[Federal Register Volume 62, Number 190 (Wednesday, October 1, 1997)]
[Rules and Regulations]
[Pages 51379-51380]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26029]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

49 CFR Part 1241

[Ex Parte No. 431 (Sub-No. 2)]


Review of the General Purpose Costing System

AGENCY: Surface Transportation Board.

ACTION: Policy Statement; Final Rules; Request for Comments.

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SUMMARY: The Surface Transportation Board (Board) is modifying the 
procedures used to determine the variable costs associated with certain 
types of rail movements; discontinuing the collection of data on 
switching and terminal companies; and requesting comments on a 
modification of the procedure for determining the variable cost of 
using privately-owned rail cars.

DATES: The amendments to 49 CFR part 1241, and the policy statement 
revising the procedures for costing intermodal traffic and the train 
switching conversion factor, are effective October 1, 1997. The policy 
statement modifying the costing of privately-owned cars is effective 
December 1, 1997; if this effective date is delayed, timely notice will 
be published in the Federal Register.
    Comments are due October 31, 1997.

ADDRESSES: Send an original and 10 copies of comments referring to Ex 
Parte No. 431 (Sub-No. 2) to: Surface Transportation Board, Office of 
the Secretary, Case Control Unit, 1925 K Street, N.W., Washington, D.C. 
20423-001.

FOR FURTHER INFORMATION CONTACT: Thomas J. Stilling, (202) 565-1567. 
[TDD for the hearing impaired: (202) 565-1695.]

SUPPLEMENTARY INFORMATION: To provide consistent and comparable 
information on railroad costs, the Board maintains a general purpose 
costing system known as the Uniform Railroad Costing System (URCS). 
This rulemaking was instituted to review the procedures used by the 
URCS to develop the variable cost of providing

[[Page 51380]]

rail service. As a result of the comments received, the Board is 
discontinuing the collection of cost data on switching and terminal 
companies found in 49 CFR 1241.14. The Board is also adopting certain 
modifications to the procedures used to develop the costs associated 
with movements of intermodal traffic and revising the train switching 
conversion factor used in its costing procedures. All other proposals 
previously made in this proceeding are withdrawn. (The Board's decision 
may be reviewed at the agency's offices in Washington, DC during normal 
business hours and is available for a charge by calling DC NEWS & DATA 
INC. at (202) 289-4357.) Finally, as discussed below, the Board 
modifies the procedures for determining the variable cost of using 
privately-owned rail cars (an issue which has not been previously 
noticed for comment), subject to receiving no objections within 30 
days.

Privately-Owned Car Costing

    In the past, with the exception of unit-coal trains, the Board 
developed the variable cost associated with using privately-owned rail 
cars by applying an average car rental cost for privately-owned cars if 
no mileage rate for that particular car was shown in the Car Hire Rate 
Master (CHARMS) file. <SUP>1</SUP> In its comments in Ex Parte No. 347 
(Sub-No. 2), Rate Guidelines--Non-Coal Proceedings, <SUP>2</SUP> the 
AAR pointed out that more than 43% of all U.S.-based rail cars are now 
owned by entities other than railroads, and that increasingly shippers 
that provide their own cars obtain lower rates in return for the 
railroad not incurring any cost for the use of the privately-owned 
cars.
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    \1\ The CHARMS file is maintained by the Association of American 
Railroads (AAR) and contains all car-hire rates.
    \2\ See Verified statement of Rockey and Railroad Costing 
Officers at 17, filed Feb. 20, 1996.
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    In view of this current practice, we believe that more accurate 
costs will be obtained by applying a zero car rental cost to privately-
owned cars that do not have mileage rates shown in CHARMS. Thus, we 
will tentatively modify our costing procedures to assume that all 
privately-owned car types that show no mileage allowance in the CHARMS 
file incur no car cost, except for railroad-owned pool cars (for which 
an allowance is always paid). <SUP>3</SUP> For such pool cars, we will 
continue to use an average car rental cost, because it is the best 
estimate available to us. Absent the receipt of comments voicing 
opposition to this modification within 30 days of this decision, it 
will become a permanent change effective December 1, 1997. If the 
effective date of this modification is delayed, timely notice will be 
published in the Federal Register.
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    \3\ Railroad-owned pool cars are cars that are owned by 
companies that are themselves owned and controlled by the railroads. 
Railroad-owned pool cars are generally committed to pools for the 
benefit of certain shippers. A rental rate is paid for the use of 
these cars.
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    The Board certifies that the new procedures will not have a 
significant economic effect on a substantial number of small entities. 
The impact on small entities, if any, will be to provide them with 
better cost estimates.
    This action will not significantly affect either the quality of the 
human environment or the conservation of energy resources.

List of Subjects in 49 CFR Part 1241

    Administrative practice and procedure, Railroads.

    Decided: September 19, 1997.
    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
    For the reasons set forth in the preamble, 49 CFR Chapter X is 
amended as set forth below:

PART 1241--ANNUAL, SPECIAL, OR PERIODIC REPORTS--CARRIERS SUBJECT 
TO PART I OF THE INTERSTATE COMMERCE ACT

    1. The authority citation for part 1241 is revised to read as 
follows:

    Authority: 49 U.S.C. 11145.

Sec. 1241.14  [Removed]

    2. Section 1241.14 is removed.

[FR Doc. 97-26029 Filed 9-30-97; 8:45 am]
BILLING CODE 4915-00-P