[Federal Register Volume 91, Number 59 (Friday, March 27, 2026)]
[Notices]
[Pages 14901-14902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-05940]
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SURFACE TRANSPORTATION BOARD
[Docket No. AB 1266 (Sub-No. 2X); Docket No. AB 1349X]
Canonie Atlantic Co.--Abandonment Exemption--in the City of
Virginia Beach and the City of Norfolk, Va.; Buckingham Branch Railroad
Company--Discontinuance Exemption--in the City of Virginia Beach and
the City of Norfolk, Va.
On March 9, 2026, Canonie Atlantic Co. (CAC), a Class III rail
carrier, and Buckingham Branch Railroad Company (Buckingham Branch), a
Class III rail carrier (collectively, Petitioners), jointly filed a
petition under 49 U.S.C. 10502 for exemption from the prior approval
requirements of 49 U.S.C. 10903 for CAC to abandon and for Buckingham
Branch to discontinue service over approximately 2.3 miles of rail line
in the City of Virginia Beach and the City of Norfolk, Va. (the Line).
The Line extends between approximately milepost 95.0 at Little Creek,
Va. (City of Virginia Beach), and milepost 97.6 at Camden Heights, Va.
(City of Norfolk).\1\ Two stations exist on the Line: Camden Heights at
milepost SN 5.2 and Little Creek at milepost SN 7.2. The Line traverses
U.S. Postal Service Zip Codes 23455 and 23502.
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\1\ Petitioners state that the milepost designations reflect the
historical mileposts assigned to the Line, and that the length of
the Line as currently measured is slightly shorter than the
historical milepost designations would suggest. (Pet. 1 n.1.)
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According to Petitioners, CAC has owned the Line since 1985,\2\ but
it has never operated the Line, although it acknowledges that it holds
a residual common carrier obligation. (Pet. 2.) Petitioners state that
CAC has leased the Line to various carriers to provide service, and
Buckingham Branch has been the lessee-operator of the Line since
2018.\3\ (Pet. 2.) Petitioners further state that Buckingham Branch's
lease of the Line includes various Section 10906-yard tracks and
facilities (the
[[Page 14902]]
Little Creek Yard) located at the northern end of the Line. (Id.)
According to Petitioners, the Little Creek Yard provides Buckingham
Branch with track and land that can be used for rail-to-truck
transloading services and serves as the base of Buckingham Branch's
local operations, serving as its only locomotive staging and servicing
point in the Tidewater area and affording it with immediately adjacent
office facilities to support administrative functions and local crew
reporting. (Id.)
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\2\ See Canonie Atl. Co.--Exemption from 49 U.S.C. 10901, 11301,
& 11343, FD 30709 (ICC served Sept. 11, 1985).
\3\ See Buckingham Branch R.R.--Change in Operators Exemption--
Cassatt Mgmt., LLC, FD 36202 (STB served July 18, 2018).
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Petitioners state that the Line is stub-ended and handles no
overhead traffic, and its local traffic derives from two shippers that
have used the Line in the last two years: USRL Virginia Beach VA, LLC,
and Greenbridge. (Id. at 2-3.) Petitioners represent that Buckingham
Branch operates the Line as the higher-traffic volume part of its
Norfolk Division, together with a 4.2-mile connecting line that
Buckingham Branch leases from Norfolk Southern Railway Company.\4\
(Pet. 3.)
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\4\ Concurrent with the joint petition in this proceeding,
Buckingham Branch filed a petition, in Docket No. AB 1349 (Sub-No.
1X), seeking an exemption to discontinue service over this
connecting line.
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According to Petitioners, in the spring of 2025, the U.S. Navy
(Navy) approached CAC regarding its need and desire to acquire a
portion of the Line and the Little Creek Yard, identified as Parcel 4B
in the petition, for national security purposes and to extend the
Navy's control of the waterfront. (Id. at 4.) According to Petitioners,
Buckingham Branch determined that without Parcel 4B it would become
operationally and economically impracticable to operate the remainder
of the Line. (Id.) Petitioners state that CAC does not have the
resources to operate the Line itself and does not believe it could find
another carrier willing and able to operate the remainder of the Line.
(Id.) As a result, Petitioners agreed to terminate the lease for the
entirety of the Line and further agreed that Buckingham Branch would
seek discontinuance authority and CAC would seek abandonment authority
for the Line. (Id.)
According to Petitioners, based on information in their possession,
the Line does not contain federally granted rights-of-way. (Id. at 5.)
Petitioners state that any documentation in their possession related to
the issue of federally granted rights-of-way will be made available to
those requesting it. (Id.)
The interest of railroad employees will be protected by the
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).
By issuing this notice, the Board is instituting an exemption
proceeding pursuant to 49 U.S.C. 10502(b). A final decision will be
issued no later than June 26, 2026.\5\
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\5\ Petitioners state that the Navy has ``has expressed urgency
to acquire Parcel 4B,'' and accordingly request that the Board
consider the joint petition on an expedited basis. (Pet. 11.)
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Any offer of financial assistance (OFA) under 49 CFR 1152.27(b)(2)
will be due no later than 120 days after the filing of the petition for
exemption, or 10 days after service of a decision granting the petition
for exemption, whichever occurs sooner. Persons interested in
submitting an OFA must first file a formal expression of intent to file
an offer by April 6, 2026, indicating the type of financial assistance
they wish to provide (i.e., subsidy or purchase) and demonstrating that
they are preliminarily financially responsible. See 49 CFR
1152.27(c)(1)(i).
The Line may be suitable for other public use, including interim
trail use. Any request for a public use condition under 49 CFR 1152.28
or for interim trail use/railbanking under 49 CFR 1152.29 will be due
no later than April 16, 2026.\6\
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\6\ Filing fees for OFAs and trail use requests can be found at
49 CFR 1002.2(f)(25) and (27), respectively.
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All pleadings, referring to Docket Nos. AB 1266 (Sub-No. 2X) and AB
1349X, 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 CAC's representative, Justin J. Marks, Clark Hill
PLC, 1001 Pennsylvania Ave. NW, Suite 1300 South, Washington, DC 20004,
and on Buckingham Branch's representative, Robert A. Wimbish, Fletcher
& Sippel LLC, 29 N Wacker Drive, Suite 800, Chicago, IL 60606. Replies
to the petition are due on or before April 16, 2026.
Persons seeking further information concerning abandonment and
discontinuance procedures may contact the Board's Office of Public
Assistance, Governmental Affairs, and Compliance at (202) 245-0238 or
refer to the full abandonment and discontinuance regulations at 49 CFR
part 1152. Questions concerning environmental issues may be directed to
the Board's Office of Environmental Analysis (OEA) at (202) 245-0294.
If you require an accommodation under the Americans with Disabilities
Act, please call (202) 245-0245.
OEA will prepare an environmental assessment (EA) (or environmental
impact statement (EIS), if necessary), which will be served upon all
parties of record and upon any other agencies or persons who comment
during its preparation. Other interested persons may contact OEA to
obtain a copy of the EA (or EIS). EAs in abandonment proceedings
normally will be made available within 60 days of the filing of the
petition. The deadline for submission of comments on the EA generally
will be within 30 days of its service.
Board decisions and notices are available at www.stb.gov.
Decided: March 24, 2026.
By the Board, Anika S. Cooper, Chief Counsel, Office of Chief
Counsel.
Regena Smith-Bernard,
Clearance Clerk.
[FR Doc. 2026-05940 Filed 3-26-26; 8:45 am]
BILLING CODE 4915-01-P