[Federal Register Volume 61, Number 32 (Thursday, February 15, 1996)]
[Notices]
[Pages 6059-6060]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3411]



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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board \1\
[STB Finance Docket No. 32845]


Consolidated Rail Corporation and CSX Transportation, Inc.--
Acquisition and Operation--Nicholas, Fayette and Greenbrier Railroad 
Company

AGENCY: Surface Transportation Board.

ACTION: Notice of acceptance of application.

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SUMMARY: The Board accepts for consideration the application filed 
January 16, 1996, by Consolidated Rail Corporation (Conrail) and CSX 
Transportation, Inc. (CSXT) to acquire from the Nicholas, Fayette and 
Greenbrier Railroad Company (NF&G) and operate approximately 143 miles 
of rail line located in West Virginia. The Board finds that this is a 
transaction subject to 49 U.S.C. 11325(d).

    \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 to the Surface 
Transportation Board (Board). This notice relates to railroad 
acquisitions that are subject to Board jurisdiction pursuant to 49 
U.S.C. 11323-25.
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DATES: This decision is effective on February 15, 1996. Written 
comments, including comments from the Secretary of Transportation and 
the Attorney General of the United States, must be filed with the Board 
no later than March 15, 1996. The Board will issue a service list 
shortly thereafter. Comments must be served on all parties of record 
within 10 days after the Board issues the service list. Applicants' 
reply is due April 5, 1996.

ADDRESSES: Send an original and 10 copies of pleadings referring to STB 
Finance Docket No. 32845 to: (1) Office of the Secretary, Case Control 
Branch, Surface Transportation Board, 1201 Constitution Avenue, N.W., 
Washington, DC 20423; (2) Docket Clerk, Office of Chief Counsel, 
Federal Railroad Administration, Room 5101, 400 Seventh Street, S.W., 
Washington, DC 20530; (3) Attorney General of the United States, 
Washington, DC 20530; (4) Charles M. Rosenberger, 500 Water Street, 
J150, Jacksonville, FL 32202; (5) Paul R. Hitchcock, 500 Water Street, 
J150, Jacksonville, FL 32202; and (6) Anne Treadway, 2001 Market 
Street, Two Commerce Square, Philadelphia, PA 19101.

FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar, (202) 927-5660. 
[TDD for the hearing impaired: (202) 927-5721.]

SUPPLEMENTARY INFORMATION: By application filed January 16, 1996, 
Conrail, CSXT, and NF&G (collectively, Applicants) seek approval under 
49 U.S.C. 11323-25, for Conrail and CSXT to acquire and operate NF&G's 
rail lines in West Virginia.
    The applicants recite that this is a minor transaction as defined 
in 49 CFR Part 1180, the regulations that implemented former 49 U.S.C. 
11343-45. The Act has revised those statutory provisions and reenacted 
them as 49 U.S.C. 11323-25. The transaction here specifically is 
subject to the standards of 49 U.S.C. 11324(d), because the transaction 
does not involve the merger or control of two Class I railroads and the 
transaction is subject to the procedures set out at 49 U.S.C. 11325(d) 
of the Act. Section 204(a) provides that all ICC rules in effect on the 
date of the enactment of the Act ``shall continue in effect according 
to their terms until modified, terminated, superseded, set aside, or 
revoked in accordance with law by the Board . . . or operation of 
law.'' While the standards and procedures of former sections 11343-45 
and current sections 11323-25 are substantially similar insofar as 
minor transactions are concerned, the procedures of current section 
11325(d) differ slightly from those at 49 CFR 1180.4 and shall govern. 
Otherwise, the use of the regulations at 49 CFR Part 1180 for this 
proceeding appears proper.
    Conrail and CSXT are Class I railroads. NF&G, which has 
approximately 143 miles of trackage, is jointly owned by Conrail and 
CSXT. Conrail and CSXT operate NF&G's lines as successors in interest 
under a lease dated June 25, 1929. Conrail and CSXT propose to 
terminate the lease and to dissolve NF&G and distribute its rail assets 
between them. Conrail will acquire NF&G's 8-mile line west of Peters 
Junction to Swiss Junction (Swiss segment). CSXT will acquire the 
remainder of NF&G's line east of Peters Junction to Meadow Creek, and 
branch lines between Rainelle Junction and Raders Run, Rupert Junction 
and Clearco, and G&E Junction and Brush Junction.
    Applicants state that the joint management of the NF&G lines does 
not benefit them or the public. They state that the current lease 
arrangement establishes a burdensome management structure that requires 
joint approval by Conrail and CSXT of important decisions, such as 
whether to invest capital funds in track maintenance projects. CSXT has 
allegedly deferred substantial maintenance on the NF&G lines it 
operates because Conrail is reluctant to invest in those lines. 
Terminating the lease would assertedly allow Conrail and CSXT to decide 
these matters independently. They further maintain that Conrail and 
CSXT would also eliminate expenses incurred to administer the joint 
ownership arrangement. They state that they expect to experience 
substantial operating and administrative efficiencies as a result of 
the transaction.
    Applicants maintain that the transaction will serve the public 
interest by preserving the quality of service that each carrier 
currently provides to its shippers and receivers. Each carrier 
represents that it will continue to operate its lines essentially the 
same as it does today, with only slight changes in traffic levels. 
According to the 

[[Page 6060]]
application, Conrail might lose some coal traffic and revenues for 
shipments that originate on NF&G lines acquired by CSXT, while CSXT 
would gain this traffic and revenue. Conrail and CSXT have made 
arrangements for Conrail to be able to honor its sole remaining 
transportation contract to haul coal originating on the old NF&G. Until 
the contract expires, CSXT will haul the coal to a Conrail interchange 
in Columbus, OH, and the coal will be delivered from there.
    Applicants maintain that the proposal would have little effect on 
competition in any affected market or region. They assert that Conrail 
and CSXT do not compete in the same market, and that there is no market 
demand for CSXT to haul coal over the Swiss segment, or for Conrail to 
haul coal over the remaining NF&G lines CSXT will acquire. Moreover, 
CSXT indicates that there is no market demand for it to haul coal from 
mines on Conrail's Peters Creek Branch, connecting to that portion of 
the NF&G lines that Conrail will acquire.
    Applicants anticipate that the transaction will have only a slight 
effect on employees. They indicate that CSXT employees currently 
perform all operations on NF&G trackage, including maintenance and 
train dispatching. After Conrail acquires the Swiss segment, it will 
assume maintenance functions on that line and thus CSXT maintenance of 
way employees would lose that work to Conrail employees. The 
transaction will also preclude Conrail from operating over NF&G 
trackage acquired by CSXT, but Conrail does not currently operate over 
that trackage. They anticipate that the Board will impose the 
conditions in New York Dock Ry.--Control--Brooklyn Eastern Dist., 360 
I.C.C. 60 (1979), to protect employees affected by this transaction.
    Under 49 CFR 1180, we must determine whether a proposed transaction 
is major, significant, or minor. The proposed transaction, which 
involves two Class I carriers seeking to acquire the assets of their 
jointly-owned short line railroad, has no regional or national 
significance and will clearly not have any anticompetitive effects. 
Accordingly, we find the proposal to be a minor transaction under 49 
CFR 1180.2(c), as now defined under 49 U.S.C. 11325(a). Because the 
application substantially complies with the applicable regulations 
governing minor transactions, we are accepting it for consideration.
    The application and exhibits are available for inspection in the 
Public Docket Room at the Offices of the Surface Transportation Board 
in Washington, DC. In addition, they may be obtained upon request from 
applicants' representatives named above.
    Interested persons, including government entities, may participate 
in this proceeding by submitting written comments. Any person who files 
timely comments will be considered a party of record if the person so 
requests. No petition for leave to intervene need be filed.
    Consistent with 49 CFR 1180.4(d)(1)(iii), written comments must 
contain:
    (a) The docket number and title of the proceeding;
    (b) The name, address, and telephone number of the commenting party 
and its representative upon whom service shall be made;
    (c) The commenting party's position, i.e., whether it supports or 
opposes the proposed transaction;
    (d) A statement whether the commenting party intends to participate 
formally in the proceeding, or merely comment on the proposal;
    (e) If desired, a request for an oral hearing with reasons 
supporting this request; the request must indicate the disputed 
material facts that can be resolved only at a hearing; and
    (f) A list of all information sought to be discovered from 
applicant carriers.
    Because we have determined that this proposal is a minor 
transaction, no responsive applications will be permitted. The time 
limits for processing this transaction are set forth at 49 U.S.C. 
11325(d).
    Discovery may begin immediately. We admonish the parties to resolve 
all discovery matters expeditiously and amicably.
    This action will not significantly affect either the quality of the 
human environment or the conservation of energy resources.
    It is ordered:
    1. This application is accepted for consideration under 49 U.S.C. 
11323-25 as a minor transaction under 49 CFR 1180.2(c).
    2. The parties shall comply with all provisions stated above.
    3. The decision is effective on February 15, 1996.

    Decided: February 8, 1996.

    By the Board, Chairman Morgan, Vice Chairman Simmons, and 
Commissioner Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 96-3411 Filed 2-14-96; 8:45 am]
BILLING CODE 4915-00-P-M