Federal Register, Volume 90 Issue 79 (Friday, April 25, 2025)

[Federal Register Volume 90, Number 79 (Friday, April 25, 2025)]
[Notices]
[Pages 17500-17501]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-07192]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36826]


Portland & Western Railroad, Inc.--Lease and Operation Exemption 
Including Interchange Commitment--Union Pacific Railroad Company

    Portland & Western Railroad, Inc. (PNWR), a Class III railroad, has 
filed a verified notice of exemption under 49 CFR 1150.41 to continue 
to lease from Union Pacific Railroad Company (UP) and operate 
approximately 47.20 miles of rail line in Oregon (the Lines). The Lines 
consist of: (1) the approximately 23.91-mile Tillamook Branch, between 
milepost 740.72 near Willsburg and milepost 749.95 near Tigard, and 
between milepost 755.43 near Beaverton and milepost 770.50 near 
Schefflin; \1\ (2)

[[Page 17501]]

the 9.45-mile Westside-Seghers Branch, between milepost 764.80 near 
Hillsboro and milepost 754.57 near Seghers; \2\ and (3) the 14.32-mile 
Newberg Branch, between milepost 763.99 near Cook and milepost 749.67 
near Newberg.
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    \1\ PNWR initially submitted its verified notice of exemption on 
April 4, 2025, but supplemented it on April 11, 2025, by, among 
other things, correcting the description of the lines subject to the 
lease. According to PNWR, approximately 5.48 miles of rail line, 
extending from milepost 749.95 to milepost 755.43, are not subject 
to the lease because PNWR holds authority to operate this segment 
via a perpetual freight easement. See Portland & W. R.R.--Acquis. & 
Operation Exemption--Union Pac. R.R., FD 34792 (STB served Nov. 24, 
2006). In light of PNWR's supplement, April 11, 2025, is considered 
the filing date of the verified notice.
    \2\ According to PNWR, while the distance noted here is correct, 
the mileposts have not been redesignated to reflect a previous 
abandonment.
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    According to the verified notice, in 1995, PNWR entered into an 
agreement with UP's predecessor on the Lines, the Southern Pacific 
Transportation Company (SP),\3\ to lease and operate the Lines. See 
Portland & W. R.R.--Lease & Operation Exemption--S. Pac. Transp. Co., 
FD 32758 (ICC served Sept. 13, 1995). PNWR states that the original 
lease was for a period of 10 years and automatically extended into 
2025. PNWR further states that PNWR and UP have amended the original 
lease numerous times \4\ and that the parties have agreed to further 
extend the term and to make other commercial revisions. According to 
PNWR, it will continue to be the operator on the Lines after the 
transaction.
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    \3\ PNWR states that UP succeeded to the rights of SP as a 
result of the merger authorized in Union Pacific Corp.--Control & 
Merger--Southern Pacific Rail Corp., 1 S.T.B. 233 (1996).
    \4\ PNWR does not indicate whether it believes authority from 
the Board was necessary for the previous amendments. The class 
exemption invoked by PNWR does not provide for retroactive 
effectiveness. See Cent. N.Y. R.R.--Lease & Operation Exemption 
Including Interchange Commitment--Norfolk S. Ry., FD 36825, slip op. 
at 2 n.3 (STB served Mar. 28, 2025).
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    According to the verified notice, the lease agreement with UP 
contains an interchange commitment pertaining to interchange with 
carriers other than UP. PNWR has provided additional information 
regarding the interchange commitment as required by 49 CFR 
1150.43(h).\5\
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    \5\ Concurrent with the initial filing of its verified notice of 
exemption, PNWR filed, under seal, portions of the amended lease. 
See 49 CFR 150.43(h)(1) (providing that certain information related 
to interchange commitments, such as copies of agreements, will be 
kept confidential without an accompanying motion for a protective 
order). In its April 11 supplement, PNWR provided, under seal, the 
full amended agreement.
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    PNWR certifies that its projected revenues as a result of the 
transaction will not exceed those that would qualify it as a Class III 
rail carrier and that its current annual revenues 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 
is to become 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. PNWR, however, has petitioned for waiver of the 
60-day advance labor notice requirements. PNWR'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 to stay must be filed no later than May 2, 2025.
    All pleadings, referring to Docket No. FD 36826, 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 
PNWR's representative, Justin J. Marks, Clark Hill PLC, 1001 
Pennsylvania Avenue NW, Suite 1300 South, Washington, DC 20004.
    According to PNWR, 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 22, 2025.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Aretha Laws-Byrum,
Clearance Clerk.
[FR Doc. 2025-07192 Filed 4-24-25; 8:45 am]
BILLING CODE 4915-01-P