[Federal Register Volume 59, Number 92 (Friday, May 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11744]


[[Page Unknown]]

[Federal Register: May 13, 1994]


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INTERSTATE COMMERCE COMMISSION
[Supplemental Order No. 1 to Directed Service Order No. 1516]

 

Dardanelle & Russellville Railroad Co.--Authorized To Operate--
Lines of Arkansas Midland Railroad Co.

AGENCY: Interstate Commerce Commission.

ACTION: Extension of directed service order.

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SUMMARY: In 1992, the Arkansas Midland Railroad Company (AMR) acquired 
four unconnected rail lines totalling 131 miles from the Union Pacific 
Railroad Company (UP). Each of the branch lines acquired by AMR extends 
from the same North/South UP line in central Arkansas. On one of the 
branch lines, the Norman Branch, there are five active shippers 
(International Paper Company, Gifford-Hill & Company, Barksdale Lumber 
Company, Bean Lumber Company, and G&S Roofing Products Company, Inc.), 
and one inactive shipper (Cargill). The Norman Branch extends 
approximately 52.9 miles from its connection with UP at Gurdon, AR, to 
the end of the line at Birds Mill, AR.
    On December 15, 1993, the AMR embargoed 31 miles of the Norman 
Branch line from Pikes Junction to Birds Mill as a result of storm 
damage. This embargo affected Barksdale Lumber, Bean Lumber, and G&S 
Roofing. On February 22, 1994, AMR embargoed approximately 17 
additional miles of the line, which affected service to Gifford Hill & 
Company located at Delight, AR.
    On March 28, 1994, the Commission issued Service Order No. 1516 for 
30 days pursuant to 49 U.S.C. 11123 (a), authorizing the Dardanelle & 
Russellville Railroad Company (DRRC) and its newly formed non-carrier 
subsidiary, the Caddo, Antoine, Little Missouri Railroad Company (CALM) 
to operate approximately 49 miles of the AMR Norman Branch line 
currently under embargo. The Order also authorized DRRC/CALM to utilize 
trackage rights over approximately 3 miles of the remaining portion of 
the Norman Branch, which AMR continues to operate, in order to reach a 
connection with the Union Pacific Railroad Company (UP).

DATES: Effective Date: Supplemental Order No. 1 to Directed Service 
Order No. 1516 shall become effective at 11:59 p.m., April 27, 1994.
    Expiration Date: Unless otherwise modified by order of the 
Commission, Directed Service Order No. 1516, as amended, will expire at 
11:59 p.m., October 24, 1994.

FOR FURTHER INFORMATION CONTACT: Bernard Gaillard (202) 927-5500 or 
Melvin F. Clemens, Jr. (202) 927-5538; TDD for hearing impaired: (202) 
927-5721.

SUPPLEMENTARY INFORMATION: There continues to be an immediate need for 
rail service over the AMR's Norman Branch, especially considering the 
urgency of aggregate shipments to the State of Louisiana for a highway 
construction project and the service needs of other shippers. AMR has 
indicated that it is willing to allow continued operations by DRRC/CALM 
over the Norman Branch line under the Terms and Conditions contained 
herein. DRRC/CALM has expressed a willingness to rehabilitate the line 
to the extent necessary and to provide service to shippers and to 
continue its operations. AMR and DRRC/CALM have agreed amongst 
themselves as to the terms of the trackage rights arrangement. Based 
upon these circumstances and the statutory requirements, an emergency 
service order under 49 U.S.C. 11123 continues to be appropriate, and is 
responsive to the shippers' service needs.
    In view of the need for continued rail service over AMR's Norman 
Branch, and DRRC/CALM's willingness to provide this service and limited 
track rehabilitation, this decision grants the requests of interested 
parties for interim service authority to DRRC/CALM on the Terms and 
Conditions noted below for a period of 180 days.
    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, and that the modified hearing procedure 
conducted during the order's initial 30-day term satisfied the 
statutory hearing requirement at 49 U.S.C. 11123(a)(2). Accordingly, we 
exercise our authority under 49 U.S.C. 11123(a)(1) to waive further 
advance public notice in the present circumstances.
    We believe this authority to be necessary at least for an 
additional 180-day period. Any interested party may file comments on 
this action during this period relating to the necessity and 
appropriateness of continuing this order in effect. All filings should 
be addressed to Bernard Gaillard, Director, Office of Compliance and 
Consumer Assistance, Interstate Commerce Commission, Washington, DC 
20423; and in the lower left hand corner of the envelope in large 
letters should be printed, ``OCCA-4412.'' An original and 10 copies 
should be filed of all statements.
    Supplemental Order No. 1 to Service Order No. 1516 shall be 
effective at 11:59 p.m., April 27, 1994.
    Unless otherwise modified by the Commission, Supplemental Order No. 
1 to Service Order No. 1516 will expire at 11:59 p.m., on October 24, 
1994.
    DRRC/CALM's authority under Service Order No. 1516 is expressly 
conditioned upon its agreeing to:

(1) Indemnify AMR for any liability that might occur as a result of 
DRRC/CALM's operation of AMR's northern line segment;
(2) Assume responsibility for maintenance of the northern line 
segment;
(3) Compensate AMR for the 3-mile overhead trackage rights required 
to effect interchange with the UP at Gurdon, AR, at a mutually 
agreed upon and commercially reasonable rate beginning June 1, 1994.

    No further compensation during the extended period of this order is 
contemplated.
    In accordance with the above, operations by DRRC/CALM may continue 
on the terms and conditions described herein and upon notice to the 
Commission by DRRC/CALM that conditions continue to exist which allow 
safe operations over pertinent portions of the Norman Branch.
    In operating AMR's line, DRRC/CALM shall use its own cars and 
operating equipment, or cars of other AMR connections as agreed to by 
those connections.
    In providing service under this service order, DRRC/CALM shall 
comply with the requirements of 49 U.S.C. 11123(a)(3) with respect to 
AMR employees required for this operation.
    Rates and charges shall be those applicable to the line and in 
effect at the time DRRC/CALM commenced operations. DRRC/CALM shall not 
seek changes in AMR rates and charges during the initial period of this 
order. All revenues from such charges shall accrue to the account of 
DRRC/CALM during the effective period of this order, and shall not 
constitute assets of AMR.
    Any rehabilitation, operational, or other costs related to the 
authorized operations shall be the sole responsibility and liability of 
DRRC/CALM. Any such costs or expenditures shall not be deemed an 
obligation or liability of the United States Government. DRRC/CALM 
shall hold the United States Government harmless from any claim arising 
out of the authorized operations.
    Any operational difficulties associated with the authorized 
operations shall be resolved by DRRC/CALM and any other affected party 
through negotiated agreement, or, if the parties cannot reach 
agreement, by the Commission. Any initiation of operations by any 
entity other than DRRC/CALM over the AMR lines shall occur only after 
approval by the Commission and upon 30-days' notice to the Commission 
and AMR. This 30-day transition period would apply also to operation 
commenced pursuant to the Commission's approval of Finance Docket No. 
32479.
    We find:
    1. DRRC/CALM has requested the Commission to permit it to provide 
continued rail service over those portions of the AMR lines included in 
the Norman Branch which it determines to be operationally safe.
    2. To prevent transportation and economic disruptions in this area 
of Arkansas, and to assure the immediate continued movement of 
critically needed commodities to adjoining regions of the United States 
including Louisiana, it is necessary for the Commission to authorize 
DRRC/CALM to operate over AMR's Norman Branch line including 3 miles of 
overhead trackage under 49 U.S.C. 11123, conditioned upon a waiver of 
any compensation from the Federal government and DRRC/CALM's agreement 
to hold the United States Government and AMR harmless from any claim 
arising out of the authorized operations.
    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 upon the terms and 
conditions noted herein, DRRC/CALM is authorized under 49 U.S.C. 11123 
to enter upon and operate AMR's Norman Branch including 3 miles of 
overhead trackage rights pursuant to the terms of this service order 
and its agreements with AMR.
    (a) Operations by DRRC/CALM on the lines of AMR authorized in this 
decision may continue provided it gives appropriate notification to the 
Commission that the lines to be operated remain safe for that 
operation. Operations by DRRC may continue for 180 days from the 
effective date of this decision unless it is sooner modified.
    2. Operations performed under authority of this order shall conform 
to the directions and conditions prescribed herein.
    3. All submissions filed in this proceeding should refer to Service 
Order No. 1516 and should be sent to the Commission's headquarters at 
12th Street and Constitution Avenue, N.W., Washington, D.C. 20423. Any 
filings made in this proceeding should include an original and 10 
copies.
    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, DRRC/CALM, AMR, and UP.
    7. This decision and order shall become effective at 11:59 p.m., on 
April 27, 1994.
    8. Unless otherwise modified by the Commission, this order will 
expire at 11:59 p.m., on October 24, 1994.

    By the Commission, Chairman McDonald, Vice Chairman Phillips, 
Commissioners Simmons, and Philbin. Commissioner Philbin did not 
participate in the disposition of this proceeding.
Sidney L. Strickland, Jr.
Secretary.
[FR Doc. 94-11744 Filed 5-12-94; 8:45 am]
BILLING CODE 7035-01-P