[Federal Register Volume 66, Number 176 (Tuesday, September 11, 2001)]
[Notices]
[Page 47262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-22634]



[[Page 47262]]

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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34089]


Saginaw Valley Railway Company; Joint Relocation Project 
Exemption; Huron and Eastern Railway Company

    On August 23, 2001, Saginaw Valley Railway Company, Inc. (Saginaw 
Valley) filed a notice of exemption under 49 CFR 1180.2(d)(5) to 
participate in a joint relocation project with the Huron and Eastern 
Railway Company, Inc. (Huron and Eastern). The transaction was 
scheduled to be consummated on or after August 30, 2001.
    Saginaw Valley owns and operates over 55 miles of railroad in the 
State of Michigan (1) between Traveler, milepost 4.5, and Brown City, 
milepost 55.8, and (2) between Harger, milepost 4.6, and Richville, 
milepost 14.1 (Harger Line).
    Huron and Eastern, owns and operates about 171 miles of railroad in 
the State of Michigan including (1) the main line between Saginaw, 
milepost 0.0, and the end of track at Croswell, milepost 108.3 
(including Buena Vista, at milepost 3.0); and (2) branch lines between 
(a) Harger, milepost 4.6, and Denmark Junction, milepost 15, (b) 
Munger, milepost 100.6, and Millington, milepost 79.6, (c) Vassar, 
milepost 0.0, and Colling, milepost 22.1 (Vassar Sub), (d) Bad Axe, 
milepost 0.0, and Kinde, milepost 9.4, (e) Palms, milepost 82.4, and 
the end of the line via Ruth, milepost 8.69, and (f) Sandusky, milepost 
0.66, and the main line between Deckerville and Carsonville.
    According to Saginaw Valley, the sole purpose of its Harger Line 
has been to access the Central Michigan Railway Company (Central 
Michigan) interchange at Harger, at milepost 4.6. Saginaw Valley 
maintains that it has no customers on its Harger Line between milepost 
4.6 and milepost 13.2 but that there is an active customer east of 
milepost 13.2 in Richville. Saginaw Valley points out that, because of 
the Harger Line's poor track condition, traffic routed west from 
Richville to Harger moves at speeds below 10 miles per hour. Further, 
Saginaw Valley states that some of its Central Michigan bound traffic 
originates on Saginaw Valley lines and some originates on Huron and 
Eastern lines. Much of this traffic currently has to move via the 
Vassar Sub from Reese, MI, to Denmark Junction, to Harger, and return 
to Reese, a trip that takes up to 5 hours due to the poor track 
conditions of the Harger Line.\1\
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    \1\ Saginaw Valley notes that the majority of its traffic moving 
via Harger to the Central Michigan originates on the Huron and 
Eastern.
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    A new interchange with the Central Michigan has been established at 
Buena Vista.\2\ Under the joint relocation project, Huron and Eastern 
will grant Saginaw Valley haulage rights over its line. The Saginaw 
Valley traffic that was interchanged to the Central Michigan via Harger 
will be rerouted east to Denmark Junction, then onto the Saginaw 
Valley, north to Reese, and west to the new Buena Vista interchange. 
Under the relocation project, Saginaw Valley originated traffic is 
expected to reach the interchange point with Central Michigan at least 
2 hours faster and Huron and Eastern originated traffic is expected to 
reach the interchange point with Central Michigan up to 5 hours faster. 
Upon commencing hauling operations over the Huron and Eastern, Saginaw 
Valley will abandon service over its Harger Line between milepost 4.6 
and milepost 13.2.
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    \2\ According to the verified notice of exemption, Huron and 
Eastern also interchanges traffic to the Central Michigan. Huron and 
Eastern traffic that was previously interchanged at Harger to the 
Central Michigan will be interchanged to Central Michigan at Buena 
Vista.
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    The proposed joint relocation project will not disrupt service to 
shippers. Saginaw Valley seeks to serve its customers more efficiently 
and at a lower cost and Huron and Eastern seeks to increase traffic 
density over the line that Saginaw Valley will use and revenue from the 
contribution to be made from the usage fees to be paid by Saginaw 
Valley.
    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 
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.C.C. 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 STB Finance 
Docket No. 34089, 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 Louis E. Gitomer, Esq., BALL JANIK LLP, 1455 F Street, NW., 
Suite 225, Washington, DC 20005.

    Board decisions and notices are available on our website at 
www.stb.dot.gov.


    Decided: August 31, 2001.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 01-22634 Filed 9-10-01; 8:45 am]
BILLING CODE 4915-00-P