28446 Federal Register / Vol. 63, No. 99 / Friday, May 22, 1998 / Notices

13 In Decision No. 10, at 18–19, the Board

provided that general oversight would commence

July 1 upon the filing by UP/SP and BNSF of their

quarterly merger progress reports accompanied by

comprehensive summary presentations. We

provided that, as part of that proceeding, UP/SP and

BNSF must make their 100% traffic tapes available

by July 15, 1998; that comments of interested

parties concerning oversight issues are due August

14, 1998; and that replies are due September 1,

1998. The general oversight proceeding will

continue as planned.

14Tex Mex/KCS stated that it would file its

supporting evidence 45 days after its petition.

Petition at 5. If it does so, it need not file its

evidence anew on June 8th, although it may

supplement its filing as appropriate. We decline,

however, petitioner’s request (Petition at 11 n.6) to

incorporate by reference its pleadings in Finance

Docket Nos. 33507, 33461, 33462, and 33463 (titles

omitted). In those proceedings, Tex Mex/KCS has

complained that, after the merger, UP/SP (either

singly or jointly with BNSF) unlawfully acquired

control of HB&T in violation of 49 U.S.C. 11323,

and has petitioned that a series of exemptions the

carriers filed to restructure HB&T’s operations

leading to that control should be voided and/or

revoked. We will proceed to consider the discrete

matters in those cases—including Tex Mex/KCS’

petition for consolidation and motion to compel

discovery, and UP/SP’s motion to dismiss—

separately from our consideration in this oversight

proceeding of requests by Tex Mex/KCS and others

for new remedial conditions to the merger.

remedial conditions if those previously

afforded prove insufficient, including, if

necessary, divestiture of certain of the

merged carriers’ property.

The virtual shutdown of rail service

in the Houston/Gulf Coast area that

occurred after the UP/SP merger—and

which, after many months, has yet to be

normalized—is unprecedented. In our

judgment, those circumstances alone are

sufficient for the Board to commence

this proceeding now. Clearly, our 5-year

oversight jurisdiction permits us to

examine—and, if necessary, re-examine

at any time during this period—whether

there is any relationship between the

market power gained by UP/SP through

the merger and the failure of service that

has occurred here, and, if so, whether

the situation should be addressed

through additional remedial conditions.

UP/SP Merger, Decision No. 44, at 100.

We caution, however, that we will not

impose conditions requiring UP/SP to

divest property that would substantially

change the configuration and operations

of its existing network in the region in

the absence of the type of presentation

and evidence required for ‘‘inconsistent

applications’’ in a merger proceeding;

i.e., parties must present probative

evidence that discloses ‘‘the full effects

of their proposals.’’ UP/SP Merger,

Decision No. 44, at 157. Divestiture is

only available ‘‘when no other less

intrusive remedy would suffice,’’ and

we will impose it only upon sufficient

evidentiary justification. Id.

The Board will confine this

proceeding under its continuing

oversight jurisdiction to examining

requests for new conditions to the

merger relating to rail service in the

Houston/Gulf Coast area. As we have

noted, the service crisis in this region,

and its significant impact on the

regional economy, clearly warrant our

discrete treatment of these matters now.

As a result, the procedures set forth here

will be separate from those in the more

general oversight proceeding that,

pursuant to UP/SP Oversight, Decision

No. 10, will begin July 1, 1998.13

As set forth in the attached schedule,

parties that wish to request new

remedial conditions to the UP/SP

merger as they pertain to the Houston/

Gulf Coast region must file them, along

with their supporting evidence, by June

8, 1998.14 The Board will publish a

notice in the Federal Register accepting

such requests by July 8, 1998. Any

person who intends to participate

actively in this facet of oversight as a

‘‘party of record’’ (POR) must notify us

of this intent by July 22, 1998. In order

to be designated a POR, a person must

satisfy the filing requirements discussed

above in the ADDRESSES section. We will

then compile and issue a final service

list.

Copies of decisions, orders, and

notices will be served only on those

persons designated as POR, MOC

(Members of Congress), and GOV

(Governors) on the official service list.

Copies of filings must be served on all

persons who are designated as POR. We

note that Members of the United States

Congress and Governors who are

designated MOC and GOV are not

parties of record and they need not be

served with copies of filings; however,

those who are designated as a POR must

be served with copies of filings. All

other interested persons are encouraged

to make advance arrangements with the

Board’s copy contractor, DC News &

Data, Inc. (DC News), to receive copies

of Board decisions, orders, and notices

served in this proceeding. DC News will

handle the collection of charges and the

mailing and/or faxing of decisions to

persons who request this service. The

telephone number for DC News is: (202)

289–4357.

A copy of this decision is being

served on all persons designated as

POR, MOC, or GOV on the service list

in Finance Docket No. 32760 (Sub-No.

21). This decision will serve as notice

that persons who were parties of record

in the previous oversight proceeding

(leading to Decision No. 10) will not

automatically be placed on the service

list as parties of record for this facet of

oversight unless they notify us of their

intent to participate further.

Finally, while the requested remedial

conditions (and those reasonably

anticipated from other parties) could, if

imposed, result in a transfer of

ownership of certain UP/SP rail

property or changes in the way that

such properties are operated, they

appear unlikely to produce the kind of

significant operational changes that,

under 49 CFR 1105.6(b)(4), require the

filing of a preliminary draft

environmental assessment (PDEA).

This action will not significantly

affect either the quality of the human

environment or the conservation of

energy resources.

Decided: March 30, 1998.

By the Board, Chairman Morgan and Vice

Chairman Owen.

Vernon A. Williams,

Secretary.

Procedural Schedule

June 8, 1998

Requests for new remedial conditions

(with supporting evidence) filed.

July 8, 1998

Board notice of acceptance of requests

for new conditions published in the

Federal Register.

July 22, 1998

Notice of intent to participate in

proceeding due.

August 10, 1998

All comments, evidence, and

argument opposing requests for new

remedial conditions to the merger

due. Comments by U.S. Department

of Justice and U.S. Department of

Transportation due.

September 8, 1998

Rebuttal evidence and argument in

support of requests for new

conditions due.

The necessity of briefing, oral

argument, and voting conference will be

determined after the Board’s review of

the pleadings.

[FR Doc. 98–13775 Filed 5–21–98; 8:45 am]

BILLING CODE 4910–00–P

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Docket No. AB–167 (Sub–No. 1183X)]

Consolidated Rail Corporation;

Abandonment Exemption; in

Philadelphia County, PA

Consolidated Rail Corporation

(Conrail) has filed a notice of exemption

under 49 CFR 1152 Subpart F—Exempt

Abandonments to abandon a 0.42-mile

portion of the Berks Street Industrial

Track between milepost 2.98± and

milepost 3.40±, in the City of
Federal Register / Vol. 63, No. 99 / Friday, May 22, 1998 / Notices 28447

1The Board will grant a stay if an informed

decision on environmental issues (whether raised

by a party or by the Board’s Section of

Environmental Analysis in its independent

investigation) cannot be made before the

exemption’s effective date. See Exemption of Outof-Service Rail Lines, 5 I.C.C.2d 377 (1989). Any

request for a stay should be filed as soon as possible

so that the Board may take appropriate action before

the exemption’s effective date.

2Each offer of financial assistance must be

accompanied by the filing fee, which currently is

set at $1000. See 49 CFR 1002.2(f)(25).

Philadelphia, Philadelphia County, PA.

The line traverses United States Postal

Service Zip Code 19140.

Conrail has certified that: (1) No local

traffic has moved over the line for at

least 2 years; (2) there is no overhead

traffic moving over the line; (3) no

formal complaint filed by a user of rail

service on the line (or by a state or local

government entity acting on behalf of

such user) regarding cessation of service

over the line either is pending with the

Surface Transportation Board (Board) or

with any U.S. District Court or has been

decided in favor of complainant within

the 2-year period; and (4) the

requirements at 49 CFR 1105.7

(environmental reports), 49 CFR 1105.8

(historic reports), 49 CFR 1105.11

(transmittal letter), 49 CFR 1105.12

(newspaper publication), and 49 CFR

1152.50(d)(1) (notice to governmental

agencies) have been met.

As a condition to this exemption, any

employee adversely affected by the

abandonment shall be protected under

Oregon Short Line R. Co.—

Abandonment— Goshen, 360 I.C.C. 91

(1979). To address whether this

condition adequately protects affected

employees, a petition for partial

revocation under 49 U.S.C. 10502(d)

must be filed. Provided no formal

expression of intent to file an offer of

financial assistance (OFA) has been

received, this exemption will be

effective on June 21, 1998, unless stayed

pending reconsideration. Petitions to

stay that do not involve environmental

issues,1 formal expressions of intent to

file an OFA under 49 CFR

1152.27(c)(2),2 and trail use/rail banking

requests under 49 CFR 1152.29 must be

filed by June 1, 1998. Petitions to reopen

or requests for public use conditions

under 49 CFR 1152.28 must be filed by

June 11, 1998, with: Surface

Transportation Board, Office of the

Secretary, Case Control Unit, 1925 K

Street, NW, Washington, DC 20423.

A copy of any petition filed with the

Board should be sent to applicant’s

representative: John J. Paylor, Associate

General Counsel, Consolidated Rail

Corporation, 2001 Market Street—16A,

Philadelphia, PA 19101–1416.

If the verified notice contains false or

misleading information, the exemption

is void ab initio.

Conrail has filed an environmental

report which addresses the

abandonment’s effects, if any, on the

environment and historic resources. The

Section of Environmental Analysis

(SEA) will issue an environmental

assessment (EA) by May 27, 1998.

Interested persons may obtain a copy of

the EA by writing to SEA (Room 500,

Surface Transportation Board,

Washington, DC 20423) or by calling

SEA, at (202) 565–1545. Comments on

environmental and historic preservation

matters must be filed within 15 days

after the EA becomes available to the

public.

Environmental, historic preservation,

public use, or trail use/rail banking

conditions will be imposed, where

appropriate, in a subsequent decision.

Pursuant to the provisions of 49 CFR

1152.29(e)(2), Conrail shall file a notice

of consummation with the Board to

signify that it has exercised the

authority granted and fully abandoned

the line. If consummation has not been

effected by Conrail’s filing of a notice of

consummation by May 22, 1999, and

there are no legal or regulatory barriers

to consummation, the authority to

abandon will automatically expire.

Board decisions and notices are

available on our website at

‘‘WWW.STB.DOT.GOV.’’

Decided: May 15, 1998.

By the Board, David M. Konschnik,

Director, Office of Proceedings.

Vernon A. Williams,

Secretary.

[FR Doc. 98–13774 Filed 5–21–98; 8:45 am]

BILLING CODE 4915–00–P

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Docket No. AB–468 (Sub-No. 3X)]

Paducah & Louisville Railway, Inc.;

Abandonment Exemption; in

Muhlenberg County, KY

On May 5, 1998, Paducah & Louisville

Railway, Inc. (P&L) filed with the

Surface Transportation Board (Board) a

petition under 49 U.S.C. 10502 for

exemption from the provisions of 49

U.S.C. 10903 to abandon: (1) 6.70 miles

of rail line between milepost J–126.6 at

Central City, KY (JK Jct.), and milepost

J–133.3 at Greenville, KY; and (2) 6.14

miles of branch line trackage known as

the Beech Creek Lead, between

Greenville and Pond Creek, KY, in

Muhlenberg County, KY. The lines

traverse U.S. Postal Service Zip Codes

42330, 42337, 42345 and 42367. The

lines include the stations of JK Jct. at

milepost J–126.7 and Pond Creek at

milepost J–133.1.

The lines do not contain federally

granted rights-of-way. Any

documentation in the railroad’s

possession will be made available

promptly to those requesting it. The

interest of railroad employees will be

protected by the conditions set forth in

Oregon Short Line R. Co.—

Abandonment—Goshen, 360 I.C.C. 91

(1979).

By issuance of this notice, the Board

is instituting an exemption proceeding

pursuant to 49 U.S.C. 10502(b). A final

decision will be issued by August 21,

1998.

Any offer of financial assistance

(OFA) under 49 CFR 1152.27(b)(2) will

be due no later than 10 days after

service of a decision granting the

petition for exemption. Each OFA must

be accompanied by a $1,000 filing fee.

See 49 CFR 1002.2(f)(25).

All interested persons should be

aware that, following abandonment of

rail service and salvage of the lines, the

lines may be suitable for other public

use, including interim trail use. Any

request for a public use condition under

49 CFR 1152.28 or for trail use/rail

banking under 49 CFR 1152.29 will be

due no later than June 11, 1998. Each

trail use request must be accompanied

by a $150 filing fee. See 49 CFR

1002.2(f)(27).

All filings in response to this notice

must refer to STB Docket No. AB–468

(Sub-No. 3X) and must be sent to: (1)

Surface Transportation Board, Office of

the Secretary, Case Control Unit, 1925 K

Street, NW., Washington, DC 20423–

0001, and (2) J. Thomas Garrett, 1500

Kentucky Avenue, Paducah, KY 42003.

Replies to the P&L petition are due on

or before June 11, 1998.

Persons seeking further information

concerning abandonment procedures

may contact the Board’s Office of Public

Services at (202) 565–1592 or refer to

the full abandonment or discontinuance

regulations at 49 CFR part 1152.

Questions concerning environmental

issues may be directed to the Board’s

Section of Environmental Analysis

(SEA) at (202) 565–1545. [TDD for the

hearing impaired is available at (202)

565–1695.]

An environmental assessment (EA) (or

environmental impact statement (EIS), if

necessary) prepared by SEA will be

served upon all parties of record and

upon any agencies or other persons who

commented during its preparation.

Other interested persons may contact

SEA to obtain a copy of the EA (or EIS).