[Federal Register Volume 74, Number 159 (Wednesday, August 19, 2009)]
[Notices]
[Pages 41969-41970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-19827]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Docket No. AB-1035]


Lake County, Oregon--Adverse Discontinuance of Rail Service--
Modoc Railway and Land Company, LLC and Modoc Northern Railroad Company

    On July 30, 2009, Lake County, OR (County) filed an application 
under 49 U.S.C. 10903 asking the Board to authorize the third-party, or 
``adverse,'' discontinuance of operating authority of Modoc Railway and 
Land Company, LLC (MR&L) and Modoc Northern Railroad Company (MNRR) 
over a 55.41-mile rail line between milepost 456.89 at or near Alturas, 
CA, and milepost 512.30 at or near Lakeview, OR.
    The line includes no stations and traverses United States Postal 
Service ZIP codes 96101, 96108, 97635, and 97630.
    According to the County, the line was constructed and operated for 
many years by Southern Pacific Transportation Company (SP). In 1985, 
the Board's predecessor, the Interstate Commerce Commission, authorized 
SP to abandon the line.\1\
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    \1\ See Southern Pac. Transp. Co.--Aband.--in Modoc County, CA 
and Lake County, OR, Docket No. AB-12 (Sub-No. 84) (ICC served Oct. 
20, 1985).
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    The County acquired the line from SP after its abandonment. Through 
its Railroad Commission, the County contracted with The Great Western 
Railway Company (GWR) to operate the line pursuant to a modified 
certificate of public convenience and necessity. The County terminated 
rail operations by GWR, effective November 1, 1997. Thereafter, the 
County obtained its own modified certificate and commenced operation of 
the line through its Lake County Railroad division.\2\
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    \2\ See Lake County Railroad--Modified Rail Certificate, STB 
Finance Docket No. 33581 (STB served Apr. 24, 1998).
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    In 2007, the County leased the line to MR&L and MNRR.\3\ In 2009, 
according to the County, MR&L and MNRR materially breached their lease 
agreement with the County. The County further claims that, after the 
breach was not cured within the notice period required by that lease, 
it terminated the lease, effective May 7, 2009. The County states that 
it has resumed operation of the line pursuant to its residual common 
carrier authority, with Lake Railway acting as the County's agent for 
the provision of rail service on the line.
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    \3\ See Modoc Railway and Land Company, LLC--Acq. & Oper. 
Exempt.--in Lake County, OR, STB Finance Docket No. 34995 (STB 
served Feb. 28, 2007); and Modoc Northern Railroad Co.--Acq. & Oper. 
Exempt.--in Lake County, OR, STB Finance Docket No. 34996 (STB 
served Feb. 28, 2007).
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    The County now seeks Board permission through an adverse 
discontinuance proceeding to terminate the regulatory authority of 
MR&L-MNRR to lease and operate the line so that it can proceed to 
remove them from the line.
    In a decision served in this proceeding on June 15, 2009, the Board 
granted a petition filed by the County for exemptions from several 
statutory provisions and for waivers of certain Board regulations 
governing rail line discontinuances.\4\
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    \4\ In response to a Board query in that decision regarding a 
slight discrepancy between the milepost numbers for the line in STB 
Finance Docket No. 33581 and in this proceeding, Lake County 
explains that it is using the milepost numbers set forth in STB 
Finance Docket Nos. 34995 and 34996 in which MR&L-MNRR obtained 
Board authority to lease and operate the line.
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    The County states that the line does not contain federally granted 
rights-of-way. Any documentation in the County's possession will be 
made available promptly to those requesting it. The County's entire 
case in chief for adverse discontinuance was filed with the 
application.
    The interests of 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 adverse discontinuance or protests (including protestant's 
entire opposition case) by September 14, 2009. The County shall file a 
reply, if any, by September 28, 2009. Because the County is providing 
for continued service on the line, all interested persons should be 
aware that this application is for adverse discontinuance and will not 
result in the abandonment of existing operations. Therefore, as 
discussed in the Board's June 15 decision, the Board has exempted this 
proceeding from the offer of financial assistance (OFA) requirements at 
49 U.S.C. 10904 and waived its OFA regulations at 49 CFR 1152.27, and 
the Board will not entertain requests for a public use condition under 
49 U.S.C. 10905 (49 CFR 1152.28) or a trail use condition under 16 
U.S.C. 1247(d) (49 CFR 1152.29).
    Persons opposing the proposed adverse discontinuance who wish to 
participate actively and fully in the process should file a protest. 
Persons who may oppose the adverse discontinuance but who do not wish 
to participate fully in the process by

[[Page 41970]]

submitting verified statements of witnesses containing detailed 
evidence should file comments. Parties seeking information concerning 
the filing of protests should refer to 49 CFR 1152.25.
    All filings in response to this notice must refer to STB Docket No. 
AB-1035 and must be sent to: (1) Surface Transportation Board, 395 E 
Street, SW., 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 persons using 
e-filing should attach a document and otherwise 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 the original and 10 copies of the 
filing to the Board with a certificate of service. Except as otherwise 
set forth in 49 CFR 1152, every document filed with the Board must be 
served on all parties to this adverse discontinuance proceeding. See 49 
CFR 1104.12(a).
    Persons seeking further information concerning abandonment/
discontinuance procedures may contact the Board's Office of Public 
Assistance, Governmental Affairs and Compliance at (202) 245-0230 or 
refer to the full abandonment/discontinuance regulations at 49 CFR 
1152. [Assistance for the hearing impaired is available through the 
Federal Information Relay Service (FIRS) at 1-800-877-8339.]
    The Board's June 15 decision waived compliance with its 
environmental and historic review regulations because the Board found 
that it was unlikely that the discontinuance would result in any 
environmental impacts or salvage. Accordingly, no environmental or 
historic assessment will be prepared in this proceeding.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: August 13, 2009.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Kulunie L. Cannon,
Clearance Clerk.
[FR Doc. E9-19827 Filed 8-18-09; 8:45 am]
BILLING CODE 4915-01-P