[Federal Register Volume 84, Number 120 (Friday, June 21, 2019)]
[Notices]
[Pages 29275-29276]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13152]
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SURFACE TRANSPORTATION BOARD
[Docket No. FD 36291]
Dakota Southern Railway Company--Modified Rail Certificate
On April 17, 2019, Dakota Southern Railway Company (DSRC), a Class
III rail carrier, filed a notice for a modified certificate of public
convenience and necessity under 49 CFR 1150 subpart C--Modified
Certificate of Public Convenience and Necessity, to provide freight
rail operations over approximately 187.98 miles of rail line owned by
the State of South Dakota (State) and located between milepost 374.44
in Mitchell, S.D., and extending in a westerly direction to milepost
562.53 in Kadoka, S.D. (the Segment). According to DSRC, the Segment is
part of a longer line from Mitchell to Rapid City, S.D. (the MRC Line).
DSRC states that the MRC Line, which was formerly owned by the
Milwaukee, St. Paul & Pacific Railroad Company, is now owned by the
State.
DSRC states that, in 1980, the U.S. District Court for the Northern
District of Illinois authorized the abandonment of the MRC Line,
following the issuance of a report by the Interstate Commerce
Commission recommending abandonment. See Ogilvie--Aban.--in S.D., Iowa
& Neb., AB 7 (Sub-No. 88) (ICC served May 14, 1980).\1\ According
[[Page 29276]]
to DSRC, abandonment of the MRC Line was not consummated and instead
the MRC Line was acquired by the State in 1980. (DSRC Notice 3.) DSRC
states that the portion of the MRC Line west of Kadoka is now
railbanked. See Mitchell-Rapid City Reg'l R.R. Auth.--Modified Rail
Certificate--Between Caputa & Rapid City, S.D., FD 35149 (STB served
Apr. 28, 2009) (issuing notice of interim trail use between milepost
659.6 to milepost 646.0); Sammamish Transp. Co.--Notice of Interim
Trail Use & Termination of Modified Certificate, FD 33398 (Sub-No. 1)
(STB served Feb. 26, 1998) (issuing notice of interim trail use between
milepost 646.0 to milepost 562.53). In addition, DSRC states that, to
the best of its knowledge, two carriers have obtained modified
certificate rights to operate over portions of the MRC Line east of
Kadoka but no longer exercise those rights.\2\
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\1\ The Milwaukee Railroad Restructuring Act transferred
jurisdiction over Chicago, Milwaukee, St. Paul & Pacific Railroad
Company abandonments from the Interstate Commerce Commission to the
U.S. District Court for the Northern District of Illinois. Ogilvie,
AB 7 (Sub-No. 88), slip op. at 1.
\2\ See Nobles Rock R.R.--Modified Rail Certificate, FD 33792
(STB served Sept. 16, 1999); Burlington N. R.R.--Operations--in
States of Iowa & S.D., FD 29672 (ICC served Aug. 17, 1981). DSRC
states that, to the best of its knowledge, Burlington Northern's
rights were terminated by notice, (see Burlington N. R.R. Letter,
Oct. 14, 1986, Burlington N. R.R., FD 29672), and Nobles Rock became
insolvent and no longer exists. (DSRC Notice 4 n.2.)
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The verified notice indicates that the State leases the Segment to
the MRC Regional Rail Authority (MRCA), a political subdivision of the
State. In 2012, MRCA entered into a sublease with DSRC, which provides
that DSRC will be the operator of the Segment and will assume all
common carrier obligations to provide service on the Segment. (DSRC
Notice Ex. C, 2 ] 6.) Under the terms of the sublease, DSRC will
provide rail service on the Segment for 20 years from and after the
effective date of January 1, 2012.\3\ (Id. at 4 ] 17.)
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\3\ DSRC states that it has been operating pursuant to the terms
of the sublease since January 1, 2012. According to DSRC, SDR
Holding Company, which controls DSRC, had been under the impression
that a modified certificate previously had been issued. (DSRC Notice
2, 4-5.)
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According to DSRC, it interchanges with BNSF Railway Company (BNSF)
at or near Mitchell, pursuant to interchange, trackage, haulage, and
lease agreements with BNSF.
The Segment 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); 49 CFR 1150.22.
DSRC indicates that no subsidy is involved and that there are no
preconditions that shippers must meet to receive rail service; DSRC
also provides information regarding the nature and extent of its
liability insurance coverage. See 49 CFR 1150.23(b)(4)-(5).
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 at www.stb.gov.
Decided: June 14, 2019.
By the Board, Allison C. Davis, Director, Office of Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2019-13152 Filed 6-20-19; 8:45 am]
BILLING CODE 4915-01-P