[Federal Register Volume 71, Number 189 (Friday, September 29, 2006)]
[Notices]
[Pages 57600-57601]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-15955]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34924]


Black Hills Transportation, Inc., d/b/a Deadwood, Black Hills & 
Western Railroad--Modified Rail Certificate

    On August 30, 2006, Black Hills Transportation, Inc., d/b/a 
Deadwood, Black Hills & Western Railroad (DBHWR), 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 operate approximately 9.01 miles of rail line extending 
from milepost 0.0, at Whitewood, to milepost 9.01, at Deadwood, in 
Lawrence County, SD.
    The line was formerly a portion of the Chicago & North Western 
Railway Company and was authorized for abandonment by the Interstate 
Commerce Commission in Chicago & North Western Railway Co.--
Abandonment--Lawrence County, SD, Finance Docket No. 26079 (ICC served 
May 20, 1970). Although authorized for abandonment, the line was 
subsequently acquired by the State of South Dakota and ownership was

[[Page 57601]]

ultimately passed to the Northern Hills Regional Railroad Authority 
(NHRRA).
    As operator of the line, DBHWR will provide both passenger and 
freight services pursuant to an operating agreement with NHRRA. Under 
the agreement, DBHWR expects to interchange with Dakota, Minnesota & 
Eastern Railroad at milepost 0.0, at Whitewood. DBHWR states that the 
period for operation is currently indefinite and that the agreement 
with NHRRA will be amended or supplanted prior to actual commencement 
of operations.
    The rail segment 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).
    DBHWR states that the line will require reconstruction for 
operational purposes and the imposition of certain preconditions to 
ensure that construction and operation costs are recoverable. DBHWR 
indicates that commencement of rehabilitation or operations will be 
contingent upon shippers meeting the following preconditions: (a) Entry 
into binding written commitments to provide funding for restoration 
purposes equal to a sum no less than $13,000,000; \1\ and (b) entry 
into binding written commitments sufficient to assure car loadings (or 
payments in lieu thereof) in an amount no less than 1,000 carloads per 
year (an amount judged adequate to cover all costs associated with 
maintenance, operation and capitalization of the line).
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    \1\ This sum may be increased in the event a third party 
engineering study identifies needs requiring a greater amount of 
rehabilitation necessary to improve the facilities in order to 
achieve 25 mph operation in accordance with applicable standards.
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    DBHWR indicates that no subsidy is involved. DBHWR also indicates 
that it has obtained liability insurance coverage, and will obtain 
additional insurance when it commences rehabilitation or actual 
operation.
    This notice will be served on the Association of American Railroads 
(Car Service Division) as agent for all railroads subscribing to the 
car-service and car-hire agreement: Association of American Railroads, 
50 F Street, NW., Washington, DC 20001; and on the American Short Line 
and Regional Railroad Association: American Short Line and Regional 
Railroad Association, 50 F Street, NW., Suite 7020, Washington, DC 
20001.
    Board decisions and notices are available on our Web site at 
WWW.STB.DOT.GOV.

    Decided: September 21, 2006.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
 [FR Doc. E6-15955 Filed 9-28-06; 8:45 am]
BILLING CODE 4915-01-P