[Federal Register Volume 79, Number 98 (Wednesday, May 21, 2014)]
[Notices]
[Pages 29265-29266]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-11783]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35804]


CSX Transportation, Inc., The Baltimore & Ohio Chicago Terminal 
Railroad Company, and Norfolk Southern Railway Company--Joint 
Relocation Project Exemption--Gary-Chicago International Airport 
Authority

    On May 5, 2014, CSX Transportation, Inc. (CSXT), The Baltimore & 
Ohio Chicago Terminal Railroad Company (BOCT), and Norfolk Southern 
Railway Company (NSR) (collectively, applicants) \1\ jointly filed a 
verified notice of exemption under 49 CFR 1180.2(d)(5) to participate 
in a joint relocation project that would foster improvements to the 
Gary-Chicago International Airport Authority (Gary Airport) in Indiana.
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    \1\ Applicants state that BOCT is a Class III railroad that is a 
wholly owned subsidiary of CSXT.
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    The purpose of the joint relocation project is to facilitate 
activities necessary to permit the relocation of various rail lines and 
facilities to accommodate the expansion of Gary Airport's existing 
Runway 12-30, and to preserve the operation, capacity, and utility of 
the freight lines of Elgin, Joliet and Eastern Railway Company (EJ&E), 
CSXT, and NSR in the vicinity of Gary Airport.
    According to applicants, the relocation project involves multiple 
components. First, CSXT and NSR would construct the following 
connections: (1) At Clarke Junction, Ind., at or near milepost DC 0.4, 
connecting NSR's Fort Wayne Line with BOCT's Barr Subdivision and the 
relocated CSXT Fort Wayne Line, which would be located between milepost 
TC 244.9 and milepost TC 246.6 of what is currently NSR's Gary Branch; 
(2) between CSXT's Fort Wayne Line at milepost QF 443.8 and NSR's Gary 
Branch at milepost QF 244.9; (3) near Tolleston, Ind., between CSXT's 
Fort Wayne Line at milepost QF 442.0 and CSXT's Porter Branch at 
milepost QFP 256.1 to allow NSR to serve Indiana Sugars, Inc. (Indiana 
Sugars) from CSXT's Porter Branch; and (4) between CSXT's Porter Branch 
at milepost QFP 255.4 and NSR's Gary Branch at milepost TC 241.4 to 
allow NSR to continue to serve Indiana Sugars. Second, CSXT would 
acquire the portion of NSR's Gary Branch between milepost TC 244.9 and 
milepost TC 246.6. Third, CSXT would abandon an approximately 1.9-mile 
portion of its Fort Wayne Line between milepost QF 443.8 and milepost 
QF 445.7, and transfer substantially all of the property to Gary 
Airport for the runway expansion. Fourth, CSXT would relocate its 
operations between milepost QF 443.8 and milepost QF 445.7 to the Gary 
Branch between milepost TC 244.9 and milepost TC 246.6. Fifth, NSR 
would discontinue service over its Gary Branch Line between milepost TC 
244.9 and milepost TC 241.4. Sixth, NSR would abandon common carrier 
service and reclassify as spur track the portion of the Gary Branch 
Line between milepost TC 241.4 and milepost TC 240.3 (the Indiana 
Sugars Industrial Track) in order to continue to serve Indiana Sugars 
via trackage rights over CSXT's Porter Branch. Seventh, existing 
trackage rights agreements would be amended to reflect the relocated 
track.\2\
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    \2\ According to applicants, four existing trackage rights 
agreements would be amended as follows: (1) NSR's rights to operate 
over CSXT's Fort Wayne Line would be amended to allow NSR to operate 
over the new connection between CSXT's Fort Wayne Line and CSXT's 
Porter Branch in the northeast quadrant at Tolleston, as well as the 
continued right to enter and exit CSXT's Fort Wayne Line at the 
existing connection to the Central Railroad of Indianapolis d/b/a 
Chicago, Fort Wayne & Eastern (CFER) leased portion of the CSXT Fort 
Wayne Line in the southwest quadrant at Tolleston; (2) NSR's rights 
to operate over CSXT's Porter Branch would be amended to allow NSR 
to operate between: (i) The new connection to CSXT's Fort Wayne Line 
in the northeast quadrant at Tolleston; (ii) the existing connection 
to the CFER leased portion of the CSXT Fort Wayne Line in the 
southwest quadrant at Tolleston; and (iii) the new connection to the 
portion of the Gary Branch to be re-classified as the Indiana Sugars 
Industrial Track, at or near milepost QFP 255.4; (3) NSR's rights to 
operate over BOCT's Barr Subdivision would be amended to allow NSR 
to enter or exit BOCT's Barr Subdivision between Clarke Junction, at 
or near milepost DC 0.4, to access both the NSR Fort Wayne Line and 
the CSXT Fort Wayne Line; and (4) CSXT's rights to operate over 
NSR's Fort Wayne Line would be amended to allow CSXT to enter and 
exit the NSR Fort Wayne Line at: (i) the connection to NSR's Chicago 
Line at CP501, Buffington, Ind.; and (ii) the new connection to 
BOCT's Barr Subdivision at Clarke Junction.

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[[Page 29266]]

    Applicants state that the proposed joint relocation project would 
not disrupt service to shippers or expand service into new territory. 
According to applicants, the only named active shipper on the lines, 
Indiana Sugars, would continue to receive service.
    The Board will exercise jurisdiction over the abandonment, 
construction, or sale components of a relocation project, and require 
separate approval or exemption, only where the removal of track affects 
service to shippers or the construction of new track or transfer of 
existing track involves expansion into new territory. See City of 
Detroit v. Canadian Nat'l Ry., 9 I.C.C. 2d 1208 (1993), aff'd sub nom. 
Detroit/Wayne Cnty. Port Auth. v. ICC, 59 F.3d 1314 (D.C. Cir. 1995); 
Flats Indus. R.R. & Norfolk S. Ry.--Joint Relocation Project 
Exemption--in Cleveland, Ohio, FD 34108 (STB served Nov. 15, 2001). 
Line relocation projects may embrace trackage rights transactions such 
as those involved here. See Detroit, Toledo & Ironton R.R.--Trackage 
Rights--Between Washington Court House & Greggs, Ohio--Exemption, 363 
I.C.C. 878 (1981). Under these standards, the incidental abandonment, 
construction, and trackage rights components of this relocation project 
require no separate approval or exemption because the relocation 
project would not disrupt service to shippers, expand CSXT's, BOCT's, 
or NSR's service into a new territory, or alter the existing 
competitive situation, and thus, this joint relocation project 
qualifies for the class exemption at 49 CFR 1180.2(d)(5).
    As a condition to this exemption, any employees affected by the 
joint relocation project will be protected by the conditions imposed in 
Norfolk & Western Railway--Trackage Rights--Burlington Northern, Inc., 
354 I.C.C. 605 (1978), as modified in Mendocino Coast Railway--Lease & 
Operate--California Western Railroad, 360 I.C.C. 653 (1980) (``N&W 
Conditions'').\3\
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    \3\ By letter filed on May 16, 2014, applicants amended their 
notice of exemption to clarify that the N&W Conditions are 
applicable to this transaction and should be imposed here.
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    The transaction may be consummated on or after June 4, 2014, the 
effective date of the exemption (30 days after the exemption was 
filed). Applicants explain that once the exemption becomes effective, 
or shortly therafter, CSXT and NSR would commence constructing the 
connections. Once the connections required for NSR to serve Indiana 
Sugars via a portion of CSXT's Porter Branch are completed and 
operational, NSR would transfer the previously mentioned portion of 
NSR's Gary Branch to CSXT, and CSXT would transfer its 1.9-mile portion 
of the Fort Wayne Line to Gary Airport. Applicants state that, as the 
track connections described above are completed, the amended trackage 
rights would take effect.
    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 effectiveness of the 
exemption. Petitions for stay must be filed no later than May 28, 2014 
(at least seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 35804, 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 applicants' representatives: Louis E. 
Gitomer, Law Offices of Louis E. Gitomer, LLC, 600 Baltimore Avenue, 
Suite 301, Towson, MD 21204 (CSXT's and BOCT's representative) and 
William A. Mullins, Baker & Miller PLLC, 2401 Pennsylvania Avenue NW., 
Suite 300, Washington, DC 20037 (NSR's representative).
    Board decisions and notices are available on our Web site at 
WWW.STB.DOT.GOV.

    Decided: May 16, 2014.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Derrick A. Gardner,
Clearance Clerk.
[FR Doc. 2014-11783 Filed 5-20-14; 8:45 am]
BILLING CODE 4915-01-P