[Federal Register Volume 90, Number 85 (Monday, May 5, 2025)]
[Notices]
[Page 19068]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-07726]
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SURFACE TRANSPORTATION BOARD
[Docket No. FD 36377 (Sub-No. 11)]
BNSF Railway Company--Trackage Rights Exemption--Union Pacific
Railroad Company
By petition filed on December 26, 2024, BNSF Railway Company (BNSF)
requests that the Board permit the trackage rights granted to it under
49 CFR 1180.2(d)(7) in Docket No. FD 36377 (Sub-No. 10) to expire under
the terms agreed to by BNSF and the grantor of the rights, Union
Pacific Railroad (UP).
As explained by BNSF in its verified notice of exemption in Docket
No. FD 36377 (Sub-No. 10), BNSF and UP entered into an agreement
granting BNSF restricted, local trackage rights over two rail lines
owned by UP between (1) UP milepost 93.2 at Stockton, Cal., on UP's
Oakland Subdivision, and UP milepost 219.4 at Elsey, Cal., on UP's
Canyon Subdivision, a distance of 126.2 miles; and (2) UP milepost
219.4 at Elsey, and UP milepost 280.7 at Keddie, Cal., on UP's Canyon
Subdivision, a distance of 61.3 miles (collectively, the Lines). BNSF
Verified Notice of Exemption 2, BNSF Ry.--Trackage Rts. Exemption--
Union Pac. R.R., FD 36377 (Sub-No. 10). BNSF further stated that the
trackage rights arrangement is intended to permit BNSF to move empty
and loaded unit ballast trains to and from the ballast pit located at
Elsey. Id. According to BNSF, it filed its verified notice of exemption
under the Board's trackage rights class exemption at 49 CFR
1180.2(d)(7), instead of the temporary trackage rights exemption at 49
CFR 1180.2(d)(8), because the trackage rights covered by the notice are
local rather than overhead. BNSF Verified Notice of Exemption 1 n.1, 2,
BNSF Ry.--Trackage Rts. Exemption--Union Pac. R.R., FD 36377 (Sub-No.
10).
In its petition, BNSF asks the Board to partially revoke the
exemption as necessary to permit the trackage rights to expire at
midnight on December 31, 2025, pursuant to the parties' agreement. (See
BNSF Pet. 1, 3); see also BNSF Verified Notice of Exemption, Ex. B at
2, BNSF Ry.--Trackage Rts. Exemption--Union Pac. R.R., FD 36377 (Sub-
No. 10.) BNSF argues that granting this petition will promote the rail
transportation policy at 49 U.S.C. 10101 and that the partial
revocation would be consistent with the limited scope of the
transaction and would not have an adverse effect on shippers. (BNSF
Pet. 3-4.) In addition, BNSF asserts that the Board has granted similar
petitions for partial revocation to permit temporary trackage rights to
expire, including petitions involving prior iterations of the trackage
rights agreement at issue here. (Id. at 4.)
Discussion and Conclusions
Although BNSF and UP have expressly agreed on the duration of the
proposed trackage rights, trackage rights approved under the class
exemption at 49 CFR 1180.2(d)(7) typically remain effective
indefinitely, regardless of any contract provisions. At times, however,
the Board has taken action to allow such rights to expire after a
limited time rather than lasting in perpetuity, based on the parties'
agreement. See, e.g., BNSF Ry.--Trackage Rts. Exemption--Union Pac.
R.R., FD 36377 (Sub-No. 9) (STB served Oct. 8, 2024) (allowing trackage
rights under 49 CFR 1180.2(d)(7) to expire).
Permitting the trackage rights to expire at the end of 2025 would
eliminate the need for BNSF to separately seek discontinuance authority
at a later date, thereby minimizing the need for federal regulatory
control (49 U.S.C. 10101(2)), reducing regulatory barriers to entry
into and exit from the rail industry (49 U.S.C. 10101(7)), and allowing
for the expeditious handling and resolution of this transaction (49
U.S.C. 10101(15)). Moreover, doing so would not result in an abuse of
market power because the trackage rights at issue are solely to allow
BNSF to move empty and loaded unit ballast trains to and from the
ballast pit in Elsey for use in BNSF's maintenance-of-way projects.
(See BNSF Pet. 2.) \1\ Therefore, the Board will grant the petition and
permit the trackage rights exempted in Docket No. FD 36377 (Sub-No. 10)
to expire at midnight on December 31, 2025.
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\1\ Because the proposed transaction is of limited scope, the
Board need not make a market power finding. See 49 U.S.C. 10502(a).
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To provide the statutorily mandated protection to any employee
adversely affected by the discontinuance of trackage rights, the Board
will impose the employee protective conditions set forth in Oregon
Short Line Railroad--Abandonment Portion Goshen Branch Between Firth &
Ammon, in Bingham & Bonneville Counties, Idaho, 360 I.C.C. 91 (1979).
This action is categorically excluded from environmental review
under 49 CFR 1105.6(c).
It is ordered:
1. BNSF's petition to permit expiration of the trackage rights in
Docket No. FD 36377 (Sub-No. 10) per the agreement of the parties is
granted.
2. As discussed above, the trackage rights in Docket No. FD 36377
(Sub-No. 10) are permitted to expire at midnight on December 31, 2025,
subject to the employee protective conditions set forth in Oregon Short
Line.
3. Notice of this decision will be published in the Federal
Register.
4. This decision is effective on May 30, 2025. Petitions for stay
must be filed by May 12, 2025. Petitions for reconsideration must be
filed by May 20, 2025.
Decided: April 29, 2025.
By the Board, Board Members Fuchs, Hedlund, Primus, and Schultz.
Aretha Laws-Byrum,
Clearance Clerk.
[FR Doc. 2025-07726 Filed 5-2-25; 8:45 am]
BILLING CODE 4915-01-P