[Federal Register Volume 90, Number 82 (Wednesday, April 30, 2025)]
[Notices]
[Page 17989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-07417]
[[Page 17989]]
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SURFACE TRANSPORTATION BOARD
[Docket No. FD 36828]
California Northern Railroad Company--Lease and Operation
Exemption Including Interchange Commitment--Union Pacific Railroad
Company
California Northern Railroad Company (CFNR), a Class III railroad,
has filed a verified notice of exemption pursuant to 49 CFR 1150.41, to
exempt from regulation CFNR's entry into a lease amendment that will
extend the term of, and make other changes to, a lease (the Original
Lease) that CFNR entered into with the predecessor to Union Pacific
Railroad Company (UP), Southern Pacific Transportation Company (SP).\1\
The rail lines subject to the lease amendment (Leased Lines) include
the following segments, totaling approximately 183 route miles: (i) the
Schellville Branch, from milepost 48.97 (east leg of wye) and milepost
48.93 (west leg of wye), at Suisun, Cal., to milepost 63.40, near
Lombard, Cal.; (ii) the Napa Branch, from milepost 61.61, at Lombard,
to the bumper near Rocktram, Cal., at milepost 67.50; (iii) the Vallejo
Branch, from milepost 61.42, at Napa Jct., Cal., to milepost 68.87, at
Vallejo, Cal.; (iv) the West Valley Line, from milepost 75.66 (east leg
of wye) and milepost 75.58 (west leg of wye), at Davis, Cal., to
milepost 186.30 (east leg of wye toward Portland, Cal.) and milepost
186.33 (west leg of wye toward Roseville), at Tehema, Cal.; (v) the
Hamilton Branch, from milepost 180.40, at Wyo, Cal., to milepost
169.00, at Hamilton, Cal.; (vi) the Los Banos Branch, from milepost
83.00, at Tracy, Cal., to milepost 140.07 at Los Banos, Cal.; \2\ (vii)
the Sugarfield Industrial Lead, from milepost 85.56 at Woodland, Cal.,
to milepost 88.25 at Sugarfield, Cal.; and (viii) the Johns Manville
Industrial Lead, from milepost 150.0 at Willows, Cal., to the end of
UP's track ownership at milepost 152.68.\3\
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\1\ CFNR originally submitted its verified notice of exemption
on April 2, 2025, but supplemented it on April 14, 2025. In light of
CFNR's supplement, April 14, 2025, is considered the filing date of
the verified notice.
\2\ The original grant of authority for the Los Banos Branch
extended to milepost 141.17. Cal. N. R.R.--Lease & Operation
Exemption--Certain Lines of S. Pac. Transp. Co., FD 32353, slip op.
at 2 (ICC served Oct. 5, 1993). UP and CFNR obtained authority to
abandon and discontinue the segment of rail line from milepost
140.07 to milepost 141.17 in 2001. Union Pac. R.R.--Aban.
Exemption--in Merced Cnty., Cal., AB 33 (Sub-No. 179X) et al., slip
op. at 3 (STB served Sept. 7, 2001). The original lease authority
also included SP's Northwestern Pacific (NWP) Line from NWP milepost
142.50, near Outlet, Cal., to NWP milepost 40.60, near Schellville,
Cal., to SPT milepost 63.40, near Lombard. Cal. N. R.R., FD 32353,
slip op. at 1. CFNR assigned its rights to the NWP Line to the North
Coast Railroad Authority in 1996. N. Coast R.R. Auth.--Lease &
Operation Exemption--Cal. N. R.R., FD 33115, slip op. at 1 n. 2 (STB
served Sept. 27, 1996).
\3\ The Sugarfield Industrial Lead and the Johns Manville
Industrial Lead were not included in the original lease authority.
Cal. N. R.R., FD 32353, slip op. at 2
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CFNR states that it has leased the Leased Lines since 1993 when it
entered into the Original Lease with UP's predecessor, SP. See Cal. N.
R.R., FD 32353. According to CFNR, the Original Lease was for a term of
ten years and renewed automatically thereafter. The verified notice
states that CFNR and UP have agreed to amend the Original Lease to
extend the term and make other commercial changes, and that CFNR will
continue to be the operator after the transaction.\4\
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\4\ CFNR represents that this is the sixth amendment to the
Original Lease. CFNR does not indicate whether it believes authority
from the Board was necessary for the previous amendments. The class
exemption invoked by CFNR 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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CFNR certifies that the Original Lease includes an existing
interchange commitment that potentially affects interchange with
carriers other than SP (now UP). CFNR 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, CFNR filed, under seal, portions of the amended lease.
See 49 CFR 1150.43(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, CFNR provided, under seal, the
full amended agreement.
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CFNR certifies that its projected revenues as a result of this
transaction will not exceed will not exceed those that would qualify it
as a Class III carrier, but also certifies 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 this 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. However, CFNR's
verified notice of exemption includes a request for waiver of the 60-
day advance labor notice requirement so that the exemption can become
effective 30 days after it is filed. CFNR'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 7, 2025.
All pleadings, referring to Docket No. FD 36828, 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
CFNR's representative, Justin J. Marks, Clark Hill PLC, 1001
Pennsylvania Ave. NW, Suite 1300 South, Washington, DC 20004.
According to CFNR, 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. 2025-07417 Filed 4-29-25; 8:45 am]
BILLING CODE 4915-01-P