[Federal Register Volume 81, Number 62 (Thursday, March 31, 2016)]
[Notices]
[Pages 18682-18683]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-07293]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36011]


Cayuga County Industrial Development Agency, Onondaga County 
Industrial Development Agency, Ontario County Industrial Development 
Agency, Schuyler County Industrial Development Agency, and Yates County 
Industrial Development Agency--Acquisition Exemption--Finger Lakes 
Railway Corp.

    Cayuga County Industrial Development Agency, Onondaga County 
Industrial Development Agency,\1\ Ontario County Industrial Development 
Agency, Schuyler County Industrial Development Agency, and Yates County 
Industrial Development Agency (collectively, Agencies) have filed a 
verified notice of exemption under 49 CFR 1150.31 to acquire by lease 
approximately 86.45 miles of rail lines from Finger Lakes Railway Corp. 
(FGLK), located in New York, as follows: \2\ (1) Watkins Glen 
Industrial Track, located between milepost 41.35 at or near Penn Yan 
and milepost 16.55 at or near Watkins Glen, in Schuyler and Yates 
Counties, a distance of 24.8 miles; (2) Canandaigua Secondary, located 
between milepost 76.00 at or near Canandaigua and milepost 51.30 at or 
near Geneva, in Ontario County, a distance of 24.70 miles; (3) Auburn 
Secondary, located between milepost 37.56 at the Seneca/Cayuga County 
line and milepost 3.61 at or near Solvay Yard, in Cayuga County, a 
distance of 33.95 miles; (4) Geneva Running Track, located between 
milepost 344.40 at or near Geneva and milepost 342.8 at the Ontario/
Seneca County line, in Ontario County, a distance of 1.6 miles; (5) 
Lehigh & Northern Industrial Track, located between milepost 349.20 and 
milepost 348.70 at or near Auburn, in Cayuga County, a distance of 0.90 
miles; and (6) Auburn & Ithaca Industrial Track, located between 
milepost 349.20 and milepost 348.70 at or near Auburn, in Cayuga 
County, a distance of 0.50 miles.
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    \1\ According to the notice, Onondaga County Industrial 
Development Agency (OCIDA) is a non-operating carrier that owns 
other rail lines not involved in this transaction and the New York 
Susquehanna & Western Railway Corp. currently provides service over 
these other rail lines. See Onondaga Cty. Indus. Dev. Agency--
Acquis. and Operation Exemption--Line of Consolidated Rail Corp., FD 
32287 (ICC served July 7, 1994) and New York Susquehanna & W. Ry.--
Trackage Rights Exemption--Onondaga Cty. Indus. Dev. Agency, FD 
32772 (STB served Aug. 7, 2001).
    \2\ The Agencies and FGLK jointly filed one notice for two 
related transactions under 49 CFR 1150.31 and 1150.41, one in this 
docket and one in Docket No. FD 36012, as described further below. A 
separate notice will be published for each exemption. Further, 
because OCIDA is a rail carrier, the notice of exemption in this 
docket will be treated as request for an exemption from 49 U.S.C. 
10902 under the regulations at 49 CFR 1150.41 with regard to OCIDA 
and as a request for an exemption from 49 U.S.C. 10901 under 49 CFR 
1150.31 for the four noncarrier Agencies.
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    According to the Agencies, the acquisition of the rail lines is 
part of a series of proposed transactions that will allow FGLK to 
continue to pay a negotiated ``payment in lieu of taxes'' (PILOT), 
rather than be subject to local and state taxes. The Agencies state 
that FGLK originally acquired the rail lines in 1995 and transferred 
the title to the Agencies and then leased back the rail lines for 
purposes of the PILOT arrangement. The Agencies state that to extend 
and restructure the PILOT arrangement, they will first transfer title 
to the rail lines to FGLK.\3\ Next, the Agencies will lease the rail 
lines from FGLK--the transaction at issue in this docket. Lastly, FGLK 
will sublease the rail lines back from the Agencies to continue 
operations, including all common carrier service and maintenance of the 
tracks.\4\
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    \3\ FGLK filed a verified notice of exemption to acquire the 
rail lines in Finger Lakes Railway Corp.--Acquis. and Operation 
Exemption--Cayuga County Industrial Development Agency, et al., FD 
36012.
    \4\ FGLK and the Agencies requested authority for all three 
transactions but did not file a separate docket or filing fee for 
the sublease. This notice, therefore, does not address that 
transaction.
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    The Agencies state that they will not hold themselves out to 
provide any rail service, and are not acquiring any of the common 
carrier obligations with respect to the rail lines.\5\ Under the terms 
of the lease from FGLK to the Agencies and the amended and restated 
lease from the Agencies to FGLK, the Agencies

[[Page 18683]]

maintain that FGLK will continue to be the sole provider of railroad 
services and will have the rights necessary to operate those services. 
The Agencies state that they are not leasing or acquiring any of the 
common carrier obligations with respect to the rail lines. The Agencies 
further state that they will be precluded from interfering materially 
with FGLK's common carrier obligation.
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    \5\ A motion to dismiss the notice of exemption on grounds that 
the transaction does not require authorization from the Board was 
concurrently filed with this notice of exemption. The motion to 
dismiss will be addressed in a subsequent Board decision.
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    The Agencies certify that they would not operate over the rail 
lines and that the transaction will not result in the creation of a 
Class I or Class II carrier. The Agencies further state that FGLK is a 
Class III carrier.
    The Agencies state that the parties intend to consummate the 
transaction no sooner than April 14, 2016, the effective date of the 
exemption (30 days after the verified notice was filed), and only after 
the Board has ruled on the motion to dismiss.
    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 to stay must be filed no later than April 7, 2016 
(at least seven days before the exemption becomes effective).
    An original and ten copies of all pleadings, referring to Docket 
No. FD 36011, 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 Eric M. Hocky, Clark Hill PLC, 2005 Market 
Street, Suite 1000, Philadelphia, PA 19103.
    According to the Agencies, this action is categorically excluded 
from environmental review under 49 CFR 1105.6(c).
    Board decisions and notices are available on our Web site at 
www.stb.dot.gov.

    Decided: March 28, 2016.

    By the Board, Joseph H. Dettmar, Acting Director, Office of 
Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2016-07293 Filed 3-30-16; 8:45 am]
BILLING CODE 4915-01-P