[Federal Register Volume 77, Number 37 (Friday, February 24, 2012)]
[Notices]
[Page 11192]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-4335]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35587]


Fannin Rural Rail Transportation District--Lease and Operation 
Exemption--Line of Texas Department of Transportation

    Fannin Rural Rail Transportation District (FRRTD), a noncarrier, 
has filed a verified notice of exemption under 49 CFR 1150.31 to lease 
from the Texas Department of Transportation (TxDOT), and to operate, a 
34.78-mile rail line extending from milepost 94.0 in Paris to milepost 
128.78 in Bonham, Tex. The line has been a part of Union Pacific 
Railroad Company's (UP) Bonham Subdivision.
    Through the Board's offer of financial assistance process, FRRTD 
previously was authorized to acquire from UP, and to operate, a 33.5-
mile portion of UP's Bonham Subdivision extending between milepost 
94.0, near Paris, and milepost 127.5, east of Bonham, in Lamar and 
Fannin Counties, Tex.\1\ After an agreement had been reached with UP 
for sale of the line but before consummating the transaction, FRRTD 
sold its interest in the rail line to TxDOT.\2\
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    \1\ See Union Pac. R.R.--Aban. Exemption--in Lamar and Fannin 
Cntys., Tex., AB 33 (Sub-No. 163X) (STB served Aug. 19, 2003).
    \2\ See State of Tex., acting by and through the Tex. Dept. of 
Transp.--Acquisition Exemption--Union Pac. R.R., FD 34834 (STB 
served Feb. 24, 2006), where TxDOT obtained Board authority for the 
acquisition of the 33.5-mile line from UP. In Texas Department of 
Transportation--Acquisition Exemption--Line of Union Pacific 
Railroad Company, FD 35493 (STB served June 24, 2011), TxDOT 
recently obtained Board authority to acquire from UP 1.28 miles of 
rail line on UP's Bonham Subdivision extending between milepost 
127.5 and milepost 128.78, in Fannin County Tex,, which is the 
remaining portion of the rail line FRRTD is now seeking Board 
authority to lease and operate.
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    FRRTD states that it leased the 33.5-mile portion of the line from 
TxDOT in 2006, apparently believing at the time that further Board 
authority was unnecessary. FRRTD has filed this notice to lease and 
operate the 1.28-mile portion of the line extending between milepost 
127.5 and milepost 128.78 to be acquired from UP by TxDOT and to lease 
and operate the 33.5-mile portion extending between milepost 94.0 and 
milepost 127.5 that it already has leased from TxDOT. FRRTD has 
structured the filing to ensure that it possesses appropriate 
regulatory authority for the entire 34.78 miles of rail line.
    Applicant states that Mid-Michigan Railroad, Inc., d/b/a Texas 
Northeastern Railroad (TNER), will provide freight service over the 
1.28-mile portion of the line pursuant to its previously authorized 
trackage rights \3\ and that any future freight service on the 
currently dormant 33.5-mile portion will be provided by a third-party 
operator, subject to proper Board authorization. Applicant notes that 
FRRTD and TxDOT will possess a residual common carrier obligation on 
the 34.78-mile line and that FRRTD will provide tourist train 
operations on the line as well. Applicant states that the proposed 
lease does not involve any provision or agreement that would limit 
future interchange with a third-party connecting carrier.
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    \3\ In Mid-Michigan Railroad, Inc., d/b/a Texas Northeastern 
Railroad--Trackage Rights Exemption--Line of Texas Department of 
Transportation, FD 35494 (STB served June 24, 2011), TNER obtained 
Board authority for a grant of local trackage rights by TxDOT over 
the 1.28-mile line of railroad.
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    The transaction is expected to be consummated on or after March 9, 
2012.
    FRRTD certifies that its projected annual revenues as a result of 
this transaction will not exceed $5 million annually and will not 
result in it becoming a Class I or Class II rail carrier.
    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 effectiveness of the exemption. 
Stay petitions must be filed no later than March 2, 2012 (at least 7 
days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 35587, must be filed with the Surface Transportation Board, 395 E 
Street SW., Washington, DC 20423-0001. In addition, one copy of each 
pleading must be served on Glenn M. Taylor, President, Fannin Rural 
Rail Transportation District, 514 Chestnut Street, Bonham, TX 75418.
    Board decisions and notices are available on our Web site at 
www.stb.dot.gov.

    Decided: February 21, 2012.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2012-4335 Filed 2-23-12; 8:45 am]
BILLING CODE 4915-01-P