[Federal Register Volume 62, Number 68 (Wednesday, April 9, 1997)]
[Notices]
[Pages 17283-17284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9095]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33326]


I&M Rail Link, LLC; Acquisition and Operation Exemption; Certain 
Lines of Soo Line Railroad Company d/b/a Canadian Pacific Railway

    I&M Rail Link, LLC (I&M), a noncarrier, has filed a verified notice 
of exemption under 49 CFR 1150.31 and 1150.35 to acquire from Soo Line 
Railroad Company, d/b/a Canadian Pacific Railway (CPR), and operate 
approximately 1,109 miles of rail line and 262 miles of trackage rights 
in Iowa, Illinois, Minnesota, Missouri, Wisconsin, and Kansas. I&M will 
become a Class II rail carrier.\1\
---------------------------------------------------------------------------

    \1\ This proceeding is related to STB Finance Docket No. 33327, 
wherein Dennis Washington, William H. Brodsky, Mort Lowenthal, Dorn 
Parkinson, J. Fred Simpson, and Thomas J. Walsh have filed a notice 
of exemption to continue in control of I&M upon I&M's becoming a 
Class II rail carrier.
---------------------------------------------------------------------------

    The system to be acquired consists of: (1) CPR's ``KC Mainline'' 
between Kansas City, MO, and Pingree Grove, IL, including trackage 
rights between Pingree Grove and Chicago, IL; and (2) CPR's ``Corn 
Lines'' between Sabula and Sheldon, IA, including branch lines and 
trackage rights in southern Minnesota. <SUP>2
---------------------------------------------------------------------------

    \2\ I&M indicates that, to the extent the assumption by I&M of 
any of these trackage rights requires the consent of third parties, 
I&M will take appropriate steps to obtain such consent.
---------------------------------------------------------------------------

    The KC Mainline. The KC Mainline runs from Kansas City, MO (MP 
499.2),<SUP>3 northeasterly through Missouri and Iowa to a junction 
near Sabula, IA (MP 141.6), at the Iowa-Illinois border,\4\ including 
branch lines from Davenport, IA (MP 0.0), to Eldridge, IA (MP 9.7) (the 
Eldridge Branch), and from Davenport, IA (MP 0.0) to Albany, IL (MP 
35.0) (the Nitrin Branch); \5\ and then from the junction near Sabula, 
IA (MP 141.6), easterly across northern Illinois to Pingree Grove, IL 
(MP 41.9), including a branch line from Davis Jct., IL (MP 0.0), to 
Rockford, IL (MP 12.9), and then beyond to Janesville, WI (MP 45.8) 
(the Janesville Branch).\6\
---------------------------------------------------------------------------

    \3\ Operations into and out of Kansas City are via: a paired 
track agreement with the Union Pacific Railroad Company (UP) from 
Polo, MO (MP 456.7) to Birmingham, MO (MP 494.5); a joint track 
agreement with UP from Birmingham, MO (MP 494.5) to Airline Jct., MO 
(MP 499.2); and beyond for approximately 0.13 miles to Sheffield, 
MO, on a segment owned jointly by CPR and the Kansas City Southern 
Railway Company (KCS).
    \4\ Operation on the mainline at Clinton, IA, will require 
assumption of CPR's trackage rights through the UP interlocking at 
approximately MP 158.4.
    \5\ Over the Nitrin Branch, which is owned by The Burlington 
Northern and Santa Fe Railway Company (BNSF), I&M will acquire 
incidental trackage rights through an assignment of rights from CPR.
    \6\ Over the segment of the Janesville Branch that lies between 
Davis Jct. and Rockford (the Rockford Segment), which segment is 
owned by BNSF, I&M will acquire incidental trackage rights through 
an assignment of rights from CPR.
---------------------------------------------------------------------------

    The Corn Lines. The Corn Lines run from the junction near Sabula, 
IA (MP 141.6), north-northwesterly, approximately following Iowa's 
eastern border, to a junction near Marquette, IA (MP 98.0),<SUP>7 and 
then northerly into Minnesota to La Crescent, MN (MP 160.1); from the 
junction near Marquette (MP 0.0), westerly across northern Iowa to a 
junction at Mason City, IA (MP 116.7),\8\ and continuing westerly to 
Sheldon, IA (MP 253.4); from the junction near Mason City northerly 
into Minnesota to a junction near Comus, MN (MP 123.8); and from a 
junction near Ramsey, MN (MP 43.0), westerly across southern Minnesota 
to Jackson, MN (MP 149.4),<SUP>9 including a branch line from Wells, MN 
(MP 0.0), to Minnesota Lake, MN (MP 9.0).
---------------------------------------------------------------------------

    \7\ Operation on the ``Dubuque Segment'' through Dubuque, IA, 
will involve the assumption by I&M of CPR's rights to operate on 1.7 
miles of the former Chicago, Central & Pacific Railroad Company.
    \8\ I&M will assume CPR's trackage rights agreement for 
operation on the Iowa Northern Railway Company (IANR) from Plymouth 
Jct., IA (IANR MP 219.5), to Nora Springs, IA (IANR MP 210.7) (the 
Nora Springs Segment).
    \9\ Operation from Fairmont, MN (MP 182.97), to Welcome, MN (MP 
190.28) will be by assumption of CPR's trackage rights on UP (the 
Welcome Segment).
---------------------------------------------------------------------------

    Additional Incidental Trackage Rights. I&M will also acquire from 
CPR additional incidental trackage rights: (i) For certain traffic over 
34.9 miles of rail line from the end of CPR's line at Pingree Grove, 
IL, over certain lines owned by the Commuter Rail Division of the 
Regional Transportation Authority (METRA), to a connection with the 
Belt Railway Company of Chicago at Cragin Jct. (MP 7.0) in the Chicago 
Terminal; (ii) for overhead traffic over 125.8 miles of rail line owned 
by CPR, part of which is owned in common with BNSF, from River Jct.,

[[Page 17284]]

MN (MP 288.0), to St. Paul, MN (MP 407.4), and for overhead traffic 
from Comus, MN (MP 123.8), to Rosemount, MN (MP 150.7); and (iii) over 
78.2 miles of rail line owned by the Kansas City Terminal Railroad 
(KCT).<SUP>10
---------------------------------------------------------------------------

    \10\ I&M also will acquire CPR's minority interest (8.33%) in 
the common stock of KCT, and will thereby acquire certain rights and 
obligations attendant thereto, including the right to operate on the 
78.2 miles of rail line owned by KCT. I&M also will acquire all of 
the rights, privileges, benefits, and obligations of CPR in that 
certain contract between KCS and predecessors of CPR, dated May 1, 
1942, including any real estate owned by CPR in Kansas or in the 
metropolitan area of Kansas City, MO, together with any 
appurtenances and fixtures of CPR located thereon and affixed 
thereto, other than certain excluded assets.
---------------------------------------------------------------------------

    Pursuant to a decision of the Board served April 2, 1997, the 
proposed transaction may be consummated on or after April 4, 1997. I&M 
intends to consummate the transaction as soon as practicable.
    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 transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 33326, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Unit, 1925 K Street, N.W., 
Washington, DC 20423-0001. In addition, one copy of each pleading must 
be served on Mark H. Sidman, Esq., Weiner, Brodsky, Sidman & Kider, 
P.C., 1350 New York Avenue, N.W., Suite 800, Washington, DC 20005-4797.

    Decided: April 3, 1997.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 97-9095 Filed 4-8-97; 8:45 am]
BILLING CODE 4915-00-P