[Federal Register Volume 59, Number 49 (Monday, March 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5871]


[[Page Unknown]]

[Federal Register: March 14, 1994]


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INTERSTATE COMMERCE COMMISSION

[Directed Service Order No. 1515]

 

Cedar River Railroad Co.--Directed Service Order--Charles City 
Railway Lines Inc.

    The Charles City Railway Lines, Inc. (CCRY), a 3.6 mile railroad in 
Charles City, Iowa, with connections to the Cedar River Railroad 
Company (CRR) and the Soo Line Railroad Company (SOO) was shut down by 
its management effective with the close of business February 24, 1994, 
due to a lack of operating funds, and has been out of operation since 
that time. CCRY, based on its letter to shippers dated February 4, 1994 
announcing cessation of operations effective February 24, 1994, placed 
Embargo No. 1-94, dated 2/14/94, which was effective 2/24/94. There are 
two principal shippers located on the CCRY.
    The Commission was first contacted about the impending shutdown of 
the CCRY on February 10, 1994, by shippers on the line, and on February 
16, 1994, by the Iowa Department of Transportation (IDOT) indicating 
their concerns for the possible shutdown of the railroad and requesting 
that the Commission consider issuing a directed service order (DSO). 
IDOT's petition of February 16, 1994, requested the Commission to 
initiate voluntary directed service over the CCRY lines and indicated 
that the CRR was willing to operate the CCRY lines as a ``Directed Rail 
Carrier'' (DRC). However, it was not until February 28, 1994, that the 
CRR indicated its willingness to provide the uncompensated directed 
service operations sought by IDOT and the two affected shippers.
    Section 11125(a) of the Interstate Commerce Act authorizes the 
Commission to act in situations where it finds that a rail carrier 
cannot transport traffic offered to it because--(1) its cash position 
makes its continuing operation impossible; (2) transportation has been 
discontinued under court order; or (3) it has discontinued 
transportation without obtaining a required certificate under 49 U.S.C. 
10903 (emphasis added). The initial period for the directed service 
order may not exceed 60 days. However, the order may be extended for an 
additional period not to exceed 180 days.
    Under a directed service order from the Commission, a directed 
carrier may voluntarily choose to provide directed service without any 
subsidy or compensation to which it may be entitled from the 
Commission, as CRR has done here. See St. Louis S.W. Ry. Co--Directed 
Service--Chicago, 363 I.C.C. 1 (1980), and Directed Service Order No. 
1504, The New York, Susquehanna and Western Railway Corporation--
Directed Service--The Delaware and Hudson Railway Company, (not 
printed) served June 22, 1988.\1\
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    \1\Likewise, the Commission may authorize directed service 
without provision for compensation to the carrier over which service 
is directed. Kansas City Terminal Ry. Co.--Operate--Chicago R.I.&P., 
360 I.C.C. 289 (1979).
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    Considering the limited nature of the proposed directed service 
operation, e.g., only two active shippers on the 3.6 mile CCRY line, 
CRR has asked that in order for CRR to waive all compensation from the 
Federal government otherwise applicable under 49 U.S.C. 11125(b)(5), 
that it be allowed to condition it's offer to provide uncompensated 
directed service by limiting its initial 60-day operation to only those 
portions of the CCRY lines that CRR determines can be safely operated; 
that CRR not be required to improve any CCRY lines that it believes are 
unsafe to operate; that it be allowed to perform needed switching 
service to shippers using crews from its through trains, and that it be 
allowed to utilize CCRY maintenance of way employees in conjunction 
with its own employees only to the extent practicable for its limited 
operations.
    Considering CCRY's cessation of service without alternative and its 
apparent inability to continue due to its cash position, we find that 
CCRY's current situation meets the standards of 49 U.S.C. 11125(a)(1) 
and (3).
    In view of the need for continued rail service over CCRY's lines 
and CRR's willingness to provide directed service without compensation 
from the Federal government, this decision grants the requests of 
interested parties for interim service authority to CRR.
    The emergency nature of the situation compels us to conclude that 
advance public notice and hearings would be impractical and contrary to 
the immediate public interest in assuring the immediate resumption of 
essential rail transportation services. Accordingly, we exercise our 
authority under 49 U.S.C. 11125(a) to waive advance public notice in 
the present circumstances.
    Section 11125 permits us to direct service for an initial period of 
not more than 60 days, with an option to extend the directed service 
period for an additional 180 days, if cause exists. We believe directed 
service authority to be necessary here at least for an initial 60 day 
period. Any interested person may file comments on this action during 
this period.

We Find

    1. CCRY had discontinued service over all of its lines. CRR has 
requested the Commission to permit it to provide continued rail service 
over those lines which it considers to be operable.
    2. To prevent transportation and economic disruptions due to CCRY's 
ceased operations, and to assure the immediate continued movement of 
commodities, some of which may be perishable, it is necessary for the 
Commission to authorize CRR to operate CCRY's lines at Charles City, 
Iowa under 49 U.S.C. 11125, conditioned upon a waiver of any 
compensation or subsidy from the Federal government.
    3. Our action in this decision will not substantially impair the 
ability of CRR to serve its own patrons adequately, or meet its 
outstanding common carrier obligations, see 49 U.S.C. 11125(b)(2)(B), 
and will assure continued rail service to affected shippers.
    This action will not significantly affect either the quality of the 
human environment or energy conservation.

It Is Ordered

    1. Based upon its undertaking to do so without any form of 
compensation from the Federal government, CRR is authorized to enter 
upon and operate CCRY's lines at Charles City, Iowa pursuant to this 
voluntary directed service order under 49 U.S.C. 11125.

    (a) Entry by CRR on the lines of CCRY may occur on the date and 
time authorized in this decision. Operations by CRR may continue no 
later than the sixtieth day from the effective date of this 
decision.
    (b) CRR shall immediately notify the Commission, CCRY, and SOO, 
in writing, of the date on which it commences operations under this 
order.

    2. Operations performed under authority of this order shall conform 
to the directions and conditions prescribed above.
    3. All submissions filed in this proceeding should refer to DSO No. 
1515 and be sent to the Commission's headquarters at 12th Street and 
Constitution Avenue, NW., Washington, DC 20423. An original and 10 
copies should be submitted.
    4. The provisions of this decision shall apply to intrastate, 
interstate, and foreign commerce.
    5. The Commission retains jurisdiction to modify, supplement, or 
reconsider this decision at any time.
    6. Notice to the general public of this decision shall be given by 
publication in the Federal Register. The decision will be served on the 
Federal Railroad Administration, the Association of American Railroads, 
American Short Line Railroad Association, CRR, CCRY, SOO, and the IDOT.
    7. This decision and order shall become effective at 12:01 a.m., on 
March 7, 1994.
    8. Unless otherwise modified by the Commission, this order will 
expire at 11:59 p.m., on May 5, 1994.

    Decided: March 4, 1994.

    By the Commission, Chairman McDonald, Vice Chairman Phillips, 
Commissioner Simmons and Philbin.
Sidney L. Strickland,
Secretary.
[FR Doc. 94-5871 Filed 3-11-94; 8:45 am]
BILLING CODE 7035-01-P-M