[Federal Register Volume 64, Number 215 (Monday, November 8, 1999)]
[Notices]
[Page 60876]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29172]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33810]


Wisconsin Chicago Link Ltd.--Lease Exemption--Pennsylvania Lines 
LLC

    Wisconsin Chicago Link Ltd. (WCLL), a noncarrier, has filed a 
notice of exemption under 49 CFR 1150.31 to lease from Pennsylvania 
Lines LLC (PRR) approximately 1.9 miles of rail line (the Panhandle 
Line) of the former Pittsburgh Cincinnati, Chicago & St. Louis Railroad 
Company (PCC&StL) in Chicago, Cook County, IL.1 The 
Panhandle Line extends between: (1) A connection with CSX 
Transportation, Inc. (CSXT) via the Altenheim Subdivision of The 
Baltimore and Ohio Chicago Terminal Railroad Company at Ogden Junction 
near Rockwell Street (approximately PCC&StL milepost 309.8), and (2) a 
point (approximately PCC&StL milepost 307.9) 600 feet north of the 
north bank of the Chicago Sanitary and Ship Canal, near the Ash Street 
Interlock. The Panhandle Line is paralleled for its entire length by 
terminal trackage of other carriers, and connects at its north and 
south ends with the lines of numerous other railroads.2 WCLL 
will also obtain incidental, overhead trackage rights extending south 
from PCC&StL milepost 307.9, a distance of approximately 2 miles to 
present or future connections with rail lines of Norfolk Southern 
Railway Company (NS), Canadian National/Grand Trunk Western Railroad, 
Inc., Illinois Central Railroad Company, Chicago, Central & Pacific 
Railroad Company and The Burlington Northern and Santa Fe Railway 
Company.
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    \1\ WCLL states that its revenues will not exceed those that 
would qualify it as a Class III rail carrier and its revenues are 
not projected to exceed $5 million.
    \2\ Wisconsin Central Ltd. (WCL), a WCLL affiliate, operates 
pursuant to overhead trackage rights on the Altenheim Subdivision 
that will connect with the north end of the Panhandle Line.
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    The proposed lease of the Panhandle Line was the subject of an 
October 17, 1997 settlement agreement entered into by: (1) Norfolk 
Southern Corporation and NS, which now control and operate PRR, and (2) 
Wisconsin Central Transportation Corporation (WCTC) and its then 
existing carrier affiliates.3 At the time of filing of this 
notice, the parties were negotiating a definitive lease agreement that 
would effectuate the intent and purpose of the prior agreement. 
According to the notice, that lease agreement provides for WCLL's 
acquisition of a leasehold interest in the Panhandle Line, a portion of 
the associated right-of-way and certain incidental overhead trackage 
rights.4
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    \3\ The Panhandle Line was formerly owned by Consolidated Rail 
Corporation (Conrail). Pursuant to a transaction approved by the 
Board, and fully consummated by the parties on June 1, 1999, PRR was 
assigned assets designated to be operated as part of the NS rail 
system (the PRR-Allocated Assets). See CSX Corporation and CSX 
Transportation, Inc., Norfolk Southern Corporation and Norfolk 
Southern Railway Company--Control and Operating Leases/Agreements--
Conrail Inc. and Consolidated Rail Corporation, STB Finance Docket 
No. 33888, Decision No. 89 (STB served July 23, 1998).
    \4\ According to the notice, the lease agreement further 
provides that, after five years, WCLL has an option to purchase the 
Panhandle Line for an amount determined in accordance with 
provisions of the agreement.
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    WCLL indicates that WCTC will shortly be filing a petition for 
exemption in a related proceeding in STB Finance Docket No. 33811, 
Wisconsin Central Transportation Corporation--Continuance in Control 
Exemption--Wisconsin Chicago Link Ltd., wherein WCTC will seek to 
continue in control of WCLL 5 once it leases the Panhandle 
Line and becomes a carrier.
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    \5\  Pending a Board decision granting WCTC's petition for 
exemption to control WCLL, the stock of WCLL will be placed in an 
independent voting trust established in accordance with 49 CFR 1013.
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    WCLL further states that the Panhandle Line is currently out of 
service. WCLL intends to reconstruct the line and add additional 
capacity. Initially operations on the line will be conducted by NS, 
CSXT, and WCL pursuant to trackage rights. It is anticipated that CSXT 
will dispatch a portion of the Panhandle Line.
    The transaction was expected to be consummated on or shortly after 
October 29, 1999.
    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. 33810, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Unit, 1925 K Street, NW, 
Washington, DC 20423-0001. In addition, one copy of each pleading must 
be served on Janet H. Gilbert, 6250 North River Road, Suite 9000, 
Rosemont, IL 60018.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.

    Decided: November 2, 1999.
Vernon A. Williams,
Secretary.
[FR Doc. 99-29172 Filed 11-5-99; 8:45 am]
BILLING CODE 4915-00-P