[Federal Register Volume 84, Number 149 (Friday, August 2, 2019)]
[Notices]
[Page 37944]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16561]



[[Page 37944]]

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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36333]


City of Chicago--Acquisition Exemption--Chicago Terminal Railroad

    The City of Chicago (City) has filed a verified notice of exemption 
under 49 CFR 1150.31 to acquire the right to reactivate rail service 
from Chicago Terminal Railroad (CTM) on approximately 2.725 miles of 
rail line, consisting of (1) an approximately 2.625 mile segment from 
the western right of way line of North Elston Avenue to a terminus near 
the intersection of Chicago Avenue and Halsted Street in the Goose 
Island district of Chicago (the Goose Island Segment), and (2) an 
approximately 0.1 mile segment of the Bloomingdale line between the 
western right of way line of North Elston Avenue and the Union Pacific 
North Avenue Yard (the North Elston Segment) (collectively, the Line).
    The Board granted an application by Alloy Property Company, LLC 
(Alloy) for adverse abandonment of the Goose Island Segment in 2018, 
see Alloy Property Co., LLC--Adverse Aban.--Chi. Terminal R.R. in 
Chicago, Ill., AB 1258 (STB served Apr. 30, 2018), and authorized 
abandonment of the North Elston Segment in 2018, see Chi. Terminal 
R.R.--Abandonment Exemption--in Chicago, Ill., AB 1268X (STB served 
Sept. 28, 2018). The City states that the Board issued a Certificate of 
Interim Trail Use (CITU) for the Goose Island Segment and a Notice of 
Interim Trail Use (NITU) for the North Elston Segment, and the City and 
CTM have been negotiating a trail use agreement pursuant to the 
National Trails System Act, 16 U.S.C. 1247(d). The trail use 
negotiation period in both proceedings has been extended to September 
23, 2019. Alloy Property Co., LLC--Adverse Aban.--Chi. Terminal R.R. in 
Chicago, Ill., AB 1258 et al. (STB served Apr. 15, 2019).
    The City's verified notice describes three agreements, under which 
the City and CTM will both consummate their trail use agreement 
regarding the Line and transfer CTM's right to reactivate freight 
service to the City upon or shortly after the effective date of this 
verified notice of exemption. First, the City states that the Line will 
be the subject of a trail use agreement between the City as the trail 
sponsor and CTM, which is currently the residual common carrier rights 
holder. Second, the City states that CTM and Alloy have negotiated and 
are prepared to enter into an Asset Purchase Agreement through which 
CTM has committed to convey its easement and other property interests 
in the Line to Alloy. Finally, the City states that it and Alloy 
anticipate entering into an agreement through which Alloy may direct 
CTM, per the terms of the Asset Purchase Agreement, to transfer 
directly to the City certain easement and other property interests in 
the Line for purposes of carrying out certain trail uses as the trail 
use sponsor. According to the City, it will thereby acquire both CTM's 
real property interests and the right to reactive rail service on the 
Line.
    The City certifies that its projected annual revenues as a result 
of this transaction will not exceed those that would qualify it as a 
Class III rail carrier. The City further certifies that the proposed 
transaction does not involve a provision or agreement that would limit 
future interchange with a third-party connecting carrier.
    The transaction may be consummated on or after August 18, 2019, the 
effective date of the exemption (30 days after the verified notice was 
filed).
    If the verified 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 to stay must be filed no later than August 9, 2019 
(at least seven days before the exemption becomes effective).
    All pleadings, referring to Docket No. FD 36333, must be filed with 
the Surface Transportation Board either via e-filing or in writing 
addressed to 395 E Street SW, Washington, DC 20423-0001. In addition, a 
copy of each pleading must be served on the City's representative, 
Charles A. Spitulnik, Kaplan Kirsch & Rockwell LLP, 1634 I (Eye) Street 
NW, Suite 300, Washington, DC 20006.
    According to the City, this action is categorically excluded from 
environmental reporting requirements under 49 CFR 1105.6(c) and from 
historic preservation reporting requirements under 49 CFR 1105.8(b)(1).
    Board decisions and notices are available at www.stb.gov.

    Decided: July 30, 2019.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2019-16561 Filed 8-1-19; 8:45 am]
BILLING CODE 4915-01-P