[Federal Register Volume 59, Number 27 (Wednesday, February 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2983]


[[Page Unknown]]

[Federal Register: February 9, 1994]


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INTERSTATE COMMERCE COMMISSION

[Finance Docket No. 32454]

 

Gateway Eastern Railway Co.--Trackage Rights Exemption--Gateway 
Western Railway Co. and SPCSL Corp.

    Gateway Western Railway Company (GWRC) and SPCSL Corp. (SP) have 
agreed to grant nonexclusive overhead trackage rights to Gateway 
Eastern Railway Company (GERC) over approximately 12.2 miles of rail 
line, between milepost 275.0 at ``WR'' Tower, Granite City, IL, and 
milepost 287.2 at Church, IL. GERC will also acquire the right to use 
both GWRC's Venice Yard (milepost 279.0) and East St. Louis Yard 
(milepost 285.4). GERC is a noncarrier but has filed a notice of 
exemption, in Gateway Eastern Railway Company--Acquisition and 
Operation Exemption--Lines of Consolidated Rail Corporation, Finance 
Docket No. 32304 (ICC served July 2, 1993) (58 FR 35977), to acquire 
two lines from Consolidated Rail Corporation (Conrail): (1) A 14.79-
mile line between milepost 243.5 at ``WR'' Tower and milepost 0.91 at 
East Alton, IL, and (2) a 1.9-mile line between milepost 238.7 at ``Q'' 
Tower in East St. Louis, IL, and milepost 236.8 at ``Willows'' 
interlocking in East St. Louis.1 The 14.79-mile line connects at 
``WR'' Tower with the 12.2 miles of trackage rights at issue here. By 
giving GERC direct access to GWRC's Venice and East St. Louis Yards, 
these trackage rights will facilitate the interchange of traffic 
between GERC and GWRC. The trackage rights were to become effective on 
or after January 28, 1994.2
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    \1\GERC also assumed by assignment Conrail's overhead trackage 
rights on 5.25 miles of line belonging to the Terminal Railroad 
Association of St. Louis between ``WR'' Tower and a point near 
``Willows'' interlocking.
    \2\Neither these trackage rights nor the ones in Finance Docket 
No. 32307 (where GWRC filed a notice of exemption to acquire 
overhead trackage on a portion of the 1.9 mile line being acquired 
in Finance Docket No. 32304) can become effective until GERC 
consummates the acquisition and operation in Finance Docket No. 
32304 and becomes a carrier entitled to use the exemption procedures 
in 49 CFR 1180.2(d)(7). Because a noncarrier may file, but not 
consummate, exemptions under section 1180.2(d) before becoming a 
carrier, the notice of exemption was not rejected as requested by 
the United Transportation Union, Illinois Legislative Board (UTU), 
on January 27, 1994, in a petition to stay, reject, and/or revoke.
    GERC may not consummate the acquisition and operation exemption 
in Finance Docket No. 32304 until the petition for exemption is 
granted in Finance Docket No. 32306 or a valid voting trust is filed 
under 49 CFR 1013.3. In Finance Docket No. 32306, GWRC, which wholly 
owns GERC, and Wertheim Schroder & Co., Inc., which controls GWRC, 
seek an exemption under 49 U.S.C. 10505 from the prior approval 
requirements of 49 U.S.C. 11343 et seq. to continue in control of 
GERC when it becomes a carrier. While that exemption petition was 
pending, a draft voting trust agreement was informally submitted to, 
and approved by, Commission personnel, consistent with the 
procedures of 49 CFR 1013.3, in a letter dated January 14, 1994.
    UTU petitioned to stay the effective date of the notice of 
exemption filed in the instant proceeding and the notices of 
exemption issued in Finance Docket Nos. 32304 and 32307. UTU also 
sought revocation of the instant exemption and has pending with the 
Commission petitions to revoke the latter two notices of exemption. 
The stay petition, although timely filed, was not received in time 
for action before the January 28, 1994 effective date of the instant 
exemption, and the latter two exemptions had already become 
effective. The Commission will entertain in a consolidated decision: 
(1) UTU's petition to revoke in the instant proceeding, (2) the 
pending petitions to revoke by UTU and others in Finance Docket Nos. 
32304 and 32307, and (3) the continuance in control exemption in 
Finance Docket No. 32306.
    These proceedings are all related to Finance Docket No. 32305, 
where GERC and GWRC jointly seek an exemption under 49 U.S.C. 10505 
from the prior approval requirements of 49 U.S.C. 10901 to construct 
a connection between GWRC's lines and the 1.9-mile line in Finance 
Docket No. 32304 and that was the subject of the trackage rights 
agreement between GERC and GWRC in Finance Docket No. 32307. The 
construction and trackage rights are intended to give GWRC direct 
access to Conrail's Rose Lake Yard.
    They are also related to the Commission's decision in Gateway 
Western Railway Company--Construction Exemption--St. Clair County, 
IL, et al., Finance Docket Nos. 32158 and 32158 (Sub-No. 1) (ICC 
served May 11, 1993). In these proceedings, the Commission 
conditionally granted GWRC an exemption to construct and operate a 
rail line in East St. Louis but requested additional evidence on 
whether the construction of a Conrail connection was intended and 
the anticipated traffic consequences of such a connection. Petitions 
to reopen and revoke these exemptions are now pending before the 
Commission.
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    This notice is filed under 49 CFR 1180.2(d)(7). 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 stay 
the transaction. Pleadings must be filed with the Commission and served 
on: William C. Sippel, Two Prudential Plaza, 45th Floor, 180 North 
Stetson Avenue, Chicago, IL 60601.
    As a condition to the use of this exemption, any employees 
adversely affected by the trackage rights will be protected under 
Norfolk and Western Ry. Co--Trackage Rights--BN, 354 I.C.C. 605 (1978), 
as modified in Mendocino Coast Ry., Inc.--Lease and Operate, 360 I.C.C. 
653 (1980).

    Decided: February 3, 1994.

    By the Commission, David M. Konschnik, Director, Office of 
Proceedings.
Sidney L. Strickland, Jr.,
Secretary.
[FR Doc. 94-2983 Filed 2-8-94; 8:45 am]
BILLING CODE 7035-01-P