[Federal Register Volume 61, Number 32 (Thursday, February 15, 1996)]
[Notices]
[Pages 6059-6060]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3411]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Surface Transportation Board \1\
[STB Finance Docket No. 32845]
Consolidated Rail Corporation and CSX Transportation, Inc.--
Acquisition and Operation--Nicholas, Fayette and Greenbrier Railroad
Company
AGENCY: Surface Transportation Board.
ACTION: Notice of acceptance of application.
-----------------------------------------------------------------------
SUMMARY: The Board accepts for consideration the application filed
January 16, 1996, by Consolidated Rail Corporation (Conrail) and CSX
Transportation, Inc. (CSXT) to acquire from the Nicholas, Fayette and
Greenbrier Railroad Company (NF&G) and operate approximately 143 miles
of rail line located in West Virginia. The Board finds that this is a
transaction subject to 49 U.S.C. 11325(d).
\1\ The ICC Termination Act of 1995, Pub. L. No. 104-88, 109
Stat. 803 (the Act), which was enacted on December 29, 1995, and
took effect on January 1, 1996, abolished the Interstate Commerce
Commission (ICC) and transferred certain functions to the Surface
Transportation Board (Board). This notice relates to railroad
acquisitions that are subject to Board jurisdiction pursuant to 49
U.S.C. 11323-25.
---------------------------------------------------------------------------
DATES: This decision is effective on February 15, 1996. Written
comments, including comments from the Secretary of Transportation and
the Attorney General of the United States, must be filed with the Board
no later than March 15, 1996. The Board will issue a service list
shortly thereafter. Comments must be served on all parties of record
within 10 days after the Board issues the service list. Applicants'
reply is due April 5, 1996.
ADDRESSES: Send an original and 10 copies of pleadings referring to STB
Finance Docket No. 32845 to: (1) Office of the Secretary, Case Control
Branch, Surface Transportation Board, 1201 Constitution Avenue, N.W.,
Washington, DC 20423; (2) Docket Clerk, Office of Chief Counsel,
Federal Railroad Administration, Room 5101, 400 Seventh Street, S.W.,
Washington, DC 20530; (3) Attorney General of the United States,
Washington, DC 20530; (4) Charles M. Rosenberger, 500 Water Street,
J150, Jacksonville, FL 32202; (5) Paul R. Hitchcock, 500 Water Street,
J150, Jacksonville, FL 32202; and (6) Anne Treadway, 2001 Market
Street, Two Commerce Square, Philadelphia, PA 19101.
FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar, (202) 927-5660.
[TDD for the hearing impaired: (202) 927-5721.]
SUPPLEMENTARY INFORMATION: By application filed January 16, 1996,
Conrail, CSXT, and NF&G (collectively, Applicants) seek approval under
49 U.S.C. 11323-25, for Conrail and CSXT to acquire and operate NF&G's
rail lines in West Virginia.
The applicants recite that this is a minor transaction as defined
in 49 CFR Part 1180, the regulations that implemented former 49 U.S.C.
11343-45. The Act has revised those statutory provisions and reenacted
them as 49 U.S.C. 11323-25. The transaction here specifically is
subject to the standards of 49 U.S.C. 11324(d), because the transaction
does not involve the merger or control of two Class I railroads and the
transaction is subject to the procedures set out at 49 U.S.C. 11325(d)
of the Act. Section 204(a) provides that all ICC rules in effect on the
date of the enactment of the Act ``shall continue in effect according
to their terms until modified, terminated, superseded, set aside, or
revoked in accordance with law by the Board . . . or operation of
law.'' While the standards and procedures of former sections 11343-45
and current sections 11323-25 are substantially similar insofar as
minor transactions are concerned, the procedures of current section
11325(d) differ slightly from those at 49 CFR 1180.4 and shall govern.
Otherwise, the use of the regulations at 49 CFR Part 1180 for this
proceeding appears proper.
Conrail and CSXT are Class I railroads. NF&G, which has
approximately 143 miles of trackage, is jointly owned by Conrail and
CSXT. Conrail and CSXT operate NF&G's lines as successors in interest
under a lease dated June 25, 1929. Conrail and CSXT propose to
terminate the lease and to dissolve NF&G and distribute its rail assets
between them. Conrail will acquire NF&G's 8-mile line west of Peters
Junction to Swiss Junction (Swiss segment). CSXT will acquire the
remainder of NF&G's line east of Peters Junction to Meadow Creek, and
branch lines between Rainelle Junction and Raders Run, Rupert Junction
and Clearco, and G&E Junction and Brush Junction.
Applicants state that the joint management of the NF&G lines does
not benefit them or the public. They state that the current lease
arrangement establishes a burdensome management structure that requires
joint approval by Conrail and CSXT of important decisions, such as
whether to invest capital funds in track maintenance projects. CSXT has
allegedly deferred substantial maintenance on the NF&G lines it
operates because Conrail is reluctant to invest in those lines.
Terminating the lease would assertedly allow Conrail and CSXT to decide
these matters independently. They further maintain that Conrail and
CSXT would also eliminate expenses incurred to administer the joint
ownership arrangement. They state that they expect to experience
substantial operating and administrative efficiencies as a result of
the transaction.
Applicants maintain that the transaction will serve the public
interest by preserving the quality of service that each carrier
currently provides to its shippers and receivers. Each carrier
represents that it will continue to operate its lines essentially the
same as it does today, with only slight changes in traffic levels.
According to the
[[Page 6060]]
application, Conrail might lose some coal traffic and revenues for
shipments that originate on NF&G lines acquired by CSXT, while CSXT
would gain this traffic and revenue. Conrail and CSXT have made
arrangements for Conrail to be able to honor its sole remaining
transportation contract to haul coal originating on the old NF&G. Until
the contract expires, CSXT will haul the coal to a Conrail interchange
in Columbus, OH, and the coal will be delivered from there.
Applicants maintain that the proposal would have little effect on
competition in any affected market or region. They assert that Conrail
and CSXT do not compete in the same market, and that there is no market
demand for CSXT to haul coal over the Swiss segment, or for Conrail to
haul coal over the remaining NF&G lines CSXT will acquire. Moreover,
CSXT indicates that there is no market demand for it to haul coal from
mines on Conrail's Peters Creek Branch, connecting to that portion of
the NF&G lines that Conrail will acquire.
Applicants anticipate that the transaction will have only a slight
effect on employees. They indicate that CSXT employees currently
perform all operations on NF&G trackage, including maintenance and
train dispatching. After Conrail acquires the Swiss segment, it will
assume maintenance functions on that line and thus CSXT maintenance of
way employees would lose that work to Conrail employees. The
transaction will also preclude Conrail from operating over NF&G
trackage acquired by CSXT, but Conrail does not currently operate over
that trackage. They anticipate that the Board will impose the
conditions in New York Dock Ry.--Control--Brooklyn Eastern Dist., 360
I.C.C. 60 (1979), to protect employees affected by this transaction.
Under 49 CFR 1180, we must determine whether a proposed transaction
is major, significant, or minor. The proposed transaction, which
involves two Class I carriers seeking to acquire the assets of their
jointly-owned short line railroad, has no regional or national
significance and will clearly not have any anticompetitive effects.
Accordingly, we find the proposal to be a minor transaction under 49
CFR 1180.2(c), as now defined under 49 U.S.C. 11325(a). Because the
application substantially complies with the applicable regulations
governing minor transactions, we are accepting it for consideration.
The application and exhibits are available for inspection in the
Public Docket Room at the Offices of the Surface Transportation Board
in Washington, DC. In addition, they may be obtained upon request from
applicants' representatives named above.
Interested persons, including government entities, may participate
in this proceeding by submitting written comments. Any person who files
timely comments will be considered a party of record if the person so
requests. No petition for leave to intervene need be filed.
Consistent with 49 CFR 1180.4(d)(1)(iii), written comments must
contain:
(a) The docket number and title of the proceeding;
(b) The name, address, and telephone number of the commenting party
and its representative upon whom service shall be made;
(c) The commenting party's position, i.e., whether it supports or
opposes the proposed transaction;
(d) A statement whether the commenting party intends to participate
formally in the proceeding, or merely comment on the proposal;
(e) If desired, a request for an oral hearing with reasons
supporting this request; the request must indicate the disputed
material facts that can be resolved only at a hearing; and
(f) A list of all information sought to be discovered from
applicant carriers.
Because we have determined that this proposal is a minor
transaction, no responsive applications will be permitted. The time
limits for processing this transaction are set forth at 49 U.S.C.
11325(d).
Discovery may begin immediately. We admonish the parties to resolve
all discovery matters expeditiously and amicably.
This action will not significantly affect either the quality of the
human environment or the conservation of energy resources.
It is ordered:
1. This application is accepted for consideration under 49 U.S.C.
11323-25 as a minor transaction under 49 CFR 1180.2(c).
2. The parties shall comply with all provisions stated above.
3. The decision is effective on February 15, 1996.
Decided: February 8, 1996.
By the Board, Chairman Morgan, Vice Chairman Simmons, and
Commissioner Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 96-3411 Filed 2-14-96; 8:45 am]
BILLING CODE 4915-00-P-M
