[Federal Register Volume 67, Number 245 (Friday, December 20, 2002)]
[Notices]
[Pages 78038-78039]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32076]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34267]


Morristown & Erie Railway, Inc.--Operation Exemption--Somerset 
Terminal Railroad Corporation

    Morristown & Erie Railway, Inc. (M&E), a Class III rail carrier, 
has filed an amended verified notice of exemption \1\ under 49 CFR 
1150.41 to operate over approximately 1.25 miles of rail line located 
in the Township of Bridgewater and the Borough of Manville, Somerset 
County, NJ, that is part of a rail line known as the Reading Company 
New York Branch (also known as the Raritan Valley Connecting Track), 
and identified as Line Code 0326, between milepost 57.25 at Manville 
Yard and milepost 58.50 at a junction with New Jersey Transit's 
commuter line. In the amended notice, M&E states that it proposes to 
obtain rights from Somerset Terminal Railroad Corporation (STRC), a 
Class III rail carrier, to operate over this line of railroad that is 
owned by Joseph C. Horner.\2\
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    \1\ M&E originally tendered a notice of exemption for filing on 
October 7, 2002, but additional and corrected information was 
subsequently filed on November 20, 2002.
    \2\ In Somerset Terminal Railroad Corporation--Operation 
Exemption--A Line of Railroad Owned by Joseph C. Horner, STB Finance 
Docket No. 33999 (STB served Feb. 13, 2001), STRC, then a 
noncarrier, was granted an exemption under 49 CFR 1150.31 to operate 
the line pursuant to a perpetual, irrevocable, exclusive and 
assignable easement.
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    M&E states that, as provided in an assignment of contracts 
agreement dated October 1, 2002, between M&E and STRC, STRC proposes to 
assign M&E rights which will permit M&E to operate the line.\3\ By 
letters filed on October 17, 2002, November 20, 2002, and November 26, 
2002, Standard Terminal Railroad of New Jersey, Incorporated 
(Standard), alleged that STRC does not actually possess the rights it 
seeks to assign to M&E and requested that the exemption be stayed. By 
decision served on November 27, 2002, in this proceeding, the request 
for stay was denied.
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    \3\ In addition, STRC will assign the right for M&E to operate 
over a railroad bridge that crosses the Raritan River, which 
connects the properties on which STRC has its easement. STRC is a 
party to a Land Use Agreement with Mr. Horner, dated May 1, 2000, 
and holds an easement to operate over the properties of Mr. Horner. 
Pursuant to the assignment of contracts agreement, M&E's operating 
rights will be for a term of 15 years, subject to renewal, 
extension, and termination. M&E proposes to operate the line to 
connect with CSX Transportation, Inc., and Norfolk Southern Railway 
Company.
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    Publication of this notice and effectiveness of the exemption does 
not

[[Page 78039]]

constitute any finding by the Board concerning the ownership of the 
property involved. The exemption merely permits M&E and STRC to 
consummate the described transaction if and when they, in fact, have 
the legal capacity to do so. The question of whether or not STRC 
possesses the rights it wishes to assign is currently pending in the 
United States Bankruptcy Court. In the Matter of Bridgewater Resources, 
Inc., No. 00-60057 (WHG) (D.N.J.).
    M&E certifies that its annual revenues will not exceed those that 
would qualify it as a Class III rail carrier and that its annual 
freight revenues are not projected to exceed $5 million.
    M&E states that operations will not commence until all of the 
contingencies contained in the assignment of contracts agreement are 
met.\4\ The earliest the exemption could have been consummated was 
November 27, 2002, the effective date of the exemption (7 days after 
the amended exemption was filed).
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    \4\ These contingencies include a court's determination that 
STRC possesses the rights it intends to assign to M&E and the 
consent of Mr. Horner.
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    This transaction is exempt under 49 CFR 1150.41(c).\5\ If the 
notice contains false or misleading information, the exemption is void 
ab initio. Petitions 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.
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    \5\ In order to qualify for a change in operators exemption, an 
applicant must give notice to shippers on the line. See 49 CFR 
1150.42(b). To ensure that shippers are informed of the change of 
operators on the line, M&E is directed to provide notice of the 
change to any shippers on the line and to certify to the Board that 
it has done so.
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    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 34267, must be filed with the Surface Transportation 
Board, 1925 K Street, NW., Washington, DC 20423-0001. In addition, one 
copy of each pleading must be served on John K. Fiorilla, 390 George 
Street, P.O. Box 1185, New Brunswick, NJ 08903.
    Board decisions and notices are available on our Web site at 
WWW.STB.DOT.GOV.

    Decided: December 16, 2002.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 02-32076 Filed 12-19-02; 8:45 am]
BILLING CODE 4915-00-P