[Federal Register Volume 86, Number 216 (Friday, November 12, 2021)]
[Notices]
[Pages 62862-62865]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24670]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36500]


Canadian Pacific Railway Limited; Canadian Pacific Railway 
Company; Soo Line Railroad Company; Central Maine & Quebec Railway US 
Inc.; Dakota, Minnesota & Eastern Railroad Corporation; and Delaware & 
Hudson Railway Company, Inc.--Control--Kansas City Southern; The Kansas 
City Southern Railway Company; Gateway Eastern Railway Company; and The 
Texas Mexican Railway Company

AGENCY: Surface Transportation Board.

ACTION: On October 29, 2021, the Canadian Pacific Railway Limited, 
Canadian Pacific Railway Company, and their US rail carrier 
subsidiaries Soo Line Railroad Company; Central Maine & Quebec Railway 
U.S. Inc.; Dakota, Minnesota & Eastern Railroad Corporation; and 
Delaware & Hudson Railway Company, Inc. (collectively, CP) and Kansas 
City Southern, The Kansas City Southern Railway Company, Gateway 
Eastern Railway Company, and The Texas Mexican Railway Company 
(collectively, KCS) filed an application with the Surface 
Transportation Board (Board) seeking the Board's approval of the 
acquisition of control by CP of KCS. The proposed acquisition has the 
potential to result in significant environmental impacts; therefore, 
the Board's Office of Environmental Analysis (OEA) has determined that 
the preparation of an Environmental Impact Statement (EIS) is 
appropriate pursuant to the National Environmental Policy Act (NEPA). 
The purpose of this Notice is to inform stakeholders--including members 
of the public; tribes; federal, state, and local agencies; and 
environmental groups--interested in or potentially affected by

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potential environmental impacts related to the proposed acquisition. 
OEA will hold online public scoping meetings as part of the NEPA 
process. Oral and written comments submitted during scoping will assist 
OEA in defining the range of alternatives and potential impacts to be 
considered in the EIS. Public scoping meeting dates are provided below.

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DATES: Comments on the scope of the EIS are due by December 17, 2021. 
OEA will hold six online public scoping meetings on the following dates 
(times in Central Standard Time).
     Tuesday, November 30, 2021, 6-8 p.m.
     Wednesday, December 1, 2021, 2-4 p.m.
     Thursday, December 2, 2021, 6-8 p.m.
     Tuesday, December 7, 6-8 p.m.
     Wednesday, December 8, 2021, 2-4 p.m.
     Thursday, December 9, 2021, 6-8 p.m.
    Information on how to attend and participate in an online public 
scoping meeting, including how to register in advance, is available on 
the Board-sponsored project website at www.CP-KCSMergerEIS.com.

ADDRESSES: Interested parties are encouraged to file their scoping 
comments electronically through the Board-sponsored project website at 
www.CP-KCSMergerEIS.com or through the Board's website at www.stb.gov 
by clicking on the ``File an Environmental Comment'' link. Please refer 
to Docket No. FD 36500 in all correspondence, including E-filings, 
addressed to the Board. Scoping comments submitted by mail should be 
addressed to: Joshua Wayland, Surface Transportation Board, c/o VHB, 
Attention: Environmental Filing, Docket No. FD 36500, 940 Main Campus 
Dr., Suite 500, Raleigh, NC 27606.

FOR FURTHER INFORMATION CONTACT: Joshua Wayland, Office of 
Environmental Analysis, Surface Transportation Board, c/o VHB, 940 Main 
Campus Dr., Suite 500, Raleigh, NC 27606, or call OEA's toll-free 
number for the project at 1-888-319-2337. Assistance for the hearing 
impaired is available through the Federal Information Relay Service at 
1-800-877-8339. The website for the Board is https://www.stb.gov. For 
further information about the Board's environmental review process and 
the EIS, you may also visit the Board-sponsored project website at 
www.CP-KCSMergerEIS.com.

SUPPLEMENTARY INFORMATION:

Background

    On October 29, 2021, CP and KCS (collectively, the Applicants) 
filed an application with the Board under 49 U.S.C. 11323-25 seeking 
its approval of the acquisition of control of KCS by CP. CP and KCS are 
two of the seven Class I railroads in the United States, which are the 
largest railroads defined as having annual revenue greater than $250 
million. CP is one of Canada's two major railroads, extending across 
the country and connecting east and west coast ports. In the U.S., CP 
connects to Buffalo and Albany, New York and Searsport, Maine. CP also 
runs south into the U.S. Midwest and connects with KCS in Kansas City, 
Missouri. KCS is a Class I railroad that extends from Kansas City, 
Missouri to the Gulf Coast and into Mexico, operating across 10 states 
in the Midwest and Southeast. CP and KCS provide rail service for a 
variety of industries, including agriculture, minerals, military, 
automotive, chemical and petroleum, energy, industrial, and consumer 
products. CP and KCS are the two smallest Class I railroads, and the 
combined railroad would be the smallest Class I railroad by revenue. At 
the request of OEA, the Applicants have submitted information needed by 
OEA to initiate an environmental review of the proposed acquisition. 
Based on the information provided by the Applicants, OEA has determined 
that the proposed acquisition has the potential to result in 
significant environmental impacts and that the preparation of an EIS is 
appropriate.

Summary of the Board's Review Processes for This Proceeding

    The Board will review the proposed transaction through two parallel 
but distinct processes: (1) The transportation-related process that 
examines the competitive, transportation, and economic implications of 
the proposed acquisition on the national rail system, and (2) the 
environmental process conducted by OEA that assesses the potential 
environmental effects of the proposed acquisition on the human and 
natural environment through preparation of an EIS. Interested persons 
and entities may participate in either process or both. If interested 
persons or entities are primarily interested in potential environmental 
impacts on communities, such as noise, vibration, air emissions, grade 
crossing safety and delay, emergency vehicle access, and other similar 
environmental issues, the appropriate forum is OEA's environmental 
review process. The statute setting forth the procedures for Board 
review of acquisitions at 49 U.S.C. 11325 and the Board's implementing 
regulations at 49 CFR 1180.4 (2000) require that the Board complete its 
review within approximately 15 months after the application is accepted 
for a ``major'' transaction such as this, and OEA must complete the 
environmental process before the Board issues a final decision.

Environmental Review Process

    The NEPA process is intended to assist the Board and the public in 
identifying and assessing the potential environmental consequences of a 
proposed action before a decision on that proposal is made. OEA is 
responsible for ensuring that the Board complies with NEPA (42 U.S.C. 
4321-4370m-12) and related environmental statutes, including Section 
106 of the National Historic Preservation Act (54 U.S.C. 306108) and 
Section 7 of the Endangered Species Act (16 U.S.C. 1536).

Purpose and Need

    The proposed transaction involves an application for Board 
authority under 49 U.S.C. 11323-25 for CP to acquire KCS. The proposed 
transaction is not a federal government-proposed or sponsored project. 
Thus, the project's purpose and need should be informed by both the 
private applicant's goals and the Board's enabling statute--the 
Interstate Commerce Act as amended by the ICC Termination Act, Public 
Law 104-188, 109 Stat. 803 (1996). See Alaska Survival v. STB, 705 F.3d 
1073, 1084-85 (9th Cir. 2013).
    According to the Applicants, the purpose of the proposed 
acquisition is to combine America's two smallest but fastest-growing 
Class I railroads to build a more efficient and more competitive rail 
network. The Applicants state that the proposed acquisition would 
further the need for expanded and more capable and efficient 
transportation infrastructure while simultaneously advancing the 
interests of current and future customers in more reliable and 
economical rail transportation options serving important North-South 
trade flows. The Applicants also state that the proposed acquisition 
would generate environmental benefits by reducing truck transportation 
on highways in North America by more than 60,000 trucks annually, 
resulting in less congestion, less maintenance, and improved safety on 
those roads, as well as less noise pollution in the places where those 
trucks would have driven, and lowered air emissions, including 
greenhouse gas emissions. Under the

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Interstate Commerce Act, as amended, the Board ``shall approve and 
authorize a transaction'' such as this when, after considering several 
factors, ``it finds the transaction is consistent with the public 
interest.'' 49 U.S.C. 11324 (b) & (c).

Proposed Action and Alternatives

    The Proposed Action in this proceeding is the Applicants' proposed 
acquisition of KCS by CP. The combination of these two railroads would 
be an `end-to-end' merger because the CP and KCS railroad networks do 
not overlap. The proposed acquisition would result in changes in rail 
traffic on portions of the combined rail network. Rail traffic would 
increase on certain rail line segments and would decrease on others. 
The largest change would occur on the CP mainline between Sabula, Iowa 
and Kansas City, Missouri, which would experience an increase in rail 
traffic of approximately 14.4 additional trains per day, on average. 
Increases in activities at rail yards and intermodal facilities would 
also occur. In addition, the Applicants propose to make certain capital 
improvements within the existing rail right-of-way, including adding 
approximately four miles of double track on the KCS Pittsburg 
Subdivision, adding approximately five miles of facility working track 
adjacent to the International Freight Gateway intermodal terminal near 
Kansas City, and adding or extending 24 passing sidings along the 
combined network. The Applicants do not propose to construct any new 
rail lines subject to Board licensing or to abandon any rail lines as 
part of the proposed acquisition.
    The alternative to the Proposed Action is the No-Action 
Alternative, which would occur if the Board were to deny the proposed 
acquisition. Under the No-Action Alternative, CP would not acquire KCS.

Scoping

    The first stage of the environmental review process is scoping. 
Scoping is an open process for determining the range of issues that 
should be examined and assessed in the EIS. In addition to announcing 
that the Board will prepare an EIS for this proceeding, this Notice 
also requests comments on the scope of the EIS and presents the 
schedule of public scoping meetings. With this notice, OEA is 
soliciting written comments on the scope, alternatives, and issues to 
be analyzed in the EIS. After the close of the comment period on the 
scope of the EIS on December 17, 2021, OEA will review all comments 
received and issue a final scope of study for the EIS. OEA anticipates 
issuing the final scope of study in early 2022.

Draft EIS

    Following the issuance of the final scope, OEA will prepare a Draft 
EIS for the proposed acquisition. The Draft EIS will identify and 
analyze alternatives, including the Proposed Action and the No-Action 
Alternative, and will address potential impacts on the environment as 
well as issues and concerns identified during the scoping process. The 
Draft EIS will focus on (1) potential impacts from changes in rail 
operations along rail line segments and at rail yards that would 
experience increases in rail traffic as a result of the proposed 
acquisition that would exceed OEA's thresholds for environmental review 
at 49 CFR 1105.7(e), (2) potential impacts related to changes in 
vehicular traffic on roadways and at facilities as a result of the 
proposed acquisition that would exceed OEA's thresholds for analysis, 
and (3) potential impacts that could result from making capital 
improvements within the rail right-of-way as part of the proposed 
acquisition.
    The scope of the issues that will be analyzed in the Draft EIS may 
include potential impacts related to:
     Freight rail capacity and safety;
     Passenger rail capacity and safety;
     Grade crossing safety and delay;
     Motor vehicle traffic and roadway systems;
     Land use;
     Air quality;
     Noise;
     Biological resources;
     Water resources;
     Hazardous waste sites;
     Cultural resources;
     Environmental justice; and
     Cumulative impacts.
    The thresholds for assessing environmental impacts from increased 
rail traffic on rail lines in railroad acquisition proceedings are an 
increase in rail traffic of at least 100 percent (measured in gross ton 
miles annually) or an increase of at least eight trains per day. For 
air quality impacts, rail lines located in areas classified as being in 
nonattainment under the Clean Air Act (42 U.S.C. 7401-7671q) are also 
assessed if they would experience an increase in rail traffic of at 
least 50 percent (measured in gross ton miles annually) or an increase 
of at least three trains per day. Based on the information provided by 
the Applicants to date, OEA has identified rail lines in Illinois, 
Iowa, Missouri, Kansas, Oklahoma, Arkansas, Louisiana, and Texas that 
would experience increases in rail traffic that would exceed the 
analysis thresholds as a result of the proposed acquisition.
    In addition to assessing the environmental impacts of the proposed 
acquisition, the Draft EIS will also set forth OEA's preliminary 
recommendations for environmental mitigation measures. OEA anticipates 
issuing the Draft EIS in the spring of 2022.

Final EIS

    Upon its completion, the Draft EIS will be made available for 
public and agency review and comment for 45 days. OEA will then prepare 
and issue a Final EIS that will address the comments on the Draft EIS 
from the public; and federal, state and local agencies; and other 
interested parties and will set forth OEA's final recommended 
environmental mitigation. Then, in reaching its decision in this case, 
the Board will consider the Draft EIS, the Final EIS, public comments, 
and any final environmental mitigation proposed by OEA. OEA anticipates 
issuing the Final EIS in the fall of 2022.

Public Scoping Meetings

    As noted above, scoping is the first stage of the environmental 
review process. OEA will hold online public scoping meetings at the 
dates and times listed below. All times are listed in Central Standard 
Time. There is no need to attend more than one online meeting, but all 
are welcome to attend as many meetings as desired.
     Tuesday, November 30, 2021, 6-8 p.m.
     Wednesday, December 1, 2021, 2-4 p.m.
     Thursday, December 2, 2021, 6-8 p.m.
     Tuesday, December 7, 6-8 p.m.
     Wednesday, December 8, 2021, 2-4 p.m.
     Thursday, December 9, 2021, 6-8 p.m.
    The online public scoping meetings will include a brief 
presentation by OEA, followed by an opportunity for interested 
individuals to make oral comments. Participants who have registered in 
advance will be called upon first to deliver their oral comments and 
will be given three minutes in which to do so. If time permits, 
participants who did not register in advance will be given the 
opportunity to make oral comments. A court reporter will record the 
oral comments, and OEA staff will be available to listen and make notes 
of comments.
    For information on how to attend an online public scoping meeting, 
including how to register in advance, please visit the Public 
Involvement page on the Board-sponsored project website

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(www.CP-KCSMergerEIS.com). Although individuals who would like to make 
oral comments are encouraged to register in advance, registration is 
not required to attend the public scoping meetings. OEA will consider 
all comments equally no matter how comments are received, and it is not 
necessary to attend an online public scoping meeting to provide scoping 
comments, as OEA will also be accepting written comments during the 
comment period, which ends on December 17, 2021.

Submitting Written Comments on the Scope of the EIS

    Interested parties are encouraged to file their scoping comments 
electronically through the Board-sponsored project website at www.CP-KCSMergerEIS.com. Written comments can also be submitted electronically 
on the Board's website, www.stb.gov, by clicking on the ``E-FILING'' 
link. Please refer to Docket No. FD 36500 in all correspondence, 
including E-filings, addressed to the Board. Scoping comments submitted 
by mail should be addressed to Joshua Wayland, Surface Transportation 
Board, c/o VHB, 940 Main Campus Dr., Suite 500, Raleigh, NC 27606, 
Attention: Environmental Filing, Docket No. FD 36500. Following these 
directions will help ensure that your comments are considered in the 
environmental review process for this proposed acquisition.
    All comments submitted during scoping will be made available to the 
public on the Board-sponsored project website and the Board's website. 
OEA will add commenters' names to its email distribution list to 
announce the availability of the final scope of the EIS, the Draft EIS, 
and the Final EIS, which will be posted on the Board's website and the 
Board-sponsored project website. Commenters without email addresses 
will receive notifications by U.S. mail if accurate mailing addresses 
are provided, as needed.
    All Board decisions, orders, and notices in this proceeding will 
also be available on the Board's website at www.stb.gov under ``E-
Library,'' and ``Decisions & Notices'' or ``Filings.'' For further 
information about the Board's environmental review process and the EIS, 
you may also visit the Board-sponsored project website at www.CP-KCSMergerEIS.com.
    By the Board, Danielle Gosselin, Acting Director, Office of 
Environmental Analysis.

Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2021-24670 Filed 11-10-21; 8:45 am]
BILLING CODE 4915-01-P