[Federal Register Volume 72, Number 105 (Friday, June 1, 2007)]
[Notices]
[Pages 30664-30665]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-10574]


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DEPARTMENT OF TRANSPORTATION

[STB Finance Docket No. 35024]


Washington State Department of Transportation--Acquisition 
Exemption--Palouse River and Coulee City Railroad, Inc.

    The Washington State Department of Transportation (WSDOT), a 
noncarrier, has filed a notice of exemption under 49 CFR 1150.31 \1\ to 
acquire from Palouse River and Coulee City Railroad, Inc. (PCC), 
certain physical assets, operating rights, and underlying rights-of-way 
of eight rail lines (the Lines), totaling approximately 296 miles, in 
the State of Washington. The Lines are sub-divided into three branches: 
(1) The CW Branch, between milepost 1.0 at Cheney and milepost 108.81 
at Coulee City; (2) the P&L Branch, consisting of (a) the WIM line 
between milepost 0.0 at Palouse and milepost 3.85 at the Washington-
Idaho State line, and (b) the P&L line between milepost 1.0 at Marshall 
and milepost 75.9 at Pullman; and (3) the PV-Hooper Branch, consisting 
of (a) the Hooper Jct.-Winona line between milepost 26.6 at Hooper 
Junction and milepost 52.3 at Winona, (b) the

[[Page 30665]]

Thornton-Winona line between milepost 0.0 at Winona and milepost 31.7 
at Thornton, (c) the Winona-Endicott line between milepost 52.3 at 
Winona and milepost 57.9 at Endicott, (d) the Endicott-Colfax line 
between milepost 57.9 at Endicott and milepost 77.7 at Colfax, and (e) 
the Colfax-Moscow line (i) between milepost 0.0 at Colfax and milepost 
18.7 at Pullman, and (ii) between milepost 75.9 at Pullman and milepost 
84.05 at the Washington-Idaho State line.
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    \1\ This notice was initially submitted on May 10, 2007, but not 
docketed until May 21, 2007, when the appropriate filing fee was 
submitted. Because the notice could not be processed until the Board 
received the filing fee, May 21 is the official filing date.
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    WSDOT states that it is in the process of formalizing a Purchase 
and Sale Agreement with PCC, pursuant to which PCC will: (1) Convey to 
WSDOT certain track and track structures and the rights-of-way 
underlying the involved Lines; (2) continue to operate the CW and P&L 
Branches through May 31, 2007; and (3) continue to operate the PV-
Hooper Branch under its existing 15-year lease with WSDOT.\2\ WSDOT 
will lease the P&L and CW Branches to third party operators under 
contracts awarded by public bid.\3\ WSDOT will not operate the lines, 
but will retain the residual common carrier obligation should the 
operators prove unable to perform. WSDOT is acquiring the Lines in 
order to preserve freight rail service for the public in Eastern 
Washington.
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    \2\ WSDOT recites that PCC will also retain an ``exclusive 
freight rail easement'' to provide service under the lease. However, 
because WSDOT recites that it will acquire the common carrier 
obligation for the PV-Hooper Branch, PCC's interests after this 
transaction cannot constitute an easement interest and apparently 
will be in the form of a leasehold only. While the notice filed by 
WSDOT is somewhat ambiguous, the fact that it asserts it will obtain 
a common carrier obligation and the fact that it has invoked Board 
authority to acquire ownership of the Lines indicates that it is 
acquiring the right to operate over the Lines, and intends to 
execute leases with other carriers, including PCC, to satisfy 
WSDOT's common carrier obligation.
    \3\ Related notices of exemption have been filed in: (1) STB 
Finance Docket No. 35028, Washington & Idaho Railway, Inc.--Lease 
and Operation Exemption--Washington State Department of 
Transportation, wherein Washington & Idaho Railway, Inc., seeks to 
operate over the P&L Branch; and (2) STB Finance Docket No. 35029, 
Eastern Washington Gateway Railroad Company--Lease and Operation 
Exemption--Washington State Department of Transportation, wherein 
Eastern Washington Gateway Railroad Company seeks to operate over 
the CW Branch.
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    WSDOT certifies that the projected revenues as a result of this 
transaction will not exceed those that would qualify it as a Class III 
railroad and will not exceed $5 million.
    The earliest this transaction may be consummated is June 20, 2007, 
the effective date of the exemption (30 days after the exemption was 
filed).\4\
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    \4\ On May 21, 2007, WSDOT filed a petition requesting that the 
Board partially revoke the class exemption as necessary to allow the 
exemption in this proceeding to become effective on June 1, 2007, 
rather than on June 20. That request will be addressed in a separate 
Board decision.
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    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. 
Petitions for stay must be filed no later than June 13, 2007, unless 
the Board grants WSDOT's petition to make the exemption effective 
sooner, in which case the due date for stays will be established in the 
Board's decision acting on WSDOT's petition.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35024, 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 Mark S. Lyon, 7141 Cleanwater 
Drive, SW, Tumwater, WA 98501-6503.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: May 24, 2007.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. E7-10574 Filed 5-31-07; 8:45 am]
BILLING CODE 4915-01-P