[Federal Register Volume 62, Number 113 (Thursday, June 12, 1997)]
[Notices]
[Pages 32142-32143]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15265]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33398]


Sammamish Transportation Company--Modified Rail Certificate

    On May 13, 1997, Sammamish Transportation Company (STC), a non-
profit corporation, filed a notice for a modified certificate of public 
convenience and necessity under 49 CFR 1150, Subpart C--Modified 
Certificate of Public Convenience and Necessity to operate an abandoned 
line of railroad of approximately 83.47 miles in length between 
milepost 646.0 near Caputa, SD, and milepost 562.53 near Kadoka, SD.
    The line is formerly a portion of the bankrupt Chicago, Milwaukee, 
St. Paul and Pacific Railroad Company (MILW). By Report served May 14, 
1980, in Docket No. AB-7 (Sub-No. 88), Richard B. Ogilvie, Trustee of 
the Property of Chicago, Milwaukee, St. Paul and Pacific Railroad 
Company--Abandonment--in South Dakota, Iowa, and Nebraska, the 
Interstate Commerce Commission recommended that MILW's trustee be 
authorized to abandon 18 lines of trackage located in the states of 
South Dakota, Iowa, and Nebraska. Abandonment of these lines was 
authorized by the United States District Court for the Northern 
District of Illinois (Eastern Division), in In the Matter of Chicago, 
Milwaukee, St. Paul and Pacific Railroad Company, No. 77-B-8999, Order 
No. 342, dated May 27, 1980,1 and Order No. 342A, dated June 
9, 1980. The subject line was acquired by the State of South Dakota, 
through its Department of Transportation (State).
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    \1\ Attached to Order No. 342 is a listing of MILW's trackage. 
The trackage involved in this proceeding is included under the 
heading ``R.--Mitchell to Rapid City.''

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[[Page 32143]]

    Pursuant to an operating agreement dated April 22, 1997, between 
the State and STC, STC will provide freight service over the line for a 
period of 20 years (subject to cesssation of operations or termination 
of the agreement as provided in the agreement) if shippers timely 
ensure that the applicable rehabilitation costs will be recoverable. 
STC may also provide service over an additional state-owned railroad 
corridor into Rapid City, SD, where the connecting railroad would be 
the Dakota, Minnesota, and Eastern Railroad.
    This rail line qualifies for a modified certificate of public 
convenience and necessity. See Common Carrier Status of States, State 
Agencies and Instrumentalities, and Political Subdivisions, Finance 
Docket No. 28990F (ICC served July 16, 1981).
    At present, no entity has committed to subsidize operations on the 
line. Commencement of rehabilitation or operations is contingent upon 
shippers meeting the following preconditions by entering into binding 
written commitments to: (1) provide funding for rehabilitation purposes 
equal to a sum no less than $3,500,000; 2 (2) provide 
funding for rail, track, and other track material in an amount no less 
than $1,500,000 and for reimbursement of interest on such amount until 
paid; and (3) assure sufficient carloadings (or payments in lieu 
thereof) in an amount no less than 2,000 carloadings yearly, adequate 
to cover all costs associated with maintenance, operation and 
capitalization of the line.
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    \2\ This sum may be increased in the event a third party 
engineering study identifies needs requiring a greater amount of 
rehabilitation necessary to improve the facilities in order to 
achieve 15 mph operation in accordance with applicable standards, or 
to provide for rehabilitation of additional track needed for 
interconnections, up to $30,000 per mile for such additional track.
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    This notice must be served on the Association of American Railroads 
(Car Service Division) as agent for all railroads subscribing to the 
car-service and car-hire agreement: Association of American Railroads, 
50 F St., NW, Washington, DC 20001; and on the American Short Line 
Railroad Association, 1120 G St., NW, Suite 520, Washington, DC 20005.

    Decided: June 3, 1997.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 97-15265 Filed 6-11-97; 8:45 am]
BILLING CODE 4915-00-P