[Federal Register Volume 69, Number 23 (Wednesday, February 4, 2004)]
[Notices]
[Pages 5383-5384]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-2128]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34438]


Huron & Eastern Railway Company, Inc.--Acquisition and Operation 
Exemption--Central Michigan Railway Company

    Huron & Eastern Railway Company, Inc. (HESR), a Class III rail 
carrier, has filed a verified notice of exemption under 49 CFR 1150.41 
to acquire from the Central Michigan Railway Company (CMRY) and operate 
approximately 99.87 miles of rail line, as follows: (1) The Midland 
Sub, between milepost 0.0 and milepost 15.0; (2) between Durand, MI 
(milepost 0.0) and Wheeler, MI (milepost 3.5); (3) between Genesee, MI 
(milepost 101.3) and Paines, MI (milepost 96.0); (4) between Interstate 
Highway 75 (milepost 17.21) and CSX Yard (milepost 18.07); (5) between 
Durand (milepost 69.2) and M21 (milepost 80.8); (6) the Anderson Lead, 
between milepost 79.2 and milepost 81.4; (7) the Owosso Industrial 
Track, between milepost 80.1 and milepost 0.7; (8) between Marquette, 
MI (milepost 0.0) and Prairie, MI (milepost 1.7); (9) between 
Essexville CMR Bridge (milepost 0.0) and Pine Street (milepost 2.87); 
(10) between Wheeler (milepost 3.5) and MDOT ownership (milepost 5.0); 
and (11) the HECLA Belt line between the east line of Patterson Street 
in West Bay City, MI (milepost 1.9) and the end of the line (milepost 
2.8).\1\
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    \1\ An amendment was filed on January 6, 2004, reflecting the 
correct length of the HECLA Belt line.
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    HESR is also acquiring the right to operate over the Bay City Yard 
Line \2\ between the south end of North Bay City Yard (milepost 55.77) 
and the north end of North Bay City Yard at the Centerline of Bangor 
Road (milepost 2.62).\3\
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    \2\ The Bay City Yard Line is owned by the Detroit & Mackinac 
Railway Company (D&M), an affiliate of CMRY. Lake State Railway 
Company (Lake State) has an easement to operate over, and CMRY has 
operating rights over and through, the Bay City Yard Line. HESR will 
acquire CMRY's right to operate over the Bay City Yard Line, but D&M 
will remain the owner of the real property and Lake State will 
retain its easement.
    \3\ This is the entire rail trackage of CMRY, except for a 1.77-
mile segment that was approved for abandonment in Central Michigan 
Railway Company-Abandonment Exemption--in Saginaw County, MI, STB 
Docket No. AB-308 (Sub-No. 3X) (STB served Oct. 31, 2003).
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    Additionally, HESR is acquiring approximately 16.55 miles of 
incidental trackage rights as follows: (1) Over Grand Trunk Western 
Railroad Company, (a) over the Saginaw Subdivision, between milepost 
0.00 and milepost 0.60, (b) over the Holly-Grand Rapids Subdivision, 
between milepost 65.50 and milepost 69.00,\4\ and (c) over the Flint 
Subdivision, between milepost 253.0 and milepost 255.4; (2) over D&M, a 
distance of approximately 5.75 miles from D&M's junction with CMRY near 
Total Refinery in Bay City, MI, north to a point near milepost 3.4 and 
the Kawkawlin River in Kawkawlin, MI;\5\ (3) over CSX Transportation, 
Inc. (CSXT) for overhead trackage rights over approximately 2.9 miles 
of rail line owned by CSXT, from milepost BBO 7 at or near the Mershon 
Switch east to milepost CB 1 near the Saginaw Yard (a distance of 
approximately 1.7 miles), then from milepost CB 1 southeast to milepost 
CC 2.2, at or near the Hoyt Diamond (a distance of approximately 1.2 
miles), at which point HESR would connect with the former CMRY main 
line;\6\ and (4) over CSXT for about 4.0 miles in Saginaw, MI, from the 
clearance point at the intersection of the CMRY/CSXT connection track 
of the Grand Rapids Wye Track, through CSXT's Saginaw main, yard, and 
connection trackage to CSXT's ownership point at the connection with 
HESR at Saginaw (milepost CBB 2.0) on CSXT's Bad Axe Subdivision.\7\
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    \4\ See Central Michigan Railway Company--Acquisition and 
Operation Exemption--Certain Lines of Grand Trunk Western Railroad 
Company, ICC Finance Docket No. 31059 (ICC served July 13, 1987).
    \5\ See Central Michigan Railway Company--Trackage Rights 
Exemption--Detroit & Mackinac Railway Company, ICC Finance Docket 
No. 32404 (ICC served Dec. 14, 1993).
    \6\ See Central Michigan Railway Company and CSX Transportation, 
Inc.--Joint Relocation Project Exemption--in Saginaw, MI, STB 
Finance Docket No. 34021 (STB served May 17, 2001).
    \7\ See Central Michigan Railway Company--Trackage Rights 
Exemption--CSX Transportation, Inc., STB Finance Docket No. 34241 
(STB served Aug. 29, 2002).
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    Finally, HESR is accepting assignment of trackage rights over lines 
of CMRY

[[Page 5384]]

that have been granted to CSXT,\8\ Lake State,\9\ Tuscola and Saginaw 
Bay Railway Company,\10\ and any other agreed upon trackage rights that 
have been approved or exempted.\11\
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    \8\ See CSX Transportation, Inc.--Trackage Rights--Grand Trunk 
Western Railroad Company, ICC Finance Docket No. 31114 (ICC served 
Sept. 29, 1987).
    \9\ See Lake State Railway Company--Trackage Rights Exemption--
Central Michigan Railway Company, ICC Finance Docket No. 32018 (ICC 
served Feb. 27, 1992).
    \10\ See Tuscola and Saginaw Bay Railway Company--Acquisition 
and Operation Exemption--Grand Trunk Western Railroad Incorporated 
and Central Michigan Railway Company, STB Finance Docket No. 33822 
(STB served Apr. 12, 2000).
    \11\ On December 3, 2003, Lake State, a Class III rail carrier, 
filed a letter expressing concerns regarding the proposed 
transaction. Lake State explained that it was concerned with the 
potential impact of the transaction because its own viability 
depends upon the use of trackage rights over a five-mile portion of 
CMRY's rail line in North Bay City, MI, and because of certain 
market power issues related to the dominant position already held by 
HESR's parent, RailAmerica, Inc. However, by letter filed on January 
8, 2004, Lake State informed the Board that the concerns raised in 
its December 3 letter have been resolved and that the letter should 
be regarded as withdrawn.
    On December 22, 2003, correspondence was received from U.S. 
Congressman Bart Stupak of Michigan supporting consideration of the 
interests of customers who currently use the services of CMRY, and 
urging that current rates and routing agreements, as well as other 
current operating conditions, be considered and maintained to help 
ensure the continued economic viability of the businesses and 
industries in Michigan.
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    HESR certifies that its projected revenues as a result of this 
transaction will not result in the creation of a Class II or Class I 
rail carrier.
    Because the projected revenues of the rail lines to be operated 
will exceed $5 million, HESR has certified to the Board that the 
required notice of its acquisition and operation was posted at the 
workplace of the employees on the affected lines, and a copy of the 
notice was served on the national offices of the labor unions of the 
employees on the affected lines on November 26, 2003. See 49 CFR 
1150.42(e). The earliest the transaction could have been consummated 
was January 25, 2004, the effective date of the exemption (60 days 
after HESR's November 26, 2003 certification to the Board).
    If the verified 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.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 34438, 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 Louis E. Gitomer, 1455 F 
Street, NW., Suite 225, Washington, DC 20005.
    Board decisions and notices are available on our Web site at 
WWW.STB.DOT.GOV.

    Decided: January 27, 2004.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 04-2128 Filed 2-3-04; 8:45 am]
BILLING CODE 4915-00-P