[Federal Register Volume 67, Number 176 (Wednesday, September 11, 2002)]
[Proposed Rules]
[Pages 57557-57558]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22808]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

49 CFR 1109 and 1114

[STB Ex Parte No. 638]


Procedures To Expedite Resolution of Rate Challenges To Be 
Considered Under the Stand-Alone Cost Methodology

AGENCY: Surface Transportation Board, Transportation.

ACTION: Notice of proposed rulemaking and request for comments.

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SUMMARY: The Board proposes to amend its regulations at parts 1109 and 
1114 to expedite the resolution of rate challenges considered under the 
stand-alone cost (SAC) methodology. We are proposing to change both our 
discovery standard and the way we handle discovery disputes in rate 
cases considered under the SAC methodology. We are also proposing to 
institute a requirement that a shipper seeking rate relief from a 
railroad in such cases engage in non-binding mediation of its dispute 
with the railroad prior to filing its complaint with us. We request 
comments on these proposals.

DATES: Comments are due October 11, 2002, with reply comments due 20 
days thereafter.

ADDRESSES: Send comments (an original plus 10 copies) referring to Ex 
Parte No. 638 to: Surface Transportation Board, 1925 K Street, NW., 
Washington, DC 20423-0001.

FOR FURTHER INFORMATION CONTACT: Thomas J. Stilling (202) 565-1567. 
[Federal Information Relay Service (FIRS) (Hearing Impaired): (800) 
877-8339.]

SUPPLEMENTARY INFORMATION: Additional information is contained in the 
Board's decision. To obtain a free copy of the full decision, visit the 
Board's Web site at www.stb.dot.gov; call the Board's Information 
Officer at (202) 565-1674; or pick up in person from the Information 
Officer, Suite 100, Surface Transportation Board, 1925 K Street, NW., 
Washington, DC 20423-0001. To purchase a copy of the decision, write 
to, call, e-mail, or pick up in person from Da-2-Da Legal Copy Service, 
Room 405, 1925 K Street, NW., Washington, DC 20006, (202) 293-7776, 
[email protected]. [Federal Information Relay Service (FIRS) 
(Hearing Impaired): (800) 877-8339.]
    This action will not significantly affect either the quality of the 
human environment or the conservation of energy resources.
    We tentatively conclude that our action will not have a significant 
effect on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act.

List of Subjects in 49 CFR Parts 1109 and 1114

    Practice and procedure, Railroads.

    Decided: September 3, 2002.

    By the Board, Chairman Morgan and Vice Chairman Burkes.
Vernon A. Williams,
Secretary.

    For the reasons set forth in the preamble, the Surface 
Transportation Board proposes to amend 49 CFR parts 1109 and 1114 as 
follows:

PART 1109--USE OF ALTERNATIVE DISPUTE RESOLUTION IN BOARD 
PROCEEDINGS AND THOSE IN WHICH THE BOARD IS A PARTY

    Add new Sec.  1109.4, Mandatory Mediation in Rate Cases To Be

[[Page 57558]]

Considered Under the Stand-Alone Cost Methodology, as follows:


Sec.  1109.4  Mandatory Mediation in Rate Cases To Be Considered Under 
the Stand-Alone Cost Methodology.

    (a) A shipper seeking rate relief from a railroad or railroads in a 
case involving the stand-alone cost methodology must engage in non-
binding mediation of its dispute with the railroad prior to filing a 
formal complaint under part 1111.
    (b) The shipper must file a request for mediation with the Board, 
indicating its intent to file a complaint alleging a violation of 49 
U.S.C. 10701 and 10704. This request will engage the Board's processes 
and serve to fix the relevant limitations period for any relief for 
rates or charges already paid, just as would the filing of a formal 
complaint. The request for mediation must specify the relevant facts 
and nature of the dispute in sufficient detail to frame the issues 
requiring mediation. The shipper must serve a copy of its request on 
the defendant railroad as specified in Sec.  1104.12. A mediator will 
be assigned by the Board within 5 business days of filing of the 
shipper's request.
    (c) The mediator will work with the parties to try to reach a 
settlement of all or some of their dispute or to narrow the issues in 
dispute, and reach stipulations that may be incorporated into any 
subsequent adjudication before the Board if mediation does not fully 
resolve the dispute.
    (d) If the parties reach a settlement, the mediator may assist in 
preparing a settlement agreement. If the parties fail to reach a 
settlement, the shipper may proceed to file a formal complaint with the 
Board. If the parties reach a partial settlement, the shipper may 
proceed to file a formal complaint with the Board on the remaining 
issues, which will be handled under the Board's existing rules.
    (e) Within 5 business days of the assignment to mediate, the 
mediator shall contact the parties to discuss ground rules and the time 
and location of any meeting. The precise procedure used to facilitate 
the mediation is flexible and is within the mediator's discretion.
    (f) The entire mediation process shall be private and confidential, 
and shall be completed within 60 days of the filing of the shipper's 
request. If the mediation process cannot be competed in 60 days, a 
request for an extension may be filed by the mediator, after 
consultation with the parties, prior to the end of the 60 day period, 
and may be considered by the Board.

PART 1114--EVIDENCE; DISCOVERY

    1. Amend Sec.  1114.21 as follows:
    a. Revise the first sentence of paragraph (a)(1);
    b. Redesignate current paragraphs (b)-(f) as (c)-(g);
    c. Add new paragraph (b).
    The revised and added text reads as follows:


Sec.  1114.21  Applicability; general provisions.

    (a) When discovery is available. (1) Parties may obtain discovery 
under this subpart regarding any matter, not privileged, which is 
relevant to the subject matter involved in a proceeding other than an 
informal proceeding or a rate case to be considered under the stand-
alone cost methodology. * * *
    (b) Discovery in stand-alone cost rate cases. In a rate case to be 
considered under the stand-alone cost methodology, parties may obtain 
discovery only of information for which the party seeking discovery has 
a clear, demonstrable need in order to make its case and which is not 
readily available to it through means other than discovery.
    2. Add to Sec.  1114.31, new paragraphs (a)(1)-(4) as follows:


Sec.  1114.31  Failure to respond to discovery.

    (a) * * *
    (1) Reply to motion to compel generally. Except in rate cases to be 
considered under the stand-alone cost methodology, the time for filing 
a reply to a motion to compel is governed by Sec.  1104.13.
    (2) Reply to motion to compel in stand-alone cost rate cases. A 
reply to a motion to compel must be filed with the Board within 10 days 
thereafter in a rate case to be considered under the stand-alone cost 
methodology.
    (3) Conference with parties. Within 5 business days after the 
filing of a reply to a motion to compel in a rate case to be considered 
under the stand-alone cost methodology, Board staff may convene an 
informal conference with the parties to discuss the dispute, attempt to 
narrow the issues, and gather any further information needed to render 
a ruling.
    (4) Ruling on motion to compel in stand-alone cost rate cases. 
Within 5 business days after a conference with the parties convened 
pursuant to subparagraph (a)(3) of this section, the Secretary will 
issue a summary ruling on the motion to compel discovery in a stand-
alone cost rate case. If no conference is convened, the Secretary will 
issue this summary ruling within 10 business days after the filing of 
the reply to the motion to compel.
* * * * *
[FR Doc. 02-22808 Filed 9-9-02; 11:54 am]
BILLING CODE 4915-00-P