[Federal Register Volume 82, Number 26 (Thursday, February 9, 2017)]
[Notices]
[Page 10176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02701]


-----------------------------------------------------------------------

SURFACE TRANSPORTATION BOARD

[Docket No. FD 36068 (Sub-No. 1)]


The Indiana Rail Road Company--Trackage Rights Exemption--CSX 
Transportation, Inc.

    On September 29, 2016, The Indiana Rail Road Company (INRD) filed a 
verified notice of exemption in Docket No. FD 36068 for trackage rights 
under the class exemption at 49 CFR 1180.2(d)(7) and simultaneously 
filed a petition in this sub-docket to partially revoke the exemption 
to allow the trackage rights to expire on December 31, 2017. Notice of 
the exemption in Docket No. FD 36068 was served and published in the 
Federal Register on October 14, 2016 (81 FR 71160), and became 
effective on October 29, 2016. This decision addresses INRD's petition 
to partially revoke the exemption.
    As explained by INRD in its notice of exemption in Docket No. FD 
36068, pursuant to a May 15, 2008 trackage rights agreement and two 
subsequent supplements to that agreement dated as of August 1, 2009, 
and November 20, 2009, INRD holds trackage rights over a line of 
railroad of CSX Transportation, Inc. (CSXT) from Sullivan to Carlisle 
and Oaktown, Ind.\1\ The purpose of these trackage rights is to allow 
INRD to handle unit coal trains from mines at Carlisle and Oaktown to 
specified destinations on INRD or other railroads with which INRD 
interchanges.
---------------------------------------------------------------------------

    \1\ See Ind. Rail Rd.--Trackage Rights Exemption--CSX Transp., 
Inc., FD 35328 (STB served Dec. 31, 2009); Ind. Rail Rd.--Trackage 
Rights Exemption--CSX Transp., Inc., FD 35287 (STB served Sept. 2, 
2009); Ind. Rail Rd.--Amended Trackage Rights Exemption--CSX 
Transp., Inc., FD 35137 (STB served May 22, 2008).
---------------------------------------------------------------------------

    INRD states in its petition in this sub-docket that CSXT agreed to 
temporarily expand the existing trackage rights to allow INRD to handle 
loaded and empty coal trains between the Oaktown Mine and the Kentucky 
Utilities Generating Station in Harrodsburg, Ky., in interline service 
with other rail carriers.\2\ That temporary trackage rights agreement, 
entitled Supplemental Agreement No. 6 and dated September 1, 2016 
(Agreement), provides that the expanded trackage rights will expire on 
December 31, 2017.\3\ INRD argues that granting its petition to allow 
the trackage rights to expire on that date will promote the rail 
transportation policy, will be consistent with the limited scope of the 
transaction, and will not adversely affect the current competitive 
situation of any shipper.
---------------------------------------------------------------------------

    \2\ INRD's notice of exemption initially described the trackage 
rights as ``local.'' However, on October 4, 2016, INRD filed a 
supplement in which it states that, beyond serving the mine at 
Oaktown, the temporary trackage rights will not allow INRD to 
provide local service at any points between Sullivan and Oaktown.
    \3\ INRD explained in its notice of exemption that because the 
temporary trackage rights under the Agreement were to be more than a 
year in duration, the class exemption for temporary trackage rights 
under 49 CFR 1180.2(d)(8) was not available.
---------------------------------------------------------------------------

Discussion and Conclusions

    Although INRD and CSXT have expressly agreed on the duration of the 
proposed Agreement, trackage rights approved under the class exemption 
at 49 CFR 1180.2(d)(7) typically remain effective indefinitely, 
regardless of any contract provisions. Occasionally, however, trackage 
rights exemptions have been granted for a limited time period rather 
than in perpetuity. See, e.g., Ind. S. R.R.--Temporary Trackage Rights 
Exemption--Norfolk S. Ry., FD 35965 (Sub-No. 1) (STB served Nov. 25, 
2015).
    Under 49 U.S.C. 10502, the Board may exempt a person, class of 
persons, or a transaction or service, in whole or in part, when it 
finds that: (1) Continued regulation is not necessary to carry out the 
rail transportation policy of 49 U.S.C. 10101; and (2) either the 
transaction or service is of limited scope, or regulation is not 
necessary to protect shippers from the abuse of market power.
    INRD's trackage rights were already authorized under the class 
exemption at 49 CFR 1180.2(d)(7). Granting partial revocation in these 
circumstances would promote the rail transportation policy by 
eliminating the need to file a second pleading seeking discontinuance 
when the agreement expires, thereby promoting rail transportation 
policy goals at 49 U.S.C. 10101(2), (7), and (15). Moreover, limiting 
the term of the trackage rights is consistent with the limited scope of 
the transaction previously exempted. Therefore, the Board will grant 
the petition and permit the trackage rights exempted in Docket No. FD 
36068 to expire on December 31, 2017.
    To provide the statutorily mandated protection to any employee 
adversely affected by the discontinuance of trackage rights, the Board 
will impose 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).
    This action is categorically excluded from environmental review 
under 49 CFR 1105.6(c).
    It is ordered:
    1. The petition for partial revocation is granted.
    2. Under 49 U.S.C. 10502, the trackage rights described in Docket 
No. FD 36068 are exempted, as discussed above, to permit the trackage 
rights to expire on December 31, 2017, subject to the employee 
protective conditions set forth in Oregon Short Line.
    3. Notice will be published in the Federal Register on February 9, 
2017.
    4. This decision is effective on March 11, 2017. Petitions to stay 
must be filed by February 21, 2017. Petitions for reconsideration must 
be filed by March 1, 2017.

    Decided: February 3, 2017.

    By the Board, Acting Chairman Begeman, Vice Chairman Elliott, 
and Commissioner Miller.
Marline Simeon,
Clearance Clerk.
[FR Doc. 2017-02701 Filed 2-8-17; 8:45 am]
 BILLING CODE 4915-01-P