[Federal Register Volume 83, Number 246 (Wednesday, December 26, 2018)]
[Notices]
[Pages 66335-66336]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-28027]
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SURFACE TRANSPORTATION BOARD
[Docket No. FD 36251]
Progressive Rail Incorporated--Lease Exemption With Interchange
Commitment--Soo Line Railroad Company and Dakota, Minnesota & Eastern
Railroad Corporation
Progressive Rail Incorporated (PGR), a Class III rail carrier, has
filed a verified notice of exemption under 49 CFR 1150.41 to (1) renew
its lease from Soo Line Railroad Company (Soo Line) of two lines of
railroad between Northfield, Minn., and Lakeville, Minn. (Lakeville
Line), and between Rosemount, Minn., and Eagan, Minn. (Eagandale Line);
and (2) lease from Soo Line and Dakota, Minnesota & Eastern Railroad
Corporation (DM&E) \1\ a line of railroad between Faribault, Minn., and
Northfield, Minn. (Faribault Line).
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\1\ Soo Line and DM&E are affiliated railroads under common
control of Canadian Pacific Railway Company (CP). Canadian Pac.
Ry.--Control--Dakota, Minn. & E. R.R., FD 35081 (STB served Sept.
30, 2008).
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The Lakeville Line extends approximately 21 miles from UP milepost
309.69 at Northfield through UP milepost 313.77 (CP milepost 52.90) to
CP milepost 35.25 at Lakeville. The Lakeville Line also includes the
0.1-mile segment of track known as the Cannon Falls Branch between CP
milepost 0.00 and CP milepost 0.10 at Northfield. The Eagandale Line
extends approximately 12 miles from UP milepost 332.05 at Rosemount
through UP milepost 333.85 (CP milepost 150.80) to CP milepost 160.70
at Eagan. The Faribault Line extends for approximately nine miles
between UP milepost 300.50 \2\ at Faribault and UP milepost 309.69 at
Northfield. According to PGR, DM&E owns the Faribault Line from Comus
to Faribault, and Soo Line owns the Faribault Line from Comus to
Northfield. PGR states that the Lakeville, Eagandale, and Faribault
Lines (collectively, the Lines) total approximately 42 miles.
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\2\ In its notice of exemption, the map at Exhibit A-1 referred
to UP milepost 300.35. On December 19, 2018, PGR filed a supplement
noting that the map should have referred to UP milepost 300.50.
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PGR states that it has entered into a new lease agreement with Soo
Line and DM&E that renews PGR's lease of the Lakeville and Eagandale
Lines for an additional 15 years and allows PGR to lease and operate
the Faribault Line for a term of 15 years.
PGR states that it currently operates the Lakeville and Eagandale
Lines pursuant to Progressive Rail Inc.--Lease & Operation Exemption--
Soo Line Railroad, FD 34496 (STB served May 19, 2004) and the Faribault
Line pursuant to Progressive Rail Inc.--Acquisition & Operation
Exemption--Rail Lines of Union Pacific Railroad, FD 34476 (STB served
Apr. 7, 2004). PGR states that it will continue to operate the Lines
under the new lease agreement.
According to PGR, the new lease agreement includes an interchange
commitment. As required under 49 CFR 1150.43(h)(1), PGR provided
additional information regarding the interchange commitment.
PGR certifies that its projected revenues resulting from this
transaction will not result in the creation of a Class I or Class II
rail carrier, but states that its projected annual revenues will exceed
$5 million following the transaction. Accordingly, PGR is required by
Board regulations to send notice of the transaction to the national
offices of the labor unions with employees on the affected lines, to
post a copy of the notice at the workplace of the employees on the
affected lines, and to certify to the Board that it has done so, at
least 60 days before the exemption is to become effective. 49 CFR
1150.42(e). PGR filed its certification on November 15, 2018.
Concurrently with its verified notice, however, PGR filed a
petition for partial
[[Page 66336]]
waiver of the 60-day advance labor notice requirement to permit the
exemption to take effect on January 9, 2019. PGR's waiver request will
be addressed in a separate decision.
PGR states that it expects to consummate the transaction on or
shortly after the effective date of this exemption. The Board will
establish the effective date in its separate decision on the waiver
request.
If the 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 January 2, 2019.
An original and 10 copies of all pleadings, referring to Docket No.
FD 36251, 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 Bradon J. Smith, Fletcher & Sippel LLC, 29
North Wacker Drive, Suite 800, Chicago, IL 60606.
Board decisions and notices are available at www.stb.gov.
Decided: December 19, 2018.
By the Board, Allison C. Davis, Acting Director, Office of
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2018-28027 Filed 12-21-18; 8:45 am]
BILLING CODE 4915-01-P