[Federal Register Volume 72, Number 81 (Friday, April 27, 2007)]
[Notices]
[Pages 21069-21070]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-8069]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35008]


Utah Transit Authority--Acquisition Exemption--Union Pacific 
Railroad Company

    Utah Transit Authority (UTA), a noncarrier, has filed a verified 
notice of exemption under 49 CFR 1150.31 \1\ to acquire from Union 
Pacific Railroad Company (UP) the ``remaining width'' \2\ of a portion 
of the Bingham Industrial Lead (Lead) extending from milepost 0.0. at 
Midvale to milepost 6.60 at Bagley, in Salt Lake County, UT. UTA 
attached a copy of the agreement with UP, captioned ``Eighth Amendment 
to Purchase and Sale Agreement.'' UTA maintains that the acquisition 
does not require Board authorization and, on April 20, 2007, filed a 
motion to dismiss the notice of exemption and also filed a copy of its 
Administration and Coordination Agreement with Savage Bingham & 
Garfield Railroad Company (SBGR), the carrier that is to operate the 
Lead.
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    \1\ The notice was filed on March 27, 2007, and, at the Board's 
request, was supplemented on April 16, 2007, with a letter 
describing the trackage to be acquired. April 16, 2007 will be 
considered the filing date and the basis for all due dates.
    \2\ According to UTA, the remaining width is a 35-foot wide 
strip of land, the portion of the right-of-way on which the rail and 
supporting operating infrastructure are located. UTA previously 
acquired a 35-foot wide strip of the Bingham Industrial Lead right-
of-way. See Utah Transit Authority--Acquisition Exemption--Certain 
Assets of Union Pacific Railroad Company, STB Finance Docket No. 
34170 (STB served May 22, 2002).
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    Previously, on February 27, 2007, SBGR, a noncarrier, invoked the 
class exemption to acquire from UP and operate freight easements upon, 
over, and across a number of rail lines and track, including the Lead 
between milepost 0.18 at Midvale and milepost 6.60 at Bagley Spur. See 
Savage Bingham & Garfield Railroad Company--Acquisition and Operation 
Exemption, STB Finance Docket No. 35002, served and published in the 
Federal Register on March 15, 2007 (72 FR 12261) (Savage Bingham).
    In the notice of exemption, SBGR stated that in a separate 
transaction UP would: (1) Convey the right-of-way of the Lead to UTA; 
(2) reserve an operating easement over the Lead; and (3) convey the 
operating easement over the Lead to SBGR. SBGR also stated that it 
would enter into an Administration and Coordination Agreement with UTA 
to govern the rail freight services SBGR would provide over the Lead 
during specified periods when UTA's planned passenger light rail 
services would operate.\3\
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    \3\ That exemption was scheduled to become effective on March 
29, 2007, but was stayed at the request of Utah Shipper Coalition 
(Coalition) in a decision served on March 28, 2007, pending further 
action by the Board. The Board stated that UTA must obtain Board 
approval or a finding that Board approval is not needed for it to 
acquire the Lead before SBGR may proceed with the acquisition in STB 
Finance Docket No. 35002. Additionally, the Board stated that UTA's 
submission should include a copy of the Administration and 
Coordination Agreement it plans to enter into with SBGR and a copy 
of any other related agreements not previously submitted that would 
allow the Board to ascertain whether the proposed transaction would 
allow SBGR to fulfill the common carrier obligation it seeks to 
acquire.
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    UTA 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.
    The earliest this transaction may be consummated is May 16, 2007, 
the effective date of the notice of exemption, as supplemented (30 days 
after the exemption was filed).
    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

[[Page 21070]]

a petition to revoke will not automatically stay the transaction. 
Petitions for stay must be filed no later than May 9, 2007 (at least 7 
days before the exemption becomes effective).\4\
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    \4\ An April 17, 2007 filing by the Coalition asks that the 
notice be stayed, pointing out that a notice in a related 
proceeding, Savage Bingham, was stayed at the Coalition's request on 
March 28, 2007. See supra note 3. UTA replied in opposition. The 
Coalition recites no stay criteria and acknowledges that the stay 
imposed in Savage Bingham operates to prevent the transaction in STB 
Finance Docket No. 35008 from going forward. No action will be taken 
on this request.
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    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35008, must be filed with the Surface Transportation 
Board, 395 E Street, SW., Washington, DC 20423-0001. In addition, a 
copy of each pleading must be served on Charles A. Spitulnik, 1001 
Connecticut Avenue, NW., Suite 905, Washington, DC 20036.
    Board decisions and notices are available on our Web site at 
``WWW.STB.DOT.GOV.''

    Decided: April 23, 2007.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. E7-8069 Filed 4-26-07; 8:45 am]
BILLING CODE 4915-01-P