[Federal Register: February 4, 2004 (Volume 69, Number 23)]
[Notices]
[Page 5383-5384]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04fe04-118]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Finance Docket No. 34438]
Huron & Eastern Railway Company, Inc.--Acquisition and Operation
Exemption--Central Michigan Railway Company
Huron & Eastern Railway Company, Inc. (HESR), a Class III rail
carrier, has filed a verified notice of exemption under 49 CFR 1150.41
to acquire from the Central Michigan Railway Company (CMRY) and operate
approximately 99.87 miles of rail line, as follows: (1) The Midland
Sub, between milepost 0.0 and milepost 15.0; (2) between Durand, MI
(milepost 0.0) and Wheeler, MI (milepost 3.5); (3) between Genesee, MI
(milepost 101.3) and Paines, MI (milepost 96.0); (4) between Interstate
Highway 75 (milepost 17.21) and CSX Yard (milepost 18.07); (5) between
Durand (milepost 69.2) and M21 (milepost 80.8); (6) the Anderson Lead,
between milepost 79.2 and milepost 81.4; (7) the Owosso Industrial
Track, between milepost 80.1 and milepost 0.7; (8) between Marquette,
MI (milepost 0.0) and Prairie, MI (milepost 1.7); (9) between
Essexville CMR Bridge (milepost 0.0) and Pine Street (milepost 2.87);
(10) between Wheeler (milepost 3.5) and MDOT ownership (milepost 5.0);
and (11) the HECLA Belt line between the east line of Patterson Street
in West Bay City, MI (milepost 1.9) and the end of the line (milepost
2.8).\1\
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\1\ An amendment was filed on January 6, 2004, reflecting the
correct length of the HECLA Belt line.
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HESR is also acquiring the right to operate over the Bay City Yard
Line \2\ between the south end of North Bay City Yard (milepost 55.77)
and the north end of North Bay City Yard at the Centerline of Bangor
Road (milepost 2.62).\3\
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\2\ The Bay City Yard Line is owned by the Detroit & Mackinac
Railway Company (D&M), an affiliate of CMRY. Lake State Railway
Company (Lake State) has an easement to operate over, and CMRY has
operating rights over and through, the Bay City Yard Line. HESR will
acquire CMRY's right to operate over the Bay City Yard Line, but D&M
will remain the owner of the real property and Lake State will
retain its easement.
\3\ This is the entire rail trackage of CMRY, except for a 1.77-
mile segment that was approved for abandonment in Central Michigan
Railway Company-Abandonment Exemption--in Saginaw County, MI, STB
Docket No. AB-308 (Sub-No. 3X) (STB served Oct. 31, 2003).
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Additionally, HESR is acquiring approximately 16.55 miles of
incidental trackage rights as follows: (1) Over Grand Trunk Western
Railroad Company, (a) over the Saginaw Subdivision, between milepost
0.00 and milepost 0.60, (b) over the Holly-Grand Rapids Subdivision,
between milepost 65.50 and milepost 69.00,\4\ and (c) over the Flint
Subdivision, between milepost 253.0 and milepost 255.4; (2) over D&M, a
distance of approximately 5.75 miles from D&M's junction with CMRY near
Total Refinery in Bay City, MI, north to a point near milepost 3.4 and
the Kawkawlin River in Kawkawlin, MI;\5\ (3) over CSX Transportation,
Inc. (CSXT) for overhead trackage rights over approximately 2.9 miles
of rail line owned by CSXT, from milepost BBO 7 at or near the Mershon
Switch east to milepost CB 1 near the Saginaw Yard (a distance of
approximately 1.7 miles), then from milepost CB 1 southeast to milepost
CC 2.2, at or near the Hoyt Diamond (a distance of approximately 1.2
miles), at which point HESR would connect with the former CMRY main
line;\6\ and (4) over CSXT for about 4.0 miles in Saginaw, MI, from the
clearance point at the intersection of the CMRY/CSXT connection track
of the Grand Rapids Wye Track, through CSXT's Saginaw main, yard, and
connection trackage to CSXT's ownership point at the connection with
HESR at Saginaw (milepost CBB 2.0) on CSXT's Bad Axe Subdivision.\7\
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\4\ See Central Michigan Railway Company--Acquisition and
Operation Exemption--Certain Lines of Grand Trunk Western Railroad
Company, ICC Finance Docket No. 31059 (ICC served July 13, 1987).
\5\ See Central Michigan Railway Company--Trackage Rights
Exemption--Detroit & Mackinac Railway Company, ICC Finance Docket
No. 32404 (ICC served Dec. 14, 1993).
\6\ See Central Michigan Railway Company and CSX Transportation,
Inc.--Joint Relocation Project Exemption--in Saginaw, MI, STB
Finance Docket No. 34021 (STB served May 17, 2001).
\7\ See Central Michigan Railway Company--Trackage Rights
Exemption--CSX Transportation, Inc., STB Finance Docket No. 34241
(STB served Aug. 29, 2002).
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Finally, HESR is accepting assignment of trackage rights over lines
of CMRY
[[Page 5384]]
that have been granted to CSXT,\8\ Lake State,\9\ Tuscola and Saginaw
Bay Railway Company,\10\ and any other agreed upon trackage rights that
have been approved or exempted.\11\
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\8\ See CSX Transportation, Inc.--Trackage Rights--Grand Trunk
Western Railroad Company, ICC Finance Docket No. 31114 (ICC served
Sept. 29, 1987).
\9\ See Lake State Railway Company--Trackage Rights Exemption--
Central Michigan Railway Company, ICC Finance Docket No. 32018 (ICC
served Feb. 27, 1992).
\10\ See Tuscola and Saginaw Bay Railway Company--Acquisition
and Operation Exemption--Grand Trunk Western Railroad Incorporated
and Central Michigan Railway Company, STB Finance Docket No. 33822
(STB served Apr. 12, 2000).
\11\ On December 3, 2003, Lake State, a Class III rail carrier,
filed a letter expressing concerns regarding the proposed
transaction. Lake State explained that it was concerned with the
potential impact of the transaction because its own viability
depends upon the use of trackage rights over a five-mile portion of
CMRY's rail line in North Bay City, MI, and because of certain
market power issues related to the dominant position already held by
HESR's parent, RailAmerica, Inc. However, by letter filed on January
8, 2004, Lake State informed the Board that the concerns raised in
its December 3 letter have been resolved and that the letter should
be regarded as withdrawn.
On December 22, 2003, correspondence was received from U.S.
Congressman Bart Stupak of Michigan supporting consideration of the
interests of customers who currently use the services of CMRY, and
urging that current rates and routing agreements, as well as other
current operating conditions, be considered and maintained to help
ensure the continued economic viability of the businesses and
industries in Michigan.
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HESR certifies that its projected revenues as a result of this
transaction will not result in the creation of a Class II or Class I
rail carrier.
Because the projected revenues of the rail lines to be operated
will exceed $5 million, HESR has certified to the Board that the
required notice of its acquisition and operation was posted at the
workplace of the employees on the affected lines, and a copy of the
notice was served on the national offices of the labor unions of the
employees on the affected lines on November 26, 2003. See 49 CFR
1150.42(e). The earliest the transaction could have been consummated
was January 25, 2004, the effective date of the exemption (60 days
after HESR's November 26, 2003 certification to the Board).
If the verified 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.
An original and 10 copies of all pleadings, referring to STB
Finance Docket No. 34438, must be filed with the Surface Transportation
Board, 1925 K Street, NW., Washington, DC 20423-0001. In addition, a
copy of each pleading must be served on Louis E. Gitomer, 1455 F
Street, NW., Suite 225, Washington, DC 20005.
Board decisions and notices are available on our Web site at
http://WWW.STB.DOT.GOV.
Decided: January 27, 2004.
By the Board, David M. Konschnik, Director, Office of
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 04-2128 Filed 2-3-04; 8:45 am]
BILLING CODE 4915-00-P