[Federal Register Volume 64, Number 188 (Wednesday, September 29, 1999)]
[Notices]
[Pages 52574-52575]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25315]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33780]


The Kansas City Southern Railway Company--Trackage Rights 
Exemption--Gateway Western Railway Company and Gateway Eastern Railway 
Company

    Gateway Western Railway Company and Gateway Eastern Railway Company 
(collectively, Gateway) have agreed to grant local and overhead 
trackage rights to The Kansas City Southern Railway Company (KCS) 
1 over track structures, including sidings, related yard 
facilities and industry tracks, extending: (1) between Kansas City, MO, 
and East St. Louis, IL; and (2) between Roodhouse, IL, and Springfield, 
IL, for a total distance of approximately 478 miles.2 The 
purpose of the trackage rights is to allow KCS to market ``seamless'' 
rail service over the KCS system and Gateway's, avoiding interchange 
costs and delays and allowing enhanced train scheduling and equipment 
utilization. The transaction was initially scheduled to be consummated 
on or after July 21, 1999, the effective date of the exemption (7 days 
after the exemption was filed).3
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    \1\ KCS and Gateway are commonly controlled and affiliated 
railroad companies. See Kansas City Southern Industries, Inc., KCS 
Transportation Company, and The Kansas City Southern Railway 
Company--Control--Gateway Western Railway Company and Gateway 
Eastern Railway Company, STB Finance Docket No. 33311 (STB served 
May 1, 1997).
    \2\ A redacted version of the trackage rights agreement between 
Gateway and KCS was filed with the notice of exemption. The full 
version of the agreement, as required by 49 CFR 1180.6(a)(7)(ii), 
was concurrently filed under seal along with a motion for a 
protective order, which was granted in a decision served July 23, 
1999.
    \3\ On July 19, 1999, Joseph C. Szabo, on behalf of the United 
Transportation Union-Illinois Legislative Board filed a petition 
requesting the Board to stay operation of the exemption pending the 
filing and disposition of a petition to reject or to revoke it. By 
decision served July 20, 1999, the Board granted a 60-day stay of 
the effective date of the exemption, until September 19, 1999, to 
permit the Board to examine the issues in this proceeding in greater 
detail, thus delaying publication of the notice and the 
effectiveness of the exemption. On August 9, 1999, Mr. Szabo and W. 
Larry Foster, on behalf of the United Transportation Union-Missouri 
Legislative Board, filed a petition, to reject and/or to revoke the 
notice of exemption or to impose added labor protection. By decision 
served September 16, 1999, the Board denied the petition, subject to 
the Board's reservation of jurisdiction to consider other issues in 
future proceedings, as discussed in that decision. As a result, this 
exemption became effective on September 19, 1999.
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    As a condition to this exemption, any employees affected by the 
trackage rights will be protected by the conditions imposed in Norfolk 
& Western Ry. Co.--Trackage Rights--BN, 354 I.C.C. 605 (1978), as 
modified in

[[Page 52575]]

Mendocino Coast Ry., Inc.--Lease & Operate, 360 I.C.C. 653 (1980).
    This notice is filed under 49 CFR 1180.2(d)(7). If the notice 
contains false or misleading information, the exemption is void ab 
initio. Petitions to revoke the exemption under 49 U.S.C. 10502(d) may 
be filed at any time. The filing of a petition to revoke will not 
automatically stay the transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 33780, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Unit, 1925 K Street, N.W., 
Washington, DC 20423-0001. In addition, a copy of each pleading must be 
served on Robert K. Dreiling, Esq., The Kansas City Southern Railway 
Company, 114 West Eleventh St., Kansas City, MO 64105.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: September 22, 1999.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 99-25315 Filed 9-28-99; 8:45 am]
BILLING CODE 4915-00-P