[Federal Register Volume 78, Number 80 (Thursday, April 25, 2013)]
[Notices]
[Pages 24465-24466]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-09760]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35731]


Ballard Terminal Railroad Company, L.L.C.--Acquisition and 
Operation Exemption--Woodinville Subdivision

AGENCY: Surface Transportation Board, DOT.

ACTION: Notice of exemption; request for comments.

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SUMMARY: On April 2, 2013, Ballard Terminal Railroad Company, L.L.C. 
(Ballard), a Class III rail carrier, filed a petition under 49 U.S.C. 
10502 for exemption from the provisions of 49 U.S.C. 10902 to acquire 
the residual common carrier rights and obligations, including the right 
to reinstitute rail service, and the physical trackage assets on a line 
of railroad currently owned by the City of Kirkland (City) and the Port 
of Seattle (Port) in King County, Wash. (the Line), and currently 
subject to railbanking/interim trail use under the National Trails 
System Act, 16 U.S.C. 1247(d). Ballard also seeks the right to provide 
common carrier rail service over the Line, and requests that the Board 
order the transfer of all the rail materials to Ballard at their net 
liquidation value. Ballard states that it has no objection to shared 
use of the right-of-way as both a rail line and a trail. The Line 
consists of a portion of the former BNSF Railway Company (BNSF) 
Woodinville Subdivision extending between milepost 23.8 at Woodinville, 
Wash., and milepost 12.6 at Bellevue, Wash.\1\ The petition for

[[Page 24466]]

exemption was filed concurrently with a Ballard petition to partially 
vacate the NITU issued in Docket No. AB 6 (Sub-No. 465X) for the 
Woodinville Subdivision (extending from milepost 23.8 to milepost 
11.25). That NITU permitted railbanking/interim trail use negotiations 
under 16 U.S.C. 1247(d).\2\ The Board seeks comments from interested 
persons on Ballard's request to resume rail service and partially 
vacate the NITU.
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    \1\ This segment was the subject of an abandonment proceeding 
and NITU in BNSF Railway Company--Abandonment Exemption--in King 
County, Wash., AB 6 (Sub-No. 465X).
    \2\ In a related matter, Ballard simultaneously filed a verified 
notice of exemption under 49 CFR 1150.41 to lease from Eastside 
Community Rail, LLC and to operate a 14.45-mile line of railroad 
between mileposts 23.8 and 38.25 that is adjacent to the Line at 
issue here. Ballard Terminal Railroad Company, L.L.C.--Lease 
Exemption--Line of Eastside Community Rail, LLC, FD 35730 (STB 
served Apr. 18, 2013).

DATES: Written comments must be filed with the Board by June 18, 2013. 
Replies must be filed by July 18, 2013.\3\
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    \3\ On April 12, 2013, King County, the City, and Central Puget 
Sound Regional Transit Authority (collectively, Movants) jointly 
filed a motion to extend the time to respond to Ballard's petitions 
to partially vacate the NITU and for exemption, from April 22, 2013, 
to June 21, 2013. On April 17, 2013, Ballard filed a reply to the 
motion, objecting to the requested extension of time unless it is 
coupled with a condition that the City not remove the track and 
other rail assets on the 5.75-mile portion of the Line the City 
owns, until such time as the Board rules on Ballard's pending 
petitions. On April 18, 2013, Movants filed a motion for leave to 
file a reply to Ballard's reply. Regarding the motion to extend, 
pursuant to this notice and request for comments, the Board is 
initiating a proceeding and establishing a procedural schedule for 
comments. Movants' motion to extend the time to respond will 
therefore be denied as moot. The matter of the trackage removal is 
already pending in the U.S. District Court for the Western District 
of Washington on Ballard's motion for temporary restraining order, 
which is scheduled to be heard on May 3, 2013.

ADDRESSES: Comments may be submitted either via the Board's e-filing 
format or in the traditional paper format. Any person using e-filing 
should attach a document and otherwise comply with the instructions at 
the E-FILING link on the Board's Web site, at http://www.stb.dot.gov. 
Any person submitting a filing in the traditional paper format should 
send an original and 10 copies to: Surface Transportation Board, Attn: 
Docket No. FD 35731, 395 E Street SW., Washington, DC 20423-0001.
    In addition, send one copy of any comments to: (1) Myles L. Tobin, 
Fletcher & Sippel LLC, 29 North Wacker Drive, Suite 920, Chicago, IL 
60606-2832; (2) Craig Watson, Port of Seattle, Pier 69, P.O. Box 1209, 
Seattle, WA 98111; (3) Charles A. Spitulnik, Kaplan Kirsch & Rockwell 
LLP, 1001 Connecticut Avenue NW., Washington, DC 20036; and (4) all 
other parties of record to this proceeding.

FOR FURTHER INFORMATION CONTACT: Marc Lerner at 202-245-0390. 
Assistance for the hearing impaired is available through the Federal 
Information Relay Service (FIRS) at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: On April 2, 2013, Ballard filed a petition 
under 49 U.S.C. 10502 for exemption from the provisions of 49 U.S.C. 
10902 to acquire the residual common carrier rights and obligations, 
including the right to reinstitute rail service, and the physical 
trackage assets of the Line, for a segment of the former BNSF 
Woodinville Subdivision. This segment is currently subject to an 
interim trail use/railbanking agreement between BNSF and King County, a 
political subdivision of the State of Washington. The Port owns the 
real estate associated with the Line, which it acquired from BNSF; \4\ 
the Port subsequently conveyed a portion of the Line to the City. In 
King County, Wash.--Acquisition Exemption--BNSF Railway Company, FD 
35148 (STB served Sept. 18, 2009), the Board granted a request by King 
County for exemption from 49 U.S.C. 10901 to acquire BNSF's rights and 
obligations, including the right to reinstate rail service in the 
future.
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    \4\ The Port of Seattle--Acquisition Exemption--Certain Assets 
of BNSF Ry., FD 35128 (STB served June 20, 2008).
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    Ballard's petition presents this issue: under what circumstances 
will the Board grant a carrier's request to vacate a NITU to permit 
reactivation of rail service when the petitioning carrier does not own 
or have any other interest in the right-of-way. An interim trail use 
arrangement is subject to being cut off at any time by the 
reinstitution of service. 16 U.S.C. 1247(d). Here, the abandoning 
railroad (BNSF) has transferred its rights and obligations, including 
the right to reinstate rail service, to King County (which is also the 
trail sponsor), and a different carrier, Ballard, seeks to reinstitute 
service.
    Ballard submits letters from two shippers that support the 
reinstitution of rail service over the Line. CalPortland, a building 
materials and construction services provider, states that it desires to 
use the Line to receive hundreds of thousands of cubic yards per year 
of construction materials for upcoming road projects. Wolford Trucking 
& Demolition, Inc. (Wolford), a demolition and trucking services 
provider, states that it plans to use the Line to ship an estimated 
three million cubic yards of excavated materials, building demolition 
waste, and roadway grading spoils over the next several years. Ballard 
estimates that CalPortland and Wolford's use of the Line would 
translate to approximately 50,000 carloads of freight.\5\
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    \5\ Ballard submits three additional letters generally in 
support of an upgraded Eastside Rail Corridor: an open letter from 
the Snohomish County Executive Director supporting multiple purpose 
use of the Eastside Rail Corridor, including freight service; a 
letter to the Kirkland City Council from the Mayor of Woodinville 
requesting that the City delay the removal of the subject tracks 
until the Eastside Rail Corridor Regional Advisory Council presents 
its recommendations in Summer 2013; and a letter to Washington State 
Senator Rosemary McAuliffe from the Mayor of Snohomish reiterating a 
request for funding needed to upgrade the Eastside Rail Corridor.
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    By issuance of this notice, the Board is instituting an exemption 
proceeding pursuant to 49 U.S.C. 10502(b). A final decision will be 
issued by January 17, 2014.

    Decided: April 19, 2013.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2013-09760 Filed 4-24-13; 8:45 am]
BILLING CODE 4915-01-P