[Federal Register Volume 63, Number 188 (Tuesday, September 29, 1998)]
[Notices]
[Page 51991]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26025]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33630]


The Burlington Northern and Santa Fe Railway Company and Union 
Pacific Railroad Company--Acquisition Exemption--Lines Between Dawes, 
TX, and Avondale, LA

AGENCY: Surface Transportation Board, DOT.

ACTION: Notice of exemption.

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SUMMARY: Under 49 U.S.C. 10502, the Board is granting the joint 
petition for exemption from the prior approval requirements of 49 
U.S.C. 11323-25 filed by The Burlington Northern and Santa Fe Railway 
Company (BNSF) and Union Pacific Railroad Company (UP) for the 
acquisition of joint ownership of a line of railroad between Dawes, TX, 
and Avondale, LA, a distance of approximately 338 miles, subject to 
employee protective conditions.

DATES: The exemption is effective on October 29, 1998. Petitions to 
stay must be filed by October 9, 1998. Petitions to reopen must be 
filed by October 19, 1998.

ADDRESSES: An original and 10 copies of all pleadings referring to the 
exemption granted in STB Finance Docket No. 33630 must be filed with 
the Surface Transportation Board, Office of the Secretary, Case Control 
Unit, 1925 K Street, NW, Washington, DC 20423-0001. In addition, a copy 
of all pleadings must be served on the parties' representatives: (1) 
for BNSF, Erika Z. Jones, Mayer, Brown & Platt, 2000 Pennsylvania 
Avenue, NW, Washington, DC 20006; and (2) For UP, Arvid E. Roach II, 
Covington & Burling, 1201 Pennsylvania Avenue, NW, P.O. Box 7566, 
Washington, DC 20044-7566.

FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 565-1600. [TDD for 
the hearing impaired (202) 565-1695.]

SUPPLEMENTARY INFORMATION: The ownership of the railroad line between 
Dawes and Avondale is presently divided between UP and BNSF. UP owns 
the 147.5-mile segment between Dawes, at milepost 352.8, and Iowa 
Junction, LA, at milepost 205.3 (the Beaumont Segment), and BNSF owns 
the 190.4-mile segment between Iowa Junction and Avondale, at milepost 
14.9 (the Avondale Segment), having acquired it pursuant to the UP/SP 
1-BNSF Settlement Agreement in Finance Docket No. 
32760.2 As part of the Settlement Agreement, UP retained 
trackage rights over the Avondale Segment, including the right to serve 
all local industries on that line. In addition, BNSF received overhead 
trackage rights on the Beaumont Segment, with access to all new 
facilities customers, Lake Charles area customers, and all shippers 
that would have had their railroad service options reduced from 2 to 1 
as a result of the merger.3
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    \1\ ``SP'' refers to Southern Pacific Transportation Company and 
its affiliates.
    \2\ See Union Pacific Corporation, Union Pacific Railroad 
Company, and Missouri Pacific Railroad Company--Control and Merger--
Southern Pacific Rail Corporation, Southern Pacific Transportation 
Company, St. Louis Southwestern Railway Company, SPCSL Corp., and 
The Denver and Rio Grande Western Railroad Company, Finance Docket 
No. 32760, Decision No. 44 (STB served Aug. 12, 1996). BNSF's 
acquisition of the Avondale Segment was exempted in Finance Docket 
No. 32760 (Sub-No. 2), which was embraced in Decision No. 44.
    \3\ BNSF's trackage rights were exempted in Finance Docket 32760 
(Sub-No. 1), which also was embraced in Decision No. 44.
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    On February 12, 1998, BNSF and UP entered into a Term Sheet 
agreement relating to the two railroads' operations in and around 
Houston, TX, and along the Gulf Coast between Houston and New Orleans, 
LA. As one part of that agreement, BNSF and UP agreed to exchange 50% 
ownership interests in their respective main line segments, including 
operating sidings used for meeting and passing trains. Under the Term 
Sheet agreement, BNSF will acquire an undivided 50% interest in UP's 
Beaumont Segment, and UP will acquire an undivided 50% interest in 
BNSF's Avondale Segment. Other elements of the Term Sheet agreement 
include the establishment of a regional dispatching center in Spring, 
TX, for UP and BNSF lines in and around Houston and between Houston and 
New Orleans. In addition, BNSF will gain access to all present and 
future shipper facilities on the line and on former SP branches or 
spurs that connect to the line, as well as on new branches and spurs 
added to the line. The ownership exchange will be made subject to the 
existing trackage rights of the Texas Mexican Railway Company between 
Houston and Beaumont, as well as Amtrak's service over the entire line. 
Both BNSF and UP will be permitted to use the Louisiana & Delta 
Railroad as their agent to provide service over the line.
    Additional information is contained in the Board's decision. To 
purchase a copy of the full decision, write to, call, or pick up in 
person from: DC News & Data, Inc., 1925 K Street, NW, Suite 210, 
Washington, DC 20006. Telephone: (202) 289-4357. [Assistance for the 
hearing impaired is available through TDD services at (202) 565-1695.]
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: September 22, 1998.

    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-26025 Filed 9-28-98; 8:45 am]
BILLING CODE 4915-00-P