[Federal Register Volume 78, Number 165 (Monday, August 26, 2013)]
[Notices]
[Page 52822]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-20735]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. NOR 38302S; Docket No. NOR 38376S]


United States Department of Energy and United States Department 
of Defense v. Baltimore & Ohio Railroad Company, et al.; and United 
States Department of Energy and United States Department of Defense v. 
Aberdeen & Rockfish Railroad Company, et al.

AGENCY: Surface Transportation Board, DOT.

ACTION: Final Decision.

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SUMMARY: The Surface Transportation Board (Board) has approved the 
settlement agreement (Agreement) negotiated by the United States 
Departments of Energy and Defense (the Government) on the one hand and 
BNSF Railway Company (BNSF) on the other hand; prescribed the 
Agreement's rate and rate update methodology and revenue-to-variable 
cost (R/VC) ratios as the maximum reasonable rates; and continued to 
hold these proceedings in abeyance as to the remaining railroad 
defendants to permit continued settlement negotiations.

DATES: Effective Date: The decision is effective on September 25, 2013.

FOR FURTHER INFORMATION CONTACT: Marc Lerner, (202) 245-0390. [Federal 
Information Relay Service (FIRS) for the hearing impaired: 1-800-877-
8339.]

SUPPLEMENTARY INFORMATION: In a decision served on August 26, 2013, the 
Board, under 49 U.S.C. 10704, approved the Agreement negotiated by the 
Government and BNSF to settle these rate reasonableness complaints as 
between them only. The Agreement--which applies broadly to the 
nationwide movement on BNSF's lines of irradiated spent fuel, parts and 
constituents; spent nuclear fuel moving from a foreign country to the 
United States for disposal; empty casks; radioactive waste materials; 
and buffer and escort cars (collectively, Covered Movements) and is 
structured to cover movements to or from unanticipated geographic areas 
or in as-yet-unknown types of equipment--is to be implemented by BNSF 
tendering rate quotations to the Government under 49 U.S.C. 10721.
    In addition, the Board: (1) Prescribed the Agreement's rate and 
rate update methodology and R/VC ratios (not to exceed 1.80, 2.50, or 
3.51 times the shipment cost, depending on commodity type, using BNSF's 
most current system-average variable costs computed using the Board's 
Uniform Railroad Costing System) to establish the maximum reasonable 
rates; (2) dismissed BNSF as a defendant in these proceedings; (3) 
extinguished all of BNSF's liability and that of its predecessors and 
subsidiaries for all reparations on past shipments of Covered Movements 
in which they participated, both insofar as the Government is involved 
and insofar as any connecting rail carrier may seek contribution; (4) 
preserved the liability of connecting carriers for reparations as to 
their portion of the charges assessed on through routes that include(d) 
BNSF; (5) relieved BNSF from any further requirement to participate in 
these proceedings, except in response to a properly issued subpoena 
under the Board's rules; and (6) continued to hold these proceedings in 
abeyance, subject to the Government reporting quarterly to the Board on 
the progress of settlement negotiations with remaining railroad 
defendants.
    The Board also: (1) Endorsed the Agreement's non-participation 
clause, Paragraph 14, ``Reparation Claims and Rate Challenges 
Extinguished,'' ruling that it will not entertain cross-complaints 
under 49 CFR 1111.4(c) against BNSF in proceedings involving the 
Government's claims for reparations against connecting carriers; (2) 
clarified that the terms and obligations of the Agreement, including 
the prescribed rate and rate update methodologies and maximum R/VC 
ratios, will be binding only as between the Government and BNSF, will 
have no precedential effect as to the reasonableness of the rates or 
the common carrier obligations of non-consenting rail carrier parties 
in future proceedings or negotiations, and will not be considered a 
presumptive model for negotiations between CSXT and the Government; and 
(3 dismissed BNSF as a party from (a) the Government's pending motion, 
filed in this proceeding on October 3, 1994, to sever issues relating 
to the quantity of service, including number of routes open for moving 
radioactive materials nationwide, and to consolidate tariff questions, 
and (b) the railroad defendants' pending petition, filed on January 18, 
1996, to dismiss the complaints in these proceedings.
    The Board's decision is available on our Web site at 
www.stb.dot.gov.

    Decided: August 19, 2013.

    By the Board, Chairman Elliott, Vice Chairman Begeman, and 
Commissioner Mulvey.
Derrick A. Gardner,
Clearance Clerk.
[FR Doc. 2013-20735 Filed 8-23-13; 8:45 am]
BILLING CODE 4915-01-P