[Federal Register Volume 66, Number 206 (Wednesday, October 24, 2001)]
[Rules and Regulations]
[Pages 53734-53735]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26773]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

49 CFR Part 1244

[STB Ex Parte No. 385 (Sub-No. 5)]


Modification of the Carload Waybill Sample Reporting Procedures

AGENCY: Surface Transportation Board, DOT.

ACTION: Final rule.

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SUMMARY: The Board modifies its regulations to require all railroads 
operating in the United States to include in the Carload Waybill Sample 
(Waybill Sample) export traffic moving from or through the United 
States. To comply with this regulation, railroads may report data on 
either the U.S. portion of movements or on entire international 
movements. Railroads reporting information on only the U.S. portion of 
movements may use a mileage proration to estimate the revenues 
attributable to the U.S. leg of the movement. When actual revenue 
divisions are reported, carriers may encrypt (mask) the revenue 
information if such information is commercially sensitive. This 
modification of the reporting requirements is designed to improve the 
accuracy of the Waybill Sample.

EFFECTIVE DATE: January 1, 2002.

FOR FURTHER INFORMATION CONTACT: James Nash, (202) 565-1542 or H. Jeff 
Warren, (202) 565-1533. [Assistance for the hearing impaired is 
available through the Federal Information Relay Service (FIRS) 1-800-
877-8339.]

SUPPLEMENTARY INFORMATION: We require railroads that annually terminate 
4,500 or more carloads (or 5 percent of the carloads in any state) to 
report data, including revenues, on individual movements drawn from a 
random sampling of their traffic. 49 CFR 1244.2. This Waybill Sample is 
used for a variety of purposes by the Board, parties appearing before 
the Board, other Federal and state agencies, and the public in general. 
Because of the increased volume of rail traffic moving between the 
United States and Canada or Mexico, or between Canada and Mexico 
through the United States, we proposed (in a Notice of Proposed 
Rulemaking served September 8, 2000 (65 FR 54471)) to require railroads 
to include in the sampling process export traffic moving on the U.S. 
rail system.
    Comments were filed by the United States Department of 
Transportation (DOT), the Western Coal Traffic League (WCTL), and the 
Association of American Railroads (AAR). DOT and WCTL support the 
proposal but ask for clarification.
    DOT asks whether, when using data on the U.S. portion of 
international movements, we will modify our revenue and costing 
algorithms to account for the fact that the traffic does not actually 
terminate at the U.S. border. We recognize that, when waybill 
information is used to develop costs associated with specific rail 
service or assign revenues to segments of a movement, we must account 
for the fact that export traffic does not terminate at the border. 
Accordingly, when estimating segment costs and revenues for cross-
border traffic, we will not assign the extra costs or revenues 
generally associated with actual terminations to points where 
international traffic simply crosses the border on the way to its final 
destination.
    WCTL suggests that, to the extent possible, railroads should 
specify the foreign destination and revenues associated with the export 
traffic. As discussed below, railroads will be permitted to report such 
information but will not be required to do so. We do not have the 
authority to require foreign carriers that terminate export traffic to 
report information on traffic moving outside the United States. 49 
U.S.C. 10501(a)(2). WCTL further asks whether export traffic will be 
sampled and tracked as a specific category, or whether it will be 
sampled on the same basis as, and subsumed within, other traffic 
generally. While our regulations will require the specific 
identification of export traffic in the Waybill Sample, we do not 
intend that such traffic be treated as a separate category of traffic 
but rather be sampled and tracked like other railroad traffic.
    AAR, while acknowledging the need for an accurate Waybill Sample, 
expresses concern that the proposal may be burdensome for some 
railroads to implement because it could require expensive data 
processing changes in order to develop revenue data on only the U.S. 
portion of international movements. We note that the Canadian National 
Railroad Company and the Canadian Pacific Railroad Company, which are 
currently voluntarily reporting the information that the proposed 
regulations would require, have not complained of an undue burden. 
Nevertheless, should other carriers find it impractical to allocate 
revenues between the U.S. and foreign legs of movements, we will allow 
the reporting of information on entire international movements. With 
this modification, we believe that any expense associated with 
implementing the new regulations should be limited.
    Because actual U.S. revenues are only available for traffic that is 
interchanged at or near the border, AAR notes that for much of the 
international traffic a mileage proration formula or other estimation 
process must be used to allocate revenues. AAR suggests that if such a 
revenue allocation procedure is adopted, it may be easier for carriers 
to rely on the mileage proration formula now used by ALK Associates 
(ALK).
    We recognize that an allocation of revenues may be necessary. 
Indeed, we currently use a mileage formula to allocate revenues between 
U.S. carriers on multi-carrier domestic movements.

[[Page 53735]]

Furthermore, as with other reporting requirements, carriers are free to 
use an outside contractor to develop their reports. We are familiar 
with the ALK revenue allocation procedure and do not object to its use 
for this purpose.
    Finally, AAR expresses concern that the proposal may result in the 
disclosure of commercially sensitive revenue-division information. We 
share AAR's concern. Therefore, as with contract revenue information, 
we will allow carriers to encrypt (mask) actual revenue divisions on 
traffic interchanged at or near the U.S. border.\1\
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    \1\ Carriers that mask cross-border waybill revenues must follow 
the procedures set forth in 49 CFR 1244.3(a) and (b) and use the 
same masking factors they use to mask contract revenues. Masked 
contract revenues should have the waybill flag set to one (1) and 
non-contract cross-border waybill revenues that are masked should 
have the flag set to two (2).
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    In sum, we are adopting regulations that will require carriers to 
include export traffic in the Waybill Sample. Railroads may report 
information on either the entire international movement or treat the 
U.S. portion of the movement as terminating at or near the border \2\ 
for purposes of developing the data required by the Waybill Sample.
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    \2\ Near the border is defined as the first station or 
interchange point through which the shipment moves in either Canada 
or Mexico.
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    This action will not significantly affect either the quality of the 
human environment or energy conservation.
    Pursuant to 5 U.S.C. 605(b), we conclude that our action will not 
have a significant economic impact on a substantial number of small 
entities within the meaning of the Regulatory Flexibility Act.

List of Subjects in 49 CFR Part 1244

    Freight, Railroads, Reporting and recordkeeping requirements.

    Decided: October 17, 2001.
    By the Board, Chairman Morgan, Vice Chairman Clyburn, and 
Commissioner Burkes.
Vernon A. Williams,
Secretary.

    For the reasons set forth in the preamble, title 49, part 1244 of 
the Code of Federal Regulations will be amended as follows:

PART 1244--WAYBILL ANALYSIS OF TRANSPORTATION OF PROPERTY--
RAILROADS

    1. The authority citation for title 49, part 1244 continues to read 
as follows:

    Authority: 49 U.S.C. 721, 10707, 11144, 11145.


    2. Section 1244.3 is amended by revising the section heading and 
adding paragraphs (c) through (f) to read as follows:


Sec. 1244.3  Reporting contract shipment waybills and Canadian and 
Mexican international waybills.

* * * * *
    (c) Railroads moving traffic on the U.S. rail system to the 
Canadian or Mexican border shall include a representative sample of 
such international export traffic in the Waybill Sample.
    (d) Railroads shall identify (flag) such movements as international 
traffic in the waybill records.
    (e) Railroads may report information on the complete rail routing 
or report only information related to the U.S. portion of the movement.
    (f) Railroads may mask revenue divisions associated with cross-
border traffic following the masking procedures set forth in paragraphs 
(a) and (b) of this section.

[FR Doc. 01-26773 Filed 10-23-01; 8:45 am]
BILLING CODE 4915-00-P