[Federal Register Volume 59, Number 49 (Monday, March 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5871]
[[Page Unknown]]
[Federal Register: March 14, 1994]
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INTERSTATE COMMERCE COMMISSION
[Directed Service Order No. 1515]
Cedar River Railroad Co.--Directed Service Order--Charles City
Railway Lines Inc.
The Charles City Railway Lines, Inc. (CCRY), a 3.6 mile railroad in
Charles City, Iowa, with connections to the Cedar River Railroad
Company (CRR) and the Soo Line Railroad Company (SOO) was shut down by
its management effective with the close of business February 24, 1994,
due to a lack of operating funds, and has been out of operation since
that time. CCRY, based on its letter to shippers dated February 4, 1994
announcing cessation of operations effective February 24, 1994, placed
Embargo No. 1-94, dated 2/14/94, which was effective 2/24/94. There are
two principal shippers located on the CCRY.
The Commission was first contacted about the impending shutdown of
the CCRY on February 10, 1994, by shippers on the line, and on February
16, 1994, by the Iowa Department of Transportation (IDOT) indicating
their concerns for the possible shutdown of the railroad and requesting
that the Commission consider issuing a directed service order (DSO).
IDOT's petition of February 16, 1994, requested the Commission to
initiate voluntary directed service over the CCRY lines and indicated
that the CRR was willing to operate the CCRY lines as a ``Directed Rail
Carrier'' (DRC). However, it was not until February 28, 1994, that the
CRR indicated its willingness to provide the uncompensated directed
service operations sought by IDOT and the two affected shippers.
Section 11125(a) of the Interstate Commerce Act authorizes the
Commission to act in situations where it finds that a rail carrier
cannot transport traffic offered to it because--(1) its cash position
makes its continuing operation impossible; (2) transportation has been
discontinued under court order; or (3) it has discontinued
transportation without obtaining a required certificate under 49 U.S.C.
10903 (emphasis added). The initial period for the directed service
order may not exceed 60 days. However, the order may be extended for an
additional period not to exceed 180 days.
Under a directed service order from the Commission, a directed
carrier may voluntarily choose to provide directed service without any
subsidy or compensation to which it may be entitled from the
Commission, as CRR has done here. See St. Louis S.W. Ry. Co--Directed
Service--Chicago, 363 I.C.C. 1 (1980), and Directed Service Order No.
1504, The New York, Susquehanna and Western Railway Corporation--
Directed Service--The Delaware and Hudson Railway Company, (not
printed) served June 22, 1988.\1\
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\1\Likewise, the Commission may authorize directed service
without provision for compensation to the carrier over which service
is directed. Kansas City Terminal Ry. Co.--Operate--Chicago R.I.&P.,
360 I.C.C. 289 (1979).
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Considering the limited nature of the proposed directed service
operation, e.g., only two active shippers on the 3.6 mile CCRY line,
CRR has asked that in order for CRR to waive all compensation from the
Federal government otherwise applicable under 49 U.S.C. 11125(b)(5),
that it be allowed to condition it's offer to provide uncompensated
directed service by limiting its initial 60-day operation to only those
portions of the CCRY lines that CRR determines can be safely operated;
that CRR not be required to improve any CCRY lines that it believes are
unsafe to operate; that it be allowed to perform needed switching
service to shippers using crews from its through trains, and that it be
allowed to utilize CCRY maintenance of way employees in conjunction
with its own employees only to the extent practicable for its limited
operations.
Considering CCRY's cessation of service without alternative and its
apparent inability to continue due to its cash position, we find that
CCRY's current situation meets the standards of 49 U.S.C. 11125(a)(1)
and (3).
In view of the need for continued rail service over CCRY's lines
and CRR's willingness to provide directed service without compensation
from the Federal government, this decision grants the requests of
interested parties for interim service authority to CRR.
The emergency nature of the situation compels us to conclude that
advance public notice and hearings would be impractical and contrary to
the immediate public interest in assuring the immediate resumption of
essential rail transportation services. Accordingly, we exercise our
authority under 49 U.S.C. 11125(a) to waive advance public notice in
the present circumstances.
Section 11125 permits us to direct service for an initial period of
not more than 60 days, with an option to extend the directed service
period for an additional 180 days, if cause exists. We believe directed
service authority to be necessary here at least for an initial 60 day
period. Any interested person may file comments on this action during
this period.
We Find
1. CCRY had discontinued service over all of its lines. CRR has
requested the Commission to permit it to provide continued rail service
over those lines which it considers to be operable.
2. To prevent transportation and economic disruptions due to CCRY's
ceased operations, and to assure the immediate continued movement of
commodities, some of which may be perishable, it is necessary for the
Commission to authorize CRR to operate CCRY's lines at Charles City,
Iowa under 49 U.S.C. 11125, conditioned upon a waiver of any
compensation or subsidy from the Federal government.
3. Our action in this decision will not substantially impair the
ability of CRR to serve its own patrons adequately, or meet its
outstanding common carrier obligations, see 49 U.S.C. 11125(b)(2)(B),
and will assure continued rail service to affected shippers.
This action will not significantly affect either the quality of the
human environment or energy conservation.
It Is Ordered
1. Based upon its undertaking to do so without any form of
compensation from the Federal government, CRR is authorized to enter
upon and operate CCRY's lines at Charles City, Iowa pursuant to this
voluntary directed service order under 49 U.S.C. 11125.
(a) Entry by CRR on the lines of CCRY may occur on the date and
time authorized in this decision. Operations by CRR may continue no
later than the sixtieth day from the effective date of this
decision.
(b) CRR shall immediately notify the Commission, CCRY, and SOO,
in writing, of the date on which it commences operations under this
order.
2. Operations performed under authority of this order shall conform
to the directions and conditions prescribed above.
3. All submissions filed in this proceeding should refer to DSO No.
1515 and be sent to the Commission's headquarters at 12th Street and
Constitution Avenue, NW., Washington, DC 20423. An original and 10
copies should be submitted.
4. The provisions of this decision shall apply to intrastate,
interstate, and foreign commerce.
5. The Commission retains jurisdiction to modify, supplement, or
reconsider this decision at any time.
6. Notice to the general public of this decision shall be given by
publication in the Federal Register. The decision will be served on the
Federal Railroad Administration, the Association of American Railroads,
American Short Line Railroad Association, CRR, CCRY, SOO, and the IDOT.
7. This decision and order shall become effective at 12:01 a.m., on
March 7, 1994.
8. Unless otherwise modified by the Commission, this order will
expire at 11:59 p.m., on May 5, 1994.
Decided: March 4, 1994.
By the Commission, Chairman McDonald, Vice Chairman Phillips,
Commissioner Simmons and Philbin.
Sidney L. Strickland,
Secretary.
[FR Doc. 94-5871 Filed 3-11-94; 8:45 am]
BILLING CODE 7035-01-P-M