[Federal Register Volume 67, Number 129 (Friday, July 5, 2002)]
[Notices]
[Pages 44928-44929]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-16844]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34054]


Morristown & Erie Railway, Inc.--Modified Rail Certificate

    On June 5, 2002, as amended by facsimile on June 24, 2002, 
Morristown & Erie Railway, Inc. (M&E), filed an application for a 
modified certificate of public convenience and necessity under 49 CFR 
1150, subpart C, Modified Certificate of Public Convenience and 
Necessity, to operate certain railroad lines in New Jersey. Based on 
M&E's representations, the following lines will be activated for 
service in four phases: (1) The former line of the Staten Island 
Railway Corporation (Staten Island Railway) from milepost 7.4 
immediately west of the New Jersey Turnpike in Linden to milepost 9.8 
immediately east of St. Georges Avenue in Linden; (2) the former line 
of the Staten Island Railway from milepost 9.8 to milepost 12.09 at the 
junction of the Staten Island Railway and the New Jersey Transit (NJ 
Transit) (Raritan Valley Line) in Cranford, exclusive of the portion of 
the line immediately west of milepost 9.8 to milepost 11.5 at the 
municipal boundary of the Borough of Roselle and

[[Page 44929]]

the Township of Cranford; (3) the former Rahway Valley Railroad Company 
(Rahway Valley) main line from milepost 0 at the junction with the NJ 
Transit (Raritan Valley Line) in Cranford to milepost 3.9 immediately 
southeast of the Rahway River Bridge in Union, inclusive of the branch 
line from the junction at milepost 3.1 and extending northeast 
approximately 1.1 miles, and the branch line from the junction at 
milepost 1.1 and extending southeast approximately .50 miles; and (4) 
the former Rahway Valley main line from milepost 3.9 immediately 
southeast of the Rahway River Bridge in Union to milepost 7.1 at the 
junction of the Rahway Valley Line and the NJ Transit (Morris and Essex 
Line) in Summit, NJ.\1\ These lines are currently in the custody of the 
County of Union, NJ (the County).
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    \1\ Abandonment of the lines was previously authorized in Staten 
Island Railway Corporation-Abandonment, Docket No. AB-263 (Sub-No. 
3) (ICC served Dec. 5, 1991), and Rahway Valley Railroad Company-
Abandonment-Between Aldene and Summit in Union County, NJ, Docket 
No. AB-211 (ICC served Aug. 27, 1992). According to M&E, line 
segments of the Staten Island Railway and the entire line of Rahway 
Valley were subsequently conveyed to the State of New Jersey.
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    On May 9, 2002, the County and M&E entered into a 10-year operating 
agreement commencing on May 15, 2002.\2\ Under the agreement, which 
contemplates rehabilitation of the lines, M&E will complete all 
rehabilitation of the lines specified in Phases I and II, except for 
the limitation specified in Phase II, and be ready to initiate rail 
services over these segments within 6 months. M&E will not proceed with 
the rehabilitation of Phase III lines and the commencement of rail 
services until it receives the written concurrence of the County. Upon 
receiving such concurrence, M&E agrees to proceed with the 
rehabilitation of Phase III lines and initiate service over this 
portion within 9 months. Phase IV lines will be rehabilitated only upon 
the mutual consent of the County and M&E.
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    \2\ Pursuant to the agreement, M&E will have the option to 
extend the 10-year period for two additional 5-year periods.
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    M&E states that it will interline freight with Consolidated Rail 
Corporation (Conrail), Norfolk Southern Railway Company (NS) and CSX 
Transportation, Inc. (CSXT), at Cranford, Bayway (Linden), and Bound 
Brook, NJ. In addition, M&E states that it will be able to operate 
through service by using its rights to operate over NJ Transit at 
Cranford Junction, NJ.\3\
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    \3\ On June 13, 2002, Conrail filed comments in this proceeding. 
Conrail states that no interchange and/or operating arrangements 
have been made between Conrail, M&E, CSXT, and NS in conjunction 
with M&E's proposal to operate the subject lines. Moreover, it 
states that there is no connection between the former Rahway Valley 
and Staten Island Railway lines. Conrail contends that the 
connection M&E seeks to create is over the Raritan Valley line now 
owned by NJ Transit and over which exclusive freight rights were 
granted to Conrail by agreement effective on October 1, 1984. 
Conrail reserves the right to make comments at a later date once M&E 
is ready to activate rail service and in the event that reasonable 
interchange and/or operating arrangements cannot be reached between 
Conrail and M&E.
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    The rail lines qualify for a modified certificate of public 
convenience and necessity. See Common Carrier Status of States, State 
Agencies and Instrumentalities and Political Subdivisions, Finance 
Docket No. 28990F (ICC served July 16, 1981).
    M&E indicates that, even though rehabilitation subsidies are being 
provided, the lines will operate without any operating subsidies. M&E 
also indicates that there are no preconditions for shippers to meet in 
order to receive rail service, and that it has obtained liability 
insurance coverage.
    This notice will be served on the Association of American Railroads 
(Car Service Division) as agent for all railroads subscribing to the 
car-service and car-hire agreement: Association of American Railroads, 
50 F Street NW., Washington, DC 20001; and on the American Short Line 
and Regional Railroad Association: American Short Line and Regional 
Railroad Association, 1120 G Street NW., Suite 520, Washington, DC 
20005.
    Board decisions and notices are available on our Web site at 
www.stb.dot.gov.''

    Decided: June 27, 2002.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 02-16844 Filed 7-3-02; 8:45 am]
BILLING CODE 4915-00-P