****SO YOU WANT TO START A SMALL RAILROAD****
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****SURFACE TRANSPORTATION BOARD****
****SMALL RAILROAD****
****APPLICATION PROCEDURES****

**Prepared by:**
**Office of Public Services**
**Surface Transportation Board**
**Washington, D.C. 20423**    
**March, 1997**  **TABLE OF CONTENTS**  **INTRODUCTION****2 ****SECTION ONE: EXEMPTION PROCEDURES ****3 ****I. A General Discussion of Exemptions****3 ****    Verified Notice****4** **    Caption Summary****5** **III. Additional Finance Class Exemptions****7** **SECTION TWO: OFFERS OF FINANCIAL ASSISTANCE****12****   I. General Discussion****12** **   II. Class Exemption Procedures****12****   III. Individual Petitions for Exemption and FormalAbandonment Applications** **14****   IV. Preparing the Offer****15** **   V. The Board Will Review the Offer****16****   VI. If Negotiations Are Successful****17** **   VII. If Negotiations Fail ****17** **   VIII. When More Than One Offer is Received****19****   IX. Substitution of Purchasers ****20****   X. Restrictions on Disposition of the Line****20****SECTION THREE: FEEDER RAILROAD DEVELOPMENT PROGRAM****21** **   I. Advantages and Disadvantages of the Program****21** **   II. Required Information****22****   III. Procedural Matters****22**      
    **INTRODUCTION**
**This information bulletin provides general information on SurfaceTransportation Board (STB) procedures for obtaining approval to operatea railroad. It focuses primarily on those procedures that are most usefulin helping potential and established short line railroads begin or expandoperations. For each of the methods listed below, we have detailed whatinformation must be provided, the form it must take, and various proceduraldeadlines.**
**Section One discusses when and how to file Notices and Petitionsfor Exemption from filing a formal application for authority. The Offersof Financial Assistance section (Section Two) and the Feeder Railroad DevelopmentProgram (Section Three) discuss the purchase or subsidization of lines.**
**Other methods of beginning or expanding a rail operation exist. However,this information bulletin is not intended to offer comprehensive coverageof all types of rail transactions such as acquisitions of control, consolidations,or mergers of two or more railroads (commonly known as finance transactions).A majority of finance transactions involving short line railroads willfall within one of the exemption categories covered in Section One.**
**The various legal options for entering short line railroading shouldbe examined carefully. An attorney or STB practitioner experienced in railroadmatters and STB regulations and requirements could prove most helpful.The STB's Office of Public Services (202/ 565-1592) can offer further informationon application and exemption procedures.**
**A successful applicant is not relieved from complying with all otherSTB, Federal, State and local regulations, such as compliance with theBoard's labor regulations and those concerned with environmental protectionand historic preservation. Questions regarding environmental matters orthe need to file an environmental and/or historic report should be directedto the Board's Section of Energy and Environment (SEE) at 202/565-1538.**
**Other Federal agencies also regulate rail transportation after aline is in operation. The Federal Railroad Administration (FRA) regulatesall aspects of rail safety, from track inspection and speed limits to railemployees' hours of service. The FRA can be reached at 202/632-3124. Finally,the Railroad Retirement Board (RRB) administers the industry unemploymentcompensation and retirement programs. New operators should notify the RRBwhen they begin. The RRB can be reached at 312/751-4500.**
**Other considerations are also important to operate a line successfully.A potential operator must assess the viability of the line, establish divisionsof rates with connecting carriers, obtain adequate financing, and followother good business practices. These nonregulatory issues are beyond thescope of this bulletin, but should be considered in the early planningstages. Professional advice is invaluable in these areas.****SECTION ONE: EXEMPTION PROCEDURES**
**I. A General Discussion of Exemptions**
**The simplest, fastest, and easiest way to start or expand a smallrailroad is to acquire an existing line from a large carrier. The new operatorneeds authority from the STB to do that and the best way to get it is throughone of the various exemptions. All applicants, and especially short linerailroads and railroads with limited operations, should review the exemptioncriteria and procedures. A majority of transactions involving short linerailroads will fall within one of the exemption categories.**
**Briefly, exemptions are either absolute or discretionary. Absolute("class") exemptions are those that apply automatically if certain criteriaare met. These are discussed in Parts II and III of this section. Discretionaryexemptions are those granted by the Board that do not qualify for an absoluteexemption, if the Board makes certain findings. These are discussed inPart IV.**
**The Board is also required pursuant to the National EnvironmentalPolicy Act, the Energy Policy and Conservation Act, the National HistoricPreservation Act and related laws to consider various environmental andenergy impacts generated by the proposed transaction. It is possible thatthe proposed transaction will be subject to historic and/or environmentalreview. Generally, no environmental documentation will be prepared forthe following actions (See 49 CFR 1105.6(c)(2)):**
**(1) Any actions that do not result in significant changes in carrieroperations, *e.g.,* acquisitions, leases or operations that do notexceed specified environmental thresholds;**
**(2) Common use of rail terminals and trackage rights; and**
**(3) Discontinuance of trackage rights where the affected line willcontinue to be operated.**
**Although the transaction may be exempt from environmental review,a report complying with the National Historic Preservation act may be required(see 49 CFR 1105.8).**  
**II. Class Exemptions for Acquisitions and Operations by Small Entities**
**A. What is Exempt**
**Under the Board's revised rules, noncarriers and Class III carriersmay take advantage of the class exemption procedures set out in 49 CFR1150, Subpart D (noncarriers) and Subpart E (Class III carriers). Theseexemptions include:**
**1. Acquisitions or operations by new carriers and Class III carriers**
**2. Acquisitions by a noncarrier or Class III carrier that would beoperated by a third party**
**3. Operation by a new carrier or a Class III carrier of rail propertyacquired by a third party.**
**4. A change in operators on such a line**
**5. Acquisition of incidental trackage rights. Incidental trackagerights include the grant of trackage rights by the seller, or the acquisitionof trackage rights to operate over the line of a third party, that occursat the time of the purchase.**
**B. Required Information**
**Different Information Requirements Apply Depending On The Classof Carrier That**
**Results From The Transaction**
**The procedures applicable to class exemptions differ depending onwhether the transaction will result in a new a Class I or Class II carrier(annual operating revenues greater than $20 million) on the one hand, ora Class III carrier (annual operating revenues of $20 million or less),on the other. More information is required of an applicant when the transactionwill create a new Class I or Class II carrier than when a transaction willcreate a Class III carrier. In addition, when the transaction will resultin a Class I or Class II carrier, a two-stage notice period with an extendedconsummation time applies. Procedures applicable to transactions of ClassIII carriers are addressed in the text of this publication; those for transactionsinvolving Class I and II carriers are noted in Appendix I.**
**2. Information Required of Class III Carriers**
**To qualify for this exemption, applicant must be a noncarrier ora Class III carrier whose annual operating revenues will be $20 millionor less after the transaction is consummated. Applicant must file a verifiednotice including details about the transaction, and a brief caption summarywhich will be used to provide public notice of the transaction.**  
**a. Verified Notice**
**The verified notice must contain the following information:**
**(a) The full name and address of the applicant;**
**(b) The name, address, and telephone number of applicant's representativewho should receive correspondence;**
**(c) *Either* (i) a statement that an agreement has been reached*or* (ii) details about**
**when an agreement will be reached;**
**(d) The name of the operator of the property (rail line);**
**(e) A brief summary of the proposed transaction, including (i) thename and address of the railroad transferring the subject property, (ii)the proposed time schedule for consummation of the transaction, (iii) themileposts of the subject property, including any branch lines, and (iv)the total route miles being acquired.**
**(f) A map that clearly indicates the area to be served, includingorigins, termini, stations, cities, counties, and States; and**
**(g) A certificate that applicant's projected revenues do not exceedthose that would qualify it as a Class III carrier.**
**The verified notice should be a narrative statement, not just a listof data. Although the Board does not wish to encourage pleadings that arewordy, good factual information is essential to the Board's understandingof a particular set of circumstances.**  
**b. Caption Summary**
**The caption summary will be published in the Federal Registerand must be in the format shown below. The information symbolized by numbersis identified in footnote 2.****************SURFACE TRANSPORTATION BOARD****NOTICE OF EXEMPTION****Finance Docket No.__________(1)****(2)****(1) -- EXEMPTION (2) - - (3)**
**(1) has filed a notice of exemption to (2) (3)'s line between (4).Comments must be filed with the Board and served on (5). (6).**
**This notice is filed under 49 CFR 1150.31 [if applicant is a noncarrier,but cite 49 CFR 1150.41 if applicant is already a Class III carrier priorto the consummation of the transaction]. If the notice contains false ormisleading information, the exemption is void*ab initio*. Petitionsto 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.**************  
**C. Procedural Information**
**The exemption will be effective seven days after the notice is filed.The Board will publish the notice within 30 days of the date of filing.**
**Applicants must preserve intact all sites and structures more than50 years old until compliance with the requirements of Section 106 of theNational Historic Preservation Act, 16 U.S.C. 470, is achieved (see 49CFR 1180.8).**  
**III. Additional Finance Class Exemptions**
**A. What Is Exempt**
**Under 49 CFR 1180, various types of financial transactions betweentwo or more rail carriers are exempt from more complex procedural ruleseven though the participants may not be noncarriers or Class III's. Manysmall railroads have expanded their lines through the seven classes offinance transactions found at 49 CFR 1180.2(d) listed below for which theBoard does not require prior approval:(3)**
**1. Acquisition of a line of rail which would not constitute a majormarket extension where the Board has found that the public convenienceand necessity permit abandonment.**
**2. Acquisition or continuance in control of a nonconnecting carrieror one of its lines where (a) the railroads would not connect with eachother or any railroads in their corporate family, (b) the acquisition orcontinuance in control is not part of a series of anticipated transactionsthat would connect the railroads with each other or any railroad in theircorporate family, and (c) the transaction does not involve a Class I carrier.**
**3. Transactions within a corporate family that do not result in adversechanges in service levels, significant operational changes, or a changein the competitive balance with carriers outside the corporate family.**
**4. Renewal of leases and any other matters where the STB (or theICC, its predecessor agency) previously authorized the transaction andonly an extension in time is involved.**
**5. Joint projects involving the relocation of a line of railroadwhich do not disrupt service to shippers.**
**6. Reincorporation in a different State.**
**7. Acquisition of trackage rights and renewal of trackage rightsby a rail carrier over lines owned or operated by any other rail carrieror carriers that are (a) based on written agreements, and (b) not filedor sought in responsive applications in rail consolidation proceedings.**        
**B. Required Information**
**The procedures to be followed to qualify for a finance class exemptionare set out in 49 CFR 1180.4(g). Prior to filing any documents with theBoard, the railroad must obtain a docket number from the Office of theSecretary(4). The carrier must then filea verified notice of exemption for any of the seven transactions listedin III A, *supra*, which must contain the following information:**  
**1. A title listing the names of the applicants and the natureof the proposed transaction.**
**2. A brief summary of the proposed transaction, the name of applicants,their business address, telephone number, and name of the counsel to whomquestions regarding the transaction can be addressed.**
**3. The proposed time schedule for consummation of the proposedtransaction.**
**4. The purpose sought to be accomplished by the proposed transaction(e.g., operating economies, eliminating excess facilities, improving service,or improving the financial viability of the applicants).**
**5. A list of the State(s) in which any part of the property ofeach applicant is situated.**
**6. As Exhibit 1, a general or key map indicating clearly, in separatecolors or otherwise, the line(s) of applicant carriers in their true relationsto each other, short line connections, other rail lines in the territory,and the principal geographic points in the region traversed. If a geographicallylimited transaction is proposed, a map detailing the transaction shouldalso be included.**
**7. As Exhibit 2, a copy of any contract or other written instrumententered into, or proposed to be entered into, pertaining to the proposedtransaction. In addition, parties to exempt trackage rights agreementsand renewal agreements must submit one copy of the executed agreement orrenewal agreement with the notice of exemption, or within 10 days of thedate that the agreement is executed, whichever is later.**
**8. The level of labor protection to be imposed.**
**If the notice is for the seventh category (acquisition or renewalor trackage rights agreements), the railroad also must file a caption summarysuitable for publication in the Federal Register in the form prescribedby the STB in 49 CFR 1180.4(g)(2)(i) in addition to the verified notice.See Appendix II for the details of filing.**    
**C. Procedural Information**
**Within 30 days after the Board receives a verified notice involvingcategories 1 through 6 (Part IIIA, *supra)*, it will publish a noticeof exemption in the Federal Register. If the notice contains false or misleadinginformation, an exemption will be revoked and the Board will require divestiture.**
**If the notice is for an acquisition or renewal of trackage rightsagreements, (category 7) the Board will publish the caption summary inthe Federal Register within 20 days after it is filed. The filing of apetition to revoke under 49 U.S.C. 10502(d) does not stay the effectivenessof this exemption.**
**Some transactions may be subject to environmental review.**  
**IV. Petitions for Exemption**
**Many finance and other transactions involving small railroads,such as acquisitions of connecting lines, may not fit within the exemptioncategories discussed above. In these circumstances the Board will considera petition for an individual exemption of the transaction pursuant to 49U.S.C. 10502. If the petition is granted, the applicant need not complywith the Board's more detailed approval procedures. The Board's regulationsgoverning exemption petitions are found at 49 CFR 1121.**
**A. What May Be Exempted**
**Petitioning parties may seek an exemption from almost any Boardrail regulation, ranging from a specific filing or other requirement tocomplete exemption from regulation under the Act (Title 49, Subtitle IV).Although the vast majority of petitions for exemption seek relief fromapplication filing requirements only, the exact scope of the exemptionsought will vary according to the nature and extent of the operation proposed.Petitions must comply with any applicable environmental or historic reportingnotice requirement of 49 CFR 1105, and employee labor protective conditionswill be imposed where appropriate.**
**The Board's statutory authority to exempt rail transportationis 49 U.S.C. 10502. Under Section 10502, the Board must exempt a person,class of persons, or transaction or service from specific legal requirementsif it finds that compliance with those requirements is:**
**not necessary to carry out the rail transportation policy of Section10101 of Title 49 of the United States Code and**
**either the transportation is of limited scope or regulation isnot necessary to protect shippers from the abuse of market power.**
**This is a two part test; the second part has two options. Theconcepts of what constitutes "limited in scope" and "abuse of market power"are being continuously developed in the case law.**
**B. Required Information**
**Petitions should be tailored to the facts and circumstances ofeach individual case. To qualify for the exemption, the petition must describethe transaction and relate the facts of the transaction to the criteriaof section 10502. For example, a petition for exemption to operate a shortline might explain that regulation of the operation is not required tocarry out the rail transportation policy of 49 U.S.C. 10101 because exemptionof the transaction will actually further the goals of that policy. Minimizingthe need for Federal regulatory control over the rail transportation systemand reducing regulatory barriers to entry into the rail industry are examplesof some of the policy goals that could be furthered by such an exemption.Moreover, the petition might state that the transaction is limited in scopebecause it involves the operation of a small line segment, and that regulationis not necessary to protect shippers from an abuse of market power becausethe shippers have transportation alternatives such as truck transportation.See Appendix II for the details of filing.**  
**C. Procedural Information**
**In most instances, once the petition is filed, an initial decisionwill be made as to whether to grant the petition. However, if unusual circumstancesare presented, the Board may publish notice of the exemption in the FederalRegister and solicit comments before making an initial decision. If denied,the petitioner may file the appropriate application for authority. Whengranted, a notice of exemption will appear in the Federal Register. Inthe usual case, the exemption will become effective 30 days after publication.Parties objecting to an exemption have 20 days from the service date ofthe decision granting the exemption to file a petition to reopen and 10days from the date of service to seek a stay.**
**V. Unregulated Transactions**
**Other types of rail operations or transactions are exempt by lawfrom STB regulation. For example, under 49 U.S.C. 10906, a rail carrierproviding transportation subject to Board jurisdiction does not need STBapproval to enter into arrangements for the joint ownership or joint useof spur, industrial, team, switching or side tracks. Similarly, also under49 U.S.C. 10906, the Board does not have authority to regulate the construction,acquisition, or operation of spur, industrial, team, switching or sidetracks. In these circumstances, a rail carrier may proceed without filingany documents or requests for authority with the Board. These statutoryexemptions and some of the relevant terms (such as spur), however, aredefined narrowly. Careful examination is necessary to ensure that a particularoperation or transaction does not require STB approval. If in doubt, anapplication or petition for exemption should be filed, along with a motionto dismiss, setting forth the reasons why the transaction is not regulated(5).If the STB finds that the transaction is not regulated, it will grant themotion to dismiss the application or petition, and the parties may proceedwith the transaction. If the transaction is regulated the Board will denythe motion to dismiss; and act on the application or petition.****SECTION TWO: OFFERS OF FINANCIAL ASSISTANCE**  
**I. General Discussion**
**If a railroad applies to the STB to abandon a line, interested personscan seek to preserve rail service by offering to purchase or subsidizeoperations over some or all of the line. These Offers of Financial Assistance("OFA") are governed by statute (49 U.S.C. 10904) and the Board's regulations(49 CFR 1152.27). The successful purchaser will be restricted from sellingthe line again for a period of time as discussed below.**
**There are three different procedures that a rail carrier can useto abandon a line. If, for example, no local traffic has moved over theline for at least 2 years, overhead traffic can be rerouted, and no formalcomplaints about the cessation of service have been filed with the Board,the carrier may take advantage of a class exemption procedure and filea Notice of Exemption. The Notice must be filed at least 50 days priorto the date on which the carrier intends to consummate the abandonment.Opponents of the abandonment must file a Petition to Revoke and, to besuccessful, must show that the original Notice contains false or misleadinginformation. The majority of rail abandonments filed with the Board qualifyfor and use this class exemption procedure.**
**In cases where there has been some limited traffic over the line,a carrier may choose to file a Petition for Exemption. This procedure isshorter and less costly than a full abandonment application, but is likewisesubject to protests from shippers and other interested persons. The Boardcan grant or deny a Petition for Exemption. If the Petition is denied,the carrier can still file a full abandonment application. The full applicationprocedure requires the carrier to file detailed information about the line,including extensive financial information.**
**It is very important that a person contemplating an OFA ("offeror")determine which type of abandonment procedure has been selected by therailroad seeking to abandon the line ("carrier") because the time tablethe offeror must follow is different in each case.**
**II. Class Exemption Procedures**
**Certain procedures, set out at 49 CFR 1152.27 must be followed byan offeror when a carrier files a Notice of Exemption. Persons with a potentialinterest in providing financial assistance must submit to the Board andthe carrier, no later than 10 days after the FederalRegisterpublication(6), a formal expression of theirintent to file an Offer of Financial Assistance (Notice of Intent) indicatingthe type of assistance they wish to provide i.e., subsidyor purchase. Submission of a Notice of Intent will automatically stay theeffective date of the Notice of Exemption for 40 days.**
**Once that Notice of Intent is received by the carrier, the carriermust provide to the Offeror and the Board (1) either an estimate of theannual subsidy, or the minimum purchase price (depending on the type offinancial assistance indicated by the offeror in the formal expressionof intent) (2) the carrier's most recent reports on the physical conditionof the involved line (3) traffic, revenue, and other data necessary todetermine the amount of annual financial assistance that would be requiredto continue rail transportation over that part of the railroad line (4)the carrier's estimate of the net liquidation value of the line with supportingdata, and (5) an estimate of the cost of rehabilitating the line to FederalRailroad Administration class 1 Safety Standards (49 CFR part 213). Thecarrier must also make available to the offeror records, accounts, appraisals,working papers and other documents as set out in 49 CFR 1152.36 duringregular business hours at a time and place mutually agreeable to the parties.**
**Once the offeror has that information, it can file an Offer of FinancialAssistance. That Offer is due 30 days after the FederalRegisterpublication of the carrier's Notice of Exemption which is, in effect, 20days after the Offeror has filed its formal expression of intent(7).It, too, must be served on the carrier and filed with the Secretary ofthe Board. The offeror has little time to digest the carrier's informationand prepare the Offer, so the offeror should notify the Board immediatelyby filing a Petition to toll the 30 day period for filing an Offer, ifthere is any delay in receiving the required information from the carrier(8).What an Offer of Financial Assistance must contain is discussed in PartIII of this section,*infra.***
**After the Offer has been reviewed by the Board, the Director of theBoard's Office of Proceedings will issue an Order which states whetheror not the Offer is *bona fide*, *i.e.*, whether or not the offeroris a financially responsible person for purposes of partial revocationof the exemption and for the institution of negotiations between the offerorand the carrier. If the Offer is not found to be *bona fide*, theabandonment will go forward. If the Offer is found to be *bona fide,*and negotiations are instituted, the procedures described in Part IVof this section, *infra*, will be followed.(9)**  
**III. Individual Petitions for Exemption and Formal Abandonment Applications**
**As discussed earlier in this information bulletin, any carrier canapply for an exemption from Board regulations and procedures under 49 U.S.C.10502. Each year many carriers file Petitions for Exemption from the Board'sfull abandonment application procedures in order to abandon lines thatdo not fit the qualifications discussed above for a class exemption. Petitionsare more likely to be opposed than Notices because the line has had somerecent use. Formal abandonment applications are, in general, the most controversial.These lines are often good candidates for potential short line operatorseven though the economies of scale may make the line unprofitable for alarger railroad. Rules for filing an OFA in a case in which the carrierhas filed a Petition for Exemption or a Formal Abandonment applicationare also set out at 49 CFR 1152.27.**
**When the Board receives a Petition for Exemption or a Formal AbandonmentApplication it will publish notice of the Petition or Application in theFederalRegister within 20 days. Offers of Financial Assistanceare due 120 days after the filing of the Petition for Exemption or Applicationor 10 days after the service of a Board decision granting the exemption,whichever occurs sooner.(10)**
**The first step for a potential offeror to take in a Petition forExemption or Formal Application case is to notify the carrier seeking toabandon the line. The carrier is then required to serve upon the Boardand upon the potential offeror an estimate of the annual subsidy and minimumpurchase price required to keep the line or a portion of the line in operation.**
**Next, although the rules do not require it (unlike class exemptionabandonments), the offeror would be well advised to file a Notice of Intentto file an OFA with the Board and serve a copy on the carrier as promptlyas possible. The offeror will then be included on the service list in thedocket and assured of receiving copies of all decisions and orders in thecase, and the carrier will be required to provide to the offeror accessto the records, accounts, appraisals, working papers and other documentsset forth in 49 CFR 1152.36.**
**The Offer itself must contain the information set forth in 49 CFR1152.27(c)(1)(ii). Contents are discussed in Part IV of this section, *infra*.**
**After the Offer has been reviewed by the Board, the Director of theBoard's Office of Proceedings will issue an Order which states whetheror not the Offer is *bona fide*, *i.e.*, whether or not the offeroris a financially responsible person for purposes of partial revocationof the exemption and for the institution of negotiations between the offerorand the carrier. If the Offer is not found to be*bona fide*, theabandonment will go forward. If the Offer is found to be *bona fide,*and negotiations are instituted, the procedures described in Part VIof this section, *infra*, will be followed.(11)**
**IV. Preparing the Offer**
**A. Information Provided by the Railroad**
**To assist potential offerors, the Board requires a railroad thathas applied to abandon the line to furnish certain information promptlyif requested by any person considering an OFA. The data must be sent concurrentlyto the Board and must include:**
**(1) an estimate of the minimum purchase price or annual subsidy neededto keep the line (or a portion of the line) in operation;**
**(2) the carrier's most recent reports on the physical condition ofthe line;**
**(3) traffic, revenue, and other data necessary to determine the amountof annual financial assistance needed to continue service.(12)**
**Anyone who believes subsidy or acquisition is a possibility shouldrequest this information immediately and begin a thorough feasibility study.A potential offeror should explore the possibility that the State willagree to provide some money for rehabilitating the line.**
**B. Contents of The Offer**
**1. Notice of Intent**
**As noted above, if the carrier has filed a Notice of Exemption ina class exemption case, the offeror is required to file a Notice of Intentto file an OFA. Although offerors in Exemption Petitions and Full Applicationsdo not have that requirement, it is an excellent idea to do so for thereasons stated in footnote 12. The Notice of Intent should clearly identifythe line or portion of the line to be purchased or subsidized and whetherthe offeror intends to try to purchase or subsidize the line. In addition,the Notice may contain a request to the carrier to provide the informationrequired under 49 CFR 1152.36 and a request to the Board to toll the 30day period for submitting offers of financial assistance for an additionalnumber of days. A sample Notice of Intent is attached as Appendix III.**
**2. Offer of Financial Assistance**
**The OFA must:**
**(1) identify the line (or portion of the line) to be purchased orsubsidized;**
**(2) demonstrate that the offeror is financially responsible; and**
**(3) explain any disparity between the offeror's purchase price orsubsidy and that of the carrier if it is less than the carrier's estimate,and explain how the OFA has been calculated.**
**With regard to financial responsibility, the offeror must show thatit has or within a reasonable time will have the financial resources tofulfill proposed contractual obligations. This may be done by submittingdocuments such as a current financial statement or a line of credit witha bank. The Board assumes that a State or local government entity is financiallyresponsible. A sample OFA is included at Appendix IV.**  
**V. The Board Will Review the Offer**
**Each OFA will be reviewed by the Board to determine whether the offeroris a financially responsible person and whether the offer is reasonable.A subsidy must cover the difference between the revenue attributable tothe line and the avoidable costs of providing freight service on the lineplus a reasonable return on the value of the line. A purchase offer mustequal the line's net liquidation value or its going concern value, whicheveris higher. If these criteria are met, the Board will issue a decision postponingthe abandonment and give the parties an opportunity to negotiate. Thisdecision will be served within 15 days after the FederalRegisternotice of the approval of the abandonment (5 days after the OFA is due).(13)**      
**VI. If Negotiations Are Successful**
**A. Subsidy**
**If the carrier and an offeror enter into a subsidy agreement designedto provide for continued rail service, the Board will postpone abandonmentfor as long as the subsidy agreement is in effect.**
**B. Purchase**
**Should the parties enter into a purchase agreement resulting in continuedrail service, the Board must approve that transaction and dismiss the abandonmentapplication. The purchaser need not seek any further Board approval toacquire the line.**  
**VII. If Negotiations Fail**
**A. Request That The Commission Set The Terms**
**Should the carrier and offeror fail to agree on the terms of subsidyor purchase, either party may ask the Board to establish the terms.(14)Such a request must be filed no later than 30 days after the offer is made.(15)(16) A copy of the request must also beserved simultaneously on all parties to the abandonment proceeding. Therequest must indicate the status of negotiations between the parties andthe likelihood of voluntary settlement before issuance of an STB decisionsetting the terms. The party asking the Board to set terms must also submitwith its request:**
**(1) reasons why its estimates are correct and why the other negotiatingparty's estimates are incorrect;**
**(2) points of agreement and disagreement between the negotiatingparties; and**
**(3) evidence in support of these positions.**
**NOTE: The offeror has the burden of proof regarding all disputedissues.**
**The other party's reply is due within 5 days after the request toset terms and conditions is made. Data submitted after these deadlinesmay be rejected.**
**Throughout this process the parties are expected to continue negotiatingand to apprise the Board of agreement on any terms the Board has been askedto set. Even if a full agreement is not reached, continued negotiationscould result in agreement between the parties on many points.**
**The Board's decision setting the terms will be issued within 30 daysafter the request is due, *i.e.*, within 60 days after the due datefor making an offer.**
**B. When the STB Sets The Subsidy Payment**
**If requested to set a subsidy, the Board will use the methodologyfound at 49 CFR 1152 Subpart D, to calculate subsidy payments. This methodologyensures the carrier that it will recover operating costs, rehabilitationexpenses, if any, and have a reasonable return on investment.**
**C. When the STB Sets The Purchase Price And Terms Of The Sale**
**1. Methodology**
**If asked to determine purchase price and terms of sale, the priceset by the Board will be no lower than the fair market value of the line.This computation will include, unless otherwise agreed by the parties,all facilities on the line (or portion) necessary to provide effectivetransportation services. The STB has determined that fair market valueis the net liquidation value (NLV) of the rail properties for their highestand best nonrail use (absent a higher going concern value for continuedrail use). The value of the line is computed without regard to labor protectioncosts.**
**NLV is computed by adding the net value of the land for nonrail purposesto the net salvage value of the track materials. The parties must submitsufficiently detailed evidence to enable the Board to make cost determinationson each of these components. For example, the offeror should submit twoappraisals, one for the value of the land and another for the value ofthe track and other materials, including the costs to remove the track.The methodologies used by the appraisers should be fully explained andany inaccuracies in opposing parties' appraisals should be identified.Additionally, since railroad rights-of-way are often held by less thanfee simple title, the parties should also present data concerning the natureof the railroad's property interests and the effect on land value. Theofferor has the burden of proof on all matters. Therefore, where it isimpossible to determine on the evidence submitted which valuation is moreaccurate, the Board will accept the railroad's appraisals.**
**2. Standard Conditions The STB Imposes**
**When the Board issues a decision setting the purchase price, it normallyimposes four standard conditions to ensure the smooth transfer of the line.They are:**
**(1) Payment must be made by cash or certified check;**
**(2) Closing date is set 90 days from the service date of the Board's**
**Order setting terms and conditions;**
**(3) Carrier shall convey all property by quitclaim deed;**
**(4) Carrier shall deliver any and all mortgage releases within 90days of closing.**
**If the parties desire specific terms differing from the standardconditions, these terms and conditions should be specifically requestedand evidence provided in support of their imposition. The parties can,of course, change these terms by agreement.**
**D. The Offeror Must Act No Later Than 10 Days After the STB SetsThe Terms**
**No later than 10 days after issuance of the Board's decision settingterms of the sale or subsidy, the offeror must give a written acceptanceor rejection to the STB and all parties to the proceeding. If the offeroraccepts the Board's terms, there terms will be binding on both parties.**
**If the original offeror does not accept the Board's terms, any otherofferor may accept them within 20 days after the decision setting the terms.(See discussion *infra*.) The carrier will be bound by those terms.**
**Should no offeror accept the Board's terms, the Board will promptlyissue a certificate allowing abandonment of the line (unless an appealto the abandonment is pending).**
**VIII. When More Than One Offer is Received**
**When an applicant carrier receives more than one OFA it must selectthe offeror with whom it wishes to transact business, and notify the STBand all parties to the proceeding (in writing) of its selection. Notificationof selection must be received no later than 25 days after the service dateof the decision granting an application or petition for exemption. In thecase of a Notice of Exemption filed in a class exemption proceeding, theapplicant carrier must act within 45 days after the FederalRegisterpublication of the Notice of Exemption.(17)**
**IX. Substitution of Purchasers**
**An Offeror may substitute a corporate affiliate as the purchaserbefore consummation of the purchase if the Board has determined that eitherthe original offeror has guaranteed the financial responsibility of itsaffiliate or the affiliate has demonstrated financial responsibility inits own right.**
**X. Restrictions on Disposition of the Line**
**A purchaser may not transfer the line or discontinue service overthe line for 2 years after consummation of the original sale under theOFA provisions. After 2 years the purchaser may transfer the line backto the selling carrier, but it must wait 5 years before selling it to anyoneelse. A purchaser is not precluded, however, from transferring the lineto a corporate affiliate following consummation of the original sale, butBoard approval is required and the affiliate would be subject to the sametransfer and discontinuance restrictions.**    **SECTION THREE: FEEDER RAILROAD DEVELOPMENT PROGRAM**
**Lines that are not the subject of an abandonment (or discontinuance)proceeding may be acquired through the forced sale provisions of the FeederRailroad Development Program. The statutory procedures for this programare found at 49 U.S.C. 10907 and the STB's regulations are at 49 CFR 1151.**
**The feeder line program was designed as an alternative to abandonment.Congress envisioned it as a method of allowing shippers, communities, orother interested parties to acquire rail lines before an abandonment applicationis filed. If a rail line has been listed on a carrier's system diagrammap as subject to abandonment, the Board can require the sale of the lineto a financially responsible person.(18)If the line in question is not on the carrier's map, it can still be subjectto a forced sale if the feeder line proponent can show that (1) the railcarrier operating the line refuses within a reasonable time to make thenecessary efforts to provide adequate service to shippers; (2) the saleof the line would not have an undue adverse effect on the carrier's operations;and (3) that the sale would result in improved service on the line.**  
**I. Advantages and Disadvantages of the Program**
**In theory, this program has two major advantages. It allows the partiesto save the time and expense involved in the abandonment process, and itallows the new owners to take over operations of a line before furtherdeterioration occurs. Another advantage is that the buyer may be exemptedfrom most STB regulations.**
**However, the program has great potential for placing the new carrierand the original owner of the line into an adversarial relationship fromthe outset. After forcing the railroad to sell at a price to which it mightnot otherwise have agreed, the newly created short line may have to developa working relationship with the main line railroad to become a viable venture,especially where the short line is dependent on the larger carrier forinterline rates.**    
**II. Required Information**
**A feeder line application must be filed with the Board.(19)The application must contain detailed information in the form of verifiedstatements, including, among other things:**
**1. An estimate of the line's Net Liquidation Value (NLV) and GoingConcern Value (GCV), with supporting evidence;**
**2. An offer to purchase the line for the higher of either NLV orGCV;**
**3. Information sufficient to demonstrate that the offeror is financiallyable to pay either the NLV or the GCV, whichever is higher;**
**4. An operating plan that identifies the proposed operator, detailsthe service to be provided, and demonstrates that adequate transportationwill be provided for at least 3 years**
**Applicants should consult the STB's regulations at 49 CFR 1151.3for a complete description of information required to be filed with theapplication.**
**The Board usually will reject incomplete applications. If an applicantis unable to obtain required information that is primarily or exclusivelywithin the personal knowledge of the owning carrier, it may file an incompleteapplication if it files at the same time a request for discovery (under49 CFR 1114) to obtain the needed information from the carrier. The Boardwill conditionally accept an application if it finds that the missing informationis necessary and is under the control of the owning carrier.**
**III. Procedural Matters**
**The Board has 30 days to accept or reject the application. If accepted,a notice is published in the FederalRegister.**
**Generally, within 30 days after the application is accepted, anyother interested party may file a competing application to acquire allor any portion of the same line.(20) Competingapplications will be accepted or rejected within 15 days after they arefiled. The owning railroad and other interested parties may submit verifiedstatements containing their evidence and arguments within 60 days afterthe original application was accepted. Verified replies may be filed within80 days after acceptance of the initial application.**
**The Board will determine if one or more offerors are financiallyresponsible, that is, able to pay the NLV or GCV (whichever is higher)and provide adequate service for at least 3 years. If the line qualifiesfor forced sale, the STB will set the sale price and other terms of thesale, and order the railroad to sell the line to one of the qualifyingofferors. However, should the offeror and owner agree on a different saleprice, that price will be the final price instead of the one set by theSTB.**
**The STB's findings will be published in the FederalRegister.The offeror then has 10 days to accept or reject the Board's terms; thismust be done in writing and sent to both the STB and the railroad. If twoor more offerors accept the STB's terms, the owning railroad may selectthe one with whom it wishes to transact business. The railroad must notifythe Board and offerors of its selection within 15 days after the Board'sdecision setting the terms of the sale. The parties may then consummatethe sale without any further Board approval.**
**For more information on the Feeder Line Program call the STB's Officeof Public Services at 202/565-1592 and consult 49 CFR 1151.****APPENDIX I****EXEMPTION REQUIREMENTS FOR TRANSACTIONS THAT INVOLVE CREATION****OF CLASS I OR CLASS II CARRIERS****(49 CFR 1150.31 and 49 CFR 1150.35)**
**(a) To qualify for this exemption, applicant must serve a noticeof intent to file a notice of exemption no later than 14 days before thenotice of exemption is filed with the Board.**
**(b) The notice of intent must contain all the information requiredin a Class III carrier class exemption (see page 4 of the text) plus:**
**(1) a general statement of service intentions, and**
**(2) a general statement of labor impacts.**
**(c) The notice of intent must be served on:**
**(1) the Governor of each State in which track is to be sold;**
**(2) the State(s) Department of Transportation or equivalent agency(ies);**
**(3) the national offices of the labor unions with employees on theaffected line(s); and**
**(4) shippers representing at least 50 percent of the volume of localtraffic on the line(s) in the most recent 12 months for which data areavailable (beginning with the largest shipper and working down).**
**(d) Applicant must also file a verified notice of exemption conformingto the requirements of (b) above, and 49 CFR 1150.34 D (*i.e.*, acaption summary filed pursuant to the class exemption as described in thetext on pages 5 and 6 and certify compliance with (a), (b) and (c) above,attaching a copy of the notice of intent.**
**(e) The exemption will be effective 21 days after the notice is filed.The Board, through the Director of the Office of Proceedings, will publisha notice in the FederalRegister within 30 days of the filing.**
**(f) If the notice contains false or misleading information, the exemptionis void *ab initio*. A petition to revoke under 49 U.S.C. 10502(d)does not automatically stay the transaction. Stay petitions must be filedwithin 7 days of the filing of the notice of exemption. Replies will bedue 7 days thereafter. To be considered, stay petitions must be timelyserved on the applicant.**
**(g) Applicant must comply with 49 CFR 1150.33(g) regarding Section106 of the National Historic Preservation Act, 16 U.S.C. 470.****APPENDIX II****FILING REQUIREMENTS****General Filing Requirements**
**No official application or petition for exemption form is required.Specific requirements and formats are set out in each section below. Regardlessof the kind of railroad authority or exemption being sought, all applicantsmust comply with the following general procedures:**-  Applications, notices, or petitions for exemption must be typewrittenor printed in ink on paper measuring approximately 8 x 11 inches.
 
-  The name, address and telephone number of the persons filing the pleadingshould be included on the title page.
 
-  The original must be signed and dated.
 
-  The appropriate application or exemption filing fee must accompany theapplication. See Fee Schedule Insert.
 
-  The completed application, notice or petition along with the requirednumber of copies and appropriate filing fee should be submitted to:
 
**The Office of the Secretary**
**Surface Transportation Board**
**Washington, D.C. 20423-0001**-  If mailed, the lower left hand corner of the envelope should be marked"Notice of Exemption", "Petition for Exemption" or "Rail Application",whichever is appropriate.
 
-  An environmental and/or historic report *must*be filed prior toor with the application, petition or notice of exemption *if* theproject is subject to environmental or historic review under the Board'srules at 49 CFR 1105.
 
**- i -****Specific Filing Requirements**
**I. Class Exemptions for Acquisitions and Operations by Small Entities**
**A. Class III carriers:**
**Verified Notice**
**Original 1**
**No. of copies for Board 10**
**Service on other parties No**
**Filing fee Yes**
**Caption Summary**
**Original 1**
**No. of copies 10**
**Service on other parties No**
**Filing fee No**
**(summary accompanies verified statement)**
**B. Class I and Class II carriers:**
**Notice of Intent to File a Notice of Exemption**
**Original 1**
**No. of copies for Board 10**
**Service on other parties Yes**
**(See Appendix I(c))**
**Filing fee No**
**Notice of Exemption**
**Original 1**
**No. of copies to Board 10**
**Service on other parties Yes**
**Filing Fee Yes**  
**II. Other Finance Class Exemptions**
**Notice of the Transaction**
**Original 1**
**No. of copies for Board 10**
**Service on other parties No**
**Filing fee Yes**
**Caption summary**
**(required only for acquisition or renewal of**
**trackage rights agreements)**
**Original 1**
**No. of copies to Board 10**
**Service on other parties No**
**Filing fee No****- ii -**
**III. Petitions for Exemption**
**Original 1**
**No. of copies for Board 10**
**Service on other parties Yes**
**Filing fee Yes**
**IV. Offers of Financial Assistance**
**1. Notice of Intent to Make an Offer**
**Original (to carrier) 1**
**No. of copies to Board 10**
**Service on other parties No**
**Filing fee No**
**2. Actual Offer**
**Original 1**
**No. of copies for Board 10**
**Service on other parties Yes**
**Filing fee No**
**3. Request to Set Terms and Conditions**
**Original 1**
**No. of copies for Board 10**
**Service on other parties Yes**
**Filing fee No**
**V. Feeder Railroad Development Program**
**Original 1**
**No. of copies for Board 10**
**Service on other parties Yes**
**Filing fee Yes**                              **- iii -****APPENDIX III****SAMPLE NOTICE OF INTENT TO FILE AN OFFER OF FINANCIAL ASSISTANCE****(Including Request for Information set out in 49 CFR 1152.27(a)and****Request to Toll 30 Day Period for Filing OFA)****RE: BIG GUY RAILROAD - ABANDONMENT EXEMPTION - FARMER'S COUNTY,****STATE, Docket No. AB-999, Sub No. 3X(21)**
**Surface Transportation Board**
**Office of the Secretary**
**1925 K Street N.W.**
**Washington, D.C. 20423-0001**
**To the Secretary of the Board:**
**Pursuant to the Surface Transportation Board Notice of Exemptionpublished in the FederalRegister on (date), (Full name ofOfferor) hereby advises the Board and parties of record of its intent tofile an Offer of Financial Assistance ("OFA") under 49 CFR 1152.27. TheOFA is to purchase part (or all) of the Big Guy rail line between (cityand state or nearest station) at milepost number _____ and (city and stateor nearest station) at milepost number_____ , a distance of _____miles,(local name of line, if any).**
**In connection with this notice of intent to file an Offer of FinancialAssistance, (Offeror) requests that applicant carrier provide the informationset forth in 49 CFR 1152.27(a) including the minimum purchase price requiredto acquire the (local name of the line). We also request that Big Guy provideits most recent report on the physical condition of the involved line andtraffic, revenue and other data necessary to determine Big Guy's estimateof net liquidation value of the line together with supporting data reflectingavailable real estate appraisal, assessments of the quality and the quantityof track material in the line and removal cost estimates used to obtainthe net liquidation value.**
**Since it is unlikely that this ;information can be provided to theprospective offeror prior to (due date of OFA), offeror requests the Boardto toll the thirty day period for submitting offers of financial assistancefor an additional _____ days (offeror may request any number of additionaldays, but 30 days is the most commonly requested extension period) in orderto provide offerors with an adequate opportunity to review and analyzethe material provided by applicants and submit their OFA. This will notprejudice the interests of applicant carrier or any other party.**
**Yours truly,**    
**Attorney or Authorized**
**Representatives**            **APPENDIX IV****SAMPLE OFFER OF FINANCIAL ASSISTANCE****Before The****SURFACE TRANSPORTATION BOARD****Docket No. AB 999 Sub No. 3X****BIG GUY RAILROAD****-ABANDONMENT EXEMPTION-****FARMERS COUNTY, STATE(22)****OFFER OF FINANCIAL ASSISTANCE****ON BEHALF OF****[FULL NAME OF OFFEROR]**
**[Full name of Offeror] (hereinafter referred to as "Offeror") herebyfiles this Offer of Financial assistance with respect to that portion ofBig Guy Railroad's line between milepost _____ at or near [City and State]and milepost_____ at or near [City and State], a distance of approximately_____ miles.**
**By [Notice or Decision] served [service date of Board's Notice orDecision], the Surface Transportation Board [exempted from the prior approvalrequirements of 49 U.S.C. 10903] [granted the carrier's petition for exemptionto abandon][granted the carrier's application to abandon] the above describedportions of Big Guy's railroad line. On [date], Offeror filed a Noticeof Intent to File an Offer of Financial Assistance ("OFA") under 49 CFR1152.27 to purchase all or part of the line. By Order dated ______________,the STB tolled until [date], the time for Offerors to file an OFA.**
**Offeror seeks to acquire the subject rail line in order to preserveand enhance rail service to and from the facilities of the shippers onthe line. Offeror has assessed the financial information provided by BigGuy concerning the estimated net liquidation value of track and other materialon this line and the real estate appraisal information for the rights-of-way.Based on this initial review, Offeror believes that the valuations provided[may or may not] represent fair market value for the rail assets described.[If Offeror disagrees with carrier assessment of net liquidation value,it should explain its disagreements here, and provide its estimate of thefair market value]. Offeror expects to negotiate the acquisition of thisline based on the estimated line values provided by the parties.**      **- i -**
**Offeror is a financially responsible party. Enclosed in AppendixA [which may be labeled "Confidential"] is a financial statement for Offerorwhich demonstrates that Offeror has the financial capability to acquireall of the rail line in question and to operate the line for at least twoyears.**
**Respectfully submitted,**    
**_____________________________**
**Attorney or Authorized Representative**  **Certificate of Service**
**I hereby certify that on [date], I served a copy of the foregoingOffer of Financial Assistance upon the following parties of record by firstclass mail, postage prepaid (or Overnight Delivery) at their addressesset forth below:****Big Guy Railroad****100 Railroad Lane****City, State****Protesting Shipper****200 Farmers Lane****City, State**
**________________________________**
**Attorney or Authorized Representative**                                    **- ii -****APPENDIX V****SAMPLE REQUEST TO SET TERMS AND CONDITIONS**  **Before the****SURFACE TRANSPORTATION BOARD****Docket No. AB 999 Sub No. 3X****BIG GUY RAILROAD****-ABANDONMENT EXEMPTION -****FARMERS COUNTY, STATE****REQUEST TO SET TERMS AND CONDITIONS**
**Pursuant to 49 CFR 1152.27(g)(1) and (h)(3), (Full name of Offeror)hereby requests that the Board establish the conditions and amount of compensationfor financial assistance in this proceeding.**
**Background**
**On (date) Big Guy Railroad filed an (Notice, Petition, Application)to abandon**
**_____ miles of track in Farmers County, State. (The Notice was publishedin the FederalRegister on (date).) (The Surface TransportationBoard served an Order granting the (Petition, Application) on (date).)**
**On (date) Offeror filed a formal expression of intent to file andOffer of Financial Assistance. On (date) Big Guy provided valuation informationto Offeror and valued the line at $_____________.**
**On (date) Offeror filed an Offer of Financial Assistance. In a decisionserved (date) the Director of the Office of Proceedings found that Offeror'sOFA is *bona fide* and postponed the effective date of the abandonmentpending completion of the OFA process. The Offer set out in detail thereasons for Offeror's variance from the valuation provided by Big Guy.**
**Status of Negotiations**
**The parties are continuing to negotiate with respect to various aspectsof this transaction. We have agreed on some terms but not others. Our pointsof agreement and disagreement are set forth below.**
**(Here include some discussion to show that negotiations are goingforward in good faith)****- i -****Requested Board Action**
**In view of the absence of an agreement on terms and conditions ofsale as of the deadline for filing this Request, Offerors request thatthe Board review the valuation assessments prepared by each party and establishreasonable terms and conditions of sale. Offeror hereby agrees to notifythe Board of any additional agreements reached between the parties whilethis Request is pending.**
**Respectfully submitted,**
**_______________________**
**Attorney or Authorized Representative**
**of Offeror**  **Certificate of Service**
**I hereby certify that a copy of the foregoing Request to Set Termsand Conditions was mailed, this _____ day of _______, 199_, to the followingparties:****Big Guy Railroad**
**Address****(Any other parties of record in the proceeding)**                                    **- ii -**  
**1. To reserve a docket number, you should contactthe Office of the Secretary at 202/565-1681.**
**2.****Key to symbols:****(1) Name of entity acquiring or operating line or both,****(2) The type of transaction, e.g., to acquire,operate or both,****(3) The transferor,****(4) Describe the line,****(5) Petitioner's representative, address, and telephone number,****(6) Cross reference to other class exemptions being used.**
**3. A transaction that may not be suitable fora finance class exemption may qualify as a "minor" transaction under 49CFR 1180.2(c). The information that must be provided for a minor transactionis limited. A discussion of minor transactions is beyond the scope of thisinformation bulletin.**
**4. Phone 202/565-1664 to reserve a docket number.**
**5. Persons can first file a request for informalopinion if, as in construction cases, the filing fee for an exemption petitionis high. For more information on this option contact the STB's Office ofPublic Services at 202/565-1592.**
**6. A Notice of Exemption will be published inthe FederalRegister 20 days after it is filed with the Boardand would normally become effective 30 days after the publication date.**
**7. If the Offeror has filed an Offer of FinancialAssistance *prior* to publication of the Notice of Exemption in theFederalRegister, the Offeror must notify the Board thatits Offer has been previously submitted, no later than 30 days after theFederalRegister publication of the Notice of Exemption.**
**8. For more details on the Petition to toll the30 day period and the time frames see 49 CFR 1152.27(c)(2)(ii)(C) and(D).**
**9. The Director's timetable for issuing this Orderis described in 49 CFR 1152.27(e)(2). Procedures for appealing the Director'sOrder are set out in 49 CFR 1011.2(a)(7).**
**10. A decision granting or denying a Petitionfor Exemption or a Formal Application is not published in the FederalRegister. Persons interested in a particular Petition for Exemptionin an abandonment docket can be notified of the decision when it is madeby placing their names on the service list. To do this contact the Board'sOffice of the Secretary at 202/565-1674.**
**11. The Director's time table for issuing thisOrder is described in 49 CFR 1152.27(e)(2). Procedures for appealing theDirector's Order are set out in 49 CFR 1011.2(a)(7).**
**12. If the carrier receives written notice ofintent to make an offer from a party to the abandonment proceeding, thecarrier must make available to the offeror the records, account appraisals,working papers, and other documents used to prepare the revenue and costdata included in the abandonment application. As discussed above, it alsoserves the purpose of putting the offeror on the Board's service list forthe abandonment application so that the offeror is served with all decisionsand orders in the docket.**
**13. If the Board has tolled the time for filingan OFA, this decision will be issued 5 days after the OFA is filed.**
**14. If the railroad receives more than one OFA,requests to establish terms will not be permitted before it selects theOfferor with whom it wishes to transact business, and notifies the Boardand all parties to the proceeding of its selection.**
**15. If no timely request to set terms is made,the railroad generally will be allowed to abandon the line 10 days later(unless an appeal to the abandonment is pending).**
**16. In class exemption proceedings it the carrierhas received more than one OFA, it must select the offeror with which itchooses to do business within 45 of the publication of the FederalRegister and any Request to Set Terms and Conditions is due within60 days of the publication.**
**17. Please note the potentially tight time framehere. The applicant carrier provides notice of which offeror it has selectedby day 45. By day 60 if no agreement has been reached, the request to setterms and conditions is due.**
**18. Under 49 U.S. C.10907 the term "financiallyresponsible person" is defined as including, inter alia, a governmententity but excluding a Class I or Class II railroad.**
**19. Copies of the application must be sent byfirst class mail to (1) the owning carrier, (2) shippers who used the lineduring the year preceding the month in which the application is filed,(3) designated State(s) agency(ies) in which the line is located, (4) countygovernments where the line is located, (5) Amtrak if it operates over theline, and (6) the national offices of the rail unions with employees onthe line.**
**20. The time frames in this paragraph apply unlessspecified otherwise by the Board.**
**21. Docket Name should appear exactly as it doesin FederalRegister notice.**
**22. Docket name should appear exactly as it doesin FederalRegister notice.**