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[Federal Register Volume 89, Number 250 (Tuesday, December 31, 2024)]
[Notices]
[Pages 107189-107190]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-31375]

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SURFACE TRANSPORTATION BOARD

[Docket No. AB 580 (Sub-No. 1X)]

Knoxville & Holston River Railroad Co., Inc., a Wholly Owned 
Subsidiary of Gulf & Ohio Railways, Inc.--Abandonment Exemption--in 
Knox County, Tenn.

    On December 11, 2024, Knoxville & Holston River Railroad Co., Inc. 
(KXHR), a Class III rail carrier and wholly owned subsidiary of Gulf & 
Ohio Railways,

[[Page 107190]]

Inc., filed a petition under 49 U.S.C. 10502 for an exemption from the 
prior approval requirements of 49 U.S.C. 10903 to abandon an 
approximately 3.8-mile rail line between milepost 0.1 and the end of 
the line, all of which is located in Knoxville, Knox County, Tenn. (the 
Line).\1\ The Line traverses U.S. Postal Service Zip Code 37920 and has 
no stations.
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    \1\ On December 17, 2024, KXHR filed an errata with an updated 
map.
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    According to KXHR, it is seeking authority to abandon the Line 
because the traffic and revenues from the sole shipper, Ergon 
Terminaling, Inc. (Ergon), are insufficient to cover the costs of 
maintaining and operating the Line. (Pet. 3-5.) KXHR states that Ergon 
has significantly reduced its use of the Line, (id. at 5), and as a 
result, KXHR faces significant hardship from continued operation of the 
Line at a loss, (id. at 4). According to KXHR, since 2019, it has not 
received enough revenue to sustain operations, receiving an average of 
8.2 carloads per year from 2019-2024. (Id.) KXHR states that the 
average revenue per year over the last five years for the Line is 
$5,343.00, and the operating costs of the Line currently exceed the 
average revenue generated from the Line by over 90%. (Id.) KXHR does 
not anticipate current traffic volumes will increase significantly. 
(Id.)
    Additionally, KXHR states that its initiatives to market and 
develop new local businesses on the Line have failed. (Id. at 6.) 
According to KXHR, portions of the Line are situated in a rapidly 
developing area, with the first 1.5 miles expanding into a mixed-use 
residential/commercial development area, making it extremely costly and 
unlikely for new shippers or industries to make use of or require 
freight services. (Id.) Moreover, KXHR states that a tunnel at milepost 
0.1 requires significant rehabilitation efforts to ensure continued 
safe and efficient operations on the Line.\2\ (Id.) KXHR states that, 
given the Line's limited and unpredictable traffic and the lack of 
projected future traffic, there is no way the Line can be operated 
profitably. (Id.)
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    \2\ According to KXHR, the state of the tunnel currently limits 
the type of freight that can traverse the Line, furthering limiting 
KXHR's potential for new traffic. (Pet. 6 n.8.)
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    According to KXHR, Ergon can, and has, used alternative modes, such 
as barge and truck, for its transportation needs. (Id. at 4-5.) KXHR 
states that it notified Ergon around October 2024 that it planned to 
seek abandonment authority and terminate its common carrier obligations 
over the Line and served Ergon with a copy of its petition. (Id. at 6-
7.) KXHR further states that there are no overhead operations on the 
Line. (Id. at 7.)
    KXHR states that, based on information in its possession, the Line 
does not contain federally granted rights-of-way. Any documentation in 
KXHR'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 Railroad--Abandonment Portion 
Goshen Branch Between Firth & Ammon, in Bingham & Bonneville Counties, 
Idaho, 360 I.C.C. 91 (1979).
    By issuing this notice, the Board is instituting an exemption 
proceeding pursuant to 49 U.S.C. 10502(b). A final decision will be 
issued by March 31, 2025.
    Any offer of financial assistance (OFA) under 49 CFR 1152.27(b)(2) 
will be due no later than 120 days after the filing of the petition for 
exemption, or 10 days after service of a decision granting the petition 
for exemption, whichever occurs sooner. Persons interested in 
submitting an OFA must first file a formal expression of intent to file 
an offer by January 10, 2025, indicating the type of financial 
assistance they wish to provide (i.e., subsidy or purchase) and 
demonstrating that they are preliminarily financially responsible. See 
49 CFR 1152.27(c)(1)(i).
    The Line 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 interim trail use/railbanking under 49 CFR 1152.29 will be due 
no later than January 21, 2025.\3\
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    \3\ Filing fees for OFAs and trail use requests can be found at 
49 CFR 1002.2(f)(25) and (27), respectively.
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    All pleadings, referring to Docket No. AB 580 (Sub-No. 1X), must be 
filed with the Surface Transportation Board either via e-filing on the 
Board's website or in writing addressed to 395 E Street SW, Washington, 
DC 20423-0001. In addition, a copy of each pleading must be served on 
KXHR's representative, Crystal M. Zorbaugh, Mullins Law Group PLLC, 
2001 L St. NW, Suite 720, Washington, DC 20036. Replies to the petition 
are due on or before February 10, 2025.
    Persons seeking further information concerning abandonment 
procedures may contact the Board's Office of Public Assistance, 
Governmental Affairs, and Compliance at (202) 245-0238 or refer to the 
full abandonment regulations at 49 CFR part 1152. Questions concerning 
environmental issues may be directed to the Board's Office of 
Environmental Analysis (OEA) at (202) 245-0294. If you require an 
accommodation under the Americans with Disabilities Act, please call 
(202) 245-0245.
    OEA will prepare an environmental assessment (EA) (or environmental 
impact statement (EIS), if necessary), which will be served upon all 
parties of record and upon any other agencies or persons who comment 
during its preparation. Other interested persons may contact OEA to 
obtain a copy of the EA (or EIS). EAs in abandonment proceedings 
normally will be made available within 60 days of the filing of the 
petition. The deadline for submission of comments on the EA generally 
will be within 30 days of its service.
    Board decisions and notices are available at www.stb.gov.

    Decided: December 23, 2024.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Stefan Rice,
Clearance Clerk.
[FR Doc. 2024-31375 Filed 12-30-24; 8:45 am]
BILLING CODE 4915-01-P
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