[Federal Register Volume 66, Number 96 (Thursday, May 17, 2001)]
[Notices]
[Page 27545]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-12345]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34021]


Central Michigan Railway Company and CSX Transportation, Inc.--
Joint Relocation Project Exemption--in Saginaw, MI

    Central Michigan Railway Company (CMGN) has filed a notice of 
exemption under 49 CFR 1180.2(d)(5) to relocate its rail operations 
within the City of Saginaw, MI, from a portion of its line to a portion 
of line owned by CSX Transportation, Inc. (CSXT). CMGN will operate 
over the portion of the line owned by CSXT by overhead trackage rights. 
CMGN states that the transaction will be consummated by September 1, 
2001, but not before April 26, 2001, the effective date of the 
exemption.\1\
---------------------------------------------------------------------------

    \1\ An unredacted version of the trackage rights agreement 
between CMGN and CSXT, as required by 49 CFR 1180.6(a)(7)(ii), was 
concurrently filed with the notice of exemption under seal along 
with a motion for a protective order. A protective order was served 
on May 2, 2001.
---------------------------------------------------------------------------

    CMGN operates over an approximately 1.92-mile rail line entirely in 
Saginaw, from CMGN milepost 0.07, at or near the Denmark Switch, to 
CMGN milepost 1.99, at or near Hoyt Diamond, MI (subject line). CMGN 
currently connects with CSXT at milepost BB 07, at or near Mershon 
Switch.
    Under the joint relocation project, CMGN and CSXT propose the 
following trans (1) CMGN will acquire overhead trackage rights over 
approximately 2.9 miles of rail line owned by CSXT from milepost BBO 7 
at or near the Mershon Switch east to milepost CB 1 near the Saginaw 
Yard (a distance of approximately 1.7 miles), then from milepost CB 1 
southeast to milepost CC 2.2, at or near the Hoyt Diamond (a distance 
of approximately 1.2 miles), at which point CMGN would connect with its 
main line;\2\ (2) CMGN will abandon its operations from CMGN milepost 
0.07 at or near the Denmark Switch to CMGN milepost 1.99 at or near the 
Hoyt Diamond (the subject line); and (3) CMGN will construct a new 
public team track facility, approximately 570 feet long beginning at 
CSXT milepost CC 2.1 on CSXT's line and connecting with CMGN at 
approximately CMGN's milepost 2.04.
---------------------------------------------------------------------------

    \2\ CMGN's use of the trackage rights would make its rail 
operations more efficient. It would further allow CMGN to access its 
shippers east of the Hoyt Diamond by having a more direct route 
between the Saginaw Yard and the Hoyt Diamond after it interchanges 
with CSXT.
---------------------------------------------------------------------------

    The proposed joint relocation project will not disrupt service to 
shippers.\3\ Its purpose is to eliminate approximately 22 grade 
crossings (8 of which cross major system routes) pursuant to a highway 
improvement project funded by CMGN, CSXT, the Michigan Department of 
Transportation, the City of Saginaw and TEA-21 Local Safety Program 
funds. Thus, it will enhance public safety by reducing the risk of 
crossing accidents. The notice further states that CSXT's trackage 
rights provides an alternate route by which CMGN can access its own 
rail line. There will be no expansion into new territory; nor will 
there be a change in the existing competitive situation.
---------------------------------------------------------------------------

    \3\ By letter dated April 11, 2001, Self-Serve Lumber, the only 
shipper on the line fully supports the proposed relocation and 
incidental abandonment by CMGN.
---------------------------------------------------------------------------

    The Board will exercise jurisdiction over the abandonment or 
construction components of a relocation project, and require separate 
approval or exemption, only where the removal of track affects service 
to shippers or the construction of new track involves expansion into a 
new territory. See City of Detroit v. Canadian National Ry. Co., et 
al., 9 I.C.C.2d 1208 (1993), aff'd sub nom., Detroit/Wayne County Port 
Authority v. ICC, 59 F.3d 1314 (D.C. Cir. 1995). Line relocation 
projects may embrace trackage rights transactions such as the one 
involved here. See D.T.&I.R.--Trackage Rights, 363 I.CC. 878 (1981). 
Under these standards, the incidental abandonment, construction, and 
trackage rights components require no separate approval or exemption 
when the relocation project, as here, will not disrupt service to 
shippers and thus qualifies for the class exemption at 49 CFR 
1180.2(d)(5).
    As a condition to this exemption, any employees affected by the 
trackage rights will be protected by the conditions imposed in Norfolk 
and Western Ry. Co.--Trackage Rights--BN, 354 I.C.C. 605 (1978), as 
modified in Mendocino Coast Ry., Inc.--Lease and Operate, 360 I.C.C. 
653 (1980).
    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. 34021, 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, a copy of each pleading must be 
served on Rose-Michele Weinryb, Weiner Brodsky Sidman Kider PC, 1300 
19th Street, NW., Fifth Floor, Washington, DC 20036-1609.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: May 10, 2001.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 01-12345 Filed 5-16-01; 8:45 am]
BILLING CODE 4915-00-P