95-3251. Burlington Northern Inc. and Burlington Northern Railroad CompanyControl and MergerSanta Fe Pacific Corporation and The Atchison, Topeka and Santa Fe Railway Company  

  • [Federal Register Volume 60, Number 27 (Thursday, February 9, 1995)]
    [Notices]
    [Pages 7790-7791]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-3251]
    
    
    
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    INTERSTATE COMMERCE COMMISSION
    [Finance Docket No. 32549]
    
    
    Burlington Northern Inc. and Burlington Northern Railroad 
    Company--Control and Merger--Santa Fe Pacific Corporation and The 
    Atchison, Topeka and Santa Fe Railway Company
    
    AGENCY: Interstate Commerce Commission.
    
    ACTION: Decision No. 9; Notice of Proposed Revision of Procedural 
    Schedule.
    
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    SUMMARY: The Commission is seeking public comments on the applicants' 
    proposal to revise the procedural schedule adopted in Decision Nos. 4 
    and 5 in this proceeding, served October 5, 1994, and November 10, 
    1994, respectively, to provide for issuance of a final decision within 
    165 days from the date on which the Commission decision containing 
    notice of shareholder approval is served. To facilitate meeting that 
    deadline and to help narrow the focus to the relevant issues, the 
    Commission is proposing page limitations for certain filings and is 
    considering issuing a preliminary scoping order.
    
    DATES: Written comments must be filed with the Commission no later than 
    February 21, 1995.
    
    ADDRESSES: An original and 20 copies of all documents must refer to 
    Finance Docket No. 32549 and be sent to the Office of the Secretary, 
    Case Control Branch, Attn: Finance Docket No. 32549, Interstate 
    Commerce Commission, 1201 Constitution Avenue, N.W., Washington, DC 
    20423.
        In addition, one copy of all documents in this proceeding must be 
    sent to the Honorable Stephen L. Grossman, FERC, Office of Hearings, 
    825 North Capitol Street, NE, Washington, D.C. 20426 and to each of 
    applicants' representatives: (1) Betty Jo Christian, Esq., Steptoe & 
    Johnson, 1330 Connecticut Avenue, N.W., Washington, DC 20036-1795; and 
    (2) Erika Z. Jones, Esq., Mayer, Brown & Platt, 2000 Pennsylvania 
    Avenue, N.W., Suite 6500, Washington, DC 20006.
    
    FOR FURTHER INFORMATION CONTACT: Beryl Gordon or Dugie Standeford, 
    (202) 927-5610. [TDD for the hearing impaired: (202) 927-5721.]
    
    SUPPLEMENTARY INFORMATION: On October 13, 1994, an application was 
    filed for approval of Burlington Northern, Inc.'s (BNI) acquisition of, 
    control of, and merger with Santa Fe Pacific Corporation (SFP), the 
    resulting common control of Burlington Northern Railroad Company (BN) 
    and The Atchison, Topeka and Santa Fe Railway Company (Santa Fe) by the 
    merged company, the consolidation of BN and Santa Fe railroad 
    operations and the merger of BN and Santa Fe. Applicants also seek 
    exemption from regulation for the merged holding company and merged 
    railroad to control The Wichita Union Terminal Railway Company [Finance 
    Docket No. 32549 (Sub-No. 1)] and for 11 construction projects related 
    to the primary application [Finance Docket No. 32549 (Sub-No. 2 through 
    Sub-No. 12)]. We accepted the application in our Decision No. 5, served 
    and published in the Federal Register on November 10, 1994 (59 FR 
    56089), and we set certain filing dates under the procedural schedule 
    previously adopted in our Decision No. 4, served October 5, 1994.
        In Decision No. 7, served December 5, 1994, we granted the requests 
    of several parties and postponed the procedural schedule set forth in 
    Decision Nos. 4 and 5 pending the outcome of an SFP shareholder vote. 
    In Decision No. 7, we stated that upon approval of the proposed BNI/SFP 
    merger by the shareholders, we would immediately issue a new schedule 
    requiring the first comments to be filed 30 days later and adjusting 
    other schedule dates accordingly. That shareholder vote has been 
    postponed several times and is now scheduled for February 7, 1995.
        In New Procedures in Rail Acquisitions, Mergers and Consolidations, 
    Ex Parte No. 282 (Sub-No. 19) (ICC served Jan. 26, 1995) (60 FR 5890, 
    January 31, 1995), we are seeking comments on our proposed 
    establishment of more timely procedures for processing applications for 
    major and significant rail combinations. In the January 26, 1995 Notice 
    of Proposed Rulemaking, we gave all interested parties until March 2, 
    1995, to file written comments. We also served a copy of the notice on 
    all parties on the service list in this merger proceeding and asked for 
    comments on whether this case should be governed by the schedule 
    originally adopted or the schedule proposed in Ex Parte No. 282 (Sub-
    No. 19).
        By petition filed January 27, 1995, BNI, BN, SFP, and Santa Fe 
    request that we adopt a modified, expedited procedural schedule which 
    tracks the schedule proposed by the Commission for public comment in Ex 
    Parte No. 282 (Sub-No. 19) in place of the original schedule. We are 
    now seeking public comments on this proposal by the applicants to 
    revise the procedural schedule previously established in this 
    proceeding to provide for the service of a final decision no later than 
    165 days from the date the Commission serves its decision containing 
    notice of shareholder approval of the proposed merger, as set out in 
    Appendix A to this Notice. Additionally, to facilitate our meeting this 
    deadline and to better focus the filings on relevant issues, we are 
    proposing page limitations on all filings that should not require 
    extensive evidentiary submissions. The specific limitations are set out 
    in Appendix A to this notice. These limits would not extend to tables 
    of contents, prefaces, tables of authorities, summaries of argument, 
    and other introductory materials. Further, to help narrow the focus to 
    relevant issues, we are [[Page 7791]] considering issuing a preliminary 
    scoping analysis immediately after the filings due on day N+30 in 
    Appendix A. We seek public comments on the proposed page limitations 
    and scoping order. Given that the procedural schedule proposed here 
    tracks the procedural schedule we are proposing in Ex Parte No. 282 
    (Sub-No. 19) for all major and significant consolidations, we also seek 
    comments from any interested person on whether we should impose similar 
    page limitations and employ a preliminary scoping analysis for future 
    transactions under those proposed rules as well.
        In Ex Parte No. 282 (Sub-No. 19), we noted that a vital element in 
    carrying out the proposed expedited merger procedures is strict 
    compliance with the Commission's environmental rules at 49 CFR Part 
    1105. These rules provide that environmental assessments normally be 
    prepared in mergers, consolidations or acquisitions of control 
    involving significant changes in operation or rail line abandonments 
    and construction. If a merger is likely significantly to affect the 
    environment, the National Environmental Policy Act (NEPA) requires the 
    Commission to prepare an environmental impact statement (EIS).
        To expedite the NEPA environmental review process, we have proposed 
    in Ex Parte No. 282 (Sub-No. 19) that applicants be required to consult 
    with the Commission's Section of Environmental Analysis (SEA) with, or 
    prior to, the filing of their prefiling notices for all mergers 
    involving the preparation of environmental documentation. In the case 
    of mergers involving an environmental assessment, the new merger 
    procedures would require that the applicant submit, with its 
    application, a preliminary draft environmental assessment (PDEA), to be 
    based on consultations with SEA and the various agencies set forth in 
    49 CFR 1105.7(b) of our environmental rules. SEA would then use the 
    PDEA to prepare a draft environmental assessment for public comment.
        In their January 27, 1995 petition, applicants in this proceeding 
    point out that they have already submitted a comprehensive 
    environmental report. According to applicants, that report, prepared by 
    the third-party consulting firm, fully complies with the Commission's 
    proposed requirement for the submission of a PDEA. Applicants further 
    claim an exemption from the requirements of filing historical reports 
    under 49 CFR 1105.8 and have advised the Commission that no structure 
    which is 50 years old or older will be affected by the proposed merger. 
    According to the applicants, their environmental report shows that the 
    proposed consolidation will not result in any significant environmental 
    impacts sufficient to require the preparation of an EIS. Finally, 
    applicants state that their third-party consultant, already at work 
    under SEA's supervision, is engaged in a detailed review of the 
    environmental aspects of the proposed merger and that the current 
    workplan calls for completion of an environmental document, following 
    public comment, by early July 1995. Applicants assert that there is no 
    reason to deviate from the expedited schedule contemplated in Ex Parte 
    No. 282 (Sub-No. 19) to ensure compliance with the NEPA review process.
        The filing of a PDEA is a predicate to the expedited schedule we 
    proposed in Ex Parte No. 282 (Sub-No. 19). We also cautioned that 
    mergers that involve actions that significantly affect the environment 
    may require the preparation of an EIS, and that such a requirement 
    would make it impossible to follow a 180-day schedule. Rail 
    construction is such an action and the application contains requests 
    for approval of 11 construction projects. We solicit further comments 
    from the applicants and the parties on these environmental questions 
    and suggestions on how to complete the environmental review process for 
    the merger within the limits of the schedule proposed by the 
    applicants.
        This action will not significantly affect either the quality of the 
    human environment or the conservation of energy resources.
    
        Decided: February 2, 1995.
    
        By the Commission, Chairman McDonald, Vice Chairman Morgan, and 
    Commissioners Simmons and Owen.
    Vernon A. Williams,
    Secretary.
    
          Appendix A.--Proposed Revised, Expedited Procedural Schedule      
                                                                            
                                                                            
    N                 Date Commission serves decision containing notice of  
                       shareholder approval on all parties.                 
    N+5               Discovery conference on application held.             
    N+30              Comments and protests due on the application (not to  
                       exceed 50 pages); requested conditions due;          
                       description of anticipated inconsistent and          
                       responsive applications due.                         
    N+35              Discovery conference on comments, protests and        
                       conditions held.                                     
    N+60              Inconsistent and responsive applications due. Response
                       to comments, protests, conditions and rebuttal in    
                       support of primary applications due (not to exceed   
                       100 pages).                                          
    N+65              Discovery conference on inconsistent applications     
                       held.                                                
    N+75              Notice of acceptance (if required) of inconsistent and
                       responsive applications published in the Federal     
                       Register.                                            
    N+90              Response to inconsistent and responsive applications  
                       due (not to exceed 75 pages). Rebuttal in support of 
                       comments, protests, and conditions to the primary    
                       application due (not to exceed 50 pages).            
    N+100             Rebuttal in support of inconsistent and responsive    
                       applications due (not to exceed 50 pages).           
    N+110             Briefs due, all parties (not to exceed 50 pages).     
    N+125             Oral argument (at Commission's discretion).           
    N+135             Voting Conference (at Commission's discretion).       
    N+165             Date for service of decision.                         
    
        Notes: Immediately upon each evidentiary filing, the filing 
    party will place all documents relevant to the filing (other than 
    documents that are privileged or otherwise protected from discovery) 
    in a depository open to all parties, and will make its witnesses 
    available for discovery depositions. Access to documents subject to 
    protective order will be appropriately restricted. Parties seeking 
    discovery depositions may proceed by agreement. Relevant excerpts of 
    transcripts will be received in lieu of cross-examination at the 
    hearing, unless cross-examination is needed to resolve material 
    issues of disputed fact. Discovery on responsive applications will 
    begin immediately upon their filing. The Administrative Law Judge 
    assigned to this proceeding will have the authority initially to 
    resolve any discovery disputes.
    
    [FR Doc. 95-3251 Filed 2-8-95; 8:45 am]
    BILLING CODE 7035-01-P
    
    

Document Information

Published:
02/09/1995
Department:
Interstate Commerce Commission
Entry Type:
Notice
Action:
Decision No. 9; Notice of Proposed Revision of Procedural Schedule.
Document Number:
95-3251
Dates:
Written comments must be filed with the Commission no later than February 21, 1995.
Pages:
7790-7791 (2 pages)
Docket Numbers:
Finance Docket No. 32549
PDF File:
95-3251.pdf