[Federal Register Volume 90, Number 82 (Wednesday, April 30, 2025)]
[Notices]
[Pages 17989-17990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-07416]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36827]


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

    Willamette & Pacific Railroad, Inc. (WPRR), a Class III railroad, 
has filed a verified notice of exemption under 49 CFR 1150.41 to amend 
and extend its lease originally entered into with a predecessor to 
Union Pacific Railroad Company (UP), Southern Pacific Transportation 
Company (SP).\1\ The railroad lines subject to the lease amendment 
include the following segments, totaling approximately 160.95 miles 
(collectively referred to as the Leased Lines): (1) the Toledo Branch 
between milepost 691.61 near Albany, Or., and milepost 766.70 at the 
end of

[[Page 17990]]

the track, near Toledo, Or.; (2) that portion of the Newberg Branch 
between milepost 738.00 near St. Joseph, Or., and milepost 749.67 near 
Newberg, Or.; (3) that portion of the West Side Branch between milepost 
738.00 near St. Joseph and milepost 687.6 near Corvalis, Or.; (4) the 
Dallas Branch between milepost 729.01 near Gerlinger, Or., and milepost 
733.80 at the end of the track, near Dallas, Or.; and (5) the Willamina 
Branch between milepost 730.46 near Whiteson, Or., and milepost 749.46 
at the end of the track, near Willamina, Or.
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    \1\ WPRR originally submitted its verified notice of exemption 
on April 4, 2025, but supplemented it on April 14, 2025. In light of 
WPRR's supplement, April 14, 2025, is considered the filing date of 
the verified notice.
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    According to the verified notice, WPRR is the current freight rail 
operator on the Leased Lines, having received authority to lease and 
operate the Leased Lines from SP in 1993. See Willamette & Pac. R.R.--
Lease & Operation Exemption--S. Pac. Transp. Co., FD 32245 (ICC served 
Feb. 26, 1993). The verified notice indicates that WPRR and UP have now 
agreed to amend the lease to further extend its term and make other 
commercial changes, and that WPRR will continue to be the operator 
after the transaction.\2\
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    \2\ WPRR represents that this is the ninth amendment to the 
original lease. WPRR does not indicate whether it believes authority 
from the Board was necessary for the previous amendments. The class 
exemption invoked by WPRR 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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    As required under 49 CFR 1150.43(h)(1), WPRR certifies in its 
verified notice that the lease contains an interchange commitment. The 
interchange commitment was amended by a sixth amendment to the lease 
agreement, dated as of August 1, 2003. WPRR has provided additional 
information regarding the interchange commitment as required by 49 CFR 
1150.43(h).\3\
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    \3\ Concurrent with the initial filing of its verified notice of 
exemption, WPRR 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 14 supplement, WPRR provided, under seal, the 
full amended agreement.
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    WPRR certifies that its projected revenues as a result of the 
transaction will not result in the creation of a Class II or Class I 
rail carrier, but that its current annual revenues exceed, and are 
expected to continue to 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. WPRR, however, has petitioned for waiver of the 60-day 
advance labor notice requirements. WPRR's waiver request will be 
addressed in a separate decision in which the Board will establish the 
effective date of the exemption. WPRR is currently operating the Leased 
Lines under the terms of the original lease, as amended, and will 
continue to do so until the amendment becomes effective. WPRR states 
that the amended lease will become effective upon the effective date of 
the exemption, which is 30 days after filing, or upon the grant of its 
requested labor notice waiver.
    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 7, 2025.
    All pleadings, referring to Docket No. FD 36827, 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 
WPRR's representative, Justin J. Marks, Clark Hill PLC, 1001 
Pennsylvania Avenue NW, Suite 1300 South, Washington, DC 20004.
    According to WPRR, 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 24, 2025.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2025-07416 Filed 4-29-25; 8:45 am]
BILLING CODE 4915-01-P