[Federal Register Volume 59, Number 181 (Tuesday, September 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23217]


[[Page Unknown]]

[Federal Register: September 20, 1994]


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INTERSTATE COMMERCE COMMISSION
[Finance Docket No. 32566]

 

Missouri Pacific Railroad Company and South Kansas and Oklahoma 
Railroad Company--Joint Relocation Project Exemption--In Kansas

    On August 19, 1994, Missouri Pacific Railroad Company (MP) filed a 
notice of exemption under 49 CFR 1180.2(d)(5) to relocate a line of 
railroad in a joint project with the South Kansas and Oklahoma Railroad 
Company (SKOL). The joint project involves: (1) A haulage agreement 
under which SKOL will haul MP cars over its trackage, as MP's agent, 
between Winfield and Coffeyville, KS;\1\ (2) overhead trackage rights 
to MP over SKOL rail lines known as: (a) The Moline Subdivision from 
milepost 248.1 near Winfield to milepost 127.7 near Chanute; (b) the 
Tulsa Subdivision from milepost 127.7 near Chanute to milepost 155.8 
near Cherryvale; and (c) the Coffeyville Subdivision from milepost 
155.8 (also milepost 0.0) near Cherryvale to milepost 16.9 near 
Coffeyville,\2\ a total distance of approximately 165.4 miles; and (3) 
an abandonment by MP of its Wichita Branch from milepost 387.00 near 
Yates Center to milepost 453.20 near El Dorado, in Woodson, Greenwood 
and Butler Counties, KS, a distance of approximately 66.20 miles.\3\ 
The transaction was expected to be consummated on or after August 26, 
1994.
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    \1\Car haulage is a private arrangement between carriers. It 
does not require Commission approval. See Burlington N.R. Co.--
Exemption--Joint Project to Relocate a Line of Railroad Between 
Tulsa and Muskogee, OK, Finance Docket No. 31293 (ICC served July 
19, 1988).
    \2\There is an equation in the trackage mileposts at Cherryvale, 
where milepost 155.8 equals 0.0 at the same point.
    \3\The non-agency stations at Toronto (milepost 399.5) and 
Eureka (milepost 420.7) are within the incidental abandonment.
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    The joint relocation project will result in an alternate route with 
no disruption of rail service for MP's customers.\4\ As indicated, SKOL 
will haul MP's cars over its lines between Winfield and Coffeyville, 
KS, pursuant to a haulage agreement. MP, in turn, will retain access to 
its customers via the trackage rights granted by SKOL. According to MP, 
the relocation of its operations will not generate new traffic, extend 
rail service into new territory, or impact or change the competitive 
situation of the rail carriers in the area. The project is expected to 
result in satisfactory and cost-effective rail operations in the area, 
as well as effective use of rail assets.
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    \4\Ranch Aid, Inc., a shipper located at Eureka, KS, has 
informed MP that it has no present or future need for MP's rail 
service.
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    The Commission will exercise jurisdiction over the abandonment 
component of a relocation project, and require separate approval or 
exemption, only where the proposal involves, for example, a change in 
service to shippers, expansion into new territory, or a change in 
existing competitive situations. See, generally, Denver & R.G.W.R. 
Co.--Jt. Proj.--Relocation over BN, 4 I.C.C.2d 95 (1987). The 
Commission has determined that line relocation projects may embrace 
trackage rights transactions such as the one involved here. See D.T.& 
I.R.--Trackage Rights, 363 I.C.C. 878 (1981). Under these standards, 
the embraced incidental trackage rights component requires no separate 
approval or exemption when the relocation project, as here, will not 
disrupt service to shippers and thus qualifies for the class exemption 
at 49 CFR 1180.2(d)(5).
    As a condition to the use of this exemption, any employees affected 
by the trackage rights agreement will be protected by the conditions in 
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).
    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: 
Joseph D. Anthofer, Missouri Pacific Railroad Company, 1416 Dodge 
Street, Room 830, Omaha, Nebraska 68179.

    Decided: September 13, 1994.

    By the Commission, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Acting Secretary.
[FR Doc. 94-23217 Filed 9-19-94; 8:45 am]
BILLING CODE 7035-01-P