[Federal Register Volume 67, Number 51 (Friday, March 15, 2002)]
[Notices]
[Page 11743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-6308]



[[Page 11743]]

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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34171]


Butte-Silver Bow County--Acquisition Exemption--Silver Bow 
County, MT

    Butte-Silver Bow County (BSB, or the County), a noncarrier, has 
filed a verified notice of exemption under 49 CFR 1150.31 \1\ to 
acquire an 11-mile rail line known as the Missoula Gulch and Butte Hill 
Line (MGBH) in and near Butte, in Silver Bow County, MT.\2\ The MGBH 
extends from milepost 0.0 at Rocker, west of Butte, to milepost 4.40 at 
the Butte Hill Yard (Missoula Gulch segment), and also extends north 
and east from milepost 0.0 at the Butte Hill Yard to milepost 3.69 near 
the Badger Mine (Butte Hill segment). BSB is acquiring the MGBH in 
order to facilitate abandonment of the line, an environmental cleanup, 
and conversion of the railroad beds to trail and public use.\3\
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    \1\ BSB has also invoked 49 CFR 1180.2(d)(1), pertaining to 
finance transactions involving more than one railroad. However, 
because the acquisition in question does not involve more than one 
railroad, this provision is inapplicable.
    \2\ The MGBH was most recently owned and operated by a non-
profit corporation called the Butte/Anaconda Historic Park and 
Railroad Corporation (BAHPR, or the Railroad). The BAHPR operated a 
tourist train over the portion of the MGBH between Rocker and the 
former Butte Hill Yard. BAHPR operated over the MGBH under a lease 
from the State of Montana from 1988 to 1991, at which time the BAHPR 
acquired the MGBH. See Butte/Anaconda Historic Park and Railroad 
Corporation--Acquisition Exemption--State of Montana, Department of 
Commerce, ICC Finance Docket No. 31982 (ICC served Feb. 11, 1992). 
In 1994, the Montana Secretary of State's Office involuntarily 
dissolved the BAHPR for failing to maintain its filings. However, 
the BAHPR continued intermittently to operate a tourist train over 
the MGBH through 1996, did not seek reinstatement, and never 
distributed its assets following dissolution.
    \3\ BSB states that it intends to seek authority to abandon the 
line following receipt of authority to acquire it. In Land 
Conservancy--Acq. And Oper.--Burlington Northern, 2 S.T.B. 673 
(1997), reconsideration denied, STB Finance Docket No. 33389 (STB 
served May 13, 1998) (Land Conservancy), pet. for judicial review 
dismissed sub nom. The Land Conservancy of Seattle and King County 
v. STB, 238 F.3d 429 (9th Cir. 2000), the Board disallowed the sale 
of an active rail line to a purchaser that had, immediately after 
the purchase, sought to abandon the line. Acquisitions of active 
rail lines under 49 U.S.C. 10901 are supposed to be for continued 
rail use. In Land Conservancy, the Board found that the deliberate 
course of conduct on the part of the abandoning carrier and the 
purchaser constituted a misuse of Board procedures and acted to 
preserve the integrity of its processes.
    Here, the acquisition is not taking place pursuant to an 
agreement or course of conduct by the parties--no transaction has 
occurred--but rather pursuant to the operation of state law. BAHPR 
didn't sell the line to BSB. Rather, the Railroad was dissolved by 
the Montana Secretary of State. The County acquired the Railroad's 
assets pursuant to an order of the Court of the Second Judicial 
District of Montana, Silver Bow County. Acquisition of an active 
rail line--the line is not presently in service, but it has never 
been abandoned--requires Board authority and BSB has sought to 
comply with the statute. BSB has no desire to go into the railroad 
business--it is an agency of local government, not a commercial 
enterprise--and seeks merely to dispose of the property. Under the 
circumstances, BSB's notice invoking the class exemption to obtain 
authority for its acquisition is consistent with the statute.
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    The exemption was scheduled to become effective on February 22, 
2002.
    If the notice contains false or misleading information, the 
exemption is void ab initio. Petitions to reopen the proceeding 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. 34171, 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 Susan J. Geer, Esq., Davis Graham & Stubbs LLP, 1550 17th 
Street, Suite 500, Denver, CO 80202.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: March 8, 2002.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 02-6308 Filed 3-14-02; 8:45 am]
BILLING CODE 4915-00-P