[Federal Register Volume 64, Number 109 (Tuesday, June 8, 1999)]
[Notices]
[Pages 30560-30561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14508]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Docket No. AB-556 (Sub-No. 2X)]


Railroad Ventures, Inc.--Abandonment Exemption--Between 
Youngstown, OH, and Darlington, PA, in Mahoning and Columbiana 
Counties, OH, and Beaver County, PA [STB Docket No. AB-555 (Sub-No. 
2X)]; The Ohio & Pennsylvania Railroad Company--Adverse Discontinuance 
of Service Exemption--Between Youngstown, OH, and Darlington, PA, in 
Mahoning and Columbiana Counties, OH, and Beaver County, PA

    On May 19, 1999, Railroad Ventures, Inc. (RVI), filed a petition 
under 49 U.S.C. 10502 for an exemption from the provisions of 49 U.S.C. 
10903 for RVI to abandon 35.7 miles of railroad line from milepost 0.0 
at Youngstown, OH, to milepost 35.7 at Darlington, PA, and a connecting 
1-mile spur near Negley, OH. RVI also petitioned for an exemption under 
49 U.S.C. 10502 from the provisions of 49 U.S.C. 10903 for The Ohio & 
Pennsylvania Railroad Company (OPRC) to receive discontinuance 
authorization for OPRC's service obligations over the line. OPRC has a 
lease with RVI to provide service over this line, but has not provided 
service since shortly after RVI purchased the line in 1996.1
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    \1\ Although the proposed discontinuance is styled as an adverse 
discontinuance because it was filed by RVI, the owner of the line, 
instead of by OPRC, the carrier authorized to operate over the line, 
the interests of the parties are not adverse because OPRC agrees 
that its lease and service obligations should be discontinued and, 
in fact, had previously sought on its own behalf a discontinuance 
exemption, which was rejected.
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    RVI's acquisition of the subject line, formerly part of the 
Youngstown & Southern Railroad Company (Y&S), OPRC's lease to operate 
over the line, and their subsequent attempts to abandon the line and 
discontinue service have a long and tortuous history.2 Most 
recently, on January 4,

[[Page 30561]]

1999, OPRC filed a notice of exemption under 49 CFR 1152.50 to 
discontinue service over the line, and RVI filed a notice of exemption 
to abandon the line. RVI stated in its verified notice of exemption 
that it should be allowed to abandon the line and either salvage it or 
permit other interested parties to acquire the line through the offer 
of financial assistance (OFA) procedures under 49 U.S.C. 10904 and 49 
CFR 1152.27. Both notices were rejected because use of the out-of-
service class exemption was deemed to be inappropriate for this line in 
that it would deprive the Board of the opportunity to review the merits 
of the abandonment and discontinuance. Railroad Ventures, Inc.--
Abandonment Exemption--Between Youngstown, OH, and Darlington, PA, in 
Mahoning and Columbiana Counties, OH, and Beaver County, PA, STB Docket 
No. AB-556 (Sub-No. 1X) et al. (STB served Jan. 22, 1999). The 
rejections were without prejudice to the filing of either a petition 
for exemption or a formal application, provided that, if a petition for 
exemption were filed, it must contain sufficient information for the 
Board to determine what rehabilitation is required to restore service, 
what the costs of rehabilitation would be, and an accurate estimate of 
the line's revenue potential.3 Then, if the Board determines 
that the abandonment of the line is warranted by its economics, RVI's 
willingness to sell to the line through the OFA procedures might be an 
acceptable approach for resolving the service issues surrounding the 
line.
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    \2\ See Railroad Ventures, Inc.--Acquisition and Operation 
Exemption--Youngstown & Southern Railroad Company, STB Finance 
Docket No. 33385 et al. (STB served July 15, 1997), wherein the 
Board imposed a bi-weekly reporting requirement on RVI in order to 
monitor the restoration of service and the specific causes of any 
delays in restoring service.
    \3\ RVI, with OPRC's cooperation, has filed a petition for 
exemption in response to this requirement. Publication of this 
notice, however, does not constitute acceptance of RVI's data. The 
data submitted for projected revenue, maintenance costs, and net 
liquidation value appear reasonable (although the value of the land 
may be overstated). Rehabilitation costs were not stated with any 
certainty. RVI submitted three estimates ranging from approximately 
$800,000 to approximately $4.5 million, but did not explain the 
discrepancies among them. Also, several rehabilitation items appear 
questionable (e.g., the need for extensive replacement of cross ties 
and tie plates, a new bridge, and drainage work at an overpass).
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    The line traverses U.S. Postal Service ZIP Codes: 44501, 44512, 
44452, 44408, 45042, 44455, 44441, and 16115. The line does not contain 
federally granted rights-of-way. Any documentation in RVI's and OPRC's 
possession will be made available promptly to those requesting it.
    The interest of railroad employees will be protected by the 
conditions set forth in Oregon Short Line R. Co.--Abandonment--Goshen, 
360 I.C.C. 91 (1979).
    By issuance of this notice, the Board is instituting exemption 
proceedings pursuant to 49 U.S.C. 10502(b). Official notice will be 
taken of the records developed in Docket Nos. AB-556 (Sub-No. 1X) and 
AB-555 (Sub-No. 1X).4 A final decision will be issued by 
September 3, 1999.5
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    \4\ RVI has asked that the environmental reports filed in the 
previous proceedings be used here. Because those reports are still 
current, this request is acceptable. Additionally, RVI has asked to 
be exempted from the notice requirements of 49 CFR 1152.20 and 
1152.21. Because RVI complied with these notice requirements in its 
previous abandonment request, has served copies of its petition on 
the parties of record in the previous proceedings, and has stated 
that it will serve a copy of its petition on any other interested 
party requesting it, RVI will not be required to republish notice of 
the proposed abandonment and discontinuance.
    \5\ Because the parties and issues in these proceedings are the 
same, they will be considered on a consolidated basis.
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    Any OFA under 49 CFR 1152.27(b)(2) will be due no later than 10 
days after service of a decision granting the exemptions. Each offer 
must be accompanied by a $1,000 filing fee. See 49 CFR 1002.2(f)(25).
    All interested parties should be aware that, following abandonment 
of rail service and salvage of the line, the line may be suitable for 
other public use, including interim trail use. Any request for a public 
use condition under 49 CFR 1152.28 or for trail use/rail banking under 
49 CFR 1152.29 will be due no later than June 28, 1999. Each trail use 
request must be accompanied by a $150 filing fee. See 49 CFR 
1002.2(f)(27).
    All filings in response to this notice must refer to STB Docket 
Nos. AB-556 (Sub-No. 2X) and AB-555 (Sub-No. 2X) and must be sent to: 
(1) Surface Transportation Board, Office of the Secretary, Case Control 
Unit, 1925 K Street, N.W., Washington, DC 20423-0001; and (2) Richard 
R. Wilson, Vuono & Gray, L.L.C., 2310 Grant Street, Pittsburgh, PA 
15219. Comments on the proposed abandonment and discontinuance are due 
June 28, 1999.
    Persons seeking further information concerning abandonment and 
discontinuance procedures may contact the Board's Office of Public 
Services at (202) 565-1592 or refer to the full abandonment or 
discontinuance regulations at 49 CFR part 1152. Questions concerning 
environmental issues may be directed to the Board's Section of 
Environmental Analysis (SEA) at (202) 565-1545. [TDD for the hearing 
impaired is available at (202) 565-1695.]
    An environmental assessment (EA) (or environmental impact statement 
(EIS), if necessary) prepared by SEA will be served upon all parties of 
record and upon any agencies or other persons who commented during its 
preparation. Other interested persons may contact SEA to obtain a copy 
of the EA (or EIS). EAs in these abandonment proceedings normally will 
be made available within 60 days of the filing of the petition. The 
deadline for submission of comments on the EA will generally be within 
30 days of its service.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: June 2, 1999.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 99-14508 Filed 6-7-99; 8:45 am]
BILLING CODE 4915-00-P