[Federal Register Volume 64, Number 212 (Wednesday, November 3, 1999)]
[Notices]
[Pages 59822-59823]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-28743]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33807]


Washington County Railroad Company--Modified Rail Certificate

    On October 6, 1999, Washington County Railroad Company (WCRC), a 
noncarrier, 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 line).1
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    \1\ WCRC was incorporated on September 23, 1999, for the purpose 
of providing rail service over the line for the State of Vermont.
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    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, 1980.2 On February 2, 
1999, WACR agreed to assign its lease of the line to New England 
Central Railroad, Inc. (NECR).3 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. Vermont Railway, Inc. (VTR) filed a notice for a modified 
certificate of public convenience and necessity on September 14, 1999, 
and a modified rail certificate was issued to VTR for the immediate 
interim operation of the line while VTR and the State of Vermont 
negotiated and entered into a lease and operating agreement that would 
govern future operations of the line by VTR or a subsidiary of 
VTR.4 On September 30, 1999, WCRC and the State of Vermont 
entered into an agreement whereby WCRC would operate the line, unless 
modified, through June 30, 2004. WCRC states that, effective 
immediately, it will replace VTR as the operator of the 
line.5
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    \2\ See Washington County Railroad Corporation--Operations--From 
Montpelier Junction to Graniteville, VT, Finance Docket No. 29536F 
(ICC served Jan. 2, 1981).
    \3\ See New England Central Railroad, Inc.--Modified Rail 
Certificate, STB Finance Docket No. 33715 (STB served Feb. 26, 
1999).
    \4\ See Vermont Railway, Inc.''Modified Rail Certificate, STB 
Finance Docket No. 33800 (STB served Sept. 24, 1999).
    \5\ WCRC states that it is owned by the same persons who control 
VTR. WCRC further states that it has the same officers and directors 
as VTR and two other Class III carriers, Clarendon & Pittsford 
Railroad Company, and Green Mountain Railroad Corporation. WCRC 
states that an exemption will be sought under 49 U.S.C. 10502 from 
the prior approval requirements of 49 U.S.C. 11323-25 for the 
control of WCRC by individuals who control other rail carriers. 
Common control authority or an exemption is needed before WCRC may 
begin rail carrier operations.

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[[Page 59823]]

    The line extends between Montpelier Junction, VT, and Graniteville, 
VT, a distance of approximately 14 miles. WCRC expects to conduct 
operations between Montpelier Junction and Websterville, a distance of 
approximately 12 miles. At Montpelier Junction, the line connects with 
NECR.
    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 agreement, the State of Vermont's 
Agency of Transportation (VAOT) agrees to pay WCRC a subsidy equivalent 
to $5,000 per week, through June 30, 2000. The agreement further 
provides that VAOT, beginning July 1, 2000 and for each subsequent year 
of the agreement, agrees to pay a subsidy of $260,000 per year, reduced 
by a subsidy credit equivalent to 50% of all gross revenues between 
$150,000 and $670,000.6 WCRC represents that it has obtained 
general liability insurance coverage and that there are no 
preconditions for shippers to meet in order to receive rail service.
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    \6\ 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 
and Regional Railroad Association: American Short Line and Regional 
Railroad Association, 1120 G Street, N.W., Suite 520, Washington, DC 
20005.

    Decided: October 28, 1999.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 99-28743 Filed 11-2-99; 8:15 am]
BILLING CODE 4915-00-P