[Federal Register Volume 88, Number 28 (Friday, February 10, 2023)]
[Notices]
[Page 8983]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-02875]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36663]


Yak Rail LLC--Modified Rail Certificate

    On January 27, 2023, Yak Rail LLC (Yak Rail),\1\ a noncarrier, 
filed a notice for a modified certificate of public convenience and 
necessity under 49 CFR part 1150 subpart C--Modified Certificate of 
Public Convenience and Necessity, to lease and operate a line of 
railroad owned by Yakima County, originating at BNSF Railway Company 
(BNSF) milepost 73.6 at Wesley Junction near Toppenish \2\ and 
extending west 20.56 miles to White Swan (the Line), and an additional 
1.63 miles of industrial spur near White Swan, for a total distance of 
22.19 miles in Yakima County, Wash.
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    \1\ Yak Rail is a new entity formed as a limited liability 
company under the laws of the State of Washington.
    \2\ The lease agreement refers to this point as milepost 0.0. 
(See Verified Notice, Ex. B at 1.)
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    The Line was authorized for abandonment by the Board's predecessor 
agency, the Interstate Commerce Commission, in Washington Central 
Railroad--Abandonment Exemption--in Yakima County, Wash., AB 326X (ICC 
served Aug. 24, 1992). Although authorized for abandonment, the Line 
was subsequently acquired by the State of Washington pursuant to an 
offer of financial assistance in Washington Central Railroad--
Abandonment Exemption--in Yakima County, Wash., AB 326X (ICC served 
March 18, 1993), and according to Yak Rail, transferred to Yakima 
County (the County). Previously, the Line was operated by three other 
carriers under modified rail certificates.\3\
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    \3\ See Yakima Valley Rail & Steam Museum Ass'n.--Modified Rail 
Certificate, FD 32487 (ICC served Apr. 28, 1994); Cent. Wash. R.R.--
Modified Rail Certificate, FD 34804 (STB served Jan. 4, 2006); YCR 
Corp.--Modified Rail Certificate--in Yakima Cnty., Wash., FD 35336 
(STB served Jan. 15, 2010).
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    Pursuant to a lease agreement, Yak Rail and the County have agreed 
that Yak Rail will commence freight rail operation on or after January 
27, 2023, for an initial term of 10 years, which may be extended, upon 
the occurrence of certain conditions, for an additional five years. 
Under the agreement, the parties may terminate the lease earlier upon 
the occurrence of certain events (i.e., a final and non-appealable 
order by the Board, court, or other administrative agency that 
terminates Yak Rail's authority or ability to provide rail freight 
services on the Line). (See Verified Notice, Ex. B at 9.) \4\
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    \4\ As operator of the Line, Yak Rail will provide rail freight 
service over the Line's only interline connection with BNSF at BNSF 
milepost 73.6, at Toppenish. Yak Rail advises the Board that it 
intends to enter into an interchange agreement with BNSF, imposing 
no interchange commitment. Yak Rail states that it will advise the 
Board in the event that the final interchange agreement differs from 
what it represented here.
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    This transaction is related to the verified notice of exemption 
filed in CWW LLC--Continuance in Control Exemption--Yak Rail LLC, 
Docket No. FD 36664, in which CWW LLC seeks to continue in control of 
Yak Rail, upon Yak Rail's becoming a Class III rail carrier.
    The Line qualifies for a modified certificate of public convenience 
and necessity. See Common Carrier Status of States, State Agencies & 
Instrumentalities & Pol. Subdivs., FD 28990F (ICC served July 16, 
1981); 49 CFR 1150.22.
    Yak Rail states that no entity is subsidizing Yak Rail's freight 
operations on the Line and that there are no preconditions for shippers 
to meet in order to receive rail service from Yak Rail. Yak Rail also 
states that the agreement requires it to obtain liability insurance 
coverage.
    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 500, Washington, DC 
20001.

    Board decisions and notices are available at www.stb.gov.

    Decided: February 7, 2023.

    By the Board, Mai T. Dinh, Director, Office of Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2023-02875 Filed 2-9-23; 8:45 am]
BILLING CODE 4915-01-P