[Federal Register: December 20, 2002 (Volume 67, Number 245)]
[Notices]
[Page 78038-78039]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20de02-123]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Finance Docket No. 34267]
Morristown & Erie Railway, Inc.--Operation Exemption--Somerset
Terminal Railroad Corporation
Morristown & Erie Railway, Inc. (M&E), a Class III rail carrier,
has filed an amended verified notice of exemption \1\ under 49 CFR
1150.41 to operate over approximately 1.25 miles of rail line located
in the Township of Bridgewater and the Borough of Manville, Somerset
County, NJ, that is part of a rail line known as the Reading Company
New York Branch (also known as the Raritan Valley Connecting Track),
and identified as Line Code 0326, between milepost 57.25 at Manville
Yard and milepost 58.50 at a junction with New Jersey Transit's
commuter line. In the amended notice, M&E states that it proposes to
obtain rights from Somerset Terminal Railroad Corporation (STRC), a
Class III rail carrier, to operate over this line of railroad that is
owned by Joseph C. Horner.\2\
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\1\ M&E originally tendered a notice of exemption for filing on
October 7, 2002, but additional and corrected information was
subsequently filed on November 20, 2002.
\2\ In Somerset Terminal Railroad Corporation--Operation
Exemption--A Line of Railroad Owned by Joseph C. Horner, STB Finance
Docket No. 33999 (STB served Feb. 13, 2001), STRC, then a
noncarrier, was granted an exemption under 49 CFR 1150.31 to operate
the line pursuant to a perpetual, irrevocable, exclusive and
assignable easement.
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M&E states that, as provided in an assignment of contracts
agreement dated October 1, 2002, between M&E and STRC, STRC proposes to
assign M&E rights which will permit M&E to operate the line.\3\ By
letters filed on October 17, 2002, November 20, 2002, and November 26,
2002, Standard Terminal Railroad of New Jersey, Incorporated
(Standard), alleged that STRC does not actually possess the rights it
seeks to assign to M&E and requested that the exemption be stayed. By
decision served on November 27, 2002, in this proceeding, the request
for stay was denied.
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\3\ In addition, STRC will assign the right for M&E to operate
over a railroad bridge that crosses the Raritan River, which
connects the properties on which STRC has its easement. STRC is a
party to a Land Use Agreement with Mr. Horner, dated May 1, 2000,
and holds an easement to operate over the properties of Mr. Horner.
Pursuant to the assignment of contracts agreement, M&E's operating
rights will be for a term of 15 years, subject to renewal,
extension, and termination. M&E proposes to operate the line to
connect with CSX Transportation, Inc., and Norfolk Southern Railway
Company.
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Publication of this notice and effectiveness of the exemption does
not
[[Page 78039]]
constitute any finding by the Board concerning the ownership of the
property involved. The exemption merely permits M&E and STRC to
consummate the described transaction if and when they, in fact, have
the legal capacity to do so. The question of whether or not STRC
possesses the rights it wishes to assign is currently pending in the
United States Bankruptcy Court. In the Matter of Bridgewater Resources,
Inc., No. 00-60057 (WHG) (D.N.J.).
M&E certifies that its annual revenues will not exceed those that
would qualify it as a Class III rail carrier and that its annual
freight revenues are not projected to exceed $5 million.
M&E states that operations will not commence until all of the
contingencies contained in the assignment of contracts agreement are
met.\4\ The earliest the exemption could have been consummated was
November 27, 2002, the effective date of the exemption (7 days after
the amended exemption was filed).
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\4\ These contingencies include a court's determination that
STRC possesses the rights it intends to assign to M&E and the
consent of Mr. Horner.
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This transaction is exempt under 49 CFR 1150.41(c).\5\ If the
notice contains false or misleading information, the exemption is void
ab initio. Petitions to revoke the exemption under 49 U.S.C. 10502(d)
may be filed at any time. The filing of a petition to revoke will not
automatically stay the transaction.
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\5\ In order to qualify for a change in operators exemption, an
applicant must give notice to shippers on the line. See 49 CFR
1150.42(b). To ensure that shippers are informed of the change of
operators on the line, M&E is directed to provide notice of the
change to any shippers on the line and to certify to the Board that
it has done so.
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An original and 10 copies of all pleadings, referring to STB
Finance Docket No. 34267, must be filed with the Surface Transportation
Board, 1925 K Street, NW., Washington, DC 20423-0001. In addition, one
copy of each pleading must be served on John K. Fiorilla, 390 George
Street, P.O. Box 1185, New Brunswick, NJ 08903.
Board decisions and notices are available on our Web site at
WWW.STB.DOT.GOV.
Decided: December 16, 2002.
By the Board, David M. Konschnik, Director, Office of
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 02-32076 Filed 12-19-02; 8:45 am]
BILLING CODE 4915-00-P