[Federal Register Volume 64, Number 38 (Friday, February 26, 1999)]
[Notices]
[Pages 9556-9557]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-4716]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33715]


New England Central Railroad, Inc.--Modified Rail Certificate

    On February 10, 1999, New England Central Railroad, Inc. (NECR), 
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 a 14-mile rail line owned by the 
State of Vermont.
    The involved rail line was approved for abandonment by Montpelier 
and Barre Railroad Company in Montpelier and Barre Railroad Company--
Entire Line Abandonment--From Graniteville to Montpelier Junction in 
Washington County, VT, Docket No. AB-202 F (ICC served Mar. 12, 1980), 
and acquired by the State of Vermont on November 21, 1980. The 
Washington County Railroad Corporation (WACR) filed a notice for a 
modified certificate of public convenience and necessity on November 
17, 1980, and a modified rail certificate was issued to WACR 
authorizing it to operate the line as of November 17, 1980.1
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    \1\ See Washington County Railroad Corporation--Operations--From 
Montpelier Junction to Graniteville, VT, Finance Docket No. 29536F 
(ICC served Jan. 2, 1981).
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    On February 2, 1999, WACR agreed to assign its lease of the line to 
NECR. On February 9, 1999, NECR accepted the assignment, and NECR and 
the State of Vermont agreed to cancel their lease. Also on February 9, 
1999, NECR and the State of Vermont entered into an interim letter 
agreement for the operation of the line. The term of the letter 
agreement, unless modified, is 90 days. During that time, NECR and the 
State of Vermont intend to negotiate and enter into a lease and 
operating agreement that will govern future operations of the line by 
NECR.
    The line extends from Montpelier Junction to Graniteville, VT, and

[[Page 9557]]

connects at Montpelier Junction with NECR's main line extending from 
East Alburg, VT, to New London, CT. NECR proposes to provide once a 
week service over the line.
    The rail segment 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).
    A subsidy is involved. The State of Vermont's Agency of 
Transportation (VAOT) states that VAOT will waive rental payments on 
the line for at least the first year of NECR's operation and will pay 
NECR a subsidy of $105 per car for each revenue movement over the line 
through March 1, 2000, up to 200 cars.2 There are no 
preconditions for shippers to meet in order to receive rail service.
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    \2\ VAOT states that it is authorized under 5 V.S.A. 3401-3409 
to administer State-owned railroad properties and to take necessary 
action to ensure continuity of service over such properties.
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    This notice will 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 Street, N.W., Washington, DC 20001; and on the American Short Line 
Railroad Association: American Short Line Railroad Association, 1120 G 
Street, N.W., Suite 520, Washington, DC 20005.

    Decided: February 19, 1999.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 99-4716 Filed 2-25-99; 8:45 am]
BILLING CODE 4915-00-P