[Federal Register Volume 70, Number 36 (Thursday, February 24, 2005)]
[Notices]
[Pages 9125-9126]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-3549]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Docket No. AB-878]


City of Peoria and Village of Peoria Heights, IL--Adverse 
Discontinuance--Pioneer Industrial Railway Company

    On November 16, 2004, the City of Peoria and the Village of Peoria 
Heights, IL (Cities or applicants), filed an adverse application under 
49 U.S.C. 10903, requesting that the Surface Transportation Board 
authorize the discontinuance of service by Pioneer Industrial Railway 
Company (PIRY) over a line of railroad known as the Kellar Branch. The 
Kellar Branch is located in Peoria Heights and Peoria and runs between 
milepost 1.71 and milepost 10.0. The line traverses United States 
Postal Service ZIP Codes 61602 and 61616 and includes no stations.
    The Cities state that the Kellar Branch was fully abandoned by the 
Chicago, Rock Island & Pacific Railroad Company and that Peoria 
acquired the line from the Rock Island Trustee in 1984. According to 
the Cities, Peoria entered into an operating agreement with Peoria and 
Pekin Union Railway Company (P&PU) to serve shippers. P&PU obtained an 
exemption from 49 U.S.C. 10901 to operate the line. Peoria and Pekin 
Union Railway Co.--Exemption from 49 U.S.C. 10901, Finance Docket No. 
30545 (ICC served Sept. 18, 1984). Peoria Heights later obtained a 25 
percent ownership interest in the Kellar Branch. In 1998, PIRY became 
the sole operator of the line as assignee of P&PU's rights under the 
operating agreement with the Cities. Pioneer Industrial Railway Co.--
Lease and Operation Exemption--Peoria, Peoria Heights & Western 
Railroad, STB Finance Docket No. 33549 (STB served Feb. 20, 1998).
    Applicants assert that the operating agreement with PIRY expired on 
July 10, 2004, and that, prior to that date, they notified PIRY that 
they intended to contract with a different operator for continued rail 
service on the line. The Cities indicate that they have entered

[[Page 9126]]

into an operating agreement with Central Illinois Railroad Company 
(CIRY), which has obtained an exemption from 49 U.S.C. 10901 to operate 
the line. Central Illinois Railroad Company--Operation Exemption--Rail 
Line of the City of Peoria and Village of Peoria Heights, in Peoria and 
Peoria Heights, Peoria County, IL, STB Finance Docket No. 34518 (STB 
served June 28, 2004).\1\ According to the Cities, PIRY has indicated 
that it will not voluntarily relinquish its operating authority on the 
Kellar Branch, thus necessitating the filing of this application.
---------------------------------------------------------------------------

    \1\ By a decision served on July 1, 2004, the Board denied a 
request by PIRY for stay of the effectiveness of the exemption.
---------------------------------------------------------------------------

    The Cities point out that the operating agreement between Peoria 
and CIRY is temporary until Peoria can complete construction of a 
connection between the Kellar Branch and a 1.9-mile rail line to the 
west acquired from Union Pacific Railroad Company in 2001. See City of 
Peoria, IL--Construction of Connecting Track Exemption--Peoria County, 
IL, STB Finance Docket No. 34395 (STB served Sept. 27, 2004). 
Applicants state that, after completion of the connecting track, CIRY 
will provide service from the west to the two shippers located on the 
western part of the Kellar Branch and the third shipper, located on the 
eastern part of the Branch, will be served from the east by CIRY or 
another rail carrier arranged for by Peoria. According to applicants, 
these shippers either support the discontinuance or are neutral on the 
matter. The Cities propose to turn the 6.29-mile segment of the line 
located in between the active shippers into a recreational trail. The 
Cities state that they seek discontinuance rather than abandonment 
authority here because the Kellar Branch had already been abandoned 
when Peoria acquired it without the need for Board acquisition 
authority.
    In a decision served in this proceeding on September 10, 2004, the 
Cities were granted a waiver of filing requirements in 49 CFR 1152 and 
were given permission to file an adverse discontinuance application 
containing the following information: (1) The name and address of the 
applicant; (2) the name and address of counsel; (3) a detailed map of 
the facilities involved; (4) the total carloads broken out for each of 
the shippers currently using the line; (5) a summary of the principal 
commodities handled; (6) a summary operating plan for operations of the 
substitute carrier; (7) certification that the City's current or 
proposed operations comply, or will comply, with all federal and state 
safety requirements; (8) an opinion of counsel that the prior lease 
agreement with PIRY expired in accordance with its terms; (9) 
documentation from the Cities that authorizes the operations of the 
substituted service; (10) a statement on behalf of the Cities of the 
reasons for the application and the benefits that will be obtained if 
the application is approved; and (11) supporting statements from 
shippers. The Cities were also granted a waiver of all notice and 
publication requirements, but were required to serve a copy of their 
application on the shippers on the line, PIRY, all connecting carriers, 
and the Illinois Commerce Commission.
    There is no indication that the line contains any federally granted 
rights-of-way. Any documentation in the Cities' possession will be made 
available promptly to those requesting it. Applicants' entire case for 
discontinuance of service was filed with the application.
    The interests of affected railroad employees will be protected by 
the conditions set forth in Oregon Short Line R. Co.--Abandonment--
Goshen, 360 I.C.C. 91 (1979).
    Any interested person may file written comments concerning the 
proposed discontinuance or protests (including the protestant's entire 
opposition case). Because this is a discontinuance proceeding and not 
an abandonment, trail use/rail banking, and public use requests are not 
appropriate. Also, offers of financial assistance (OFA) will not be 
entertained in this proceeding.\2\
---------------------------------------------------------------------------

    \2\ As noted in the waiver decision, on July 23, 2004, PIRY 
filed a notice of intent to file an OFA to purchase the Kellar 
Branch and requested certain information and data from the Cities. 
PIRY has characterized the Cities' application as seeking an adverse 
abandonment rather than a discontinuance, in light of applicants' 
trail use proposal. The Cities filed a motion to reject PIRY's 
filing, arguing that, under Board precedent, OFAs to purchase are 
not entertained in discontinuance proceedings. PIRY replied to the 
Cities' motion on August 12, 2004. This issue will be resolved in 
the decision on the merits in this proceeding.
---------------------------------------------------------------------------

    Persons opposing the proposed adverse discontinuance who wish to 
participate actively and fully in the process should file a protest by 
March 21, 2005. Persons who may oppose the discontinuance, but who do 
not wish to participate fully in the process by submitting verified 
statements of witnesses containing detailed evidence should also file 
comments by March 21, 2005. Parties seeking information concerning the 
filing of protests should refer to section 1152.25. The due date for 
applicants' reply is April 5, 2005.
    All filings in response to this notice must refer to STB Docket No. 
AB-878 and must be sent to: (1) Surface Transportation Board, 1925 K 
Street, NW., Washington, DC 20423-0001; and (2) Thomas F. McFarland, 
Thomas F. McFarland, P.C. 208 South LaSalle Street, Suite 1890 Chicago, 
IL 60604-1112. Filings may be submitted either via the Board's e-filing 
format or in the traditional paper format. Any person using e-filing 
should comply with the instructions found on the Board's ``http://www.stb.dot.gov'' Web site, at the ``E-FILING'' link. Any person 
submitting a filing in the traditional paper format should send an 
original and 10 copies of the filing to the Board with a certificate of 
service. Except as otherwise set forth in section 1152, every document 
filed with the Board must be served on all parties to this proceeding. 
49 CFR 1104.12(a).
    Persons seeking further information concerning abandonment/
discontinuance procedures may contact the Board's Office of Public 
Services at (202) 565-1592 or refer to the full abandonment/
discontinuance regulations at 49 CFR part 1152. [Assistance for the 
hearing impaired is available through the Federal Information Relay 
Service (FIRS) at 1-800-877-8339.]
    The September 10 decision waived compliance with environmental and 
historic regulations because the Cities proposed their application as a 
request to substitute operators on the line. Accordingly, no 
environmental assessment will be prepared in this proceeding.\3\
---------------------------------------------------------------------------

    \3\ The Board there noted, however, that, in light of the issue 
raised regarding whether this filing should be for adverse 
abandonment or adverse discontinuance, the Cities should be aware 
that they run the risk of delaying a ruling on their application if 
the Board concludes that the application should be for abandonment, 
because compliance with the Board's environmental and historic 
regulations might then be necessary.
---------------------------------------------------------------------------

    Board decisions and notices are available on our Web site at 
``http://www.stb.dot.gov.''

    Decided: February 17, 2005.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 05-3549 Filed 2-23-05; 8:45 am]
BILLING CODE 4915-01-P