[Federal Register Volume 90, Number 74 (Friday, April 18, 2025)]
[Notices]
[Page 16585]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-06629]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36829]


San Joaquin Valley Railroad Co.--Lease and Operation Exemption 
Including Interchange Commitment--Union Pacific Railroad Company

    San Joaquin Valley Railroad Co. (SJVR), a Class III railroad, filed 
a verified notice of exemption under 49 CFR 1150.41 to continue to 
lease from Union Pacific Railroad Company (UPRR) and operate 101.5 
miles of rail lines, specifically: (1) the Westside Branch (Lower Los 
Banos) from Oxalis, Cal., milepost 159.9 to milepost 181.9, at or near 
Ingle, Cal.; (2) the Westside Branch (Lower Los Banos) from Ingle, 
milepost 181.9 to Fresno, Cal., at milepost 207.0 and including the 
Riverdale Branch from Ingle, milepost 181.8 to the end of the track at 
or near milepost 206.2 at Burrell, Cal.; (3) the Buttonwillow Branch 
from Kern Jct., Cal., milepost 316.3 to Gosford, Cal., milepost 322.6; 
and (4) the Buttonwillow Branch from Gosford, milepost 322.6 to the end 
of the track at or near Buttonwillow, Cal., milepost 346.3 (the Lines).
    According to SJVR, it has entered into a lease amendment (Lease 
Amendment) with UPRR to replace a renewed lease entered into between 
SJVR and UPRR in 2020 (the Replacement Lease). See San Joaquin Valley 
R.R.--Lease & Operation Exemption Including Interchange Commitment--
Union Pac. R.R., FD 36466 (STB served Jan. 22, 2021). The Replacement 
Lease superseded a 1994 lease (the Original Lease) between UPRR's 
predecessor company, Southern Pacific Transportation Company, and SJVR, 
as an assignee of Port Railroads, Inc. (Port Railroads).\1\ SJVR states 
that it is currently the operator of the Lines under the Replacement 
Lease and that, prior to entering into the Replacement Lease, SJVR 
operated the Lines under the Original Lease as assignee of Port 
Railroads. SJVR states that it entered into the Lease Amendment with 
UPRR on January 9, 2025, to further extend the term of the Replacement 
Lease and allow SJVR to continue operating the Lines for an additional 
five years.
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    \1\ See Port R.Rs.--Lease & Operation Exemption--S. Pac. Transp. 
Co., FD 32457 (ICC served Mar. 14, 1994) (authorizing lease of 
approximately 107.438 miles of line); San Joaquin Valley R.R.--Corp. 
Family Transaction Exemption--Port R.Rs., FD 32906 (STB served May 
3, 1996). According to the verified notice, the milepost 
designations differ slightly from the Original Lease, reflecting 
updated mileposts on the Lines.
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    SJVR certifies that the Lease Amendment contains an interchange 
commitment.\2\ Accordingly, SJVR has provided additional information 
regarding the interchange commitment, as required by 49 CFR1150.43(h).
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    \2\ A copy of the Lease Amendment with the interchange 
commitment was submitted under seal. See 49 CFR 1150.43(h)(1).
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    SJVR certifies that its projected revenues as a result of the 
transaction will not exceed those that would qualify it as a Class III 
carrier and that its revenues currently exceed $5 million. Pursuant to 
49 CFR 1150.42(e), if a carrier's projected annual revenues will exceed 
$5 million, it must, at least 60 days before the exemption becomes 
effective, post a notice of its intent to undertake the proposed 
transaction at the workplace of the employees on the affected lines, 
serve a copy of the notice on the national offices of the labor unions 
with employees on the affected lines, and certify to the Board that it 
has done so. However, SJVR's verified notice includes a request for 
waiver of the 60-day advance labor notice requirements. SJVR's waiver 
request will be addressed in a separate decision. The Board will 
establish the effective date of the exemption in its separate decision 
on the waiver request.
    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 for stay must be filed no later than April 25, 
2025.
    All pleadings, referring to Docket No. FD 36829, must be filed with 
the Surface Transportation Board either via e-filing on the Board's 
website or in writing addressed to 395 E Street, SW, Washington, DC 
20423-0001. In addition, a copy of each pleading must be served on 
SJVR's representative, Justin J. Marks, Clark Hill PLC, 1001 
Pennsylvania Ave. NW, Suite 1300 South, Washington, DC 20004.
    According to SJVR, this action is categorically excluded from 
environmental review under 49 CFR 1105.6(c) and from historic 
preservation reporting requirements under 49 CFR 1105.8(b).
    Board decisions and notices are available at www.stb.gov.

    Decided: April 14, 2025.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2025-06629 Filed 4-17-25; 8:45 am]
BILLING CODE 4915-01-P