Document:

INTERSTATE COMMERCE COMMISSION
                                    DECISION
                            Finance Docket No. 30183

          NEW YORK CROSS HARBOR RAILROAD TERMINAL CORP.-- EXEMPTION FOR
                      OPERATION AND ISSUANCE OF SECURITIES

                                             No. AB-219 (Sub-No. 2)
         NEW YORK DOCK RAILWAY -- ABANDONMENT  --   KINGS COUNTY.  NY
         Decided: July 8, l983

        By application filed June 3, 1983, the New York Cross Harbor Railroad
Terminal Corp. (NYCH) seeks a certificate of public convenience and necessity
under 49 U.S.C. 10901 to operate a terminal railroad in the New York, NY area.
NYCH also seeks (1) an exemption to issue securities; (2) a waiver of filing
fees; and (3) a waiver of any public hearing. In addition, NYCH filed a petition
on May 3, 1983 seeking waiver of environment and energy data required under 49
C.F.R. 1150.7. In the alternative NYCH seeks an exemption under 49 U.S.C. 10505.
The Brotherhood of Locomotive Engineers (BLE) protests the application. The New
York Department of Transportation (NYDOT) has filed comments on the proposal.
Numerous local businesses and governmental bodies have filed letters in support
of the proposal.
        NYCH seeks authority to conduct a rail and marine service in the Borough
of Brooklyn, NY and between Brooklyn, NY and Greenville Yard in Jersey City, NJ.
Operations are presently conducted by the New York Dock Railway (NYD).  NYD has
sought, however, authority to abandon all operations in Docket No. AB-219
(Sub-No. 2), New York Dock Railway Abandonment Kings County.-NY
--------------------- ----------- ----- ----------

NYD has agreed to sell assets necessary to conduct the described operations for
$1.5 million. The assets include tracks, locomotives, a tug, floats,
floatbridges, and shop, work and office equipment. NYD will also lease 4
carfloats to NYCH. NYCH has arranged to lease (1) Consolidated Rail
Corporation's Greenville yard in Jersey City, NJ (2) New York City's Brooklyn
Army Terminal, Bush Terminal and 65th Street Yard (when completed); and (3) the
Atlantic Terminal owned by the Port Authority of New York and New Jersey.

         To finance the purchase of NYD assets, NYCH has reached an agreement
  with Northbrook Leasing (Northbrook). Under this agreement, Northbrook will
  advance $1.5 million to purchase the NYD assets. The property will be leased
  to NYCH for 5 years. At the end of this period NYCH will receive title to the
  assets from Northbrook for a nominal fee. NYCH has also arranged a loan of
  $300,000 from the National Bank of North America for working capital. Both
  agreements will require NYCH to issue promissory notes.

The Commission may begin an exemption proceeding on its own motion. 49 U.S.C.
10505(b). While NYCH has applied for authority to operate under 49 U.S.C. 10901,
it has alternatively requested an exemption. It is appropriate to treat its
application as a petition f or exemption from 49 U.S.C. 10901 under 49 U.S.C.
10505.1/ We also note that under the terms of the loan agreement, Northbrook
will acquire title to various NYD assets including "track" located at various
terminal facilities. Commission authorization is required if a non-carrier
acquires rail line unless the acquisition involves spur, industrial, team,
switching, or side tracks and the tracks are located or intended to be located
entirely in one State (49 U.S.C. 10907). Because it is unclear whether
Nortlibrook's track acquisition is within our jurisdiction, on our own motion we
will initiate a proceeding to exempt Northbrook from 49 U.S.C. Subtitle IV, and
will consider this exemption in this decision.

  1/ We will dismiss NYCH's petitions to waive: (1) environment and energy data
  under 49 C.F.R. 1150.7 because this regulation is not applicable In exemption
  proceedings; (2) oral hearing because oral hearings are generally not required
  in exemption proceedings; (2) oral hearing because oral hearings are generally
  not required in exemption proceedings and no need has been shown for one here;
  and (3) filing fees because exemption petitions do not require any fee. NYCH's
  fee will be refunded.

<PAGE>

        Pursuant to 49 U.S.C. 10505, the Commission shall exempt a transaction
when it finds that (1) continued regulation is not necessary to carry out the
transportation policy of 49 U.S.C. 10101a, and (2) either (a) the transaction is
of limited scope or (b) regulation is not necessary to protect shippers from the
abuse of market power.
        The rail transportation policy will be fostered by the proposed
exemptions. Exemption will minimize the need for Federal regulatory control over
the rail transportation system, expedite regulatory decisions, and reduce
regulatory barriers for entry . into and exit from the industry.
        Regulation of the proposed transaction is not necessary to protect
shippers from the abuse of market power. Exemption will merely allow NYCH to
substitute its services for those currently provided by NYD. Exemption will also
further the interest of existing shippers by assuring continued service over
lines which otherwise would be subject to abandonment. We note that numerous
shippers support this proposal.2/ Since we have determined that regulation is
not necessary to protect shippers from an abuse of. market power, it is not
necessary to consider whether the transactions are of limited scope. However, we
note that the operation is limited to small sections of Brooklyn and Jersey City
3/

2/ Monarch Wine Co., Inc.; Consolidated Edison Company of New York, Inc.; Gusseo
Manufacturing, Inc.; Cumberland Parking Corporation; New York Rail Car
Corporation; Gem Parking Corporation; Tri-Borough Transportation Corporation;
Express Haulage Corporation; Davidson Pipe-Supply Co., Inc.; 73 businesses
represented by Southwest Brooklyn Industrial Development Corp.; the Brooklyn
Chamber of Commerce; and many businesses In Brooklyn by the Borough of Brooklyn.

3/ NYDOT has filed comments addressing NYCH's ability to perform the described
services and assume certain NYD contractual obligations. NYDOT has not
demonstrated that exemption should be denied. In light of NYD's announced
intention to abandon this line and the absence of any other sustitute rail
carriers, we continue to conclude that exemption should be granted.

        The exemption here will enable NYCH to substitute its services for NYD.
Accordingly, NYD's abandonment application is no longer appropriate and will
be dismissed.
         BLE requests that the Commission impose the conditions contained in New
York Dock Ry. - Control - Brooklyn Eastern Dist. 360 I.C.C. 60 (1979) and
require NYCH to grant first preference to NYD and Brooklyn Eastern District
Terminal employees.  Under 49 U.S.C. 10505(g) we cannot relieve a carrier of its
obligation to protect employees.  The imposition of employee protective
conditions in proceedings under 49 U.S.C. 10901 is discretionary.  No need has
been shown for their imposition.4/
         Our initial review of the proposal indicates that the exemptions will
  not affect either the quality of the human environment or energy consumption.
         It is ordered:
1.     New York Cross Harbor Railroad Terminal Corp. is exempted from the
requirements of 49 U.S.C. 10901 to conduct the described terminal railroad
operations in the New York, NY area.
2.     NYCH's issuance of securities under the described agreements are exempted
from the requirements of 49 U.S.C. 11301.
3.     Northbrook Leasing's acquisition Of the described line is exempted from
the requirements of 49 U.S.C. Subtitle IV.
4.     Docket No. AB-219 (Sub-No. 2) New York Dock Railway--Abandonment --
Kings County.  NY, is dismissed.

4/ The remaining exemptions do not involve any action for which labor protection
is required.

5.     NYCH's petitions for waiver filed May 3, 1983 and June 3, 1983 are
dismissed.

6.     Notice shall be published in the Federal Register.

7.     The parties shall notify the Commission within 30 days of consummation.

8.     These exemptions shall be effective on July 18, 1983.

9.     Petitions to reopen must be filed by August 8. 1983.

       By the Commission, Division 1, Commissioners Andre, Taylor, and
Sterrett. Commissioner Taylor is assigned to this Division for the purpose of
resolving tie votes. Since there was no tie in this matter, Commissioner Taylor
did not participate.

                                               Agatha L. Mergenovich
(SEAL)                                             Secretary

                                       -5-NYCH/GCIA Waste Supply Agreement
                      WASTE SUPPLY AGREEMENT BY AND BETWEEN
                   THE GLOUCESTER COUNTY IMPROVEMENT AUTHORITY
                       AND NEW YORK CROSS HARBOR RAILROAD

         THIS WASTE SUPPLY AGREEMENT (hereinafter referred to as "Agreement"),
is entered into this March 12, 1999 by and between the GLOUCESTER COUNTY
IMPROVEMENT AUTHORITY, with its principal place of business at 109 Budd
Boulevard, Woodbury, New Jersey 08096 (hereinafter referred to as "Authority")
and NEW YORK CROSS HARBOR RAILROAD (hereinafter referred to as "NYCH").

         WHEREAS, the Authority has agreed to accept certain non-processible
waste types (to be further defined hereinafter) for a certain specified fee,
under certain terms and conditions, at its Landfill at the Gloucester County
Solid Waste Complex located in South Harrison Township, Gloucester County, New
Jersey (hereinafter referred to as the "Landfill"); and

         WHEREAS, NYCH has agreed to deliver certain acceptable waste to the
Landfill in accordance with the terms and conditions and fees as are set forth
in this Agreement;

         NOW, THEREFORE, in consideration of mutual promises, terms and
conditions set forth below, the Authority and NYCH agree as follows:

         1. Acceptable Waste is defined as non-processible and/or non-burnable
permitted waste types including (a) the non-processible and/or non-burnable
portion of Waste ID Type 13 (bulky waste); the non-processible and/or
non-burnable portion of Waste ID Type 13C (construction & demolition waste);
Waste ID Type 27 (dry industrial non-hazardous waste. Unacceptable Waste
includes (a) Waste ID Type 10 (household, commercial, institutional waste);
Waste ID Type 23 (vegetative waste), Asbestos and (b) hazardous refuse of any
kind or type (including those regulated under 42 U.S.C. 6921-6925 and
regulations thereunder adopted by the United States Environmental Protection
Agency pursuant to the Resource Conservation and Recovery Act of 1976, 90 Stat.
2806, 42 (U.S.C. 6901), such as cleaning fluids, crankcase oils, cutting oils,
paints, acids, caustics, poisons, drugs, radioactive materials, fine powdery
earth used to filter cleaning fluid and refuse of similar nature and (b) all
other items of waste which the Authority reasonably believes would be likely to
pose a threat to health or safety or the acceptance and disposal of which may
cause damage to the Landfill or may be in violation of any judicial decision,
order or action of any federal, state or local government or any agency thereof,
or any other regulatory authority or applicable law or regulations. If any
governmental agency or entity having jurisdiction shall in the future determine
that any substance which is not, as of the date of this Agreement, considered
harmful or of a toxic nature or dangerous, is at any such future time recognized
as harmful, toxic, dangerous or otherwise subject to regulation in any manner as
hazardous waste, such substance shall thereupon, as to future deliveries, cease
to constitute Acceptable Waste.

         2. Manner of Delivery (a) NYCH agrees to deliver Acceptable Waste in a
clean, orderly and safe manner during scheduled delivery days and hours (as per
Exhibit I) and in such manner that the Acceptable Waste will not be spilled or
blown on the Landfill. Should Acceptable Waste be so spilled or blown due to the
negligence or willful acts or omissions of NYCH or its subcontractors, NYCH will
promptly, at its sole cost, collect and remove such spilled or blown Acceptable
Waste and if NYCH fails to do so, NYCH shall be liable to the Authority for all
costs of such clean-up by the Authority. The Authority may inspect the contents
of any vehicle delivering waste to the Landfill and may require NYCH, if it
delivers to the Landfill Unacceptable Waste or Hazardous Waste, both as defined
herein, to separate all Unacceptable Waste or Hazardous Waste from Acceptable
Waste. If such separation is impractical, the Authority may refuse the entire
load. NYCH agrees to adhere to Landfill safety rules and regulations at all
times while on the Landfill premises as specified in Exhibit II attached and
made a part hereto. The Authority will accept title to all Acceptable Waste upon
acceptance of it for processing at the Landfill.

         (b) For purposes of this Agreement, (i) "Unacceptable Waste" means any
waste other than Acceptable Waste and (ii) "Hazardous Waste" means any chemical,
pollutant, contaminant, toxic substance, hazardous or extremely hazardous
material or substance, radioactive material, or oil or petroleum product, as
such terms or any similar terms are used under any applicable federal, state or
local statutory or common laws, regulations, rules or ordinance relating to
pollution or protection of the environment, natural resources or human health.

<PAGE>

         3. Removal of Waste NYCH agrees to remove from the Landfill at its sole
cost any waste rejected by the Authority in accordance with Section 7, and NYCH
shall not be obligated to pay a tipping fee for waste so rejected. NYCH will, in
the event the Authority is required to segregate such waste and remove it from
the Landfill, be charged for any costs incurred by the Authority for such
segregation and removal.

         4. Landfill Access The Authority shall have the right to designate
certain highway routes to be used by NYCH to deliver Acceptable Waste to the
Landfill. NYCH agrees to utilize only those Gloucester County designated routes,
which shall constitute reasonable direct access to the Landfill. In accordance
with the preceding, NYCH will abide by these designated routes for access to or
egress from the Landfill.

         The Authority may take whatever action is necessary to insure
compliance with the above directives, including barring the offending truck from
the Landfill or termination of this Agreement, at the sole discretion of the
Authority.

         5. Delivery Vehicles NYCH shall cause all vehicles used for deliveries
of Acceptable Waste to the Landfill to be registered, in safe and clean
condition, and, in good repair. Each delivery vehicle shall not exceed sixty
(60) feet in length.

         6. Weighing Procedures The Authority shall utilize and maintain a motor
truck scale to weigh all vehicles delivering Acceptable Waste to the Landfill.
Waste vehicles delivering Acceptable Waste to the Landfill shall have the truck
number and all required documentation and registrations conspicuously displayed
on the vehicle. Each incoming waste vehicle shall be weighed, indicating gross
weight, time, point of origin and truck identification number on a weight
record. Each vehicle will also be weighed after unloading.

         7. Refusal of  Delivery  The  Authority  shall have the right  without
any  liability  to NYCH to refuse deliveries of:
         a)       Any  waste  delivered  other  than  during  the  established
                  receiving  hours as posted by the Authority.
         b)       Any  Acceptable  Waste  which  the  Authority  is unable to
                  accept  due to causes  beyond  its reasonable control.
         8. Tipping Fee and Payment NYCH agrees to pay the Authority $20.00 per
ton ("short ton" of 2000 pounds), inclusive of all existing taxes and/or
surcharges, of Acceptable Waste actually delivered to the Landfill, by, or on
behalf of, NYCH, but shall have no obligation to deliver any minimum quantity.
         The Authority will invoice NYCH monthly. All payments for the preceding
month shall be due and payable within thirty (30) days after the date of receipt
on the invoice. Payments should be made to:
                           Gloucester County Improvement Authority
                           109 Budd Blvd.
                           Woodbury, NJ 08096

Any amount not received within thirty (30) days of the date of the invoice shall
bear interest at the lesser of one and one-half percent (1-1/2%) or the maximum
legal rate per month or fraction thereof.
         In the event that NYCH is sixty (60) days in arrears on payment, waste
will only be accepted if there is an escrow account which has been established
by NYCH. There will be no more monthly invoices. The total cost of each day's
tipping fee shall be deducted from the escrow account of NYCH. It is the
responsibility of NYCH to maintain sufficient funds in their escrow account to
cover their daily tipping fees. Escrow account payment checks may be sent to the
GCIA at the address below or delivered to the weighmaster located in the
scalehouse at the Gloucester County Solid Waste Complex:

                           Gloucester County Improvement Authority
                           109 Budd Blvd.
                           Woodbury, NJ 08096

In the event any additional taxes or surcharges are imposed on the Authority by
any government or regulatory body, other than income taxes, after the date
hereof, the tip fee will be adjusted to reflect such taxes or surcharges, but
only after the Authority has provided at least thirty (30) days written notice
of such adjustment to NYCH.

<PAGE>

         9. Term The term of this Agreement shall commence upon the Authority's
receipt of a fully executed Agreement and shall expire on December 31, 2000 (the
"Term"). This Agreement may be extended for additional one (1) year term(s)
provided that all parties agree to the extensions. A party may elect not to
renew the Agreement and terminate any further obligation thereunder by providing
sixty (60) days advanced notice to the other parties of the party's intention
not to renew this Agreement.

         10. Limitation of Liability Except for the provisions of Section 12
hereof, whether based upon contract, tort, warranty or otherwise arising out of
the performance or non-performance by either NYCH or the Authority of its
obligations hereunder, neither NYCH nor the Authority shall be liable for or
obligated in any manner to pay special, consequential or indirect damages,
including, but not limited to, loss of profits.

         11. Applicable Law The laws of the State of New Jersey shall govern the
validity, interpretation, construction and performance of these terms and
conditions.

         12. Compliance with Laws Each party shall comply with all federal,
state and local laws and regulations and administrative positions. Each party
has, and will renew, all permits, licenses or permissions of governmental
authorities necessary in connection with the performance of its obligations
hereunder.

         13. Notices  All  notices  hereunder  shall be in  writing  with
notice  deemed  to be given  upon receipt, addressed as follows:

                  If to NYCH:            New York Cross Harbor Railroad
                                         Attn: Nick Zuvic and Robert Bentley
                                         4302 First Avenue
                                         Brooklyn, New York 11232

                  If to the Authority:   Gloucester County Improvement Authority
                                         Attn:  Executive Director
                                         109 Budd Boulevard
                                         Woodbury, New Jersey 08096

         Changes in the respective address to which such notices shall be sent
may be made from time to time by either party by notice to the other party.
Notice given otherwise than by mail shall be effective when received.

         14. Miscellaneous This agreement is the entire agreement between the
parties, and supersedes and replaces all prior and contemporaneous
understandings, agreements and negotiations of the parties as to the subject
matter herein. This Agreement may only be amended by a signed writing of both
parties.

WITNESS the execution hereof as an instrument under seal as of the date first
above written.

                                         Gloucester County Improvement Authority
                                    By:  Gloucester County Improvement Authority

                                    By:
                                          --------------------------------------
                                          David P. Fanslau, Chairman

                                          Date:
                                           -------------------------------------

                                          New York Cross Harbor Railroad
                                      By: New York Cross Harbor Railroad

                                      By:
                                           -------------------------------------

                                           Print Name:
                                           -------------------------------------

                                           Its:
                                           -------------------------------------
                                           Date:
                                           -------------------------------------

<PAGE>

                                    EXHIBIT I

Gloucester County Solid Waste Complex
Location:         503 Monroeville Road (CR 694)
                  South Harrison Township

Telephone:        (609) 478-6045

Hours of Operation:        7:30 a.m. - 3:30 p.m.
                           Monday through Friday

Days Closed:               New Year's Day            January 1, 1999
                           Martin Luther King Day    January 19, 1999
                           Good Friday               April 2, 1999
                           Memorial Day              May 31, 1999
                           Independence Day          July 5,  1999
                           Labor Day                 September 6, 1999
                           Election Day              November 2, 1999
                           Thanksgiving Day          November 25, 1999
                           Christmas Eve (1/2 day)   December 23, 1999
                           Christmas Day             December 24, 1999

<PAGE>

                                   EXHIBIT II

                          SAFETY RULES AND REGULATIONS

1.       10 - 15 mph on Authority Property; follow all posted signs.

2.       Approach scale SLOWLY;  No sudden stops or starts!

3.       Wait for scale to be clear before proceeding.

4.       Proceed to workface for tipping of load.

5.       Stay by your vehicle AT ALL TIMES.

6.       Clean debris from rear of your vehicle before leaving workface.

7.       DO NOT release or unscrew hold-downs or latches until arrival on the
         workface.

8.       No riding on the rear of vehicles while on Authority Property.

9.       No littering on Authority Property.

10.      Maintenance of vehicles will not be permitted on the workface.

11.      The use or possession of alcohol, narcotics or any controlled substance
         is STRICTLY FORBIDDEN!!

12.      No smoking on the workface.

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