[Federal Register Volume 78, Number 99 (Wednesday, May 22, 2013)]
[Notices]
[Pages 30395-30396]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-12201]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35719 (Sub-No. 1)]


Grainbelt Corporation--Trackage Rights Exemption--BNSF Railway 
Company and Stillwater Central Railroad Company

    By petition filed on February 28, 2013, Grainbelt Corporation 
(GNBC) requests that the Board partially revoke a class exemption to 
permit the amended trackage rights arrangements between grantee GNBC 
and grantors BNSF Railway Company (BNSF) and Stillwater Central 
Railroad Company (SLWC) exempted in Grainbelt Corporation--Trackage 
Rights Exemption--BNSF Railway Company and Stillwater Center Railroad 
Company, Docket No. FD 35719, served and published in the Federal 
Register on March 15, 2013 (78 FR 16,570), to expire on February 1, 
2023.
    In the notice of exemption, BNSF and SLWC each agreed to grant 
amended trackage rights to GNBC, which together allow GNBC to provide 
local service to a grain shuttle facility in Headrick, Okla. 
Specifically, BNSF has amended its trackage rights to permit local 
service over the connecting line between the connection with SLWC east 
of Long, Okla. (milepost 668.73), and Altus, Okla. (milepost 688.00), 
and SLWC has amended its trackage rights to permit local service 
between Snyder Yard (milepost 664.00) and its connection with BNSF east 
of Long (milepost 668.73).
    Prior to the amended trackage rights arrangement exempted in Docket 
No. FD 35719, GNBC already held overhead trackage rights granted by the 
predecessor of BNSF between Snyder Yard (milepost 664.00) and Quanah, 
Tex. (milepost 723.30), under which GNBC has the right to interchange 
at Quanah with BNSF and Union Pacific Railroad Company. BNSF 
subsequently sold a portion of the subject trackage to SLWC. The 
original trackage rights were supplemented in 2009 to allow GNBC to

[[Page 30396]]

operate between Snyder and Altus, with the right to perform limited 
local service at Long. See Grainbelt Corp.--Trackage Rights Exemption--
BNSF Ry. and Stillwater Cent. R.R., FD 35332 (STB served Dec. 17, 
2009). GNBC also requests that the Board extend the expiration date of 
these supplemental trackage rights, previously set for 2019 by the 
Board,\1\ to February 1, 2023, so that the supplemental and amended 
trackage rights will expire simultaneously.
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    \1\ See Grainbelt Corp.--Trackage Rights Exemption--BNSF Ry. and 
Stillwater Cent. R.R., FD 35332 (Sub-No. 1) (STB served Mar. 12, 
2010).
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Discussion and Conclusion

    Although the parties have expressly agreed on the duration of the 
amended trackage rights arrangements, trackage rights approved under 
the class exemption at 49 CFR 1180.2(d)(7) typically remain effective 
indefinitely, regardless of any contract provisions. Occasionally, 
trackage rights exemptions have been granted for a limited time period 
rather than in perpetuity. See, e.g., Norfolk S. Ry.--Temporary 
Trackage Rights Exemption--Grand Trunk W. R.R. and Wisconsin Cent. 
Ltd., FD 35715 (Sub-No. 1) (STB served Mar. 19, 2013); Union Pac. 
R.R.--Trackage Rights Exemption--The Burlington N. & Santa Fe Ry., FD 
34242 (Sub-No. 1) (STB served Oct. 7, 2002).
    Under 49 U.S.C. 10502, the Board may exempt a person, class of 
persons, or a transaction or service, in whole or in part, when it 
finds that: (1) Continued regulation is not necessary to carry out the 
rail transportation policy of 49 U.S.C. 10101; and (2) either the 
transaction or service is of limited scope, or regulation is not 
necessary to protect shippers from the abuse of market power.
    GNBC's amended trackage rights have already been authorized under 
the class exemption at 49 CFR 1180.2(d)(7).\2\ See R.R. Consolidation 
Procedures--Trackage Rights Exemption, 1 I.C.C.2d 270 (1985). Granting 
partial revocation in these circumstances would promote the rail 
transportation policy by eliminating the need to file a second pleading 
seeking discontinuance when the agreements expire, thereby promoting 
the rail transportation policy goals at 49 U.S.C. 10101(2), (4), (5), 
(7), and (15). Moreover, limiting the term of the trackage rights is 
consistent with the limited scope of the transaction previously 
exempted and would not result in an abuse of market power. This is 
because the amended trackage rights that are the subject of the 
exemption are being granted solely to allow GNBC to provide local 
service between the grain shippers located on GNBC and the grain 
shuttle facility located at Headrick in single line service. Therefore, 
we will grant the petition and permit the amended trackage rights 
exempted in Docket No. FD 35719 to expire on February 1, 2023. We will 
also grant GNBC's request that the Board extend the date to February 1, 
2023, for expiration of the supplemental trackage rights previously 
granted in Docket No. FD 35332 and set to expire in 2019 in Docket No. 
FD 35332 (Sub-No. 1), so that the supplemental and amended trackage 
rights will expire simultaneously.
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    \2\ GNBC points out that, although the trackage rights are only 
temporary, because the rights include more than just overhead 
trackage rights and will remain in effect for more than one year, 
they do not qualify for the Board's exemption for temporary trackage 
rights at 49 CFR 1180.2(d)(8).
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    To provide the statutorily mandated protection to any employee 
adversely affected by the discontinuance of the amended trackage 
rights, we will impose the employee protective conditions set forth in 
Oregon Short Line Railroad--Abandonment Portion Goshen Branch Between 
Firth & Ammon, in Bingham & Bonneville Counties, Idaho (Oregon Short 
Line), 360 I.C.C. 91 (1979).
    This decision will not significantly affect either the quality of 
the human environment or the conservation of energy resources.
    It is ordered:
    1. The petition for partial revocation is granted.
    2. Under 49 U.S.C. 10502, the trackage rights described in Docket 
No. FD 35719 are exempted, as discussed above, to permit the trackage 
rights to expire on February 1, 2023, subject to the employee 
protective conditions set forth in Oregon Short Line.
    3. GNBC's supplemental trackage rights granted in Docket No. FD 
35332, previously set to expire in 2019 in Docket No. FD 35332 (Sub-No. 
1), are permitted to expire on February 1, 2023, subject to the 
employee protective conditions set forth in Oregon Short Line.
    4. Notice will be published in the Federal Register on May 22, 
2013.
    5. This decision will be effective on June 21, 2013. Petitions to 
stay must be filed by June 3, 2013. Petitions for reconsideration must 
be filed by June 11, 2013.

    Decided: May 16, 2013.

    By the Board, Chairman Elliott, Vice Chairman Begeman, and 
Commissioner Mulvey.
Raina S. White,
Clearance Clerk.
[FR Doc. 2013-12201 Filed 5-21-13; 8:45 am]
BILLING CODE 4915-01-P