[Federal Register Volume 61, Number 29 (Monday, February 12, 1996)]
[Notices]
[Page 5439]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3041]



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DEPARTMENT OF TRANSPORTATION
    \1\ The ICC Termination Act of 1995, Pub. L. No. 104-88, 109 
Stat. 803 (the Act), which was enacted on December 29, 1995, and 
took effect on January 1, 1996, abolished the Interstate Commerce 
Commission (ICC) and transferred certain functions and proceedings 
to the Surface Transportation Board (Board). Section 204(b)(1) of 
the Act provides, in general, that proceedings pending before the 
ICC on the effective date of that legislation shall be decided under 
the law in effect prior to January 1, 1996, insofar as they involve 
functions retained by the Act. This notice relates to a proceeding 
that was pending with the ICC prior to January 1, 1996, and to 
functions that are subject to Board jurisdiction pursuant to 49 
U.S.C. 11323. Therefore, this notice applies the law in effect prior 
to the Act.
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[Finance Docket No. 32847]


Soo Line Railroad Company--Trackage Rights Exemption--CMC 
Heartland Partners

    CMC Heartland Partners (CMC) has agreed to grant local and overhead 
trackage rights to Soo Line Railroad Company (Soo) over approximately 
1.04 miles of its rail line between milepost 3.50, near Diversey 
Parkway, and milepost 2.57, near Clybourn Avenue, in Cook County, IL.
    Under the trackage rights agreement, Soo will obtain the right to 
continue to operate its trains over CMC's track in Chicago, IL. The 
trackage rights were scheduled to become effective on January 4, 1996, 
the effective date of the exemption.2

    \2\  On January 3, 1996, the United Transportation Union (UTU) 
filed a petition requesting that the verified notice filed by Soo on 
December 28, 1995, be rejected, alleging that CMC is a noncarrier, 
and, therefore, does not qualify for the class exemption under 49 
CFR 1180.2(d)(7). Soo replied on January 30, 1996.
    CMC is the corporate successor of the reorganized debtor 
railroad, Chicago, Milwaukee, St. Paul and Pacific Railroad Company 
(the Milwaukee). By the Asset Purchase Agreement of April 6, 1984, 
Soo acquired from CMC most of the operating property and core assets 
of the Milwaukee; but CMC retained this line segment. At the time, 
abandonment proceedings initiated by the Trustee were pending in the 
United States District Court for the Northern District of Illinois, 
Eastern Division (Court). Soo continued to operate the line under a 
service order in The Milwaukee Road, Inc. Authorized to Use Tracks 
And/Or Facilities of Chicago, Milwaukee, St. Paul and Pacific 
Railroad Company, Debtor (Richard B. Ogilive, Trustee), Service 
Order No. 1500 (ICC served Jan. 17, 1986), although an ongoing 
dispute existed between CMC and Soo as to the compensation owed Soo 
for use or possible purchase of the line. On July 20, 1995, the 
Court ordered Soo and CMC to enter into a contractual relationship 
to resolve the dispute and established the values for compensation 
and billing.
    Soo states that the Court in its various decisions has uniformly 
referred to the rights acquired by Soo as trackage rights. It also 
states that CMC's filing of abandonment applications with respect to 
lines of railroad which were not conveyed to Soo under the asset 
purchase agreement, the Interstate Commerce Commission's actions in 
these proceedings, and UTU's objections to those abandonments 
demonstrate that all parties have consistently recognized that CMC's 
rail property is subject to the regulatory mandate established by 
Subtitle IV of Title 49 of the United States Code and subject to 
regulatory oversight with respect to railroad line abandonments.
    In this case, Soo's trackage rights, which will permit Soo's 
operation over CMC's rail property, are properly filed under the 
class exemption procedures under 49 CFR 1180.2(d)(7). Therefore, 
UTU's petition to reject the notice is denied.
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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. 10502(d) 
[formerly 10505(d)] may be filed at any time. The filing of a petition 
to revoke will not automatically stay the transaction. Pleadings must 
be filed with the Surface Transportation Board, 1201 Constitution 
Avenue, N.W., Washington, DC 20423 and served on: Larry D. Starns, 1000 
Soo Line Building, 105 South Fifth Street, P.O. Box 530, Minneapolis, 
MN 55402.
    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 6, 1996.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 96-3041 Filed 2-9-96; 8:45 am]
BILLING CODE 4915-00-P