the proposed transaction on accommodating 
significant transportation needs; and
    (iii) If the proceeding involves a motor passenger or rail carrier, 
the effect of the proposed transaction on the adequacy of transportation 
to the public; the effect on the public interest of including, or 
failing to include, other carriers in the area involved in the proposed 
transaction (if applicable); the total fixed charges that result from 
the proposed transaction; and the interest of carrier employees affected 
by the proposed transaction. See 49 U.S.C. 111344(b)(2).
    (8) Certification of the U.S. Department of Transportation safety 
fitness rating of each motor passenger carrier involved in the 
transaction, whether that carrier is a party to the transaction or is 
affiliated with a party to the transaction.
    (9) If motor passenger carriers are involved in the transaction, 
certification by the party acquiring any operating rights through the 
transaction that it has sufficient insurance coverage under 49 U.S.C. 
10927 for the service it intends to provide.
    (10) If water carriers are involved in the transaction, information 
to show that the acquiring party is fit, willing, and able properly to 
perform the service authorized by the certificate or permit involved and 
to conform to the applicable statutory and administrative requirements.
    (11) If motor passenger carriers are involved in a purchase of 
assets or merger transaction, certification by the party acquiring any 
operating

[[Page 435]]

rights through the transaction that it is not domiciled in Mexico nor 
owned or controlled by persons of that country.
    (12) If the transaction involves the transfer of operating authority 
to an individual who will hold the authority in his or her name that 
individual must complete the following certification:

    I, __________ (Name) __________, certify under penalty of perjury 
under the laws of the United States, that I have not been convicted, 
after September 1, 1989, of any Federal or State offense involving the 
distribution or possession of a controlled substance, or that I have 
been so convicted, I am not ineligible to receive Federal Benefits, 
either by court order or operation of law, pursuant to 21 U.S.C. 853a.

    (b) The application shall contain applicants' entire case unless:
    (1) The Commission finds, on its own motion or that of a party to 
the proceeding, that additional evidentiary submissions are required to 
resolve the issues in a particular case; or
    (2) The application contains an impediment. (See 49 CFR 1182.12.)
    (c) Any statements submitted on behalf of an applicant supporting 
the transaction shall be verified. Pleadings consisting strictly of 
legal argument, however, need not be verified.
    (d) If an application or supplemental pleading contains false or 
misleading information, the granted application is void ab initio.

[54 FR 35343, Aug. 25, 1989, as amended at 54 FR 48250, Nov. 22, 1989]



Sec. 1182.4  Directly related applications.

    (a) Directly related applications shall be filed along with the 
proposed acquisition transaction in a single submission. Such 
applications are those filed under other provisions of title 49, 
subtitle IV, U.S. Code, ``Transportation,'' that either directly affect 
or are directly affected by the application filed under 49 U.S.C. 11343-
11344. Typically, they include requests to obtain new operating 
authority, or to modify or convert existing operating authority. 
Whenever an application is filed under these rules and a directly 
related application also is filed, each application shall make reference 
to the other.
    (b) Whenever possible, the Commission will decide directly related 
applications in a consolidated proceeding. In such cases, the statutory 
timeframes governing the lead proceeding under 49 U.S.C. 11343-11344 
will be applied.



Sec. 1182.5  Filing the application.

    (a) Each application shall be filed with the Commission as provided 
at 49 CFR 1182.15. In addition, one copy shall be delivered to the 
Commission's Regional Office for the region in which each party's 
headquarters is located. Upon written request of a State, one copy shall 
be delivered, by first-class mail.
    (b) In their application, the parties shall certify that they have 
delivered copies of the application as provided in paragraph (a) of this 
section.



Sec. 1182.6  Commission review of the application.

    (a) All applications will be reviewed for correctness and 
completeness. Minor errors will be corrected with notification to the 
applicants. Incomplete applications may be rejected.
    (b) A summary of the application will be published in the ICC 
Register to give notice to the public. The summary for an application 
involving motor carriers also will be published in the Federal Register. 
It will be published in the form of a tentative grant of authority. (See 
also 49 CFR 1182.12, regarding applications published with impediments.)
    (c) If the published notice does not properly describe the authority 
sought, applicants shall inform the Commission within 10 days after the 
publication date.



                           Subpart B--Protests



Sec. 1182.7  Protests.

    (a) Protests to an application shall be filed (received at the 
Commission) within 45 days after the date the application is published.
    (b) Failure to file a timely protest waives further participation in 
the proceeding. If no one opposes the application, the published 
tentative grant of authority will automatically become effective at the 
close of the comment period.

[[Page 436]]



Sec. 1182.8  Notice.

    A copy of the application will be available for inspection at the 
Commission's offices in Washington, DC, or at the Regional Office for 
each applicant's domicile. Interested persons may request a copy of the 
application by writing to the Commission-designated contract agent (as 
identified in the ICC Register), Room 2229, Interstate Commerce 
Commission Building, Washington, DC 20423, and including a check or 
money order for $10 made payable to such contract agent; or, by 
contacting the contract agent at (202) 289-4357/4359 [TDD for hearing 
impaired (202) 275-1721] and arranging billing acceptable to the agent.



Sec. 1182.9  Contents of a protest.

    (a) Protests shall be verified.
    (b) The protest shall contain all information upon which the 
protestant plans to rely, including the grounds for the protest and the 
protestant's interest in the proceeding.
    (c) A protest may include a request that the Commission allow:
    (1) Additional evidentiary submissions from the parties to a 
proceeding; or
    (2) Further procedural steps to develop the evidentiary record 
(e.g., discovery).
    The request must demonstrate that this procedure is necessary to 
resolve the specific issues giving rise to the request. If the 
Commission finds, whether on its own motion or that of a party, that the 
record requires supplementation, a decision will be issued indicating 
the additional information required and the time frames within such 
information must be submitted.



Sec. 1182.10  Filing a protest.

    (a) The protest is to be sent to the Commission with the docket 
number of the proceeding conspicuously placed on the top of the first 
page of the protest.
    (b) A copy of the protest shall be served on applicant's 
representative(s).



Sec. 1182.11  Withdrawing a protest.

    A protestant wishing to withdraw from a proceeding shall 
concurrently inform the Commission and the applicants in writing.



                     Subpart C--General Requirements



Sec. 1182.12  Amendments.

    (a) After notice of an application is published, applicants may not 
amend their proposal unless specifically required to do so by the 
Commission because of an ``impediment'' in the application (e.g., a 
jurisdictional problem, unresolved fitness issue, or question concerning 
possible unlawful control). Any such impediment will be indicated in the 
published notice.
    (b) If an impediment is noted, applicants file a pleading suggesting 
a ``cure'' to the impediment and/or containing legal argument, within 20 
days after the date the notice is published. Applicants must 
subsequently serve any protestant(s) with a copy of their pleading. 
Failure to comply with these provisions may result in dismissal of the 
application.
    (c) Protestants wishing to file a reply to the applicants' pleading 
must do so within 20 days after the date applicants' pleading is filed.
    (d) If replies to applicants' pleading are filed, applicants may 
file a rebuttal within 15 days after the date the replies were due. This 
optional pleading will be in addition to any evidence previously 
submitted by applicants in the application or the reply to protests.



Sec. 1182.13  Replies.

    (a) If the application is opposed, applicants may file a reply to 
the protest(s). This reply statement is due at the Commission within 60 
days after the date of publication of the application.
    (b) The reply statement may not contain new evidence. It shall only 
rebut or further explain matters previously raised.
    (c) The reply statement shall be verified unless it consists 
strictly of legal argument. A copy of the reply statement shall be 
served on protestants.



Sec. 1182.14  Withdrawing an application.

    If applicants wish to withdraw an application, they shall jointly 
request dismissal in writing as provided at 49 CFR 1182.15.

[[Page 437]]



Sec. 1182.15  Copies.

    An original and one copy of all applications filed under this part 
and all other pleadings and material relating to such applications must 
be filed with the Commission in Washington, DC, and, if mailed, 
addressed to ``Office of the Secretary, Interstate Commerce Commission, 
Washington, DC 20423.''



Sec. 1182.16  Certificate of service.

    (a) Where the rules require service of a pleading on another party, 
that pleading shall be mailed or delivered by hand concurrently with its 
service on the Commission.
    (b) The pleading shall contain a statement (certificate of service) 
that the pleading has been mailed or hand delivered in accordance with 
paragraph (a) of this section.
    (c) All motions and replies shall be served on all parties.



Sec. 1182.17  Verification of statements.

    (a) All applications and related pleadings (except motions to 
strike, replies thereto, and other pleadings that consist only of legal 
argument) must be verified by the person offering the statement.
    (b) The manner of verification must be as follows:

    I, ____________, verify
(name and title of witness)
under penalty of perjury, under the laws of the United States of 
America, that all information supplied in connection with this 
application is true and correct. Further, I certify that I am qualified 
and authorized to file this application or pleading. I know that willful 
misstatements or omissions of material facts constitute Federal criminal 
violations punishable under 18 U.S.C. 1001 by imprisonment up to five 
years and fines up to $10,000 for each offense. Additionally, these 
misstatements are punishable as perjury under 18 U.S.C. 1621, which 
provides for fines up to $2,000 or imprisonment up to five years for 
each offense.
_______________________________________________________________________
(Signature and Date)



Sec. 1182.18  Statutory findings.

    The following findings are made for applications to consolidate, 
purchase, merge, lease operating rights and properties, or acquire 
control of motor passenger carriers or water carriers under 49 U.S.C. 
11343-11344:

    We find, with the exception of those applications involving 
impediments (e.g., jurisdictional problems, unresolved fitness 
questions, or questions involving possible unlawful control) that each 
applicant has demonstrated, in accordance with the applicable provisions 
of 49 U.S.C. 11321, 11343, 11344, and 11349, and with the Commission's 
rules and regulations, that the proposed transaction should be 
authorized as stated. This finding shall not be deemed to exist where 
the application is opposed. Except where specifically noted, this 
decision is neither a major Federal action significantly affecting the 
quality of the human environment nor a major regulatory action under the 
Energy Policy and Conservation Act of 1975.



PART 1184--MOTOR CARRIER POOLING OPERATIONS--Table of Contents




Sec.
1184.1  Scope and purpose.
1184.2  Contents of a pooling application.
1184.3  Processing pooling applications.

    Authority: 49 U.S.C. 10321 and 11322; 5 U.S.C. 559.

    Source: 46 FR 21181, Apr. 9, 1981, unless otherwise noted. 
Redesignated at 47 FR 49595, Nov. 1, 1982.



Sec. 1184.1  Scope and purpose.

    This statement of policy on motor carrier pooling applications 
implements section 20 of the Motor Carrier Act of 1980 [Pub. L. No. 96-
296, 94 Stat. 793]. The Act's provisions are now contained at 49 U.S.C. 
11342(b).



Sec. 1184.2  Contents of a pooling application.

    A pooling application filed under 49 U.S.C. 11342(b) should include 
the following information:
    (a) An identification of all the carriers who are parties to the 
pooling agreement;
    (b) A general description of the transaction;
    (c) A specific description of the operating authorities sought to be 
pooled;
    (d) The basis to establish that the agreement is a genuine pooling 
arrangement (as opposed to a lease or interline arrangement);
    (e) A description of what applicants consider to be the relevant 
transportation markets affected by the proposed agreement;
    (f) The competitive routing and service alternatives that would 
remain if

[[Page 438]]

the agreement is approved, to the best of applicant's knowledge;
    (g) If there is a lessening of such alternatives, an estimate of the 
public benefits that will accrue from approval, or new competition that 
will arise, which would offset such lessening;
    (h) A narrative assessment of how the pooling arrangement will 
affect present and future competition in the area, including a 
description of the projected volume of traffic, the revenues, and the 
commodities which will be subject to the pooling agreement;
    (i) Certification that rates set for traffic moving under the 
agreement do not violate the restrictions on collective ratemaking 
contained in 49 U.S.C. Subtitle IV and Commission regulations;
    (j) A narrative statement as to the relative transportation 
importance of the pooling agreement as it would affect the public and 
the national transportation system;
    (k) If any known non-pooling carriers authorized to transport the 
subject traffic are not included in the pooling arrangement explain why, 
and explain whether inclusion would enhance or restrain competition;
    (l) A statement of the energy and environmental effects of the 
agreement, if any; and
    (m) Certification by applicant, or its representatives, that the 
representations made in the application are, to the best of applicant's 
knowledge and belief, true and complete.

As appendices, applicants must submit: (1) A copy of the pooling 
agreement; (2) a copy of the specific operating authority of each 
carrier which is the subject of the pooling agreement; and (3) a caption 
summary (for Federal Register publication) of the pooling transaction 
sought to be approved.

[46 FR 21181, Apr. 9, 1981. Redesignated and amended at 47 FR 49595, 
Nov. 1, 1982]



Sec. 1184.3  Processing pooling applications.

    After the pooling application is received (not less than 50 days 
before the effective date specified in the pooling agreement), the 
Commission will either reject it or determine initially whether the 
pooling agreement is of major transportation importance and whether 
there is a substantial likelihood that the pooling agreement will unduly 
restrain competition. If neither of these two factors is present, the 
application will be granted without further hearing. Where either factor 
is found to exist, the application will be published in the Federal 
Register using the caption summary filed with the application, and a 
hearing will be scheduled (normally to receive written verified 
statements) to consider the issues further. In this second phase of the 
proceeding, the Commission will consider whether the pooling agreement 
would be in the interest of better service to the public or of economy 
of operation and whether it will unduly restrain competition.



PART 1185--INTERLOCKING OFFICERS--Table of Contents




Sec.
1185.1  Scope of exemption.
1185.2  Meaning of term ``carrier.''
1185.3  Application of regulations.
1185.4  Authorization.
1185.5  Application for order.
1185.6  Contents of application.
1185.7  Subscription and verification of application.
1185.8  Number of copies; form and style.
1185.9  General authority.
1185.10  Common control.
1185.11  Jointly used terminal properties.

    Authority: 49 U.S.C. 10321, 11322, and 10505; 5 U.S.C. 553 and 559.



Sec. 1185.1  Scope of exemption.

    (a) Subject to the exception in paragraph (c) of this section, 
``interlocking directorates,'' as defined in paragraph (b) of this 
section, are exempt from the prior approval requirements of 49 U.S.C. 
11322(a).
    (b) An ``interlocking directorate'' exists whenever an individual 
holds the position of officer (as defined in Sec. 1185.3) or director of 
one carrier and assumes the position of officer or director of another 
carrier.
    (c) The exemption in paragraph (a) of this section does not apply to 
those interlocking directorates sought where the individual is already 
an officer or a director of a Class I railroad and seeks to become an 
officer or director of another class I railroad. An application

[[Page 439]]

under 49 U.S.C. 11322(a) or a petition for exemption under 49 U.S.C. 
10505 for authority for this type of interlocking arrangement must be 
filed.

[53 FR 39097, Oct. 5, 1988; 53 FR 40068, Oct. 13, 1988, as amended at 56 
FR 18533, Apr. 23, 1991]



Sec. 1185.2   Meaning of term ``carrier.''

    The term ``carrier'' is used in this part as it is defined in 49 
U.S.C. 11301(a)(1).

[32 FR 20095, Dec. 20, 1967. Redesignated and amended at 47 FR 49595, 
Nov. 1, 1982. Redesignated at 53 FR 39097, Oct. 5, 1988]



Sec. 1185.3  Application of regulations.

    The regulations in this part apply to any person authorized by or 
undertaking for each of two or more class I rail carriers to perform the 
duties, or any of the duties, ordinarily performed by a director, 
president, vice president, secretary, treasurer, general counsel, 
general solicitor, general attorney, comptroller, general auditor, 
general manager, freight traffic manager, passenger traffic manager, 
chief engineer, general superintendent, general land and tax agent, or 
chief purchasing agent of a carrier.

[53 FR 39097, Oct. 5, 1988]



Sec. 1185.4  Authorization.

    Authorization will be granted only upon application as provided in 
this part.

[47 FR 49595, Nov. 1, 1982. Redesignated at 53 FR 39097, Oct. 5, 1988]



Sec. 1185.5   Application for order.

    An application for such authorization may be made by any person in 
his own behalf.

[32 FR 20095, Dec. 20, 1967. Redesignated and amended at 47 FR 49595, 
Nov. 1, 1982. Redesignated at 53 FR 39097, Oct. 5, 1988]



Sec. 1185.6   Contents of application.

    Each application shall state the following:
    (a) The full name, occupation, business address, place of residence, 
and postoffice address of the applicant.
    (b) A specification of every carrier of which the applicant holds 
stock, bonds, or notes, individually, as trustee, or otherwise; and the 
amount of and accurately describe the securities, owned or held by him, 
of each carrier for which he seeks authority to act. Whenever it is 
contemplated that the applicant will represent on the board of directors 
of any carrier securities other than those owned by him, the application 
shall describe such securities, state the character of representation, 
the name of the beneficial owner or owners, and the general nature of 
the business conducted by such owner or owners.
    (c) Each and every position with any carrier:
    Which is held by the applicant at the time of the application; and 
which he seeks authority to hold, together with the date and manner of 
his election or appointment thereto and, if he has entered upon the 
performance of his duties in any such position, the nature of the duties 
so performed and the date when he first entered upon their performance. 
(A decision authorizing a person to hold the position of director of a 
carrier will be construed as sufficient to authorize him to serve also 
as chairman of its board of directors or as a member or chairman of any 
committee or committees of such board; and, therefore, when authority is 
sought to hold the position of director, the applicant need not request 
authority to serve in any of such other capacities.)
    (d) As to each carrier covered by the requested authorization, 
whether it is an operating carrier, a lessor company, or any other 
corporation organized for the purpose of engaging in transportation by 
railroad subject to the act. If any such carrier neither operates nor 
owns any railroad, transportation by which is subject to the act, there 
shall be filed with the application, as a part thereof, a copy of such 
carrier's charter or certificate or articles of incorporation, with 
amendments to date. When such copy has once been filed with the 
Commission, reference thereto, with amendments, if any, will suffice.
    (e) Thereafter a full statement of pertinent facts relative to any 
carrier which does not make annual reports to the Commission, 
authorization for a position with which is sought.
    (f) Full information as to the relationship, operating, financial, 
competitive, or otherwise, existing between the

[[Page 440]]

carriers covered by the requested authorization.
    (g) Specify every corporation--industrial, financial, or 
miscellaneous--of which the applicant is an officer or director, and the 
general character of the business conducted by such corporation.
    (h) The reasons, fully, why the granting of the authority sought 
will not affect adversely either public or private interests.
    (i) Whether or not any other application for authority has been made 
in behalf of the applicant and, if so, shall show the date and finance 
docket number thereof, by who made, and the action thereon, if any.
    (j) When application has been made in behalf of any person, a 
subsequent application by him need not repeat any statement contained in 
the previous application but may incorporate the same by appropriate 
reference.

[32 FR 20095, Dec. 20, 1967. Redesignated and amended at 47 FR 49595, 
Nov. 1, 1982. Redesignated at 53 FR 39097, Oct. 5, 1988]



Sec. 1185.7   Subscription and verification of application.

    The original application shall be signed by the individual 
applicant, and shall be verified under oath in substantially the 
following form:

State of __________________
    County of ____________,  ss.
    ________________ make ____ oath and say--that ________________ 
hold--no position as officer or director of any carrier or other 
corporation except as indicated in the foregoing application, and that 
all of the statements contained therein are true and correct to the best 
of ________ knowledge and belief.
........................................................................
                                                (Signature of applicant)
    Subscribed and sworn to before me, a __________ in and for the State 
and county above named, this ______ day of ________, 19________.
    [seal]

My commission expires___________________________________________________

[32 FR 20095, Dec. 20, 1967. Redesignated at 47 FR 49595, Nov. 1, 1982. 
Redesignated at 53 FR 39097, Oct. 5, 1988]



Sec. 1185.8   Number of copies; form and style.

    The original application and 10 copies thereof shall be filed with 
the Commission. Each copy shall bear the dates and signatures that 
appear on the original and shall be complete in itself, but the 
signatures in the copies may be stamped or typed and the notarial seal 
may be omitted. The application shall be submitted in typewritten or 
printed form, on paper not more than 8\1/2\ inches wide and not more 
than 12 inches long, with a left-hand margin of 1\1/2\ inches, and if 
typewritten, the impression must be on only one side of the paper, and 
must be double spaced.

[32 FR 20095, Dec. 20, 1967. Redesignated and amended at 47 FR 49595, 
Nov. 1, 1982; 53 FR 19303, May 27, 1988. Redesignated at 53 FR 39097, 
Oct. 5, 1988]



Sec. 1185.9   General authority.

    Any person, who has been or shall hereafter be authorized to hold 
positions with a carrier or with a company or companies subsidiary 
thereto or affiliated therewith, may include in any application made by 
him pursuant to the foregoing regulations in this part a request for a 
decision authorizing him to hold generally, in addition to the positions 
so specifically authorized, a directorship or any office or offices with 
the first-mentioned carrier and all companies subsidiary thereto or 
affiliated therewith, or the properties of which are operated or used by 
the carrier, either separately or jointly, with other carriers. Like 
general authority may be applied for by the first-mentioned carrier in 
behalf of any person or persons to whom such specific authority has 
heretofore been granted: Provided, That such general authority may not 
be applied for by such carrier when the person for whom authority is 
desired holds a position or positions with any carrier or carriers not 
subsidiary to or not affiliated with the first-mentioned carrier, or the 
properties of which are not operated or used by the first-mentioned 
carrier, either separately or jointly with other carriers. Every carrier 
application shall be verified by an executive officer having knowledge 
of the facts.

[32 FR 20095, Dec. 20, 1967. Redesignated and amended at 47 FR 49595, 
Nov. 1, 1982; Redesignated at 53 FR 39097, Oct. 5, 1988]



Sec. 1185.10   Common control.

    It shall not be necessary for any person to secure authorization 
under the

[[Page 441]]

foregoing provisions to hold the position of officer or director of two 
or more carriers, if such carriers are operated under common control or 
management, either.
    (a) Pursuant to approval and authority of the Commission granted 
under 49 U.S.C. 11343-11344, or
    (b) Pursuant to an exemption authorized by the Commission under 49 
U.S.C. 10505, or
    (c) Pursuant to a controlling, controlled, or common control 
relationship which has existed between such carriers since before June 
16, 1933.

[35 FR 7651, May 16, 1970, as amended at 44 FR 75386, Dec. 20, 1979. 
Redesignated and amended at 47 FR 49595, Nov. 1, 1982. Redesignated at 
53 FR 39097, Oct. 5, 1988]



Sec. 1185.11   Jointly used terminal properties.

    Any person holding the position of officer or director of a carrier 
is hereby relieved from the foregoing provisions to the extent that he 
may also hold a directorship and any other position to which he may be 
elected or appointed with a terminal railroad the properties of which 
are operated or used by such carrier jointly with other carriers.

[35 FR 7651, May 16, 1970. Redesignated at 47 FR 49595, Nov. 1, 1982. 
Redesignated at 53 FR 39097, Oct. 5, 1988]



PART 1186--EXEMPTION OF CERTAIN TRANSACTIONS UNDER 49 U.S.C. 11343--Table of Contents




Sec.
1186.1  Scope of exemptions.
1186.2  Notice of exemption.
1186.3  Attachments.
1186.4  Temporary authority.
1186.5  Filing fees.
1186.6  Publication of summary notice.
1186.7  Effective date of exemption.
1186.8  Complaints.
1186.9  Safety fitness.

    Authority: 49 U.S.C. 11321, 11343(e); 5 U.S.C. 553; and 21 U.S.C. 
853a.



Sec. 1186.1   Scope of exemptions.

    Any transaction under 49 U.S.C. 11343(a)(1)-(5) among motor carriers 
of property or between them and noncarriers is exempt from the 
requirements of 49 U.S.C. 11343, 11344, and 11345a, subject to the right 
of employees and others to file complaints as set forth in Sec. 1186.8.

[53 FR 4853, Feb. 18, 1988]



Sec. 1186.2   Notice of exemption.

    To qualify for an exemption under Sec. 1186.1, the participants in 
the transaction must file an original and four copies of a joint Notice 
of Exemption with the Commission. The Notice of Exemption shall contain 
the following information:
    (a) Names and addresses of the carriers or other parties involved;
    (b) A brief, but specific description of the nature of the 
transaction;
    (c) Certification of the accuracy of the contents of the notice by, 
and signature of, the persons who control the carriers or other parties 
involved in the transaction; and
    (d) A jurisdictional statement stating why the transaction is 
subject to 49 U.S.C. 11343-11344.
    (e) In purchase of assets or merger transactions, certification by 
the party acquiring any motor carrier operating rights through the 
transaction that it is not domiciled in Mexico nor owned or controlled 
by persons of that country.
    (f) If the transaction involves the transfer of operating authority 
to an individual who will hold the authority in his or her name, that 
individual must complete the following certification:

    I, __________ (Name) __________, certify under penalty of perjury 
under the laws of the United States, that I have not been convicted, 
after September 1, 1989, of any Federal or State offense involving the 
distribution or possession of a controlled substance, or that if I have 
been so convicted, I am not ineligible to receive Federal Benefits, 
either by court order or operation of law, pursuant to 21 U.S.C. 853a.

[53 FR 4853, Feb. 18, 1988, as amended at 54 FR 35346, Aug. 25, 1989; 54 
FR 48251, Nov. 22, 1989]



Sec. 1186.3  Attachments.

    Attachments (an original and 10 copies) to the Notice of Exemption 
filed with the Commission should include:
    (a) A short summary of the transaction to be published as a notice 
to the public; and

[[Page 442]]

    (b) If appropriate, draft certificates and permits reflecting the 
operating rights authorized to be acquired, retained, or issued.

[50 FR 6348, Feb. 15, 1985, as amended at 53 FR 19303, May 27, 1988]



Sec. 1186.4  Temporary authority.

    Parties may simultaneously request temporary authority during the 
pendency of the exemption proceeding by submitting Form OP-F-46 in 
accordance with the regulations at 49 CFR part 1187.

[54 FR 35346, Aug. 25, 1989]



Sec. 1186.5  Filing fees.

    The filing fee required to file a Notice of Exemption is set forth 
in 49 CFR 1002.2(f)(27).

[53 FR 4853, Feb. 18, 1988]



Sec. 1186.6  Publication of summary notice.

    The Commission will publish the summary of the Notice of Exemption 
describing the nature and scope of the transaction in the ICC Register.

[50 FR 6348, Feb. 15, 1985]



Sec. 1186.7  Effective date of exemption.

    When a Notice of Exemption is filed, the exemption will be effective 
60 days after a summary of the Notice of Exemption is published in the 
ICC Register except:
    (a) Where consummation is contingent upon Commission approval of 
directly related applications involving the conversion of certificates 
of registration to certificates of public convenience and necessity; or
    (b)(1) In the case of employee complaints, a decision will be served 
and effective 30 days after receipt of the complaint unless the 
complaint is filed less than 30 days after publication of the summary of 
the Notice of Exemption, in which case the decision will be effective 60 
days after publication of the summary of the Notice of Exemption; or
    (2) In the case of a complaint on anticompetitive grounds, a 
decision will be served and effective 30 days after the due date for 
complaints.

[50 FR 6348, Feb. 15, 1985]



Sec. 1186.8  Complaints.

    (a) Employee complaints. Employees who have been or may be adversely 
affected by an exempt transaction or transaction proposed for exemption 
may file a complaint with the Commission any time after the Notice of 
Exemption is filed. A copy of the complaint must be served on the 
parties to the transaction. The parties may file an answer with the 
Commission and upon complaint within 10 days after receipt of the 
complaint. Employee complaints must contain the following information:
    (1) The docket number of the corresponding Notice of Exemption (if 
available at the time) and the names of the participants in the 
transaction;
    (2) Names of the employees alleged to be affected by the transaction 
and the nature and scope of harm;
    (3) A request for specific relief (requests for relief in the 
alternative are acceptable);
    (4) An explanation as to why the particular relief sought is the 
appropriate remedy for the particular harm suffered; and
    (5) (Optional) A request for suspension or revocation of the 
exemption, accompanied by information showing why suspension or 
revocation of exemption is necessary.
    (b) Anticompetitive complaints. Any party may file a complaint with 
the Commission within 30 days after the Notice of Exemption is published 
alleging that the transaction is potentially anticompetitive. A copy of 
the complaint must be served on the parties to the transaction. The 
parties may respond by filing an answer with the Commission and upon 
complainant within 10 days after the due date of the complaint. The 
complaint must contain the following information:
    (1) The docket number of the corresponding Notice of Exemption (if 
available at the time) and the names of the participants in the 
transaction;
    (2) A specific description of the manner in which competition will 
allegedly be adversely affected;
    (3) A request for specific relief (requests for relief in the 
alternative are acceptable); and

[[Page 443]]

    (4) An explanation as to why the particular relief sought is deemed 
to be appropriate.
    (c) Petitioners shall promptly furnish any interested party with a 
copy of the Notice of Exemption and any attachments, free of charge.

[53 FR 4853, Feb. 18, 1988]



Sec. 1186.9  Safety fitness.

    The Commission will consider the DOT safety fitness rating of the 
parties in transactions where operating authority is purchased or 
merged. All parties to the transaction must certify their current safety 
fitness ratings in their Notice of Exemption. If either party has an 
``Unsatisfactory'' safety fitness rating from DOT, the exemption may be 
disapproved. If parties with ``Unsatisfactory'' safety fitness ratings 
consummate a transaction 60 days after publication of the Notice of 
Exemption but prior to notification of Commission action, they do so at 
their own risk and subject to any conditions we may impose subsequently. 
If a Notice of Exemption contains false or misleading information, the 
exemption is void ab initio.

[56 FR 46735, Sept. 16, 1991]



PART 1187--TEMPORARY AUTHORITY IN MOTOR AND WATER CARRIER FINANCE PROCEEDINGS--Table of Contents




Sec.
1187.1  Applications governed by these rules.
1187.2  Procedures used generally.
1187.3  Applications.
1187.4  Commission action.
1187.5  Protests.

    Authority: 5 U.S.C. 559 and 49 U.S.C. 10321, 10926, 11341, 11343, 
11344, and 11349.

    Source: 54 FR 35346, Aug. 25, 1989, unless otherwise noted.



Sec. 1187.1  Applications governed by these rules.

    These rules govern the handling of applications filed for temporary 
authority to operate motor property carrier, motor passenger carrier, 
and water carrier properties sought to be acquired in separately filed 
applications or petitions for exemption under:
    (a) 49 U.S.C. 11343-11344 (for authority to consolidate, purchase, 
merge, or lease operating rights and properties of, or to acquire 
control of, motor property carriers, motor passenger carriers, and water 
carriers); or
    (b) 49 U.S.C. 10926 (for the transfer of certificates and permits of 
motor property carriers, motor passenger carriers, and water carriers).



Sec. 1187.2  Procedure used generally.

    Since the basis for filing applications for temporary authority 
under these rules is to prevent destruction of or injury to motor 
carrier or water carrier properties sought to be acquired under 49 
U.S.C. 11343-11344 or 10926, these rules are designed to permit the 
Commission to decide expeditiously temporary authority applications. The 
Commission has no obligation to give public notice of applications filed 
under these rules for temporary authority. Cases are decided without 
hearing or other formal proceeding. However, the rules do permit the 
Commission, when feasible, to publish notice of temporary authority 
applications, and such applications may be opposed.



Sec. 1187.3  Applications.

    (a) Starting the application process. Persons seeking temporary 
authority under this section shall complete application form OP-F-46. 
(See 49 CFR part 1003 and Sec. 1002.2(f)(24) regarding forms and filing 
fees.) An application for temporary authority may only be filed 
concurrently with or after the filing of a related application or 
petition for exemption under 49 U.S.C. 11343-11344 or 10926.
    (b) Information to be submitted by applicants. The application form 
constitutes applicants' entire case and shall contain all of the 
information on which applicants intend to rely.
    (c) Where the application is sent. The original and one copy of the 
application shall be sent to the Office of the Secretary, Interstate 
Commerce Commission, Washington, DC 20423, along with the application 
fee. In addition, one copy of the application shall be sent by 
applicants to each of the persons and State officials specified on the 
application form. When an application for temporary authority is filed 
after the filing and publication of notice of

[[Page 444]]

the related acquisition transaction (under 49 U.S.C. 11343-11344 or 
10926), applicants also shall serve a copy of the temporary authority 
application on all parties of record in the related transaction as of 
the date of the filing.



Sec. 1187.4  Commission action.

    (a) Where an application for temporary authority is filed 
concurrently with the related acquisition application or petition for 
exemption, notice of filing of the temporary authority application will 
appear in the published notice of the corresponding permanent 
application or petition.
    (b) The temporary authority application (and protests, if any) will 
be submitted to an appropriate decisional body for disposition as soon 
as possible after filing. These rules do not provide for any specific 
time period for the filing of opposition to concurrently filed temporary 
authority applications. A temporary authority request may be acted upon 
before the publication of the related permanent application or petition 
for exemption.



Sec. 1187.5  Protests.

    (a) Who can oppose an application. A protest to an application for 
temporary authority filed under these rules may be filed only by persons 
who oppose or intend to oppose the related permanent application or 
petition for exemption filed under 49 U.S.C. 11343-11344 or 10926.
    (b) Contents of a protest. A protest to an application for temporary 
authority shall be in writing. The protest shall state the protestant's 
interest in the proceeding and the specific grounds on which protestant 
relies in opposing the temporary authority application. The protest also 
shall indicate that a copy has been served on applicants' 
representative(s).
    (c) To whom the protest is sent. The original and one copy of the 
protest shall be sent to the Office of the Secretary, Interstate 
Commerce Commission, Washington, DC 20423. A copy of the protest shall 
be served on applicants' representative(s).



PART 1188--GROSS OPERATING REVENUES OF CARRIERS INVOLVED IN FINANCE PROCEEDINGS--Table of Contents




Sec.
1188.1  Computation of gross operating revenues of carriers involved in 
          unifications.
1188.2  Deduction of revenues from sources other than regulated 
          transportation.

    Authority: 5 U.S.C. 559 and 49 U.S.C. 10321, 11341, 11343, 11344, 
and 11345a.

    Source: 54 FR 35346, Aug. 25, 1989, unless otherwise noted.



Sec. 1188.1  Computation of gross operating revenues of carriers involved in unifications.

    In proceedings involving consolidation, merger, or acquisition of 
control of motor carriers under 49 U.S.C. 11343, the aggregate gross 
operating revenues of carriers attributable to transportation from the 
use of their respective operating rights subject to subchapter II of 
chapter 105 of the Act shall be deemed to have exceeded $2 million for 
the period of 12 consecutive months ending not more than six months 
preceding the date of the agreement of the parties covering the 
transaction, within the meaning of 49 U.S.C. 11343(d)(1), unless 
otherwise shown, under each of the following circumstances:
    (a) At the end of the preceding calendar year the carriers involved 
in the transaction filed reports with the Commission, as required by 49 
U.S.C. 11145, showing annual gross operating revenues from motor carrier 
operations totaling more than $2 million, and none of the carriers has 
sold or otherwise disposed of any portion of its operating rights 
subsequent to the end of the preceding calendar year;
    (b) A carrier involved in the transaction filed a quarterly report 
or reports for subsequent quarters, and a reasonable estimate of its 
annual gross operating revenues and the reported annual gross operating 
revenues of the other carriers involved in the transaction for the 
preceding calendar year aggregates more than $2 million; or
    (c) A reasonable estimate of:

[[Page 445]]

    (1) The annual gross operating revenues of any carrier which sold or 
otherwise disposed of any portion of its operating rights or which began 
new operations or extended existing operations subsequent to the end of 
the preceding calendar year; and
    (2) The reported annual gross operating revenues of the other 
carriers involved in the transaction for the preceding calendar year 
aggregates more than $2 million.



Sec. 1188.2  Deduction of revenues from sources other than regulated transportation.

    (a) In determining whether a proposed transaction is subject to the 
provisions of 49 U.S.C. 11343, applicant motor carriers and their 
affiliate motor carriers must select the same 12-month period and 
indicate the 12-month period selected, as provided in Sec. 1188.1, and 
must disclose the gross revenues received by each such carrier during 
the critical period selected and the revenues derived from sources other 
than transportation subject to subchapter II of chapter 105 of the Act. 
Such latter revenues may be deducted from the gross revenues for the 
purpose of determining jurisdiction.
    (b) Applicants shall show the amounts which they claim should be 
deducted, the sources from which the revenues were derived, and the 
circumstances under which transportation performed is claimed not to 
have been subject to subchapter II of chapter 105 of the Act, in 
transfer proceedings under 49 CFR part 1181 or in support of a motion 
for dismissal of proceedings under 49 CFR part 1182 or 1186.
    (c) Applicants shall not be required to show that the revenues 
computed under Sec. 1188.1 were dervived from transportation subject to 
subchapter II of chapter 105 of the Act.



PARTS 1189-1199--[RESERVED]




[[Page 447]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  Redesignation Table
  List of CFR Sections Affected


                                                                    Chap.

[[Page 449]]



                    Table of CFR Titles and Chapters



                   (Revised as of September 30, 1996)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                          Title 2--[Reserved]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)
        II  Federal Claims Collection Standards (General 
                Accounting Office--Department of Justice) (Parts 
                100--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
        IV  Advisory Committee on Federal Pay (Parts 1400--1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
       VII  Advisory Commission on Intergovernmental Relations 
                (Parts 1700--1799)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Part 3202)
     XXIII  Department of Energy (Part 3301)

[[Page 450]]

      XXIV  Federal Energy Regulatory Commission (Part 3401)
      XXVI  Department of Defense (Part 3601)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
      LXIX  Tennessee Valley Authority (Part 7901)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)
    LXXVII  Office of Management and Budget (Part 8701)

                          Title 6--[Reserved]

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Consumer Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)

[[Page 451]]

      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy, Department of Agriculture (Parts 
                2900--2999)
       XXX  Office of Finance and Management, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  [Reserved]
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
     XXXIX  Economic Analysis Staff, Department of Agriculture 
                (Parts 3900--3999)
        XL  Economics Management Staff, Department of Agriculture 
                (Parts 4000--4099)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

[[Page 452]]

                    Title 8--Aliens and Nationality

         I  Immigration and Naturalization Service, Department of 
                Justice (Parts 1--499)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Meat and Poultry 
                Inspection, Department of Agriculture (Parts 300--
                399)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
        XI  United States Enrichment Corporation (Parts 1100--
                1199)
        XV  Office of the Federal Inspector for the Alaska Natural 
                Gas Transportation System (Parts 1500--1599)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Thrift Depositor Protection Oversight Board (Parts 
                1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700-1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

[[Page 453]]

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Export Administration, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

[[Page 454]]

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  United States Customs Service, Department of the 
                Treasury (Parts 1--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)

[[Page 455]]

        II  Agency for International Development, International 
                Development Cooperation Agency (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  United States Information Agency (Parts 500--599)
        VI  United States Arms Control and Disarmament Agency 
                (Parts 600--699)
       VII  Overseas Private Investment Corporation, International 
                Development Cooperation Agency (Parts 700--799)
        IX  Foreign Service Grievance Board Regulations (Parts 
                900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Board for International Broadcasting (Parts 1300--
                1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)

[[Page 456]]

        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs and Section 202 Direct Loan Program) 
                (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--999)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3699)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Part 1001)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--799)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Bureau of Alcohol, Tobacco and Firearms, Department of 
                the Treasury (Parts 1--299)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--199)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)

[[Page 457]]

         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Programs, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Pension and Welfare Benefits Administration, 
                Department of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
        VI  Bureau of Mines, Department of the Interior (Parts 
                600--699)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)

[[Page 458]]

        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)
      XXIX  Presidential Commission on the Assignment of Women in 
                the Armed Forces (Part 2900)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)

[[Page 459]]

       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799)
        XI  National Institute for Literacy (Parts 1100-1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                        Title 35--Panama Canal

         I  Panama Canal Regulations (Parts 1--299)

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
       XIV  Assassination Records Review Board (Parts 1400-1499)

             Title 37--Patents, Trademarks, and Copyrights

         I  Patent and Trademark Office, Department of Commerce 
                (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

[[Page 460]]

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--799)
         V  Council on Environmental Quality (Parts 1500--1599)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans 
                Employment and Training, Department of Labor 
                (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       301  Travel Allowances (Parts 301-1--301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Parts 303-1--303-2)
       304  Payment from a Non-Federal Source for Travel Expenses 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Health Care Financing Administration, Department of 
                Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

[[Page 461]]

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10005)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services, 
                General Administration (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  ACTION (Parts 1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
      XXII  Christopher Columbus Quincentenary Jubilee Commission 
                (Parts 2200--2299)
     XXIII  Arctic Research Commission (Part 2301)

[[Page 462]]

      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Saint Lawrence Seaway Development Corporation (Great 
                Lakes Pilotage), Department of Transportation 
                (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  United States Information Agency (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)

[[Page 463]]

        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  Panama Canal Commission (Parts 3500--3599)
        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)
        54  Defense Logistics Agency, Department of Defense (Part 
                5452)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Research and Special Programs Administration, 
                Department of Transportation (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Highway Administration, Department of 
                Transportation (Parts 300--399)
        IV  Coast Guard, Department of Transportation (Parts 400--
                499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)

[[Page 464]]

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Regulatory Agencies (Fishing and 
                Whaling) (Parts 300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            Acts Requiring Publication in the Federal Register
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR



[[Page 465]]





           Alphabetical List of Agencies Appearing in the CFR



                   (Revised as of September 30, 1996)

                                                  CFR Title, Subtitle or
                     Agency                               Chapter

ACTION                                            45, XII
Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Commission on Intergovernmental          5, VII
     Relations
Advisory Committee on Federal Pay                 5, IV
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Analysis Staff                         7, XXXIX
  Economic Research Service                       7, XXXVII
  Economics Management Staff                      7, XL
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Finance and Management, Office of               7, XXX
  Food and Consumer Service                       7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Alaska Natural Gas Transportation System, Office  10, XV
     of the Federal Inspector
Alcohol, Tobacco and Firearms, Bureau of          27, I
AMTRAK                                            49, VII

[[Page 466]]

American Battle Monuments Commission              36, IV
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Arms Control and Disarmament Agency, United       22, VI
     States
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Assassination Records Review Board                36, XIV
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Board for International Broadcasting              22, XIII
Census Bureau                                     15, I
Central Intelligence Agency                       32, XIX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Christopher Columbus Quincentenary Jubilee        45, XXII
     Commission
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Commerce Department                               44, IV
  Census Bureau                                   15, I`
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Export Administration, Bureau of                15, VII
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office                     37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Customs Service, United States                    19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51

[[Page 467]]

  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Defense Mapping Agency                          32, I
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Mapping Agency                            32, I
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Analysis Staff                           7, XXXIX
Economic Development Administration               13, III
Economics Management Staff                        7, XL
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Enrichment Corporation, United States             10, XI
Environmental Protection Agency                   5, LIV; 40, I
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                25, III, LXXVII; 48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export Administration, Bureau of                  15, VII
Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV

[[Page 468]]

Farm Service Agency                               7, VII, XVIII
Farmers Home Administration                       7, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               4, II
Federal Communications Commission                 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II; 49, III
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Inspector for the Alaska Natural Gas      10, XV
     Transportation System, Office of
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Pay, Advisory Committee on                5, IV
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Property Management Regulations System    41, Subtitle C
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Finance and Management, Office of                 7, XXX
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Fishing and Whaling, International Regulatory     50, III
     Agencies
Food and Drug Administration                      21, I
Food and Consumer Service                         7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I, II
General Services Administration
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Property Management Regulations System  41, 101, 105

[[Page 469]]

  Federal Travel Regulation System                41, Subtitle F
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Travel Allowances                               41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Great Lakes Pilotage                              46, III
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Health Care Financing Administration            42, IV
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Health Care Financing Administration              42, IV
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Human Development Services, Office of             45, XIII
Immigration and Naturalization Service            8, I
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Information Agency, United States                 22, V
  Federal Acquisition Regulation                  48, 19
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Intergovernmental Relations, Advisory Commission  5, VII
     on
Interior Department
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
     Secretary
[[Page 470]]

  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  Mines, Bureau of                                30, VI
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, Agency for             22, II
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
  International Development, Agency for           22, II; 48, 7
  Overseas Private Investment Corporation         5, XXXIII; 22, VII
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Regulatory Agencies (Fishing and    50, III
     Whaling)
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                28, I
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             4, II
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration and Naturalization Service          8, I
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department
  Benefits Review Board                           20, VII
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Relations and Cooperative      29, II
       Programs, Bureau of
  Labor-Management Programs, Office of            29, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Pension and Welfare Benefits Administration     29, XXV
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training, Office of    41, 61; 20, IX
       the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Relations and Cooperative        29, II
     Programs, Bureau of
Labor-Management Programs, Office of              29, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II

[[Page 471]]

Management and Budget, Office of                  5, III, LXXVII; 48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II
Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Mines, Bureau of                                  30, VI
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
National Aeronautics and Space Administration     5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National Archives and Records Administration      5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Bureau of Standards                      15, II
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National and Community Service, Corporation for   45, XXV
National Council on Disability                    34, XII
National Credit Union Administration              12, VII
National Drug Control Policy, Office of           21, III
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
National Weather Service                          15, IX
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Panama Canal Commission                           48, 35
Panama Canal Regulations                          35, I
Patent and Trademark Office                       37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension and Welfare Benefits Administration       29, XXV

[[Page 472]]

Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Postal Rate Commission                            5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Commission on the Assignment of      32, XXIX
     Women in the Armed Forces
Presidential Documents                            3
Prisons, Bureau of                                28, V
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Regional Action Planning Commissions              13, V
Relocation Allowances                             41, 302
Research and Special Programs Administration      49, I
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV; 46, III
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  22, I
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Depositor Protection Oversight Board       12, XV
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Coast Guard                                     33, I; 46, I; 49, IV
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II; 49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II

[[Page 473]]

  National Highway Traffic Safety Administration  23, II, III; 49, V
  Research and Special Programs Administration    49, I
  Saint Lawrence Seaway Development Corporation   33, IV; 46, III
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
Transportation, Office of                         7, XXXIII
Travel Allowances                                 41, 301
Treasury Department                               5, XXI; 17, IV
  Alcohol, Tobacco and Firearms, Bureau of        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs Service, United States                  19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
United States Enrichment Corporation              10, XI
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training, Office of the  41, 61; 20, IX
     Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 475]]

                                     

                                     



                           Redesignation Table



------------------------------------------------------------------------
                Old section                          New section        
------------------------------------------------------------------------
Part 1309.................................  Part 1313                   
  1039.1..................................  1313.1                      
  1039.2..................................  1313.3(a)                   
  1039.2(a)...............................  1313.3(a)                   
  1039.2(b)...............................  1313.6(c)                   
  1039.2(c)...............................  1313.2(c)                   
  1039.2(d)...............................  1313.2(a)                   
  1039.2(e)...............................  1313.3(b)                   
  1039.3(a)...............................  1313.7(a)                   
  1039.3(b)-(c)...........................  1313.17                     
  1039.3(d)...............................  1313.16                     
  1039.3(e)...............................  1313.17                     
  1039.3(e), (e)(1) and (2)...............  1313.2(d)                   
  1039.3(f)...............................  1313.2(b)                   
  1039.3(g)...............................  1313.4(c)                   
  1039.4..................................  1313.4(a)                   
  1039.5..................................  1313.5                      
  1039.6..................................  1313.6 (a), (b), and (d)    
  1039.19.................................  1313.3(c)                   
Part 1300: \1\                                                          
  1300.310(b)(1)..........................  1313.8(b)(1) and 1313.15(a) 
  1300.310(b)(2)..........................  1313.15(a)                  
  1300.310(b)(3)..........................  1313.16                     
  1300.310(b)(4)..........................  1313.16(a)                  
  1300.311(b).............................  1313.7(b)                   
Part 1312.41:                                                           
  1312.41(a)(1)...........................  1313.7(a)                   
  1312.41(a)(2)-(4).......................  1313.8                      
  1312.41(b)..............................  1313.7(b)                   
  1312.41(c)..............................  1313.7(c)                   
  1312.41(d)..............................  1313.10-1313.13             
  1312.41(d)(4)...........................  1313.9(a)                   
  1312.41(e)..............................  1313.8(b)(1)                
  1312.41(f)..............................  1313.3                      
  1312.41(g)..............................  1313.3(d)                   
------------------------------------------------------------------------
\1\ Appendix to July 13, 1984 decision (49 FR 28718-28720) and not      
  recodified at Sec.  1312.41.                                          


------------------------------------------------------------------------
                New section                        Old section \1\      
------------------------------------------------------------------------
Part 1313:                                                              
  1313.1..................................  1039.1                      
  1313.2(a)...............................  1039.2(d)                   
  1313.2(b)...............................  1039.3(f)                   
  1313.2(c)...............................  1039.3(e), (e) (1) and (2)  
  1313.2(d)...............................  1039.2(c)                   
  1313.3(a)...............................  1039.2, (2)(a); 1312.41(f)  
  1313.3(b)...............................  1039.2(e)                   
  1313.3(c)...............................  1039.19                     
  1313.3(d)...............................  1312.41(g)                  
  1313.4 (a) and (b)......................  1039.4                      
  1313.4(c)...............................  1039.3(g)                   
  1313.5..................................  1039.5                      
  1313.6 (a) and (b)......................  1039.6                      
  1313.6(c)...............................  1039.2(b)                   
  1313.6(d)...............................  1039.6                      
  1313.7(a)...............................  1039.3(a); 1312.41(a)(1)    
  1313.7(b)...............................  1300.311(b); 1312.41(b)     
  1313.7(c)...............................  1312.41(c)                  
  1313.8(a)...............................  1312.41(a)(2)-(4)           
  1313.8(b)...............................  1300.310(b)(1); 1312.41(e)  
  1313.9(a)...............................  1312.41(d)(4)               
  1313.9(b)...............................  New                         
  1313.10.................................  1312.41(d)                  
  1313.11.................................  1312.41(d)                  
  1313.12.................................  1312.41(d)                  
  1313.13.................................  1312.41(d)                  
  1313.14.................................  New                         
  1313.15.................................  1300.310(b) (1) and (2)     
  1313.16.................................  1039.3(d); 1300.310 (b)(3)  
                                             and (b)(4)                 
  1313.17.................................  1039.3 (b)-(c) and (e)      
------------------------------------------------------------------------
\1\ Appendix to July 13, 1984 decision (49 FR 28718-28720) and not      
  recodified at Sec.  1312.41.                                          


[[Page 477]]



List of CFR Sections Affected


All changes in this volume of the Code of Federal Regulations which were 
made by documents published in the Federal Register since January 1, 
1986, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 1986, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972, and 1973-1985'' published in seven 
separate volumes.

                                  1986

49 CFR
                                                                   51 FR
                                                                    Page
Chapter X
1001.2  Amended....................................................44297
1002.2  (f) table amended...................................18589, 44297
1003.2  Amended....................................................34219
    Heading and text amended.......................................44297
1008  Authority citation revised...................................34989
1008.1  Amended....................................................44297
1008.2  (b) amended................................................34989
    (a) amended....................................................44297
1011  Authority citation revised...................................15630
1011.2  (a)(8) added...............................................35223
1011.4  Authority citation removed.................................16851
1011.5  Authority citation removed.................................16851
1011.6  Heading revised; (e)(3) and authority citation removed; 
        (e)(4), (5), and (6) redesignated as (e)(3), (4), and (5); 
        (k)(2), (3), and (4) amended; (k)(5) added.................16851
    (h) removed....................................................34989
    (b)(4) revised.................................................36403
    (b)(4) and (k)(1) amended......................................44297
1011.7  Authority citation removed.................................16851
1011.8  (a) revised................................................15630
    Authority citation removed.....................................16851
    (c) added......................................................35223
1014  Added........................................................22896
1014.170  (c) revised..............................................22896
1023  Authority citation revised...................................12710
1023.15  Added.....................................................12710
1023.32  (d) removed; (e), (f), and (g) redesignated as (d), (e), 
        and (f)....................................................12710
1023.40  (c) added.................................................12710
1039  Authority citation revised............................27046, 32922
    Heading and authority citation revised; interim................45899
1039.1--1039.6  Removed (regulations transferred to Part 1313); 
        interim....................................................45899
1039.3  (a) amended.................................................3340
1039.14  (b)(7) removed; eff. 10-15-86.............................32656
    Heading and (c) revised; (b)(7) added; eff. 10-16-86...........32922
1039.19  Removed (regulations transferred to Part 1313); interim 
                                                                   45899
1039.20  Added.....................................................46675
1039.21  Added.....................................................27046
1041.11  Amended...................................................44297
1041.20  Amended...................................................44297
1041.21  Amended...................................................44297
1043  Authority citation revised...................................15008
1043.5  (a) revised; interim.......................................15008
1043.7  (d) revised................................................34623
1047.25  Corrected.................................................20976
1048.21  Added......................................................1815
1049.1  Heading and text amended...................................44297

[[Page 478]]

1049.2  Heading and text amended...................................44297
1051  Authority citation added.....................................10842
1051.1  (c) added; authority citation removed......................10842
1051.5  Authority citation removed.................................10842
1057  Authority citation revised...................................37034
1057.11  (b)(2) revised; (c)(1) amended............................37406
1057.12  Authority citation removed................................37034
    (e) amended....................................................37406
    (f) amended....................................................37407
1057.41  Removed...................................................37034
1058  Authority citation revised...................................41636
1058.5  Existing text designated as (a); (b) added.................41636
1058.6  Removed....................................................41636
1063  Authority citation revised...................................42097
1063.4  (c)(2) and (3) revised.....................................42098
1080--1085  Undesignated center heading amended....................44297
1080  Heading revised..............................................44297
1080.1  Amended....................................................44297
1080.2  (c) amended................................................44297
1083.1  Heading and text amended...................................44297
1084.2  (b) amended................................................44297
1085.1  Table revised..............................................25206
1090.2  (a) amended................................................44297
1105  Authority citation revised..............................196, 16853
1105.6  (c)(4) amended.............................................44297
1105.11  Amended; authority citation removed.........................196
    Appendix amended...............................................16853
    Revised........................................................25207
    Correctly revised..............................................26252
1105.12  Authority citation removed..................................196
1130  Authority citation revised....................................5713
1130.1  Authority citation removed..................................5713
1130.2  (e) (1) and (2) amended.....................................5713
1130.3  Removed....................................................34989
1132  Authority citation added......................................6237
1132.1  (b) and (f) revised; (j) added; authority citation removed
                                                                    6237
    (a) and (d) amended............................................44297
1132.2  Authority citation removed..................................6237
1135  Authority citation revised...................................37035
1135.1  (f) redesignated as (g); (b) revised; new (f) added........37035
1139  Authority citation revised....................................6238
1139.20  (a) revised................................................6238
1144.1  (b)(3) corrected...........................................18333
1150  Authority citation revised....................................2504
1150.31--1150.34 (Subpart D)  Added.................................2504
1150.33  (g) added.................................................25207
1152  Authority citation revised......................2505, 16852, 33613
1152.21  Form amended..............................................16852
1152.25  (a)(2)(iv) and (v) amended; (a)(2)(vi) added..............16852
    (e)(3)(iii) added..............................................21559
    (e)(1) revised.................................................35223
1152.27  (h)(1) and (4) revised.....................................2505
    (e) revised....................................................35223
1152.29  Added.....................................................16852
1152.50  (d)(2) amended..............................................197
    (d)(4) revised.................................................16853
    (d)(5) added...................................................42098
1152  Appendix amended.............................................33613
1160.1  (b) amended................................................44297
1160.6  Amended....................................................44297
1160.19  (e) amended...............................................44297
1160.22  Heading and text amended..................................44297
1160.24  Amended...................................................44297
1160.61  (a) amended...............................................33270
1160.101  Revised..................................................43927
1160.105  Revised..................................................43927
1165.21  (b)(4) revised; (d) added.................................43927
1165.26  Revised...................................................43928
1175  Revised.......................................................4928
1180  Authority citation revised......................4928, 24669, 25207
1180.2  (d)(2) revised; authority citation removed.................24669
1180.4  (g)(1)(iii) added...........................................4928
    Authority citation removed.....................................24669
    (g)(3) added...................................................25207
1180.6  Authority citation removed.................................24669

[[Page 479]]

1180.40--1180.49 (Subpart C)  Authority citation removed...........24669
1181.20--1181.27 (Subpart C)  Heading amended......................44297
1181.20  (a)(1) and (2) amended....................................44297
1181.21  (g) and (i) amended.......................................44297
1181.24  (d) amended...............................................44297
1181.25  (a), (b), and (c) amended.................................44297
1181.40--1181.41 (Subpart E)  Heading amended......................44297

                                  1987

49 CFR
                                                                   52 FR
                                                                    Page
Chapter X
1002  Authority citation revised...................................13686
1002.1  (f) revised; interim.......................................13686
1002.1  (a) and (c) amended; (f)(6) table revised..................46481
1002.2  (f) (60) and (74) revised..................................13245
    (f)(78) revised; interim.......................................31773
    (f) revised....................................................46481
1002.3  (d) (2) through (4) revised................................46483
1003  Policy statement.............................................11277
1007  Authority citation revised...................................46483
1007.5  (f) amended................................................46483
1011.2  (a)(4) and (b) revised.....................................30165
    (a)(8) revised................................................45637,
                                                            46774, 48440
1011.3  Revised....................................................30165
1011.6  Heading revised; introductory text amended; (e) and (h) 
        removed; (f), (g), (i), (j) and (k) redesignated as (e) 
        through (i)................................................30165
1011.8  (c)(3) added...............................................45637
    (c) (4) and (5) added..........................................46774
    (c)(2) revised.................................................48440
1014  Policies and practices self-evaluation.......................18564
1039.13  Revised...................................................23660
1039.14  (c)(6) added..............................................37971
1039.16  Revised...................................................17404
1042  Heading revised; authority citation added....................28474
1042.1--1042.2 (Subpart A)  Removed................................28474
1042.10--1042.13 (Subpart B)  Heading and authority citation 
        removed....................................................28474
1043  Authority citation revised....................................3815
    Policy statement...............................................11277
1043.4  Revised....................................................20088
    Revised; interim...............................................27351
    Correctly revised..............................................28474
1043.5  (a) revised.................................................3815
1050  Removed.......................................................4626
1052  Authority citation revised...................................11991
1052.3  Revised.............................................11991, 45966
1052.4  Removed....................................................11991
1057.12  (g) revised................................................2412
1059  Removed......................................................32135
1084  Policy statement.............................................11277
1090  Revised......................................................23660
    Authority citation revised.....................................27811
1090.2  Revised....................................................27811
1090.3  Revised....................................................27811
1103.3  (d), (k), (l) and (m) revised..............................46483
1130.2  (e)(1) introductory text and flush text following (xi) and 
        (2) introductory text and flush text following (vi) 
        amended....................................................26479
1132.1  (b) corrected..............................................32800
1132.2  (b) introductory text added; (b)(1) introductory text 
        revised; (c) and (d) amended...............................30165
1138  Revised......................................................13841
1150  Authority citation revised...................................46483
1150.10  (b) amended...............................................46483
1152  Authority citation revised...................................46774
1152.25  (e)(1) revised..............................45637, 46774, 48440
1152.27  (a) through (g), (h)(7), (j), and (l) (1) and (2) revised
                                                                   48440
1152.29  (b)(1) (i), (ii) and (iii), (6) and (7), (e), (f) and (g) 
        added; (b) (1) introductory text, (2) and (4) amended; 
        (c)(2) and (d)(2) revised..................................46774
1152.32  Introductory text, (g) introductory text and (3)(iii), 
        and (k) amended; (g)(3)(ii) and (h) removed; (n)(4) 
        revised; (n)(5) added.......................................2706
    (p) amended.....................................................2708
1152.33  (c)(1) (i) and (ii) revised................................2709
1152.34  Revised....................................................2709
1152.35  Removed....................................................2710

[[Page 480]]

1152.36  Table amended..............................................2710
1152.50  (d)(4)(iii) amended.......................................46775
    (a) redesignated as (a)(1); (a)(2) added; (d)(3) revised.......48443
1160  Authority citation revised............................18365, 37317
1160.5  (d)(1) amended; (e) added..................................18365
1160.6  Revised....................................................18365
1160.8  Amended....................................................18366
1160.19  (b) revised...............................................18366
1160.23  (e) introductory text revised.............................18366
1160.64  (c) revised...............................................18366
    (b) revised....................................................46483
1160.66  (d) revised...............................................18366
1160.71  (a)(5) revised............................................18366
    (b)(1) removed; (b) (2) and (3) redesignated as (b) (1) and 
(2); heading and (a) (1) and (2) revised; interim..................45828
1160.71a  Added; interim...........................................45828
1160.73  (b) revised...............................................18366
1160.75  (g) and (j) revised; (k) amended..........................18366
    (d) removed; (e) through (m) redesignated as (d) through (l); 
interim............................................................45828
1160.76  (a)(1)(iii) introductory text revised.....................18367
    (a)(1)(i) introductory text, (ii) introductory text and (iii) 
introductory text, and (iv) revised; interim.......................45828
1160.78  (b) revised...............................................18367
1160.80  Heading revised...........................................18367
1160.87  (a) revised...............................................18367
1160.88  Heading revised; interim..................................45829
1160.92  (d) revised; interim......................................45829
1160.95  Introductory text and (a)(3) revised; (a) introductory 
        text and (4) amended; (a) (5) and (6) added; interim.......45829
1160.96  Redesignated as 1160.97; new 1160.96 added; interim.......45829
1160.97  Redesignated as 1160.98; new 1160.97 redesignated from 
        1160.96; interim...........................................45829
1160.98  Redesignated as 1160.99; new 1160.98 redesignated from 
        1160.97; interim...........................................45829
1160.99  Redesignated as 1160.99a; new 1160.99 redesignated from 
        1160.98; interim...........................................45829
1160.99a  Redesignated from 1160.99; interim.......................45829
1160.106  (e)(2) revised...........................................18367
1160.107--1160.114 (Subpart G)  Added..............................37317
1161.5  Amended....................................................30166
1162.2  (c) revised; (e)(4)(ii) amended............................46483
1162.3  (b) amended.................................................4627
1162.5  (b)(1) amended..............................................4627
1162.6  (g)(2) amended.............................................30166
1165  Removed......................................................37317
1169.3  Amended....................................................46484
1171.5  (a) revised................................................46484
1177.3  (c) revised................................................46484
1180.4  (c)(1) revised.............................................46484
1180.41  (d) revised...............................................46484
1181.21  (l) corrected.............................................33418
1182.1  (b) amended................................................46484
1182.5  (c)(1) revised.............................................46484

                                  1988

49 CFR
                                                                   53 FR
                                                                    Page
Chapter X
1001  Authority citation revised.............................6156, 23399
1001.4  Revised....................................................23399
1001.5  Added; interim..............................................6156
1002.1  (f) revised................................................23399
    (b) amended; (f)(6) table revised..............................33814
1002.2  (a) and (f) revised........................................33814
1003.2  Amended.....................................................4851
1003.3  Amended....................................................10396
1004  Revised......................................................47219
1011.2  (a)(8) revised..............................................3400
1011.6  (i)(5) revised..............................................4852
    (i)(1) revised.................................................49325
1011.8  (c)(3) revised..............................................3401
1035  Authority citation revised...................................20853
1035.1  Existing text designated as (b) and (c); (a) added.........20853
1041  Removed......................................................47221
1042  Removed......................................................47221
1043.2  (b)(1) (i) and (ii) correctly designated...................36984
1043.4  Revised....................................................10396
1047.25  Revised...................................................17707
1071  Revised......................................................23401
1072  Removed......................................................23401
1104.1  (a) revised................................................20854
1104.3  (a) and (b) amended.......................................10095,
                                                                   19301

[[Page 481]]

1111.3  Amended.............................................10096, 19301
1111.4  (b) amended.........................................10096, 19301
1113.7  (e) amended.........................................10096, 19301
1113.12  (a) amended........................................10096, 19301
1113.13  Amended............................................10096, 19301
1115.7  Added......................................................20854
1118.4  (b) amended.........................................10096, 19301
1130.2  (f) amended.........................................10096, 19301
1131.8  Amended.............................................10096, 19302
1131.9  (b) amended.........................................10096, 19302
1132.1  (d) amended.........................................10096, 19302
1132.2  (b) amended.........................................10096, 19302
1136.2  Amended.............................................10096, 19302
1137.1  (a)(1) and (d) amended..............................10096, 19302
1139.7  Amended.............................................10096, 19302
1140  Authority citation revised...................................46088
1140.2  (b)(12)(i)(D) revised......................................46088
    (b)(7)(i), (ii) introductory text, and (B) through (F), (iii), 
(12)(i), (ii) introductory text, (B) through (E), and (iii) 
revised; Note 15 amended....................................49990, 49991
    Technical correction...........................................51626
1143  Authority citation correctly revised.........................15849
1143.5  Amended.............................................10096, 19302
1150  Authority citation revised....................................4626
1150.10  (b) and (g) amended................................10096, 19302
1150.32  (d) added; interim.........................................4626
    Heading revised.................................................5982
1150.33  (g) revised; interim.......................................4626
    Heading revised; (h) added......................................5982
1150.34  Heading revised............................................5982
1150.35  Added......................................................5982
    (c)(4) revised.................................................31341
1152  Authority citation revised...................................45766
1152.2  (h) through (o) redesignated as (i) through (p); new (h) 
        added......................................................49667
1152.22  (d) (3) through (5) redesignated as (d) (4) through (6); 
        new (d)(3) added; (e)(2) revised...........................49667
1152.24  (a) amended........................................10096, 19302
1152.25  (e)(1) revised.............................................3401
    (c) (2) and (4) amended.................................10096, 19303
1152.30  (a)(2) revised............................................49667
1152.34  (c)(1)(ii) revised........................................45766
    (a)(1), (b)(3), (c)(1) introductory text, (d) introductory 
text, (2), (3), (4), (5), and (6) revised; new (e) added...........49667
1152.36  Revised...................................................49668
1152.40  (b) amended........................................10096, 19302
1152.41  (e)(2) revised............................................49668
1152.42  (a) amended........................................10096, 19302
1154.6  (a) amended.........................................10096, 19302
1160.13  Revised...................................................15399
    Correctly revised..............................................16552
1160.71  (b)(1) removal, (b)(2) and (3) redesignation as (b)(1) 
        and (2), heading and (a)(1) and (2) revision confirmed.....10536
1160.71a  Addition confirmed.......................................10536
1160.75  (d) removal and (e) through (m) redesignation as (d) 
        through (l) confirmed......................................10536
1160.76  (a)(1)(i) introductory text, (ii) introductory text and 
        (iii) introductory text and (iv) revision confirmed........10536
1160.88  Heading revision confirmed................................10536
1160.92  (d) revision confirmed....................................10536
1160.95  Introductory text and (a)(3) revision, (a) introductory 
        text and (4) amendment, and (a)(5) and (6) addition 
        confirmed..................................................10536
1160.96  Redesignation as 1160.97 and new 1160.96 addition 
        confirmed..................................................10536
1160.97  Redesignation as 1160.98 and new 1160.97 redesignation 
        from 1160.96 confirmed.....................................10536
1160.98  Redesignation as 1160.99 and new 1160.98 redesignation 
        from 1160.97 confirmed.....................................10536
1160.99  Redesignation as 1160.99a and new 1160.99 redesignation 
        from 1160.98 confirmed.....................................10536
1160.99a  Redesignation from 1160.99 confirmed.....................10536
1161.5  Amended.............................................10096, 19302
1162.2  (b) amended................................................10096
    (b) amendment at 53 FR 10096 removed...........................19301
1162.3  (a)(2) amended.............................................10096
    (a)(2) amendment at 53 FR 10096 removed........................19301
1162.6  (c) amended................................................10096
    (c) amendment at 53 FR 10096 removed...........................19301
1169.6  (b) amended.........................................10097, 19302
1169.23  (a) amended........................................10097, 19302
1169.32  Amended............................................10097, 19302
1170.3  (e) amended.........................................10097, 19302

[[Page 482]]

1170.7  (c) amended.........................................10097, 19302
1181  Revised.......................................................4852
1182.1  (e)(1) amended......................................10097, 19302
1182.2  (c) amended.........................................10097, 19302
1182.4  (c) (1) and (2) amended.............................10097, 19302
1182.5  (e) amended.........................................10097, 19302
1183.1  (b) amended.........................................10097, 19302
1183.4  (b) amended.........................................10097, 19302
1183.5  (b) amended.........................................10097, 19303
1185  Authority citation revised...................................39097
1185.1  Redesignated as 1185.2; new 1185.1 added...................39097
    (a) and (b) correctly revised..................................40068
1185.2  Redesignated as 1185.3 and revised; new 1185.2 
        redesignated from 1185.1...................................39097
1185.3  Redesignated as 1185.4; new 1185.3 redesignated from 
        1185.2 and revised.........................................39097
1185.4  Redesignated as 1185.5; new 1185.4 redesignated from 
        1185.3.....................................................39097
1185.5  Redesignated as 1185.6; new 1185.5 redesignated from 
        1185.4.....................................................39097
1185.6  Redesignated as 1185.7; new 1185.6 redesignated from 
        1185.5.....................................................39097
1185.7  Amended.............................................10097, 19303
    Redesignated as 1185.8; new 1185.7 redesignated from 1185.6....39097
1185.8  Redesignated as 1185.9; new 1185.8 redesignated from 
        1185.7.....................................................39097
1185.9  Redesignated as 1185.10; new 1185.9 redesignated from 
        1185.8.....................................................39097
1185.10  Redesignated as 1185.11; new 1185.10 redesignated from 
        1185.9.....................................................39097
1185.11  Redesignated from 1185.10.................................39097
1186.1  Revised.....................................................4853
1186.2  Revised.....................................................4853
1186.3  Introductory text amended...........................10097, 19303
1186.5  Revised.....................................................4853
1186.8  Revised.....................................................4853
1186.9  Added.......................................................4854

                                  1989

49 CFR
                                                                   54 FR
                                                                    Page
Chapter X
1000.1--1000.10 (Subpart A)  Authority citation added; section 
        authority citations removed................................38998
1001  Authority citation revised...................................16368
1001.5  Revised....................................................16368
1002.1  (b), (c) amended; (f)(6) table revised.....................36030
1002.2  (d)(3) and (f) revised.....................................36030
    (f) table corrected............................................40115
1003.2  Amended.............................................35343, 53637
1004.20  Revised...................................................21956
1011.2  (a)(8) and (iv) amended; (a)(8)(v) added...................29337
1011.6  (i)(2) revised.............................................35343
1011.8  (c)(6) added...............................................29337
    (c)(7) added...................................................39741
    (c)(8) added...................................................50386
1016  Authority citation revised...................................26379
1016.102  Revised..................................................26379
1016.104  Amended..................................................26379
1016.105  (a) amended; (b) revised; (d) removed; (e) through (g) 
        redesignated as (d) through (f)............................26379
1016.106  (a) revised..............................................26379
1016.107  (b) revised..............................................26379
1016.108  Removed..................................................26380
1016.201  (b) revised..............................................26380
1016.202  (a) amended; (b) revised.................................26380
1016.301  (c) amended..............................................26380
1016.303  (b) amended..............................................26380
1016.305  Amended..................................................26380
1016.307  (a) revised..............................................26380
1016.308  Amended..................................................26380
1016.309  Revised..................................................26380
1039.11  (a) table amended; (a) concluding text added..............51402
1043.2  (b)(4) revised.............................................52034
1053.1  Amended....................................................26208
1054  Revised......................................................46619
1056.15  (b) revised; eff. 10-6-89.................................36981
1090.2  Revised....................................................51746
1103  Authority citation revised...................................48250
1103.3  (c) redesignated as (c)(1); (c)(2) added...................48250
1104  Authority citation revised...................................48250
1104.15  Added.....................................................48250

[[Page 483]]

1105.10  (g)(3) added...............................................9823
1115.2  Introductory text revised..................................19894
1115.8  Added......................................................19894
1135  Interpretative rule...........................................8721
    Authority citation revised.....................................42511
1135.1  (b) amended; (c) revised...................................12920
    (h) added......................................................42511
1145  Added........................................................42509
1152  Authority citation revised...................................18517
1152.22  (d)(1) revised............................................18517
1152.32  (g) introductory text and (n) introductory text amended; 
        (g)(3)(ii) and (h) added...................................18517
    (j)(1) amended; (j) (2) through (4) revised....................26046
    Section designation and (j)(1) correctly designated; (j)(2) 
corrected..........................................................27795
1152.34  Introductory text revised; (a) and (b) removed............18518
1152.36  Table revised.............................................18518
1152.37  Amended...................................................18519
1152.50  (d)(3) revised; (d) (4) and (5) redesignated as (d) (5) 
        and (6); new (d)(4) added; new (d)(5) revised...............9823
1157.7  (f)(2)(iv) correctly designated............................38998
1160  Revised......................................................53637
1162.2  (b), (c), (d), and (e)(3) revised..........................53643
1168  Removed......................................................53643
1171.1  (a) revised................................................42958
1171.2  (a) revised; (b) removed; (c) through (i) redesignated as 
        (b) through (h); new (b) and (c) revised...................42959
1171.3  (b) and (d) revised........................................42959
1171.6  (b)(2) and (c) revised.....................................42959
    (b)(2) revised.................................................52035
1180.25  (b)(1) revised............................................38998
1181.2  (b)(1)(ix) added...........................................35343
1181.6  (a)(2) revised.............................................47364
1182  Revised......................................................35343
    Authority citation revised.....................................48250
1182.3  (a)(12) added..............................................48250
1183  Removed......................................................35346
1186  Authority citation revised...................................48250
1186.2  (e) added..................................................35346
    (f) added......................................................48251
1186.4  Revised....................................................35346
1187  Added........................................................35346
1188  Added........................................................35346

                                  1990

49 CFR
                                                                   55 FR
                                                                    Page
Chapter X
1000.735-12  (a) amended...........................................23937
1002.1  (f)(6) table revised.......................................35636
1002.2  (d)(1) and (f) revised.....................................35636
1003.2  Regulation at 54 FR 53637 effective date delayed to 6-1-90
                                                                   14285
    Effective date delayed to 6-15-90..............................22031
    Corrected......................................................38809
1011.6  Introductory text amended; (a) revised; (c) removed; (d) 
        through (i) redesignated as (c) through (h)................47337
1022  Revised......................................................11197
1039.14  (c)(2)(ii)(B) and (iii) revised; (c)(3) amended...........41339
1043.2  (b)(4)(1) through (3) redesignated as (b)(4)(i) through 
        (iii)......................................................47338
1043.10  (a) revised...............................................11197
1044  Revised......................................................11197
1044.4  (a) amended................................................47338
1047.45  Undesignated center heading revised.......................11198
1048.13  Removed; new 1048.13 redesignated from 1048.14............42198
1048.14  Redesignated as 1048.13; new 1048.14 redesignated from 
        1048.16....................................................42198
1048.15  Removed; new 1048.15 redesignated from 1048.17 and 
        introductory text amended..................................42198
1048.16  Redesignated as 1048.14; new 1048.16 redesignated from 
        1048.18....................................................42198
1048.17  Redesignated as 1048.15 and introductory text amended; 
        new 1048.17 redesignated from 1048.19......................42198
1048.18  Redesignated as 1048.16; new 1048.18 redesignated from 
        1048.20....................................................42198
1048.19  Redesignated as 1048.17; new 1048.19 redesignated from 
        1048.21....................................................42198
1048.20  Redesignated as 1048.18...................................42198

[[Page 484]]

1048.21  Redesignated as 1048.19...................................42198
1051  Revised......................................................11198
1056.12  (b) introductory text amended; (b)(2) added...............18729
    (b)(2) revised.................................................30235
1058  Revised......................................................11199
1061  Revised......................................................11199
1063  Revised......................................................11199
1067  Revised......................................................11201
1070  Authority citation revised...................................11201
1070.1  Introductory text added; (a) text and (b) text revised.....11201
1080--1089  Heading revised........................................11201
1080  Removed......................................................11201
1081  Revised......................................................11201
1083  Removed......................................................11201
1084  Revised......................................................11201
1085  Removed......................................................11202
1091  Revised......................................................11203
1104  Heading revised..............................................11203
1118.1  Amended....................................................47337
1132.1  Nomenclature change........................................47337
1132.2  Nomenclature change........................................47337
1136  Revised......................................................11203
1143  Revised......................................................11203
1145  Authority citation revised...................................47338
    Authority citation corrected............................48955, 49200
1152  Authority citation revised...................................31600
1152.20  (a)(2)(viii), (xi) and (xii) amended; (a)(2)(xiii) added 
                                                                   31600
1152.21  Amended...................................................31600
1152.50  (d)(1)(i) and (ii) and concluding text amended; 
        (d)(1)(iii) through (v) added..............................31600
    (e) added......................................................31601
1160  Regulation at 53637 effective date delayed to 6-1-90.........14285
    Effective date delayed to 6-15-90..............................22031
    Policy statement...............................................21386
1160.3  (a) corrected..............................................38809
1161  Revised......................................................11203
1162.2  (b)(2) amended..............................................6805
    Regulation at 54 FR 53643 effective date delayed to 6-1-90.....14285
    Effective date delayed to 6-15-90..............................22031
1162.5  (a) and (b)(3) amended; (c) removed........................47337
1167  Revised......................................................11204
1167.2  (c) amended................................................47338
1168  Regulation at 54 FR 53643 effective date delayed to 6-1-90 
                                                                   14285
    Effective date delayed to 6-15-90..............................22031
1169  Revised......................................................11205
1170  Revised......................................................11206
1171.6  (b)(2) amended.............................................47338

                                  1991

49 CFR
                                                                   56 FR
                                                                    Page
Chapter X
1002.1  (a) and (f)(6) table revised...............................42237
1002.2  (f) revised................................................42237
    (f) table corrected............................................46667
1010  Removed.......................................................9635
1011  Policy statement.............................................46732
    Petition denied................................................67002
1011.2  (a)(8)(iv) and (v) amended; (a)(8)(vi) added...............37861
1011.6  (h)(1) and (2) revised.....................................46734
1011.7  (c)(3) and (d) revised......................................8722
1011.8  (c)(10) added..............................................36105
    (c)(9) added...................................................37861
    (c)(10) correctly designated...................................41304
1017  Added........................................................32333
1031  Heading removed..............................................18532
1033  Revised......................................................66793
1039.11  (a) table amended.........................................31547
1043.8  Revised....................................................28111
1051.1  Concluding text revised....................................30874
1061  Revised.......................................................1745
1084.5  Revised....................................................28111
1103.3  (c)(1) amended; (i) through (o) redesignated as (j) 
        through (p); new (i) added..................................1374
1105  Revised......................................................36105
1105.5  (c) flush text corrected...................................49821
    Concluding text corrected......................................49821
1105.7  (e)(3)(i) corrected........................................49821
1105.10  (a)(5) corrected..........................................49821
1105.12  Appendix corrected........................................49821
1106  Removed......................................................36111
1121  Added........................................................46391
1144.1  (a) amended................................................18532
1145.1  Revised....................................................58318
1145.2  Revised....................................................58318

[[Page 485]]

1145.3  Redesignated as 1145.4 and revised; new 1145.3 added.......58318
1145.4  Redesignated as 1145.5 and revised; new 1145.4 
        redesignated from 1145.3 and revised.......................58318
    (e) corrected..................................................61096
1145.5  Redesignated as 1145.6; new 1145.5 redesignated from 
        1145.4.....................................................58318
    Revised........................................................58319
1145.6  Redesignated as 1145.7; new 1145.6 redesignated from 
        1145.5.....................................................58318
    (c) revised....................................................58320
1145.7  Redesignated as 1145.8; new 1145.7 redesignated from 
        1145.6.....................................................58318
    Revised........................................................58320
1145.8  Redesignated from 1145.7...................................58318
1150.33  (g) removed; (h) redesignated as (g)......................36111
1151.1  Amended....................................................37861
1151.2  Revised....................................................37861
1151.3  (a)(17) and (b) removed; (c) redesignated as (b); (a) 
        introductory text, (14), (16) and new (b) revised..........37862
1151.5  Removed....................................................37862
1152  Policy statement.............................................18741
    authority citation corrected...................................49821
1152.2  (m) revised................................................61387
1152.20  (a)(2)(vii) revised.......................................35835
    (d) removed....................................................36111
    (a)(2) correctly designated....................................38175
1152.21  Amended...................................................36111
1152.31  (a)(1) revised............................................61387
1152.32  (n) revised...............................................61387
1152.50  (d)(2) amended; eff. 11-13-91.............................32337
    (d)(1)(ii) revised.............................................35835
1152.60 (Subpart G)  Added; eff. 11-13-91..........................32337
    (a) amended; eff. 11-13-91.....................................46392
1152  Appendix amended.............................................18532
    Appendix corrected.............................................24119
1160  Policy statement.............................................46732
    Petition denied................................................67002
1160.5  (a)(3) and (4) revised.....................................46734
1175.1  (c) removed................................................18533
1177.3  (a) and (b) revised........................................10520
    (a)(3) corrected...............................................12423
1180.4  (g)(3) revised.............................................36111
    (c)(1) and (6)(iii) amended....................................41806
1180.6  (a)(7)(ii) amended.........................................41806
1180.40--1180.49 (Subpart C)  Removed..............................10809
1181  Policy statement.............................................46732
    Petition denied................................................67002
1181.4  (c) revised................................................46735
1185.1  (d) removed................................................18533
1186  Policy statement.............................................46732
    1186  Petition denied..........................................67002
1186.9  Revised....................................................46735

                                  1992

49 CFR
                                                                   57 FR
                                                                    Page
Chapter X
Chapter X  Policy Statement........................................19812
1001.1  (a) revised................................................24381
1001.3  Redesignated as 1001.4; new 1001.3 added...................24381
1001.4  Redesignated as 1001.5; new 1001.4 redesignated from 
        1001.3.....................................................24381
1001.5  Redesignated as 1001.6; new 1001.5 redesignated from 
        1001.4.....................................................24381
1001.6  Redesignated from 1001.5...................................24381
1002.1  (b) revised; (f)(6) table amended..........................53296
1002.2  (f) revised................................................53296
    (f) table corrected............................................54894
1003  Revised; eff. 10-8-92........................................41112
1004.1  Removed....................................................38444
1011.8  (c)(3) amended.............................................13049
1012.4  (b) amended................................................44135
1020  Removed......................................................39364
1023.32  Revised...................................................43152
    Regulation at 57 FR 43152 stayed...............................45751
    (e) and (f) amended............................................49149
1023.33  Revised...................................................43152
    Regulation at 57 FR 43152 stayed...............................45751
1023.34  Revised...................................................43152
    Regulation at 57 FR 43152 stayed...............................45751
1023.35  Revised...................................................43152
    Regulation at 57 FR 43152 stayed...............................45751
    Revised........................................................49149
1023.36  Removed; new 1023.36 redesignated from 1023.38............43152
    Revised........................................................43153
    Regulations at 57 FR 43152 and 43153 stayed....................45751

[[Page 486]]

1023.37  Removed; new 1023.37 redesignated from 1023.39............43152
    Revised........................................................43153
    Regulations at 57 FR 43152 and 43153 stayed....................45751
1023.38  Redesignated as 1023.36...................................43152
    Regulation at 57 FR 43152 stayed...............................45751
1023.39  Redesignated as 1023.37...................................43152
    Regulation at 57 FR 43152 stayed...............................45751
1023.40  Removed...................................................43153
    Removal at 57 FR 43153 stayed..................................45751
1023.41  Removed...................................................43153
    Removal at 57 FR 43153 stayed..................................45751
1023.42  Removed...................................................43153
    Removal at 57 FR 43153 stayed..................................45751
1023.101  Removed..................................................43153
    Removal at 57 FR 43153 stayed..................................45751
1033  Revised......................................................53451
1033.1  (a)(3) and (b)(1) revised..................................61585
1037  Authority citation revised...................................54334
1037.2  Revised....................................................54334
1039  Authority citation revised...................................11913
1039.14  (c)(3) amended............................................53451
    (c)(3) correctly designated....................................56641
1039.22  Added.....................................................11913
1039.23  Added; eff. 10-5-92.......................................40621
1053  Removed......................................................21616
1057.12  (c)(4) added..............................................32905
1063  Authority citation revised...................................35764
1063.8  Revised....................................................35764
1109  Added........................................................32451
    Technical correction...........................................39743
1109.2  Corrected..................................................35628
1118  Heading revised...............................................9213
1118.1  Revised.....................................................9213
1118.4  (d) revised.................................................9213
1121.4  (g) revised.................................................5237
1152.25  (a)(2)(iv) and (c)(1) amended.............................13049
1152.28  (a)(3) added; (b) amended.................................13049
1152.50  (a)(2) amended............................................13049
1180  Authority citation revised...................................57112
1180.6  (a)(8) revised; (a)(9) removed.............................28641
1180.20 (Subpart B)  Revised.......................................57112
    (c) corrected..................................................61585

                                  1993

49 CFR
                                                                   58 FR
                                                                    Page
Chapter X
1000.735-11--1000.735-31 (Subpart B)  Removed......................41991
1000.736-1--1000.736-5 (Subpart C)  Removed........................41991
1000.737-1--1000.737-11 (Subpart D)  Removed.......................41991
1002  Regulation at 58 FR 7748 stayed..............................17788
    Regulation at 58 FR 7748 eff. 10-1-93..........................52027
1002.1  (f)(11) revised.............................................7748
    (b), (c), (e)(1) and (f)(6) table revised......................43294
1002.2  (a) and (b) revised; (g) added..............................7749
    (f) revised....................................................43294
1004  Technical correction.........................................16124
1004.3  Removed....................................................11550
1007.12  (c) added.................................................15291
    (c) corrected..................................................28520
1011  Revised......................................................29357
1017  Regulation at 58 FR 7748 stayed..............................17788
    Regulation at 58 FR 7748 eff. 10-1-93..........................52027
1017.1  (e) added...................................................7749
1018  Added.........................................................7749
    Regulation at 58 FR 7748 stayed................................17788
    Regulation at 58 FR 7748 eff. 10-1-93..........................52027
1018.20  (a)(5) corrected..........................................11099
1018.50  Corrected.................................................11099
1019  Added........................................................42027
1023  Revised......................................................28933
1023.32  Regulation at 57 FR 43152 withdrawn.......................26693
1023.33  Regulation at 57 FR 43152 withdrawn.......................26693
1023.34  Regulation at 57 FR 43152 withdrawn.......................26693
1023.35  Regulation at 57 FR 43152 withdrawn.......................26693
1023.36  Regulation at 57 FR 43152 withdrawn.......................26693

[[Page 487]]

1023.37  Regulation at 57 FR 43152 withdrawn.......................26693
1023.38  Regulation at 57 FR 43152 withdrawn.......................26693
1023.39  Regulation at 57 FR 43152 withdrawn.......................26693
1023.40  Regulation at 57 FR 43152 withdrawn.......................26693
1023.41  Regulation at 57 FR 43152 withdrawn.......................26693
1023.42  Regulation at 57 FR 43152 withdrawn.......................26693
1023.101  Regulation at 57 FR 43152 withdrawn......................26693
1033  Revised......................................................60144
1033.1  (b)(1) revised.............................................27679
1035  Revised......................................................60797
1039  Authority citation revised............................27951, 43818
1039.11  (a) amended...............................................27591
    (a) table amended........................................4356, 43818
    (a) table revised..............................................53434
1102.2  (e) amended................................................42027
1105.3  Amended....................................................44619
1105.7  (b)(1) amended.............................................44619
1105.11  Appendix amended..........................................44619
1105.12  Appendix amended..........................................44619
1141  Revised......................................................19359
1145  Authority citation revised...................................27951
1145.9  Added......................................................27951
    Existing text redesignated as (a); (a) heading and (b) added 
                                                                   53667
    Revised........................................................39680
1162.7  Removed....................................................28935
1162.8  Removed....................................................28935
1171  Heading revised..............................................29361
1171.3  (c) revised................................................29361
1171.5  Revised....................................................29361
1180.0  Amended....................................................63104
1180.2  (b) revised................................................63104
1180.4  (c)(6)(iii) revised........................................29362
      (b)(1)(iv) revised...........................................63104
1180.6  (b) introductory text revised; (c) added...................63104
1180.9  Introductory text revised..................................63104

                                  1994

49 CFR
                                                                   59 FR
                                                                    Page
Chapter X
1002.1  (a) through (d), (e)(1) and (f)(6) table revised...........44641
    (d), (e)(1) and (f)(6) table revised...........................67643
1002.2  (f) table amended...........................................4844
    (a)(3) and (f) revised.........................................44642
    Table corrected................................................52372
    (c) and (d)(1) revised.........................................63727
    (f) revised....................................................67643
1002.3  (a) revised................................................44644
1011  Authority citation revised...................................65505
1011.16  (a)(1)(iv) added..........................................65505
1039.11  (a) table amended...........................51134, 59663, 63925
1051  Authority citation revised....................................2303
    Interpretation.................................................14570
1051.2  (a) introductory text and (1) through (11) redesignated as 
        (a)(1) introductory text and (i) through (xi); new (a)(2) 
        and (3) added...............................................2303
    Regulation at 59 FR 2303 eff. date delayed to 4-2-94............6221
1053  Added.........................................................2303
    Regulation at 59 FR 2303 eff. date delayed to 4-2-94............6221
    Interpretation.................................................14570
1056  Nomenclature change..........................................34392
1056.2  (a)(3) revised..............................................2305
1056.18  Revised....................................................2305
1160  Revised......................................................63728
1161  Removed......................................................63730
1162  Removed......................................................63730
1163  Removed......................................................63730
1166.3  (c) amended................................................63730

                                  1995

49 CFR
                                                                   60 FR
                                                                    Page
Chapter X
1002  Policy statement.............................................22303
1002.2  (f) table amended...........................................2544
    (f) table corrected.............................................4477
1011  Policy statement.............................................22303
1011.6  (e) revised.................................................2544
1023.5  Revised....................................................30012
    Regulation at 60 FR 30012 stayed eff. 8-4-95 to 1-1-97; 
reinstated; eff. 8-4-95 through 12-31-96...........................39875
1039.11  (a) table amended..................................26840, 38281
1043.1  (a)(1) and (b) amended.....................................63981
1043.12  Added.....................................................16810
1084.10  Added.....................................................16811

[[Page 488]]

1105.7  (b)(9) amended; (b)(11) redesignated as (b)(10); new 
        (b)(10) added..............................................32277
1130  Authority citation revised....................................2544
1130.2  (f) amended; (g) added......................................2544
1160  Policy statement.............................................22303
1160.1  (h) added..................................................63982
1160.3  (a) amended................................................63982
1160.4  (a)(1), (d) and note amended...............................63982
1160.5  (a)(8) added...............................................63982
1161  Policy statement.............................................22303
1162  Policy statement.............................................22303
1163  Policy statement.............................................22303

                                  1996

  (Regulations published from January 1, 1996, through October 1, 1996)

49 CFR
                                                                   61 FR
                                                                    Page
Chapter X
Chapter X  Heading revised..........................................1842
1002  Authority citation revised...................................32355
1002.1  Introductory text, (e)(2), (f)(11), (14), (g) and (h) 
        amended; (b), (e)(1) and (f)(6) table revised..............42191
1002.2  (f)(36) added..............................................32355
    (a)(1), (d) and (f) revised; (a)(2) introductory text, (ii), 
(iii), (3), (b), (c), (d)(4), (e) heading, (2) introductory text, 
(i), (iii) heading, (g)(1) introductory text, (ii), (iii) and (2) 
amended............................................................42191
    Regulation at 61 FR 42192 eff. date delayed in part............48640
1002.3  (a), (d)(1), (3)(i), (ii) and (4) amended..................42194
1039  Authority citation revised.......................7426, 7427, 47446
1039.11  (a) amended................................................7426
    (a) table amended..............................................47446
1039.14  (b)(5) removed; (b)(6) and (7) redesignated as (b)(5) and 
        (6)........................................................26847
1039.18  Removed....................................................7427
1039.23  Removed...................................................29037
1051  Authority citation revised...................................19860
1051.2  (a)(2) and (3) removed; (a)(1) introductory text and (i) 
        through (xi) redesignated as (a) introductory text and (1) 
        through (11)...............................................19860
1053  Removed......................................................19860
1134  Removed.......................................................7427
1135  Authority citation revised....................................7427
1135.1  (h) removed.................................................7427
1138  Removed.......................................................7427
1140  Removed.......................................................7427
1145  Removed.......................................................7427
1150  Authority citation revised............................29973, 32355
1150.31--1150.35 (Subpart D)  Heading revised......................32355
1150.36  Added.....................................................29974
1150.41--1150.45 (Subpart E)  Added................................32355
1150.44  Corrected.................................................36965
1153  Removed.......................................................7428
1154  Removed......................................................16066
1164  Removed......................................................21388
1169  Removed......................................................17579
1175  Removed.......................................................7428