[Federal Register Volume 67, Number 205 (Wednesday, October 23, 2002)]
[Notices]
[Pages 65185-65186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-26964]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34234]


Minnesota Prairie Line, Inc.--Modified Rail Certificate

    On September 23, 2002, Minnesota Prairie Line, Inc. (MPL)\1\ filed 
a notice for a modified certificate of public convenience and necessity 
under 49 CFR 1150, Subpart C, Modified Certificate of Public 
Convenience and Necessity, to acquire the common carrier obligation for 
a rail line extending from approximately milepost 51.4, at or near 
Norwood, MN, to approximately milepost 145.7, at or near Hanley Falls, 
MN, a total distance of approximately 94 miles.
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    \1\ MPL is a subsidiary of Twin Cities & Western Railroad 
Company (TCW), a Class III carrier.
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    The line was abandoned in 1982. Chicago and North Western 
Transportation Co.--Abandonment Between Norwood and Madison, MN, ICC 
Docket No. AB-1 (Sub-No. 142) (ICC served Dec. 2, 1982; corrected 
decision served Dec. 12, 1982). Subsequently, the Minnesota Valley 
Regional Rail Authority (Authority), a political subdivision of the 
State of Minnesota, bought the line. Since the date of the acquisition, 
several railroads

[[Page 65186]]

have attempted to acquire and operate the line without success. The 
most recent operator, Minnesota Central Railroad Co., filed for 
bankruptcy in August 2000, and MPL expresses its belief that rail 
freight service has not been provided over the line since that time. 
According to MPL, the line has been virtually inoperable for some time 
due to lack of maintenance, but the Authority is currently 
rehabilitating it.
    The Authority and MPL have entered into a lease and operating 
agreement, effective January 15, 2002, with an initial term of 10 
years, commencing upon the satisfaction of the conditions precedent set 
forth in the agreement, including receipt of necessary approval for 
rail operations.
    As indicated, MPL will acquire the common carrier obligation to 
serve the line, pursuant to this modified certificate. MPL will 
contract with TCW to perform the actual service. It is currently 
intended that traffic will be moved east, interlining with TCW at or 
near Norwood, MN, though the line also connects to The Burlington 
Northern and Santa Fe Railway Company at or near Hanley Falls.
    The line qualifies 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).
    At this time, the track rehabilitation is being subsidized, but 
there are no plans for rail operations to be subsidized. MPL represents 
that it has obtained liability insurance coverage.
    MPL intends to restore service on segments of the line as 
rehabilitation progresses but before the entire line is 
rehabilitated.\2\ Accordingly, the following preconditions for 
operations apply to the line: (i) The line must be rehabilitated to FRA 
class 1 operating condition; (ii) a shipper must install and maintain 
industry track that connects to a rehabilitated portion of the line; 
and (iii) the shipper must arrange, at its own cost, to have goods 
transported to an accessible point on a rehabilitated portion of the 
line and there transloaded to/from railcars.
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    \2\ The Authority is performing its rehabilitation with 
deliberate speed, and MPL anticipates that some portions of the line 
may become serviceable earlier than others.
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    This notice will be served on the Association of American Railroads 
as agent for all railroads subscribing to the car-service and car-hire 
agreement: Association of American Railroads (Business Services Group), 
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 website at 
www.stb.dot.gov.

    Decided: October 16, 2002.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 02-26964 Filed 10-22-02; 8:45 am]
BILLING CODE 4915-00-P