[Federal Register Volume 64, Number 185 (Friday, September 24, 1999)]
[Notices]
[Page 51825]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24948]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33800]


Vermont Railway, Inc.--Modified Rail Certificate

    On September 14, 1999, Vermont Railway, Inc. (VTR), a Class III 
rail carrier, filed a notice for a modified certificate of public 
convenience and necessity under 49 CFR part 1150, subpart C, Modified 
Certificate of Public Convenience and Necessity, to operate a 14-mile 
rail line owned by the State of Vermont (the line).
    The 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 On February 2, 
1999, WACR agreed to assign its lease of the line to New England 
Central Railroad, Inc. (NECR).2 NECR accepted the assignment 
on February 9, 1999, and operated the line through the close of 
business on September 8, 1999, when it terminated operations over the 
line. VTR indicates that VTR and the State of Vermont have reached an 
interim agreement that would provide for immediate operation of the 
line. During the term of the interim agreement, VTR 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 VTR or a 
subsidiary of VTR.
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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).
    \2\ See New England Central Railroad, Inc.--Modified Rail 
Certificate, STB Finance Docket No. 33715 (STB served Feb. 26, 
1999).
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    The line extends from the interchange with NECR, at Montpelier 
Junction, VT, to Graniteville, VT. Approximately the last two miles of 
the line, from a point near the Bombardier rail car assembly plant in 
Websterville, VT, to Graniteville are out of service. VTR will operate 
the segment of the line presently in service, providing at least three 
round trips per week (except when no service is required by the line's 
customers).
    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. Under the letter agreement, the State of 
Vermont's Agency of Transportation (VAOT) agrees to pay VTR (or a VTR 
subsidiary) a subsidy of $2,000 per week to provide service over the 
line. The letter agreement further provides that VTR (or a VTR 
subsidiary ) will be entitled to the line's share of freight revenues 
collected from customers.3 VTR represents that it has 
extensive insurance coverage for property damage and personal injury. 
There are no preconditions for shippers to meet in order to receive 
rail service.
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    \3\ 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, NW, Washington, DC 20001; and on the American Short Line 
and Regional Railroad Association: American Short Line and Regional 
Railroad Association, 1120 G Street, NW, Suite 520, Washington, DC 
20005.

    Decided: September 20, 1999.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 99-24948 Filed 9-23-99; 8:45 am]
BILLING CODE 4915-00-P