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[Federal Register Volume 69, Number 243 (Monday, December 20, 2004)]
[Notices]
[Pages 76029-76030]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27743]

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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34540]

The Columbus & Ohio River Rail Road Company--Acquisition and 
Operation Exemption--Rail Lines of CSX Transportation, Inc.

    By notice of exemption published on October 20, 2004 (69 FR 61702-
03) and served on October 21, 2004, the Columbus & Ohio River Rail Road 
Company (CUOH), a Class III rail carrier, was granted authority under 
49 CFR 1150.41 to acquire and operate, pursuant to an agreement with 
CSX Transportation, Inc. (CSXT), approximately 114 miles of rail line: 
(1) by purchase, between Columbus, OH, milepost BP 138.0, and Newark, 
OH, milepost BQ 0.0, totalling approximately 32.6 miles; \1\ and (2) by 
lease, between Mt. Vernon, OH, milepost BQ 25.9, and Cambridge, OH, 
milepost BP 49.49, via Newark, milepost BQ 0.0, totalling approximately 
81.4 miles.\2\ The lines are located in Franklin, Licking, Muskingum, 
Knox, and Guernsey Counties, OH. CUOH states that following this 
transaction, CSXT will no longer operate trains on any of the above-
described rail lines, and that CUOH will be the sole operator of the 
rail lines. The transaction also includes approximately 1.5 miles of 
incidental trackage rights assigned by CSXT to CUOH over a line of the 
Ohio Southern Railroad, Inc. (OSR) \3\ between milepost 16.7 and 
milepost 18.2 in Zanesville, OH.\4\
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    \1\ CSXT presently holds a 50% ownership interest in the rail 
line from Columbus to Newark (the C&N Subdivision). The balance of 
the ownership interest in this line is held by the State of Ohio, 
and both CUOH and CSXT currently hold operating rights over the C&N 
Subdivision. See Caprail I-Acquisition Exemption--Consolidated Rail 
Corporation, Finance Docket No. 31961 (Sub-No. 1), Ohio Department 
of Transportation--Lease Exemption--Caprail I Lines in Ohio, Finance 
Docket No. 31961 (Sub-No. 2), and Columbus & Ohio River Railroad 
Company--Lease and Operation Exemption--Ohio Department of 
Transportation Lines, Finance Docket No. 31961 (Sub-No. 3) (ICC 
served Jan. 15, 1992). CUOH states that, through this transaction, 
it will purchase CSXT's 50% share in the Columbus to Newark line.
    \2\ The line to be leased consists of the Lake Erie Subdivision 
(Newark to Mt. Vernon) and the Central Ohio Subdivision (Newark to 
Cambridge).
    \3\ OSR and CUOH are subsidiaries of Summit View, Inc., a 
noncarrier holding company.
    \4\ Prior to this transaction, CUOH and the Ohio Central 
Railroad (OHCR) interchanged traffic at Morgan Run (Coshocton), OH. 
Following this transaction, CUOH and OHCR will exchange traffic at 
both Coshocton and Zanesville.
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    On October 22, 2004,\5\ CUOH submitted a supplemental notice to 
increase the amount of rail lines it proposed to acquire from 
approximately 114 miles to approximately 120.35 miles, as follows: (1) 
By purchase, between Columbus, OH, milepost BP 137.0, and Newark, OH, 
milepost BP 100.6, and between milepost BBW 0.0 and milepost BBW 1.8 in 
Newark, totalling approximately 38.2 miles; and (2) by lease, between 
Cambridge, OH, milepost BP 49.49 and Newark milepost BP 100.6, between 
Cambridge milepost BPB 0.0 and Byesville, OH, milepost 5.14, and 
between Newark milepost BQ 0.0 and Mt. Vernon, OH, milepost BQ 25.9, 
totalling approximately 82.15 miles. Accordingly, the notice of 
exemption in this proceeding is being republished to give notice of 
CUOH's supplemental filing to include the additional 6.35 miles of rail 
line.
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    \5\ Although the supplemental notice was submitted on October 
22, 2004, the required filing fee of $1,400 was not received until 
October 28, 2004, which therefore constitutes the actual filing date 
of the supplemental notice.
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    Because CUOH's projected annual revenues will exceed $5 million, 
CUOH certified to the Board on August 30, 2004, that it had complied 
with the requirements of 49 CFR 1150.42(e) providing for notice to 
employees and their labor unions on the affected lines. CUOH also 
certified that its projected revenues as a result of this transaction 
would not result in the creation of a Class II or Class I rail carrier.
    The transaction was scheduled to be consummated on or after October 
29, 2004, which was 60 days after CUOH's certification to the Board 
that it had complied with the Board's rule at 49 CFR 1150.42(e).
    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.\6\
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    \6\ On September 13, 2004, the Brotherhood of Locomotive 
Engineers & Trainmen (BLET) filed a protest asking the Board to 
reject CUOH's notice and a notice filed in Indiana & Ohio Central 
Railroad, Inc.--Acquisition and Operation Exemption--CSX 
Transportation, Inc., STB Finance Docket No. 34536 (STB served Oct. 
1, 2004), for another shortline carrier to operate through lease 
approximately 107 miles of CSXT's rail line between NA Tower, OH, 
and Oakley, OH, and Oakley and Columbus, OH. On September 15, 2004, 
the United Transportation Union (UTU) filed a pleading titled as a 
petition to revoke, seeking relief identical to that sought by BLET. 
In their filings, BLET and UTU sought the same relief regarding 
CUOH's notice filed here.
    On September 24, 2004, an amended petition to revoke was filed 
by UTU. By facsimile filed on September 30, 2004, UTU certified to 
the Board that it served a copy of its pleadings upon CUOH, and UTU 
filed another petition to revoke and sought discovery. On October 19 
and 28, 2004, CUOH filed replies. On November 16, 2004, UTU filed a 
motion to compel. CUOH responded on December 6, 2004. The Board will 
address these filings in a subsequent decision.

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[[Page 76030]]

    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 34540, 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 Andrew B. Kolesar III, Slover & 
Loftus, 1224 17th Street, NW., Washington, DC 20036.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: December 13, 2004.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 04-27743 Filed 12-17-04; 8:45 am]
BILLING CODE 4915-01-P
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