[Federal Register Volume 61, Number 46 (Thursday, March 7, 1996)]
[Proposed Rules]
[Pages 9138-9139]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5411]



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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board

49 CFR Parts 1201 and 1262

[Ex Parte No. 512]


Uniform System of Records of Property Changes for Railroad 
Companies

AGENCY: Surface Transportation Board, DOT.

ACTION: Proposed rule, withdrawal.

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SUMMARY: The Surface Transportation Board (the Board) is withdrawing 
the proposed rule and discontinuing the Ex Parte No. 512 proceeding.

DATES: This withdrawal is made on March 7, 1996.

FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 927-5610. [TDD for 
the hearing impaired: (202) 927-5721].

SUPPLEMENTARY INFORMATION: Effective January 1, 1996, the ICC 
Termination Act of 1995, Pub. L. No. 104-88, 109 Stat. 803 (ICCTA) 
abolished the Interstate Commerce Commission (the Commission) and 
established within the Department of Transportation. Section 204 of the 
ICCTA provides that ``[t]he Board shall promptly rescind all 
regulations established by the [Commission] that are based on 
provisions of law repealed and not substantively reenacted by this 
Act.'' Former 49 U.S.C. 10784, the statutory basis for the Part 1262 
rail valuation regulations, has been repealed.

[[Page 9139]]

Accordingly, in a separate proceeding, Removal of Obsolete Valuation 
Regulations, STB Ex Parte No. 539, the Board is removing the now 
obsolete part 1262 regulations as well as Instruction 1-3 (g) in part 
1201, which refers to Part 1262.
    Prior to the elimination of Sec. 10784, in Uniform System of 
Records of Property Changes for Railroad Companies, Ex Parte No. 512 
(ICC served Aug. 26, 1992) and published at 57 FR 38810 (1992), the 
Commission had proposed to eliminate these same regulations. The 
Commission stated that the more general instructions in 49 CFR 1201, 
Uniform System of Accounts for Railroad Companies, provided sufficient 
guidelines to support adequate accounting for rail property. Moreover, 
to conform to generally accepted accounting principles (GAAP), 
railroads had developed internal accounting systems that appropriately 
record and document property changes. Also, railroads provide property 
information in Annual Report Form R-1 (R-1).
    In light of our action in STB Ex Parte No. 539, it is unnecessary 
to continue this proceeding. We have considered the comments that were 
submitted in response to the Commission's proposal and are satisfied 
that no further action need be taken.
    Of the three comments received in response to the Commission's 
proposal, only one (jointly filed by the Western Coal Traffic League 
and Edison Electric Institute (WCTL/EEI)) opposed the elimination of 
the rules. WCTL/EEI suggested that the Part 1262 regulations continued 
to serve a useful purpose in computing variable costs. The problem with 
reliance on Part 1201 and GAAP, in WCTL/EEI's view, was that Part 1201 
lacks sufficient detail to ensure recordkeeping uniformity among all 
Class I railroads, and GAAP is variously interpreted and applied among 
its users. For this reason, WCTL/EEI argued that Part 1201 and GAAP 
would not be an effective vehicle for ensuring uniformity. They 
expressed concern that, if Part 1262 were eliminated, there would be an 
increase in the incidence of disparities in the form and content of 
property records, which could make it more difficult to develop 
accurate and reliable variable cost estimates. WCTL/EEI also 
hypothesized that, without Part 1262 to ensure uniformity, the cost of 
developing property costs using the Uniform Railroad Costing System 
(URCS) would increase. Finally, they argued that the cost of 
maintaining the Part 1262 requirements vis-a-vis different systems 
should be small.
    WCTL/EEI's concern that elimination of Part 1262 would lessen the 
accuracy of property accounting and, in turn, adversely affect the URCS 
variable cost computation is misplaced. Part 1262 sets forth detailed 
recordkeeping requirements to update the basic railroad property 
valuation essentially completed in 1920. By the early 1960's, the basic 
property valuations were reconciled with the accounting records as 
prescribed in Part 1201. Thus, the recorded value of property reported 
under Parts 1201 and 1262 regulations are comparable. The data 
requirements for URCS are not dependent upon the form of records 
required by Part 1262. We believe that Part 1201 provides adequate 
provision to obtain the data and information necessary for URCS.
    We also find no need for the specific Part 1262 forms for other 
Board purposes. Part 1262 forms are not used in the review and approval 
of railroad depreciation rates, which use data supported by Part 1201. 
Data contained elsewhere, especially in the R-1, comprise the basic 
source of financial and cost information used by the Board. In short, 
elimination of Part 1262 will not compromise the integrity of the 
railroads' property accounts. For that reason, and in light of the 
Congressional action repealing 49 U.S.C. 10784, we are discontinuing 
the Ex Parte No. 512 proceeding.

Environmental and Energy Considerations

    This action will not significantly affect either the quality of the 
human environment or the conservation of energy resources.

Regulatory Flexibility Analysis

    We conclude that this action will not have a significant economic 
impact on a substantial number of small entities. No new regulatory 
requirements are being imposed on such entities. As required by the 
ICCTA, the Board removed the Part 1262 regulations in STB Ex Parte No. 
539 because former 49 U.S.C. 10784 was eliminated. Moreover, we have 
here determined that those regulations are not needed for any other 
Board purpose. Accordingly, the economic impact, if any, of our 
withdrawing the proposed rules and discontinuing this proceeding, will 
not likely affect a significant number of small entities.

    Decided: February 28, 1996.

    By the Board, Chairman Morgan, Vice Chairman Simmons, and 
Commissioner Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 96-5411 Filed 3-6-96; 8:45 am]
BILLING CODE 4915-00-P