[Federal Register Volume 82, Number 15 (Wednesday, January 25, 2017)]
[Notices]
[Pages 8485-8486]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-01668]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36086]


Dakota Southern Railway Company--Modified Certificate of Public 
Convenience and Necessity--Yankton, Bon Homme, and Charles Mix 
Counties, S.D.

    On December 29, 2016, Dakota Southern Railway Company (DSRC), a 
Class III rail carrier, filed a notice for a modified certificate of 
public convenience and necessity, pursuant to 49 CFR pt. 1150 subpart 
C--Modified Certificate of Public Convenience and Necessity, to lease 
and operate approximately 54.5 miles of rail line (the Line) owned by 
the State of South Dakota (the State). The Line is located between MP 
0.0 (also known as Engineer's Survey Station Number 00+00) at the 
intersection of the North Sioux City to Mitchell line and extending in 
a westerly direction to a point of termination at MP 54.5\1\ (also 
known as Engineer's Survey Station Number 1707+17), in and through the 
Counties of Yankton, Bon Homme, and Charles Mix, S.D.
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    \1\ The verified notice states that the Line, or service on it, 
will terminate at MP 54.4 (DSRC Notice 3, 5) and MP 54.5 (DSRC 
Notice 1), while the lease agreement between DSRC and the State 
specifies that service will terminate at MP 54.5. (DSRC Notice Ex. C 
at ] A.)
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    DSRC states that the entire rail line from Napa, S.D. (MP 0.0) to 
Platte, S.D. (MP 83.3), which includes the Line, was authorized for 
abandonment in 1980 by the United States District Court for the 
Northern District of Illinois following the issuance of a report by the 
Interstate Commerce Commission (ICC) recommending abandonment. See In 
re Chi., Milwaukee, St. Paul & Pac. R.R., No 77 B 8999 (N.D. Ill. June 
2, 1980, Order 342A); Richard B. Ogilvie, Tr. of the Prop. of Chi., 
Milwaukee, St. Paul & Pac. R.R.--Aban.--in S.D., Iowa & Neb., AB-7 
(Sub-No. 88) (ICC served May 14, 1980). According to DSRC, although 
authorized for abandonment, the entire line was not abandoned but 
instead acquired by the State of South Dakota in 1980. DSRC states 
that, since 1980, the entire line, or segments thereof, have been 
leased and subleased to various entities, and various entities have 
held ICC- or STB-authorized operating rights over the entire line or 
segments thereof. DSRC further states that, in 2007, the State 
railbanked the segment between Ravinia, S.D. (MP 54.4) \2\ and Platte, 
S.D.

[[Page 8486]]

(MP 83.3). See S.D. Ry.--Notice of Interim Trail Use & Termination of 
Modified Rail Certificate, FD 31874 (STB served July 17, 2007). At MP 
0.0, the Line has interchange capability with BNSF Railway Company 
(direct access and haulage agent).
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    \2\ The segment of line railbanked by the State begins at MP 
54.5, not MP 54.4 as stated by DSRC in its filing. See S.D. Ry.--
Notice of Interim Trail Use & Termination of Modified Rail 
Certificate, FD 31874, slip op. at 1 (STB served July 17, 2007).
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    Effective December 1, 2016, DSRC leased the Line from the South 
Dakota Department of Transportation and agreed to assume all common 
carrier obligations related to the operation of the Line. (See DSRC 
Notice Ex. C at ]] 3, 9.) The lease calls for commencement of the 
requested service no later than December 31, 2016. (Id. at ] 9.) The 
term of the lease is 10 years from the effective date, unless 
terminated earlier pursuant to the terms of the agreement. (Id. at ] 
22.)
    The Line qualifies for a modified certificate of public convenience 
and necessity. See Common Carrier Status of States, State Agencies & 
Instrumentalities & Political Subdivisions, FD 28990F (ICC served July 
16, 1981) and 49 CFR 1150.22.
    DSRC states that no subsidy is involved and that there are no 
preconditions for shippers to meet to receive rail service. DSRC has 
also provided a certificate of liability insurance for commercial 
general liability and excess railroad liability insurance.
    This notice will be served on the Association of American Railroads 
(Car Service Division) as agent for all railroads subscribing to the 
car-service and car-hire agreement at 425 Third Street SW., Suite 1000, 
Washington, DC 20024; and on the American Short Line and Regional 
Railroad Association at 50 F Street NW., Suite 7020, Washington, DC 
20001.
    Board decisions and notices are available on our Web site at 
WWW.STB.GOV.

    Decided: January 18, 2017.
    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2017-01668 Filed 1-24-17; 8:45 am]
 BILLING CODE 4915-01-P