[Federal Register Volume 68, Number 192 (Friday, October 3, 2003)]
[Notices]
[Page 57511]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-25098]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34405]


Transportation Agency for Monterey County--Acquisition 
Exemption--Line of Union Pacific Railroad Company

    The Transportation Agency for Monterey County (TAMC),\1\ a 
noncarrier, has filed a verified notice of exemption under 49 CFR 
1150.31 to acquire from Union Pacific Railroad Company (UP) the real 
estate and rail assets of a 13.1-mile line of railroad, known as the 
Seaside Industrial Lead, extending from Castroville, CA (milepost 
110.2), to Seaside, CA (milepost 123.3). TAMC proposes to acquire the 
line from UP for the purpose of instituting intrastate rail passenger 
service on the line.\2\ TAMC states that it will not provide freight 
rail service and that UP will retain trackage rights over the line to 
provide freight service.\3\ TAMC certifies that its projected revenues 
as a result of this transaction will not exceed those that would 
qualify it as a Class III rail carrier.
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    \1\ TAMC is public agency created pursuant to the State of 
California Government Code Section 67930 et seq.
    \2\ TAMC apparently believes that its operation of the line will 
not be subject to the Board's jurisdiction. However, the acquisition 
of an active rail line and the common carrier obligation that goes 
with it ordinarily requires Board approval under 49 U.S.C. 10901, if 
the acquiring entity is a noncarrier, including a state. See Common 
Carrier Status of States, State Agencies, 363 I.C.C. 132 (1980), 
aff'd sub nom. Simmons v. ICC, 697 F.2d 326 (D.C. Cir. 1982). The 
Board's authorization is not required, however, when the common 
carrier rights and obligations that attach to the line will not be 
transferred. See Maine, DOT-Acq. Exemption, ME. Central R. Co., 8 
I.C.C.2d 835, 836-37 (1991).
    While TAMC did not attach a copy of the terms of its agreement 
with UP to this notice of exemption or file a motion to dismiss the 
notice, it appears on the current record that TAMC acquired a common 
carrier obligation to provide freight service when it acquired the 
line. Compare Los Angeles to Pasadena Blue Line Construction 
Authority d/b/a Los Angeles to Pasadena Metro Construction 
Authority-Acquisition Exemption-Los Angeles County Metropolitan 
Transportation Authority, STB Finance Docket No. 34076 (STB served 
Sept. 3, 2003).
    \3\ TAMC stated in its notice that UP intended to file a 
petition for exemption to permit UP to abandon its remaining 
interest in the line. However, on September 22, 2003, UP filed a 
verified notice of exemption in STB Docket No. AB-33 (Sub-No. 157X) 
to discontinue trackage rights on the line.
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    According to TAMC, TAMC and UP have concluded a Purchase and Sale 
Agreement, which was expected to be executed by September 10, 2003, and 
consummation of the transaction was expected to occur on or about 
September 12, 2003.
    If the notice contains false or misleading information, the 
exemption is void ab initio. A petition 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. 34405, must be filed with the Surface Transportation 
Board, 1925 K Street, NW, Washington, DC 20423-0001. In addition, a 
copy of each pleading must be served on David J. Miller, Hanson, 
Bridgett, Marcus, Vlahos & Rudy, LLP, 333 Market Street, Suite 2300, 
San Francisco, CA 94105-2173.
    Board decisions and notices are available on our Web site at 
``http://WWW.STB.DOT.GOV.''

    Decided: September 29, 2003.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
 Vernon A. Williams,
Secretary.
[FR Doc. 03-25098 Filed 10-2-03; 8:45 am]
BILLING CODE 4915-00-P