[Federal Register Volume 82, Number 23 (Monday, February 6, 2017)]
[Notices]
[Pages 9479-9480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02427]


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SURFACE TRANSPORTATION BOARD

[Docket No. AB 1251X]


Southwestern Railroad, Inc.--Discontinuance of Service 
Exemption--in Curry, Roosevelt, Chaves, and Eddy Counties, N.M.

    On January 17, 2017, Southwestern Railroad, Inc. (SWRR), filed with 
the Board a petition under 49 U.S.C. 10502 for exemption from the prior 
approval requirements of 49 U.S.C. 10903 to discontinue common carrier 
rail service over approximately 227.6 miles of rail lines consisting of 
the following segments (the Lines): (1) The Carlsbad Subdivision 
between milepost 0.5 at Clovis, N.M., and milepost 183.0 at Carlsbad, 
N.M.; (2) the Carlsbad Yard; \1\ (3) the Carlsbad Industrial Spur 
between milepost 0.0 at Carlsbad, N.M., and milepost 20.0 near 
Carlsbad, N.M.; and (4) the Loving Industrial Spur between milepost 0.0 
at Carlsbad, N.M., and milepost 20.0 at Loving, N.M. The Lines are 
owned by BNSF Railway Company (BNSF).
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    \1\ SWRR states that there are no mileposts associated with the 
approximately 5.1 miles of rail lines located in the Carlsbad Yard.
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    SWRR states it acquired authority to lease and operate the BNSF-
owned Lines in 2004.\2\ According to SWRR, BNSF notified SWRR in 2016 
that it wished to resume operations over the Carlsbad Division prior to 
the termination of the current lease. SWRR states that, after 
negotiations, SWRR and BNSF filed an amendment to the lease agreement 
that allowed BNSF to resume operations over the Lines on January 17, 
2017.\3\ SWRR explains that as of January 17, 2017, both SWRR and BNSF 
have a common carrier obligation to provide service over the Lines 
until such time that SWRR's discontinuance authority is granted. 
Additionally, SWRR states that, because shippers currently served by 
SWRR will also be served by BNSF during this discontinuance proceeding 
and will be served by BNSF after any SWRR discontinuance authority is 
granted, there will be no interruption of service and no shippers 
served by the Lines will be disadvantaged when and if SWRR ceases 
operations.
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    \2\ See Sw. R.R.--Lease & Operation Exemption--Burlington N. & 
Sanfe Fe Ry., FD 34533 (STB served Oct. 22, 2004). SWRR states that 
SWRR and BNSF have amended the lease agreement five times since its 
inception.
    \3\ See Sw. R.R.--Lease & Operation Exemption--Burlington N. & 
Sante Fe Ry., FD 34533 (Sub-No. 1) (STB served Aug. 12, 2016).
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    SWRR states that BNSF is the owner of the Lines, but based on 
information in SWRR's possession, the Lines do not contain federally 
granted rights-of-way.

[[Page 9480]]

Any documentation in SWRR's possession will be made available promptly 
to those requesting it.
    SWRR asserts that, because it is terminating operations over its 
entire system,\4\ the employee protective conditions set forth in 
Oregon Short Line Railroad--Abandonment Portion Goshen Branch Between 
Firth & Ammon, in Bingham & Bonneville Counties, Idaho, 360 I.C.C. 91 
(1979), should not be imposed.\5\
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    \4\ SWRR currently operates two divisions, the Carlsbad Division 
and the Whitewater Division. SWRR explains that it is discontinuing 
its operations pursuant to a lease over the Carlsbad Division in 
this proceeding and selling its Whitewater Division in an unrelated 
proceeding. See N.M. Cent. R.R.--Acquis. & Operation Exemption--Sw. 
R.R. Whitewater Div., FD 36085 (Filed Dec. 17, 2016). SWRR states 
that upon consummation of the Carlsbad and Whitewater Divisions 
transactions, SWRR will cease to be a common carrier entity.
    \5\ See Wellsville, Addison & Galeton R.R.--Aban. of Entire Line 
in Potter & Tioga Ctys., Pa., 354 I.C.C. 744 (1978); and Northampton 
& Bath R.R.--Aban. near Northampton & Bath Junction in Northampton 
Cty., Pa., 354 I.C.C. 784 (1978).
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    Because this is a discontinuance proceeding and not an abandonment 
proceeding, trail use/rail banking and public use conditions are not 
appropriate. Because there will be environmental review during 
abandonment, this discontinuance does not require an environmental 
review.
    By issuance of this notice, the Board is instituting an exemption 
proceeding pursuant to 49 U.S.C. 10502(b). A final decision will be 
issued by May 5, 2017.
    Any offer of financial assistance (OFA) under 49 CFR 1152.27(b)(2) 
to subsidize continued rail service will be due no later than May 15, 
2017, or 10 days after service of a decision granting the petition for 
exemption, whichever occurs first. Each OFA must be accompanied by a 
$1,700 filing fee. See Regulations Governing Fees for Servs. Performed 
in Connection with Licensing & Related Servs.--2016 Update, EP 542 
(Sub-No. 24) (STB served August 2, 2016).
    All filings in response to this notice must refer to Docket No. AB 
1251X and must be sent to: (1) Surface Transportation Board, 395 E 
Street SW., Washington, DC 20423-0001; and (2) William A. Mullins and 
Crystal M. Zorbaugh, Baker and Miller PLLC, 2401 Pennsylvania Ave. NW., 
Suite 300, Washington, DC 20037. Replies to the petition are due on or 
before February 6, 2017.
    Persons seeking further information concerning discontinuance 
procedures may contact the Board's Office of Public Assistance, 
Governmental Affairs, and Compliance at (202) 245-0238 or refer to the 
full abandonment or discontinuance regulations at 49 CFR part 1152. 
Questions concerning environmental issues may be directed to the 
Board's Office of Environmental Analysis at (202) 245-0305. Assistance 
for the hearing impaired is available through the Federal Information 
Relay Service (FIRS) at 1-800-877-8339.
    Board decisions and notices are available on our Web site at 
WWW.STB.GOV.

    Decided: February 1, 2017.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2017-02427 Filed 2-3-17; 8:45 am]
 BILLING CODE 4915-01-P