Canadian Pacific Railway Company, et al.-Control-Dakota, Minnesota & Eastern Railroad Corp., et al., 923-930 [E7-25480]

Download as PDF Federal Register / Vol. 73, No. 3 / Friday, January 4, 2008 / Notices 923 Docket ID Requester Regulation(s) Nature of waiver PHMSA–2007–29032 Texas Eastern Transmission, L.P. (a Spectra Energy Company). Gulf South Pipeline Company, L.P. 49 CFR 192.611 ........ To authorize operation of 19 pipeline segments at 6 sites along Lines 14, 18, and 31 downstream of the Union Church and Clinton compressor stations in Mississippi without reducing operating pressure as a result of a change from Class 1 to Class 2 locations. To authorize operation of 3 pipeline segments on the TPL 880 pipeline in Marion County, AL without reducing operating pressure as a result of a change from Class 1 to Class 3 locations. PHMSA–2007–0039 .. Authority: 49 U.S.C. 60118(c)(1) and 49 CFR 1.53. 49 CFR 192.611 ........ SUMMARY: The Surface Transportation Board (Board) is accepting for consideration the application filed on December 5, 2007, by Canadian Pacific Railway Corporation (CPRC), Soo Line Holding Company, a Delaware Corporation and indirect subsidiary of CPRC (Soo Holding), Dakota, Minnesota & Eastern Railroad Corporation (DM&E), and Iowa, Chicago & Eastern Railroad Corporation, a wholly owned rail subsidiary of DM&E (IC&E). The application filed on December 5 seeks Board approval under 49 U.S.C. 11321– 26 of the acquisition of control of DM&E and IC&E by Soo Holding (and, indirectly, by CPRC). This proposal is referred to as the ‘‘transaction,’’ and CPRC, Soo Holding, DM&E, and IC&E are referred to collectively as ‘‘Applicants.’’ 1 The Board finds that the transaction is a ‘‘significant transaction’’ under 49 CFR 1180.2(b), and adopts a procedural schedule for consideration of the application, under which the Board’s final decision would be issued by September 30, 2008. DATES: The effective date of this decision is January 4, 2008. Any person who wishes to participate in this proceeding as a party of record (POR) must file, no later than January 25, 2008, a notice of intent to participate if they have not already done so. Descriptions of anticipated responsive applications (including inconsistent applications) and any petitions for waiver or clarification with respect to such applications are also due by January 25, 2008. Applicants shall file a proposed Safety Integration Plan (SIP) with the Board’s Section of Environmental Analysis (SEA) and the Federal Railroad Administration (FRA) by February 4, 2008. All environmental comments must also be filed by February 4, 2008, addressed to the attention of SEA. All responsive applications, requests for conditions, and any other evidence and argument in opposition to the application, including filings by DOJ and DOT, must be filed by March 4, 2008. Replies to responsive applications, requests for conditions, and other opposition, and rebuttal in support of the application must be filed by April 18, 2008. DOJ and DOT will be allowed to file, on the response due date (here, April 18), their comments in response to the comments of other parties, and Applicants will be allowed to file a response to any such comments filed by DOJ and/or DOT by April 25, 2008. Rebuttals in support of responsive applications, requests for conditions, and other opposition must be filed by May 19, 2008. Final briefs, if any, will 1 In Decision No. 1 in this proceeding, served September 21, 2007, the Board issued a Protective Order to facilitate the discovery process and establish appropriate procedures for the submission of evidence containing confidential or proprietary information. On October 5, 2007, Applicants submitted an application for the proposed transaction and requested that the Board treat the transaction as a ‘‘minor transaction.’’ In Decision No. 2, served November 2, 2007, and published in the Federal Register on November 8, 2007, at 72 FR 63232–63236, the Board found the proposed transaction to be ‘‘significant’’ and considered the October 5 submission as a prefiling notification, thus allowing Applicants to perfect their application by submitting the difference between the filing fee for a ‘‘minor’’ transaction and ‘‘significant’’ transaction, as well as any supplemental materials or information. On December 5, 2007, applicants submitted the difference in filing fees and other supplemental material. We will refer to the October 5 prefiling notification, as supplemented on December 5, as ‘‘the December 5 application.’’ Issued in Washington, DC, on December 27, 2007. Jeffrey D. Wiese, Associate Administrator for Pipeline Safety. [FR Doc. E7–25634 Filed 1–3–08; 8:45 am] BILLING CODE 4910–60–P DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 35081] Canadian Pacific Railway Company, et al.—Control—Dakota, Minnesota & Eastern Railroad Corp., et al. AGENCY: Surface Transportation Board, DOT. Decision No. 4 in STB Finance Docket No. 35081; Notice of Acceptance of Application; Issuance of Procedural Schedule. jlentini on PROD1PC65 with NOTICES ACTION: VerDate Aug<31>2005 17:04 Jan 03, 2008 Jkt 214001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 be due by July 2, 2008. If a public hearing or oral argument is held, it will be held on a date to be determined by the Board. The Board will issue its final decision by September 30, 2008. For further information respecting dates, see Appendix A (Procedural Schedule). ADDRESSES: Any filing submitted in this proceeding must be submitted either via the Board’s e-filing format or in the traditional paper format as provided for in the Board’s rules. Any person using e-filing should attach a document and otherwise comply with the instructions found on the Board’s Web site at https://www.stb.dot.gov at the ‘‘EFILING’’ link. Any person submitting a filing in the traditional paper format should send an original and 10 paper copies of the filing (and also an electronic version) to: Surface Transportation Board, 395 E Street, SW., Washington, DC 20423–0001. In addition, one copy of each filing in this proceeding must be sent (and may be sent by e-mail only if service by e-mail is acceptable to the recipient) to each of the following: (1) Secretary of Transportation, 1200 New Jersey Avenue, SE., Washington, DC 20590; (2) Attorney General of the United States, c/o Assistant Attorney General, Antitrust Division, Room 3109, Department of Justice, Washington, DC 20530; (3) Terence M. Hynes (representing CPRC), Sidley Austin LLP, 1501 K Street, NW., Washington, DC 20005; (4) William C. Sippel (representing DM&E), Fletcher & Sippel, 29 North Wacker Drive, Suite 920, Chicago, IL 60606; and (5) any other person designated as a POR on the service list notice (as explained below, the service list notice will be issued as soon as practicable). FOR FURTHER INFORMATION CONTACT: Julia M. Farr, (202) 245–0359. [Assistance for the hearing impaired is available through the Federal Information Relay Service (FIRS) at 1–800–877–8339.] SUPPLEMENTARY INFORMATION: CPRC is a Canadian corporation whose stock is publicly held and traded on the New York and Toronto stock exchanges. CPRC and its U.S. rail carrier subsidiaries, Soo Line Railroad Company (Soo) and Delaware and E:\FR\FM\04JAN1.SGM 04JAN1 jlentini on PROD1PC65 with NOTICES 924 Federal Register / Vol. 73, No. 3 / Friday, January 4, 2008 / Notices Hudson Railway Company, Inc. (D&H), operate a transcontinental rail network over 13,000 miles in Canada and the United States. (CPRC, Soo, and D&H are referred to collectively as CPR.) CPR serves the principal business centers of Canada and 14 U.S. states in the Northeast and Midwest. The major commodities transported by CPR include bulk commodities such as grain, coal, sulfur, and fertilizers; merchandise freight including finished vehicles and automotive parts, forest products, industrial products, and consumer products; and intermodal traffic. In fiscal year 2006, the freight revenues of CPR were approximately $4.4 billion. DM&E is a privately held Class II rail carrier headquartered in Sioux Falls, SD. DM&E and its subsidiary, IC&E, operate over 2,500 miles of rail lines serving eight U.S. states, including the major Midwestern gateways of Chicago, IL, Minneapolis/St. Paul, MN, and Kansas City, MO. Together, DM&E and IC&E interchange rail traffic with all seven U.S. Class I railroads. DM&E was created in 1986 from lines formerly owned by Chicago and North Western Transportation Company (CNW) in South Dakota, Minnesota, and Iowa. In 1996 DM&E acquired CNW’s Colony Line, running from Eastern Wyoming through Western South Dakota and into Northwestern Nebraska. DM&E subsequently acquired the lines now operated by IC&E from the former Iowa and Minnesota Rail Link in 2002. IC&E owns or operates approximately 1,322 route miles of rail lines that were once part of the CPR system, in Illinois, Minnesota, Missouri, and Wisconsin. In 2006, the Board granted DM&E authority to construct and operate 282 miles of new railroad lines to serve coal origins in Wyoming’s Powder River Basin (PRB). DM&E states that it is currently pursuing the process of acquiring the right-of-way needed to build the PRB line. It must execute agreements with PRB mines on terms for operations by DM&E over their loading track and facilities. DM&E must also secure sufficient contractual commitments from prospective coal shippers to route their traffic over the PRB line to justify the large investment to build it. Finally, DM&E must arrange financing for the project and comply with the environmental conditions imposed by the Board. If the proposed transaction is approved, CPR states that it plans to work diligently with DM&E to accomplish these necessary prerequisites to construction of the proposed PRB line but has not committed to constructing the line. The proposed transaction for which Applicants seek approval involves the VerDate Aug<31>2005 16:42 Jan 03, 2008 Jkt 214001 acquisition of control of DM&E and IC&E by Soo Holding (and, indirectly, by CPRC). On October 4, 2007, Soo Line Properties Company, a Delaware corporation and wholly owned subsidiary of Soo Holding (Soo Properties), merged with and into DM&E, subject to the voting trust described below. At the time of closing, DM&E shareholders received cash consideration of approximately $1.48 billion, subject to certain working capital adjustments in accordance with the Agreement and Plan of Merger (Merger Agreement). As part of the $1.48 billion paid at closing, DM&E and IC&E repaid certain obligations to third party creditors, including $250 million to the FRA. The Merger Agreement provides for future contingent payments by CPR to DM&E’s shareholders of up to approximately $1 billion. Specifically, an additional payment of $350 million will become due if construction starts on the PRB line prior to December 31, 2025. Further contingent payments of up to approximately $707 million will become due upon the movement of specified volumes of PRB coal over the PRB line prior to December 31, 2025. Financial Arrangements. No new equity securities will be issued in connection with the transaction. The purchase price was funded by CPRC from available cash and credit facilities. In connection with the closing, Soo Holdings advanced $250 million to DM&E to enable it to repay outstanding indebtedness to FRA. DM&E’s obligation to FRA was replaced by an intercompany private loan from Soo Holdings to DM&E in the amount of $250 million. Passenger Service Impacts. Applicants state that no commuter or passenger service is provided over the lines currently operated by DM&E. Applicants do not anticipate that any CPR line over which passenger operations are presently conducted would be materially affected by the proposed transaction. Applicants state that CPR’s freight train schedules are built around passenger and commuter operations, in order to avoid freight train interference with passenger train service. Applicants further assert that no such line will be downgraded, eliminated, or operated on a consolidated basis as a result of the transaction. The Board notes that both IC&E and CPR share tracks with the Commuter Rail Division of the Regional Transportation Authority (Metra), a commuter rail authority serving the Chicago metropolitan area. The Board also notes that the National Railroad Passenger Corporation (Amtrak) operates over CPR between PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 Minneapolis/St. Paul and Chicago, with heavier traffic between Milwaukee and Chicago. Discontinuances/Abandonments. Applicants state that they do not presently plan any line abandonments or the elimination of any duplicative facilities in connection with the transaction. Public Interest Considerations. Applicants contend that the transaction would not result in any lessening of competition, creation of a monopoly, or restraint of trade in freight surface transportation in any region of the United States. Rather, Applicants state that CPR’s acquisition of DM&E and IC&E (collectively referred to as DME) would be strongly pro-competitive. Most significantly, Applicants note that the transaction would create new singlesystem rail options where none currently exist. Applicants contend that CPR’s plan to invest $300 million in capital improvements on DME’s existing lines would enhance safety and the efficiency of its operations, thereby strengthening the competitive ability of DME. Applicants state that this investment would allow DME to upgrade track, bridges, and other rail facilities and to bring its safety performance closer to CPR standards, thus improving the fluidity of their train operations. The transaction would restore CPR’s direct access to the Kansas City gateway, enhancing its ability to compete effectively for rail traffic moving between CPR’s current network and points in the U.S. Southwest and Mexico. Applicants assert that the transaction would enable CPR to assist DM&E in possibly bringing to fruition its proposal to introduce a third rail competitor to the PRB, which is currently served by UP and BNSF. According to the application, the geographic limitations of DME’s existing rail network restrict the ability of its shippers to compete in distant end markets for their products. Currently, DME must interchange traffic moving beyond its service territory with other railroads at busy rail gateways, including Chicago, Kansas City, and Minneapolis/St. Paul, thus requiring longer transit times. As a result of the transaction, Applicants state that DME would become part of a transcontinental Class I rail system with direct access to major metropolitan centers of the U.S. Midwest (including Chicago, Detroit, MI, Milwaukee, WI, and Minneapolis/ St. Paul), U.S. Northeast (including Buffalo, NY, and Philadelphia, PA), and Canada (including Calgary, Montreal, Toronto, and Vancouver), positioning DME shippers to take advantage of future opportunities for growth. E:\FR\FM\04JAN1.SGM 04JAN1 jlentini on PROD1PC65 with NOTICES Federal Register / Vol. 73, No. 3 / Friday, January 4, 2008 / Notices Applicants state that the new single system routings created by the proposed transaction will give DME shippers—for the first time—direct rail access to all of these potential destinations, enhancing their ability to compete in distant end markets for their products. Applicants state that CPR shippers would likewise gain the ability to ship products to/from points served by DME on a single-system basis. Specifically, Applicants assert that CPR’s acquisition of IC&E’s lines would give CPR the ability to participate in the growing transportation of ethanol. Applicants also state that the transaction would give CPR the opportunity to increase its participation in the substantial volume of bentonite clay traffic that originates at the western end of DM&E’s system. Applicants state that CPR would also gain greater diversification in the U.S. grain network with IC&E’s coverage of Iowa and Southern Minnesota corn origins. Applicants state that DME and its customers would also benefit from access to CPR’s large, modern car and locomotive fleet. The ability to draw upon CPR’s fleet of almost 70,000 cars, and improved equipment utilization made possible by coordinating CPR and DME operations, would produce cost savings for DME and help it to meet the needs of its customers. The transaction would also generate substantial benefits for shippers of a variety of commodities, including grain, ethanol, bentonite clay, silica sand, steel, and plastics. In support of this, Applicants submit numerous statements of shippers who testify as to the opportunities for growth, increased access to markets, and improved ability to compete in distant markets, as potential benefits of the proposed transaction. Applicants assert that the transaction would not result in any lessening of effective rail competition because the transaction is almost entirely ‘‘end-toend,’’ in that there is minimal overlap in Applicants’ current rail systems. Applicants note that both CPR and DME operate between Minneapolis/St. Paul and Chicago, but several other rail carriers also operate between those points now, and they will continue to do so if the proposed transaction is approved and consummated. CPR and DME intersect at only four locations: Chicago, St. Paul, Minnesota City, MN, and La Crescent, MN. Thus, Applicants state that the rail networks of CPR and DME are complementary, not competitive. While intermodal shipments and motor vehicles are major commodities of CPR, Applicants argue that DME does not participate in significant volumes of such traffic. VerDate Aug<31>2005 16:42 Jan 03, 2008 Jkt 214001 Conversely, steel shipments account for a far greater portion of traffic for DME than for CPR. There are five U.S. states in which both CPR and DME offer rail service (either directly or through a haulage agreement or other commercial arrangement): Illinois, Minnesota, Missouri, South Dakota, and Wisconsin. In Wisconsin, CPR and DME do not serve any common stations. Within Illinois, Minnesota, Missouri, and South Dakota, Applicants believe that 30 stations are commonly served by CPR and DME. Of those 30 stations, ten stations are served by CPR, DME, and one other railroad. Fifteen stations are served by the Applicants and two additional carriers. Five stations, according to the Official Railway Station List (ORSL), are served exclusively by CPR and DME. Based on the Board’s Carload Waybill Sample for the year 2005, Applicants state that none of the five stations exclusively served by CPR and DME would lose competitive rail service as a result of the proposed transaction due to the fact that at least one of the carriers was not active at each station. Applicants also assert that none of the ten stations served by CPR, DME, and one additional rail carrier (which are located in Illinois, Minnesota, Missouri, and South Dakota) would experience a loss of competitive rail service as a result of the transaction, due to a variety of reasons, including the fact that several stations served solely as a point of interchange for CPR and/or DME. Additionally, according to the Carload Waybill Sample, rail traffic that originated or terminated at several of the stations was not handled by both CPR and DME. Regarding the 14 short line carriers in DME’s service territory, Applicants state that none will be left without competitive routing options involving non-Applicant carriers following the proposed transaction. Thirteen of these short line carriers have the ability to interchange with at least one railroad other than Applicants. One short line carrier, the Iowa Traction Railroad Company, can connect only with IC&E today, so its options would not be affected by the transaction. In response to comments filed by Iowa Northern Railway Company (IANR) on October 26, 2007, challenging the rigor and completeness of their station-specific analysis, Applicants also submitted an analysis of the impact on geographic (i.e., source or destination) competition, as well as further analysis of possible horizontal competitive issues, by examining Applicants’ participation in rail traffic PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 925 at the Bureau of Economic Analysis Economic Area (BEA) level. Applicants assert that the transaction would not reduce or eliminate source or destination competition for the traffic in which Applicants participate today. Independent Voting Trust. On October 4, 2007, Soo Properties was merged with and into DM&E. At that time, all the common shares of DM&E were deposited into an independent voting trust, pending Board approval of the proposed transaction, in order to avoid unlawful control of DM&E and IC&E in violation of 49 U.S.C. 11323. On or after the effective date of a Board final order authorizing the transaction, the voting trust would be terminated; DM&E’s shares would be transferred to Soo Holding; and DM&E would become a wholly owned subsidiary of Soo Holding (and an indirect subsidiary of CPRC). In the event that the Board does not approve the transaction, Soo Holding would use its reasonable best efforts to sell or direct the trustee to sell the trust interests to one or more eligible purchasers or otherwise dispose of the trust interests during a period of 2 years after such a decision becomes final. With the exception of the Board’s final approval of the transaction, all conditions precedent to closing of the merger have been satisfied. Environmental Impacts. Applicants contend that the transaction would not result in any increases in rail traffic, train operations, or yard activity that would exceed the Board’s thresholds for environmental review in 49 CFR 1105.7(e)(5). Applicants therefore assert that the transaction does not require the preparation of environmental documentation under 49 CFR 1105.6(b)(4). However, Applicants plan to prepare a Safety Integration Plan (SIP) under the Board’s rules at 49 CFR 1106 and 49 CFR 1180.1(f)(3) setting out how they would ensure that safe operations are maintained throughout the acquisition-implementation process, if the proposed transaction is approved. Applicants propose that the Board defer any required analysis of the environmental impacts of the movement of DM&E PRB coal trains over the lines of IC&E and/or CPR because definitive information regarding the likely volume, destination, and routing of DM&E PRB coal trains beyond DM&E’s existing line remains speculative. The City of Winona, Mayo Clinic, and BNSF Railway Company (BNSF) have filed comments on Applicants’ proposed environmental approach. Applicants replied to BNSF’s comments. The Board will consider these comments in its review of the E:\FR\FM\04JAN1.SGM 04JAN1 jlentini on PROD1PC65 with NOTICES 926 Federal Register / Vol. 73, No. 3 / Friday, January 4, 2008 / Notices transaction; there is no need for the commenters to refile those submissions. Historic Preservation Impacts. Applicants contend that a historic review is not required for this transaction. Labor Impacts. Applicants do not anticipate that the transaction would result in any operational changes that would adversely affect any Soo employees. The operational change involving the handling by Soo of traffic between Minnesota City and Chicago would likely have no significant effect on Soo employees because cars moving from or to Minnesota City would simply be added to trains currently operated by Soo over its own lines. The transaction involves an operational change that would affect the handling of certain DME traffic to and from Chicago, which would affect DME employees in two ways. First, there would be a reduction of two crew starts per day on trains operating on the lines from Waseca, MN, to Nora Springs, IA. This would affect employees who report for work at Waseca and draw their assignments from a crew board maintained there. However, there would be an offsetting addition of two crew starts per day on trains operating from Waseca to Minnesota City, which would be available to employees who report to Waseca. Second, there would be a reduction of four crew starts per day on IC&E because two daily IC&E trains, each requiring two crews, would no longer operate between Nora Springs and Chicago. That reduction would affect IC&E train and engine service employees who currently report for work at Mason City, IA, and Dubuque, IA, and draw their assignments from crew boards maintained at those locations. Applicants further state that it is possible that, as a result of this operational change, there would be a need for fewer active IC&E train and engine service employees at Mason City and Dubuque, for at least a short time. Because affected IC&E train and engine service employees have seniority covering all of IC&E’s territory, they would be entitled, and expected, to take work assignments elsewhere on IC&E. Applicants expect sufficient work to be available on IC&E for all of the carrier’s active train and engine service employees. Applicants state that any carrier employees who are adversely affected by the proposed transaction would be entitled to the benefits of a fair arrangement in accordance with the requirements of 49 U.S.C. 11326. New York Dock Ry.—Control—Brooklyn Eastern District Terminal, 360 I.C.C. 60, VerDate Aug<31>2005 16:42 Jan 03, 2008 Jkt 214001 aff’d sub nom. New York Dock Ry. v. United States, 609 F.2d 83 (2d Cir. 1979). Applicants note that neither CPR nor DME has negotiated a protective agreement with any labor organization in connection with the proposed transaction. Application Accepted. For the reasons outlined in Decision No. 2, the Board finds that the transaction would be a ‘‘significant transaction,’’ under 49 CFR 1180.2(b), and accepts the December 5 application for consideration because it is in substantial compliance with the applicable regulations governing a significant transaction. See 49 U.S.C. 11321–26; 49 CFR 1180. The Board reserves the right to require the filing of additional supplemental information, if necessary for a full record. Public Inspection. The application is available for inspection in the library (Room 131) at the offices of the Surface Transportation Board, 395 E Street, SW., in Washington, DC. In addition, the application may be obtained from Mr. Hynes (representing CPRC) and Mr. Sippel (representing DM&E) at the addresses indicated above. Procedural Schedule. On November 13, 2007, Applicants filed a petition to establish a revised procedural schedule as directed by the Board in Decision No. 2. On November 26, 2007, the Board issued a notice of the proposed procedural schedule and requested public comments (Decision No. 3). The Board’s proposed procedural schedule was the same as the Applicants’ proposed procedural schedule, except that the record would close with the filing of briefs on July 2, 2008, and would provide for a possible oral argument or public hearing to be held on a date to be determined by the Board. No comments were received in opposition to the Board’s proposed procedural schedule. Accordingly, the Board adopts the procedural schedule as previously proposed in Decision No. 3. Under the procedural schedule adopted by the Board: Any person who wishes to participate in this proceeding as a POR must file, no later than January 25, 2008, a notice of intent to participate; descriptions of anticipated responsive applications (including inconsistent applications) and any petitions for waiver or clarification with respect to such applications are also due by January 25, 2008; applicants shall file a proposed SIP with SEA and FRA by February 4, 2008; all environmental comments must also be filed by February 4, 2008, addressed to the attention of SEA; responsive applications, requests for conditions, and any other evidence and argument in PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 opposition to the application, including filings by DOJ and DOT, must be filed by March 4, 2008; replies to responsive applications, requests for conditions, and other opposition, and rebuttal in support of the application must be filed by April 18, 2008; DOJ and DOT will be allowed to file, on the response due date (here, April 18), their comments in response to the comments of other parties, and Applicants will be allowed to file a response to any such comments filed by DOJ and/or DOT by April 25, 2008; rebuttals in support of responsive applications, requests for conditions, and other opposition must be filed by May 19, 2008; final briefs, if any, will be due by July 2, 2008. Under this schedule, a public hearing or oral argument may be held on a date to be determined by the Board. The Board will issue its final decision by September 30, 2008, and that decision will be effective October 30, 2008. For further information respecting dates, see Appendix A (Procedural Schedule). Notice of Intent to Participate. Any person who wishes to participate in this proceeding as a POR must file with the Board, no later than January 25, 2008, a notice of intent to participate, accompanied by a certificate of service indicating that the notice has been properly served on the Secretary of Transportation, the Attorney General of the United States, Mr. Hynes (representing CPRC), and Mr. Sippel (representing DM&E). Notices of intent to participate received to date have been compiled in a preliminary service list. Parties who have already submitted a notice of intent to participate are not required to resubmit an additional notice. If a request is made in the notice of intent to participate to have more than one name added to the service list as a POR representing a particular entity, the extra name will be added to the service list as a ‘‘Non-Party.’’ The final list will reflect the Board’s policy of allowing only one official representative per party to be placed as a POR on the service list, as specified in Press Release No. 97–68 dated August 18, 1997, announcing the implementation of the Board’s ‘‘One Party-One Representative’’ policy for service lists. Any person designated as a Non-Party will receive copies of Board decisions, orders, and notices but not copies of official filings. Persons seeking to change their status must accompany that request with a written certification that he or she has complied with the service requirements set forth at 49 CFR 1180.4 and any other requirements set forth in this decision. Service List Notice. The Board will serve, as soon after January 25, 2008, as E:\FR\FM\04JAN1.SGM 04JAN1 jlentini on PROD1PC65 with NOTICES Federal Register / Vol. 73, No. 3 / Friday, January 4, 2008 / Notices practicable, a notice containing the official service list (the service-list notice). Parties should review the preliminary service list, in Decision No. 4, served on December 27, 2007, and notify the Board of any corrections. Each POR will be required to serve upon all other PORs, within 10 days of the service date of the service-list notice, copies of all filings previously submitted by that party (to the extent such filings have not previously been served upon such other parties). Each POR also will be required to file with the Board, within 10 days of the service date of the service-list notice, a certificate of service indicating that the service required by the preceding sentence has been accomplished. Every filing made by a POR after the service date of the service-list notice must have its own certificate of service indicating that all PORs on the service list have been served with a copy of the filing. Members of the United States Congress (MOCs) and Governors (GOVs) are not parties of record and need not be served with copies of filings, unless any Member or Governor has requested to be, and is designated as, a POR. Environmental Comments. All environmental comments must be filed by February 4, 2008, and addressed to the attention of SEA. Descriptions of Anticipated Responsive Applications and Petitions for Waiver or Clarification. Descriptions of anticipated responsive, including inconsistent, applications and petitions for waiver or clarification with respect to such applications must be filed by January 25, 2008. Responsive Applications, Requests for Conditions, and Other Opposition Evidence and Argument, Including Filings by DOJ and DOT. All responsive applications, requests for conditions, and any other evidence and argument in opposition to the application, including filings by DOJ and DOT, must be filed by March 4, 2008. Protesting parties are advised that, if they seek either the denial of the application or the imposition of conditions upon any approval thereof, on the theory that approval (or approval without conditions) would harm competition and/or their ability to provide essential services, they must present substantial evidence in support of their positions. See Lamoille Valley R.R. Co. v. ICC, 711 F.2d 295 (D.C. Cir. 1983). Replies to Responsive Applications, Requests for Conditions, and Other Opposition, and Rebuttal in Support of the Application. Replies to responsive applications, requests for conditions, and other opposition, and rebuttal in VerDate Aug<31>2005 16:42 Jan 03, 2008 Jkt 214001 support of the application must be filed by April 18, 2008. Rebuttals in Support of Responsive Applications, Requests for Conditions, and Other Opposition. Rebuttals in support of responsive applications, requests for conditions, and other opposition must be filed by May 19, 2008. Final Briefs and Public Hearing/Oral Argument. Final briefs, if any, will be due by July 2, 2008. The Board may hold a public hearing or an oral argument in this proceeding on a date to be determined by the Board. Discovery. Discovery may begin immediately. The parties are encouraged to resolve all discovery matters expeditiously and amicably. Environmental Matters. Under both the regulations of the Council on Environmental Quality (CEQ) implementing the National Environmental Policy Act of 1969, 42 U.S.C. 4321 et seq. (NEPA), and the Board’s own environmental rules, actions whose environmental effects are ordinarily insignificant may be excluded from NEPA review across the board, without a case-by-case review. Such activities are said to be covered by a ‘‘categorical exclusion,’’ which CEQ defines at 40 CFR 1508.4 as: [A] category of actions which do not individually or cumulatively have a significant effect on the human environment and which have been found to have no effect in procedures adopted by a federal agency in implementation of these regulations * * * and for which, therefore, neither an environmental assessment nor an environmental impact statement is required. An agency’s procedures for categorical exclusions ‘‘shall provide for extraordinary circumstances in which a normally excluded action may have a significant environmental effect,’’ thus requiring preparation of either an Environmental Assessment (EA) or an Environmental Impact Statement (EIS). Id. See also 49 CFR 1105.6(d). But absent extraordinary circumstances, once a project is found to fit within a categorical exclusion, no further NEPA procedures are warranted. In its environmental rules, the Board has promulgated various categorical exclusions. As pertinent here, a rail line acquisition is a classification of action that normally requires no environmental review if certain thresholds would not be exceeded.2 See 49 CFR 1105.6(c)(2)(i). 2 The thresholds differ depending on whether a rail line segment is in an area designated as in ‘‘attainment’’ or ‘‘nonattainment’’ with the National Ambient Air Quality Standards established under the Clean Air Act. For rail lines located in attainment areas, environmental documentation normally will be prepared if the proposed action PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 927 The Board’s regulations also provide that historic review normally is not required for acquisitions where there will be no significant change in operations and properties 50 years old and older will not be affected. See 49 CFR 1105.8. The Proposed Acquisition. Applicants assert in their application that most of the rail lines of DME and CPR are located in attainment areas.3 They project that the proposed transaction would not increase the level of train operations by more than 1 additional train per day along any segment of the combined CPR-DME system over the next 5 years (by 2012),4 and therefore maintain that the 3 or 8-train-per-day threshold in the Board’s environmental rules would not be met in this case.5 Applicants assert that their traffic projections account for both (1) traffic that would move beyond DME’s service territory on CPR’s lines, and (2) projected growth in rail traffic on certain segments of DME lines that would likely occur in any case (e.g., anticipated growth of ethanol production). Applicants also project only small increases in annual gross ton miles as a result of the proposed transaction, which would be well below the thresholds for preparation of environmental documentation. For example, Applicants maintain that the proposed acquisition would result in an increase of 5,800 carloads of ‘‘extended haul’’ traffic by the year 2010. All of this increase, Applicants state, would occur on the lines of CPR (either on Soo’s lines east of Chicago, or its lines north of Minneapolis/St. Paul). According to would result in (1) an increase of at least 8 trains per day, (2) an increase in rail traffic of at least 100 percent (measured in annual gross ton miles), or (3) an increase in carload activity at rail yards of at least 100 percent. See 49 CFR 1105.7(e)(5)(i). For rail lines in nonattainment areas, environmental documentation typically is required when the proposed action would result in (1) an increase of at least 3 trains per day, (2) an increase in rail traffic of at least 50 percent (measured in annual gross ton miles), or (3) an increase in carload activity at rail yards of at least 20 percent. See 49 CFR 1105.7(e)(5)(ii). 3 According to Applicants, the only nonattainment areas where traffic might change as a result of the proposed transaction are in the following counties: Cook and Lake Counties, IL; Lake and Porter Counties, IN; Kenosha, Milwaukee, Racine, and Waukesha Counties, WI; and Lenawee, Monroe, Washtenaw, and Wayne Counties, MI. 4 Applicants project an increase of 1.5 trains per day with an empty back haul. 5 Indeed, Applicants state that there could be a reduction in train activity along certain segments as traffic moving in shorter trains run by DME today between Huron, SD, and Chicago (via Owatonna, MN, Nora Springs, IA, and Dubuque) could be consolidated with CPR traffic at Minnesota City and moved to/from Chicago in existing Soo trains that operate between Minneapolis/St. Paul and Chicago. E:\FR\FM\04JAN1.SGM 04JAN1 928 Federal Register / Vol. 73, No. 3 / Friday, January 4, 2008 / Notices Applicants, this modest traffic increase would translate into an increase of about 0.5 million gross ton miles, less than a 50 or 100 percent increase in gross ton miles over any portion of Applicants’ rail lines. In addition, Applicants project only a modest increase by 2010 in gross ton miles over CPR’s line between Milwaukee and Chicago as a result of the consolidation of DM&E carloads at Minnesota City onto existing CPR trains that operate between Minneapolis/St. Paul and Chicago. Further, Applicants contend that, even if the projected traffic growth that likely would occur regardless of this proposal were considered, the CPR line would only see an increase of about 17 percent (about 503 million gross ton miles), and the increase on the DME lines would be about 8.4 percent in gross ton miles between Davis Junction, IL, and Chicago (approximately 153 million gross ton miles). Finally, Applicants anticipate only minor increases in rail yard activity. Historic Review. According to Applicants, the proposed transaction would not involve any line abandonments or elimination of duplicative rail facilities. Any future line abandonment by Applicants would require Board authorization or exemption. Furthermore, Applicants state that they have no new plans to alter or dispose of properties 50 or more years old.6 jlentini on PROD1PC65 with NOTICES Other Actions 1. The DM&E PRB Rail Line. In 2006, DM&E obtained authority to build and operate its new rail line into the PRB.7 6 Applicants note that CPR would make available to DM&E $300 million to upgrade and rehabilitate its tracks, structures (bridges) and rail facilities. Applicants maintain, however, that the work funded by this investment relates to rail facility improvements that already have been the subject of extensive environmental and historic review by the Board in connection with the DM&E Powder River Basin construction project, authorizing DM&E to build a new 280-mile rail line extension of its current system to reach the PRB area of Wyoming. Applicants note that the work to be funded by CPR would involve substantially the same type of work, on the same properties, that was reviewed and is being addressed pursuant to the Programmatic Agreement for the DM&E PRB construction case, which sets forth the historic review process for both DM&E’s new line and the rehabilitation of DM&E’s existing line in South Dakota and Minnesota. Thus, Applicants argue, there is no need for a separate, duplicative historical review for the planned rail line upgrades related to this case. 7 See Dakota, MN & Eastern RR—Construction— Powder River Basin, 3 S.T.B. 847 (1998) (preliminary consideration); Dakota, MN & Eastern RR—Construction—Powder River Basin, 6 S.T.B. 8 (2002) (first approval), remanded sub nom. Mid States Coalition for Progress v. STB, 345 F.3d 520 (8th Cir. 2003) (requiring further consideration of four environmental issues), reauthorized Dakota, Minnesota & Eastern Railroad Corporation VerDate Aug<31>2005 16:42 Jan 03, 2008 Jkt 214001 Applicants argue that because the Board has already fully considered the environmental impacts of the construction and operation of that line in DM&E PRB Construction—in an environmental review process that encompassed the rehabilitation of DM&E’s existing lines in South Dakota and Minnesota—there is no need for a further environmental review of the same lines considered in DM&E PRB Construction here. 2. The Movement of DM&E Coal Trains Over the Lines of IC&E and CPR. Applicants note that in a separate proceeding the Board previously imposed a condition prohibiting the movement of DM&E’s PRB coal trains over IC&E’s rail lines until an environmental review of the potential impacts of such operations was conducted.8 Subsequently, the Board determined that an EIS would be needed to comply with this condition.9 At the request of DM&E, preparation of that EIS was put on hold. Applicants assert that it would be appropriate to continue to defer preparation of that EIS because it is not possible at this time to evaluate any potential environmental issues that might be associated with the transportation of DM&E PRB coal traffic over the lines of IC&E and/or CPR. Applicants explain that DM&E has not yet secured contracts with shippers for the movement of PRB coal over the newly authorized DM&E PRB line, and that Applicants have not yet made a decision to build it. According to Applicants, in the absence of definitive transportation commitments, the identity of the CPR-DME system’s future coal customers, the volume of coal that would be transported to particular locations, the destinations to which such shipments would move, and the routing of such shipments beyond DM&E’s lines remain speculative. Without such information, Applicants state, it would not be possible for the Board to evaluate in a meaningful fashion the potential environmental impacts of such future coal transportation operations. At the same time, Applicants recognize the Board’s obligation under NEPA to examine the environmental Construction into the Powder River Basin, STB Finance Docket No. 33407 (STB served Feb. 15, 2006), aff’d, Mayo Foundation v. STB, 472 F.3d 545 (8th Cir. 2006) (referred to as DM&E PRB Construction). 8 Iowa, Chicago & Eastern Railroad Corporation— Acquisition and Operation Exemption—Lines of I&M Rail Link, LLC, STB Finance Docket No. 34177 (STB served July 22, 2002), modified (STB served Oct. 18, 2006) (IC&E). 9 See IC&E; STB Press Release No. 07–07, available on the Board’s Web site. PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 impacts of the transportation of DM&E PRB coal trains over the lines of IC&E and/or CPR. Accordingly, Applicants propose that the Board impose a condition on any decision authorizing this transaction that would defer any required analysis of the environmental impacts of the movement of DM&E PRB coal trains over the lines of IC&E and/ or CPR until such time as more definitive information regarding the likely volume and routing of those trains becomes available. On October 19, 2007, Winona requested that the Board impose environmental mitigation for Winona as part of this acquisition proceeding, or alternatively, that it impose mitigation for Winona in connection with the currently deferred analysis of the movement of DM&E PRB coal trains over the lines of IC&E and/or CPR. On October 24, 2007, BNSF submitted comments asserting that the application is incomplete because it fails to address the environmental effects of CPR’s acquisition of DM&E’s authority to construct a new rail line into the PRB. Further, according to BNSF, the Board would not meet its NEPA obligations by deferring its environmental review of the effects of DM&E PRB coal traffic operating over the IC&E and/or CPR lines. BNSF asserts that the entire acquisition—both rail traffic moving now and DM&E PRB coal traffic that might eventually move over IC&E and/ or CPR lines—should be examined now and together. On October 24, 2007, as noted previously, Mayo Clinic filed a reply alleging that the Board should compel the Applicants to provide ‘‘meaningful information’’ that addresses the future movement of DM&E PRB coal trains through Rochester, MN, where the Mayo Clinic is located; that now is the time to address the potential increase in DM&E PRB coal traffic (and ethanol traffic) moving through Rochester; and that the Board should require the Applicants to prepare a SIP pursuant to the Board’s regulations at 49 CFR 1106. On October 29, 2007, Applicants filed a reply to BNSF’s environmental comments. Preliminary Conclusions. Based on the information provided to date and after consultations with SEA, the Board preliminarily concludes that, for the reasons discussed below, the environmental review process proposed by Applicants would allow the Board to meet its NEPA obligations. Specifically, the Board preliminarily determines that an environmental and historic review for the proposed acquisition is not warranted because it does not appear that the thresholds triggering an E:\FR\FM\04JAN1.SGM 04JAN1 Federal Register / Vol. 73, No. 3 / Friday, January 4, 2008 / Notices jlentini on PROD1PC65 with NOTICES environmental review would be met, and there is nothing in the available environmental information to indicate the potential for significant environmental impacts resulting from the proposed acquisition. With respect to the handling of DM&E PRB coal trains over the lines of IC&E and/or CPR, the Board preliminarily concludes, based on the available information, that there is no need to conduct any further environmental review here of the rail lines considered in DM&E PRB Construction,10 and that the Board should defer the preparation of environmental documentation on routing DM&E PRB coal traffic over the rail lines of IC&E and/or CPR (including the consideration of mitigation for Winona) until more information is available. BNSF’s assertion that the application is incomplete because it does not adequately describe the potential environmental effects of running DM&E PRB coal trains over the IC&E and/or CPR rail lines ignores the fact that sufficient information does not appear to be currently available to conduct a meaningful environmental review now. Applicants state that they have not yet made a decision to build the new PRB line approved in DM&E PRB Construction. They note that numerous steps (including acquisition of the rightof-way and agreements with PRB mines) would have to be completed before the project would be justified. Moreover, it does not appear that there would be any harm to interested persons, potentially affected communities, or to the environment by deferring the environmental review because the Board would preclude Applicants from operating any DM&E PRB coal trains over lines of IC&E and/or CPR until the Board conducts an appropriate environmental review and issues a final decision addressing the impacts of such coal train operations and allowing such operations to begin.11 10 Mayo Clinic’s suggestion that the Board should look again at DM&E’s movement of PRB coal traffic through Rochester ignores the extensive environmental review of those movements (at traffic levels of up to 100 million tons of PRB coal per year) that has already taken place. See DM&E PRB Construction (imposing extensive mitigation for Rochester and the Mayo Clinic to minimize the potential impacts of that traffic). Moreover, even if there is a potential for more than the 100 million tons of coal per year analyzed in DM&E PRB Construction, there is no basis for Mayo Clinic’s assumption that all of this traffic would move through Rochester, given the numerous interchange points on DM&E’s existing system. DM&E’s movement of ethanol would likely take place regardless of the proposed acquisition and, therefore, does not require NEPA review in this case or the DM&E PRB Construction case. 11 The Board’s environmental review process will provide ample opportunity for all to participate. VerDate Aug<31>2005 16:42 Jan 03, 2008 Jkt 214001 Specifically, Applicants proposed two environmental conditions to address the potential movement of DM&E PRB coal trains operating over the lines of IC&E and/or CPR. After reviewing the application, the Board preliminarily intends to impose the following modified conditions on any decision authorizing the proposed transaction: Applicants may not transport coal unit trains originating on the new rail line approved for construction in DM&E PRB Construction over lines currently operated by IC&E and/or CPR until the Board has prepared an Environmental Impact Statement, and has issued a final decision addressing the environmental impacts of such coal operations and allowed such operations to begin. Prior to commencing any construction of the new rail line approved in DM&E PRB Construction, Applicants shall notify the Board of Applicants’ intent to begin construction, and shall submit to the Board reasonably foreseeable projections regarding the movement of DM&E PRB coal traffic on the rail lines of IC&E and/or CPR, so that the environmental review can begin. Finally, regarding Mayo Clinic’s argument that preparation of a SIP is warranted here, Applicants expressly state in their application that they intend to prepare a SIP and submit it to the Board. Under the Board’s SIP rules, Applicants are to file a proposed SIP with SEA and FRA within 60 days of the filing date of the application, setting out how they intend to ensure that safe operations are maintained throughout the acquisition implementation process. 49 CFR 1106.4(a). Accordingly, the procedural schedule requires the proposed SIP to be filed no later than February 4, 2008. The proposed SIP is normally part of the environmental record, is reviewed by SEA, and is put out for public review and comment during the environmental review process. 49 CFR 1106.4(b). If the Board authorizes the proposed transaction and adopts the SIP, the Board requires compliance with the SIP as a condition to its authorization. 49 CFR 1106.4(b)(4). The Board’s rules also specifically provide that, in cases where no formal environmental review is required under NEPA, the Board will develop appropriate case-specific SIP procedures based on the facts and circumstances presented. 49 CFR 1106.4(c). Thus, the SIP process will take place here whether or not preparation of an EA or EIS is found to be warranted for the proposed transaction. The Board is requesting comments from all interested parties on these preliminary determinations regarding how to handle the environmental review here. Environmental comments PO 00000 Frm 00091 Fmt 4703 Sfmt 4703 929 must be submitted to the Board by February 4, 2008, addressed to the attention of SEA. SEA will make a final recommendation to the Board regarding the level of environmental review that is needed to meet the Board’s NEPA responsibilities, and how to conduct the SIP process, after considering any public comments received during the environmental comment period. Filing/Service Requirements. Persons wishing to participate in this proceeding must file with the Board and serve on other parties: a notice of intent to participate (due by January 25, 2008) and a certificate of service indicating service of prior pleadings on persons designated as PORs on the service-list notice (due by the 10th day after the service date of the service-list notice). Such persons may file responsive applications, requests for conditions, and any other evidence and argument in opposition to the application (due by March 4); and any replies to responsive applications, etc. (due by April 18), any rebuttal in support of responsive applications, etc. (due by May 19), and any final briefs (due by July 2). Filing Requirements. Any document filed in this proceeding must be filed either via the Board’s e-filing format or in the traditional paper format. Any person using e-filing should attach a document and otherwise comply with the instructions found on the Board’s Web site at https://www.stb.dot.gov at the ‘‘E-FILING’’ link. Any person filing a document in the traditional paper format should send an original and 10 paper copies of the document (and also an electronic version) to: Surface Transportation Board, 395 E Street, SW., Washington, DC 20423–0001. Service Requirements. One copy of each document filed in this proceeding must be sent to each of the following (any copy may be sent by e-mail only if service by e-mail is acceptable to the recipient): (1) Secretary of Transportation, 1200 New Jersey Avenue, SE., Washington, DC 20590; (2) Attorney General of the United States, c/o Assistant Attorney General, Antitrust Division, Room 3109, Department of Justice, Washington, DC 20530; (3) Terence M. Hynes (representing CPRC), Sidley Austin LLP, 1501 K Street, NW., Washington, DC 20005; (4) William C. Sippel (representing DM&E), Fletcher & Sippel, 29 North Wacker Drive, Suite 920, Chicago, IL 60606; and (5) any other person designated as a POR on the service-list notice. Service of Decisions, Orders, and Notices. The Board will serve copies of its decisions, orders, and notices only on those persons who are designated on E:\FR\FM\04JAN1.SGM 04JAN1 930 Federal Register / Vol. 73, No. 3 / Friday, January 4, 2008 / Notices the official service list as either POR, MOC, GOV, or Non-Party. All other interested persons are encouraged either to secure copies of decisions, orders, and notices via the Board’s Web site at https://www.stb.dot.gov under ‘‘ELIBRARY/Decisions & Notices’’ or to make advance arrangements with the Board’s copy contractor, ASAP Document Solutions (mailing address: Suite 103, 9332 Annapolis Rd., Lanham, MD 20706; e-mail address: asapdc@verizon.net; telephone number: 202–306–4004), to receive copies of decisions, orders, and notices served in this proceeding. ASAP Document Solutions will handle the collection of charges and the mailing and/or faxing of decisions, orders, and notices to persons who request this service. Access to Filings. An interested person does not need to be on the service list to obtain a copy of the primary application or any other filing made in this proceeding. Under the Board’s rules, any document filed with the Board (including applications, pleadings, etc.) shall be promptly furnished by the filing party to interested persons on request, unless subject to a protective order. 49 CFR 1180.4(a)(3). The primary application and other filings in this proceeding will also be available on the Board’s Web site at https://www.stb.dot.gov under ‘‘ELIBRARY/Filings.’’ This action will not significantly affect either the quality of the human environment or the conservation of energy resources. It is ordered: 1. The application in STB Finance Docket No. 35081 is accepted for consideration. 2. The parties to this proceeding must comply with the procedural schedule adopted by the Board in this proceeding as shown in Appendix A. 3. The parties to this proceeding must comply with the procedural requirements described in this decision. 4. This decision is effective on January 4, 2008. Decided: December 21, 2007. By the Board, Chairman Nottingham, Vice Chairman Buttrey, and Commissioner Mulvey. Vernon A. Williams, Secretary. jlentini on PROD1PC65 with NOTICES APPENDIX A: PROCEDURAL SCHEDULE September 10, 2007. September 21, 2007. VerDate Aug<31>2005 APPENDIX A: PROCEDURAL SCHEDULE—Continued Jkt 214001 Surface Transportation Board [STB Docket No. AB–1014] October 5, 2007. Prefiling notification and Motion to Establish Procedural Schedule filed. Notice of receipt of prefiling notification published in the Federal Register. Proposed procedural schedule published in the Federal Register. Application filed. November 8, 2007. November 29, 2007. December 5, 2007. January 4, 2008. January 25, 2008. February 4, 2008. March 4, 2008 April 18, 2008 April 25, 2008 May 19, 2008 TBD ................ July 2, 2008 ... September 30, 2008. October 30, 2008. Board notice of acceptance of application to be published in the Federal Register. Notices of intent to participate in this proceeding due. Descriptions of anticipated responsive applications (including inconsistent applications) due. Petitions for waiver or clarification with respect to such applications due. Proposed SIP to be filed with SEA and FRA. Environmental comments due, addressed to the attention of SEA. All responsive applications, requests for conditions, and any other evidence and argument in opposition to the application, including filings of DOJ and DOT, due. Replies to responsive applications, requests for conditions, and other opposition due. Rebuttal in support of the application due. Response of DOJ and DOT to other parties’ comments due. Applicants’ response to responsive comments of DOJ and DOT due. Rebuttals to responsive applications, requests for conditions, and other opposition due. A public hearing or oral argument may be held. Final briefs, if any, due. Date of service of final decision. Effective date of final decision. [FR Doc. E7–25480 Filed 1–3–08; 8:45 am] BILLING CODE 4915–01–P PO 00000 Denver & Rio Grande Railway Historical Foundation—Adverse Abandonment—in Mineral County, CO On December 17, 2007, the City of Creede, CO (the City), filed an application under 49 U.S.C. 10903, requesting that the Surface Transportation Board (Board) authorize the third-party or adverse abandonment of approximately 1.0 mile of rail line, extending from near milepost 320.9 to near milepost 319.9, a run-around track, and a spur track (the Line), all located in the City, in Mineral County, CO. The Line is owned by the Denver & Rio Grande Railway Historical Foundation (D&RGHF).1 The Line traverses United States Postal Service Zip Code 81130, and includes no stations. The City states that there has been no rail service or request for service over the Line since approximately 1970 and claims that there is no foreseeable need for rail service. Additionally, the City asserts that, since D&RGHF acquired the Line, D&RGHF has yet to identify any shippers or operate any trains. In a decision served in this proceeding on October 18, 2007, the City was granted exemptions from several statutory provisions as well as waivers of certain Board regulations at 49 CFR 1152 that were not relevant to its adverse abandonment application or that sought information not available to it. Specifically, the City was granted a fee waiver; waivers of and exemptions from the notice requirements at 49 CFR 1152.20(a)(2), 49 U.S.C. 10903(a)(3)(D), 49 CFR 1152.20(a)(3), 49 U.S.C. 10903(a)(3)(B), and 49 CFR 1152.21; waivers of and exemptions from the application requirements of 49 CFR 1152.22(a)(5), 49 U.S.C. 10903(c), 49 CFR 1152.22(b) (except that the City must submit evidence on the physical condition of the Line other than information regarding cost of deferred maintenance and needed rehabilitation), 49 CFR 1152.22(d), and 49 CFR 1152.29(e)(2); waivers of and exemptions from the OFA requirements and public use procedures at 49 CFR 1152.27–28 and 49 U.S.C. 10904–05; and waiver of portions of the Federal Register notice language requirements at 49 CFR 1152.22(i). 1 D&RGHF acquired the Line through an offer of financial assistance (OFA). See Union Pacific Railroad Company—Abandonment Exemption—in Rio Grande and Mineral Counties, CO, STB Docket No. AB–33 (Sub-No. 132X) (STB served May 11, 1999). Motion for Protective Order filed. Protective Order issued. 16:42 Jan 03, 2008 DEPARTMENT OF TRANSPORTATION Frm 00092 Fmt 4703 Sfmt 4703 E:\FR\FM\04JAN1.SGM 04JAN1

Agencies

[Federal Register Volume 73, Number 3 (Friday, January 4, 2008)]
[Notices]
[Pages 923-930]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-25480]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35081]


Canadian Pacific Railway Company, et al.--Control--Dakota, 
Minnesota & Eastern Railroad Corp., et al.

AGENCY: Surface Transportation Board, DOT.

ACTION: Decision No. 4 in STB Finance Docket No. 35081; Notice of 
Acceptance of Application; Issuance of Procedural Schedule.

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SUMMARY: The Surface Transportation Board (Board) is accepting for 
consideration the application filed on December 5, 2007, by Canadian 
Pacific Railway Corporation (CPRC), Soo Line Holding Company, a 
Delaware Corporation and indirect subsidiary of CPRC (Soo Holding), 
Dakota, Minnesota & Eastern Railroad Corporation (DM&E), and Iowa, 
Chicago & Eastern Railroad Corporation, a wholly owned rail subsidiary 
of DM&E (IC&E). The application filed on December 5 seeks Board 
approval under 49 U.S.C. 11321-26 of the acquisition of control of DM&E 
and IC&E by Soo Holding (and, indirectly, by CPRC). This proposal is 
referred to as the ``transaction,'' and CPRC, Soo Holding, DM&E, and 
IC&E are referred to collectively as ``Applicants.'' \1\
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    \1\ In Decision No. 1 in this proceeding, served September 21, 
2007, the Board issued a Protective Order to facilitate the 
discovery process and establish appropriate procedures for the 
submission of evidence containing confidential or proprietary 
information. On October 5, 2007, Applicants submitted an application 
for the proposed transaction and requested that the Board treat the 
transaction as a ``minor transaction.'' In Decision No. 2, served 
November 2, 2007, and published in the Federal Register on November 
8, 2007, at 72 FR 63232-63236, the Board found the proposed 
transaction to be ``significant'' and considered the October 5 
submission as a prefiling notification, thus allowing Applicants to 
perfect their application by submitting the difference between the 
filing fee for a ``minor'' transaction and ``significant'' 
transaction, as well as any supplemental materials or information. 
On December 5, 2007, applicants submitted the difference in filing 
fees and other supplemental material. We will refer to the October 5 
prefiling notification, as supplemented on December 5, as ``the 
December 5 application.''
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    The Board finds that the transaction is a ``significant 
transaction'' under 49 CFR 1180.2(b), and adopts a procedural schedule 
for consideration of the application, under which the Board's final 
decision would be issued by September 30, 2008.

DATES: The effective date of this decision is January 4, 2008. Any 
person who wishes to participate in this proceeding as a party of 
record (POR) must file, no later than January 25, 2008, a notice of 
intent to participate if they have not already done so. Descriptions of 
anticipated responsive applications (including inconsistent 
applications) and any petitions for waiver or clarification with 
respect to such applications are also due by January 25, 2008. 
Applicants shall file a proposed Safety Integration Plan (SIP) with the 
Board's Section of Environmental Analysis (SEA) and the Federal 
Railroad Administration (FRA) by February 4, 2008. All environmental 
comments must also be filed by February 4, 2008, addressed to the 
attention of SEA. All responsive applications, requests for conditions, 
and any other evidence and argument in opposition to the application, 
including filings by DOJ and DOT, must be filed by March 4, 2008. 
Replies to responsive applications, requests for conditions, and other 
opposition, and rebuttal in support of the application must be filed by 
April 18, 2008. DOJ and DOT will be allowed to file, on the response 
due date (here, April 18), their comments in response to the comments 
of other parties, and Applicants will be allowed to file a response to 
any such comments filed by DOJ and/or DOT by April 25, 2008. Rebuttals 
in support of responsive applications, requests for conditions, and 
other opposition must be filed by May 19, 2008. Final briefs, if any, 
will be due by July 2, 2008. If a public hearing or oral argument is 
held, it will be held on a date to be determined by the Board. The 
Board will issue its final decision by September 30, 2008. For further 
information respecting dates, see Appendix A (Procedural Schedule).

ADDRESSES: Any filing submitted in this proceeding must be submitted 
either via the Board's e-filing format or in the traditional paper 
format as provided for in the Board's rules. Any person using e-filing 
should attach a document and otherwise comply with the instructions 
found on the Board's Web site at https://www.stb.dot.gov at the ``E-
FILING'' link. Any person submitting a filing in the traditional paper 
format should send an original and 10 paper copies of the filing (and 
also an electronic version) to: Surface Transportation Board, 395 E 
Street, SW., Washington, DC 20423-0001. In addition, one copy of each 
filing in this proceeding must be sent (and may be sent by e-mail only 
if service by e-mail is acceptable to the recipient) to each of the 
following: (1) Secretary of Transportation, 1200 New Jersey Avenue, 
SE., Washington, DC 20590; (2) Attorney General of the United States, 
c/o Assistant Attorney General, Antitrust Division, Room 3109, 
Department of Justice, Washington, DC 20530; (3) Terence M. Hynes 
(representing CPRC), Sidley Austin LLP, 1501 K Street, NW., Washington, 
DC 20005; (4) William C. Sippel (representing DM&E), Fletcher & Sippel, 
29 North Wacker Drive, Suite 920, Chicago, IL 60606; and (5) any other 
person designated as a POR on the service list notice (as explained 
below, the service list notice will be issued as soon as practicable).

FOR FURTHER INFORMATION CONTACT: Julia M. Farr, (202) 245-0359. 
[Assistance for the hearing impaired is available through the Federal 
Information Relay Service (FIRS) at 1-800-877-8339.]

SUPPLEMENTARY INFORMATION: CPRC is a Canadian corporation whose stock 
is publicly held and traded on the New York and Toronto stock 
exchanges. CPRC and its U.S. rail carrier subsidiaries, Soo Line 
Railroad Company (Soo) and Delaware and

[[Page 924]]

Hudson Railway Company, Inc. (D&H), operate a transcontinental rail 
network over 13,000 miles in Canada and the United States. (CPRC, Soo, 
and D&H are referred to collectively as CPR.) CPR serves the principal 
business centers of Canada and 14 U.S. states in the Northeast and 
Midwest. The major commodities transported by CPR include bulk 
commodities such as grain, coal, sulfur, and fertilizers; merchandise 
freight including finished vehicles and automotive parts, forest 
products, industrial products, and consumer products; and intermodal 
traffic. In fiscal year 2006, the freight revenues of CPR were 
approximately $4.4 billion.
    DM&E is a privately held Class II rail carrier headquartered in 
Sioux Falls, SD. DM&E and its subsidiary, IC&E, operate over 2,500 
miles of rail lines serving eight U.S. states, including the major 
Midwestern gateways of Chicago, IL, Minneapolis/St. Paul, MN, and 
Kansas City, MO. Together, DM&E and IC&E interchange rail traffic with 
all seven U.S. Class I railroads.
    DM&E was created in 1986 from lines formerly owned by Chicago and 
North Western Transportation Company (CNW) in South Dakota, Minnesota, 
and Iowa. In 1996 DM&E acquired CNW's Colony Line, running from Eastern 
Wyoming through Western South Dakota and into Northwestern Nebraska. 
DM&E subsequently acquired the lines now operated by IC&E from the 
former Iowa and Minnesota Rail Link in 2002. IC&E owns or operates 
approximately 1,322 route miles of rail lines that were once part of 
the CPR system, in Illinois, Minnesota, Missouri, and Wisconsin.
    In 2006, the Board granted DM&E authority to construct and operate 
282 miles of new railroad lines to serve coal origins in Wyoming's 
Powder River Basin (PRB). DM&E states that it is currently pursuing the 
process of acquiring the right-of-way needed to build the PRB line. It 
must execute agreements with PRB mines on terms for operations by DM&E 
over their loading track and facilities. DM&E must also secure 
sufficient contractual commitments from prospective coal shippers to 
route their traffic over the PRB line to justify the large investment 
to build it. Finally, DM&E must arrange financing for the project and 
comply with the environmental conditions imposed by the Board. If the 
proposed transaction is approved, CPR states that it plans to work 
diligently with DM&E to accomplish these necessary prerequisites to 
construction of the proposed PRB line but has not committed to 
constructing the line.
    The proposed transaction for which Applicants seek approval 
involves the acquisition of control of DM&E and IC&E by Soo Holding 
(and, indirectly, by CPRC). On October 4, 2007, Soo Line Properties 
Company, a Delaware corporation and wholly owned subsidiary of Soo 
Holding (Soo Properties), merged with and into DM&E, subject to the 
voting trust described below. At the time of closing, DM&E shareholders 
received cash consideration of approximately $1.48 billion, subject to 
certain working capital adjustments in accordance with the Agreement 
and Plan of Merger (Merger Agreement). As part of the $1.48 billion 
paid at closing, DM&E and IC&E repaid certain obligations to third 
party creditors, including $250 million to the FRA. The Merger 
Agreement provides for future contingent payments by CPR to DM&E's 
shareholders of up to approximately $1 billion. Specifically, an 
additional payment of $350 million will become due if construction 
starts on the PRB line prior to December 31, 2025. Further contingent 
payments of up to approximately $707 million will become due upon the 
movement of specified volumes of PRB coal over the PRB line prior to 
December 31, 2025.
    Financial Arrangements. No new equity securities will be issued in 
connection with the transaction. The purchase price was funded by CPRC 
from available cash and credit facilities. In connection with the 
closing, Soo Holdings advanced $250 million to DM&E to enable it to 
repay outstanding indebtedness to FRA. DM&E's obligation to FRA was 
replaced by an intercompany private loan from Soo Holdings to DM&E in 
the amount of $250 million.
    Passenger Service Impacts. Applicants state that no commuter or 
passenger service is provided over the lines currently operated by 
DM&E. Applicants do not anticipate that any CPR line over which 
passenger operations are presently conducted would be materially 
affected by the proposed transaction. Applicants state that CPR's 
freight train schedules are built around passenger and commuter 
operations, in order to avoid freight train interference with passenger 
train service. Applicants further assert that no such line will be 
downgraded, eliminated, or operated on a consolidated basis as a result 
of the transaction. The Board notes that both IC&E and CPR share tracks 
with the Commuter Rail Division of the Regional Transportation 
Authority (Metra), a commuter rail authority serving the Chicago 
metropolitan area. The Board also notes that the National Railroad 
Passenger Corporation (Amtrak) operates over CPR between Minneapolis/
St. Paul and Chicago, with heavier traffic between Milwaukee and 
Chicago.
    Discontinuances/Abandonments. Applicants state that they do not 
presently plan any line abandonments or the elimination of any 
duplicative facilities in connection with the transaction.
    Public Interest Considerations. Applicants contend that the 
transaction would not result in any lessening of competition, creation 
of a monopoly, or restraint of trade in freight surface transportation 
in any region of the United States. Rather, Applicants state that CPR's 
acquisition of DM&E and IC&E (collectively referred to as DME) would be 
strongly pro-competitive. Most significantly, Applicants note that the 
transaction would create new single-system rail options where none 
currently exist. Applicants contend that CPR's plan to invest $300 
million in capital improvements on DME's existing lines would enhance 
safety and the efficiency of its operations, thereby strengthening the 
competitive ability of DME. Applicants state that this investment would 
allow DME to upgrade track, bridges, and other rail facilities and to 
bring its safety performance closer to CPR standards, thus improving 
the fluidity of their train operations. The transaction would restore 
CPR's direct access to the Kansas City gateway, enhancing its ability 
to compete effectively for rail traffic moving between CPR's current 
network and points in the U.S. Southwest and Mexico. Applicants assert 
that the transaction would enable CPR to assist DM&E in possibly 
bringing to fruition its proposal to introduce a third rail competitor 
to the PRB, which is currently served by UP and BNSF.
    According to the application, the geographic limitations of DME's 
existing rail network restrict the ability of its shippers to compete 
in distant end markets for their products. Currently, DME must 
interchange traffic moving beyond its service territory with other 
railroads at busy rail gateways, including Chicago, Kansas City, and 
Minneapolis/St. Paul, thus requiring longer transit times. As a result 
of the transaction, Applicants state that DME would become part of a 
transcontinental Class I rail system with direct access to major 
metropolitan centers of the U.S. Midwest (including Chicago, Detroit, 
MI, Milwaukee, WI, and Minneapolis/St. Paul), U.S. Northeast (including 
Buffalo, NY, and Philadelphia, PA), and Canada (including Calgary, 
Montreal, Toronto, and Vancouver), positioning DME shippers to take 
advantage of future opportunities for growth.

[[Page 925]]

Applicants state that the new single system routings created by the 
proposed transaction will give DME shippers--for the first time--direct 
rail access to all of these potential destinations, enhancing their 
ability to compete in distant end markets for their products.
    Applicants state that CPR shippers would likewise gain the ability 
to ship products to/from points served by DME on a single-system basis. 
Specifically, Applicants assert that CPR's acquisition of IC&E's lines 
would give CPR the ability to participate in the growing transportation 
of ethanol. Applicants also state that the transaction would give CPR 
the opportunity to increase its participation in the substantial volume 
of bentonite clay traffic that originates at the western end of DM&E's 
system. Applicants state that CPR would also gain greater 
diversification in the U.S. grain network with IC&E's coverage of Iowa 
and Southern Minnesota corn origins.
    Applicants state that DME and its customers would also benefit from 
access to CPR's large, modern car and locomotive fleet. The ability to 
draw upon CPR's fleet of almost 70,000 cars, and improved equipment 
utilization made possible by coordinating CPR and DME operations, would 
produce cost savings for DME and help it to meet the needs of its 
customers. The transaction would also generate substantial benefits for 
shippers of a variety of commodities, including grain, ethanol, 
bentonite clay, silica sand, steel, and plastics. In support of this, 
Applicants submit numerous statements of shippers who testify as to the 
opportunities for growth, increased access to markets, and improved 
ability to compete in distant markets, as potential benefits of the 
proposed transaction.
    Applicants assert that the transaction would not result in any 
lessening of effective rail competition because the transaction is 
almost entirely ``end-to-end,'' in that there is minimal overlap in 
Applicants' current rail systems. Applicants note that both CPR and DME 
operate between Minneapolis/St. Paul and Chicago, but several other 
rail carriers also operate between those points now, and they will 
continue to do so if the proposed transaction is approved and 
consummated. CPR and DME intersect at only four locations: Chicago, St. 
Paul, Minnesota City, MN, and La Crescent, MN. Thus, Applicants state 
that the rail networks of CPR and DME are complementary, not 
competitive. While intermodal shipments and motor vehicles are major 
commodities of CPR, Applicants argue that DME does not participate in 
significant volumes of such traffic. Conversely, steel shipments 
account for a far greater portion of traffic for DME than for CPR.
    There are five U.S. states in which both CPR and DME offer rail 
service (either directly or through a haulage agreement or other 
commercial arrangement): Illinois, Minnesota, Missouri, South Dakota, 
and Wisconsin. In Wisconsin, CPR and DME do not serve any common 
stations. Within Illinois, Minnesota, Missouri, and South Dakota, 
Applicants believe that 30 stations are commonly served by CPR and DME. 
Of those 30 stations, ten stations are served by CPR, DME, and one 
other railroad. Fifteen stations are served by the Applicants and two 
additional carriers. Five stations, according to the Official Railway 
Station List (ORSL), are served exclusively by CPR and DME.
    Based on the Board's Carload Waybill Sample for the year 2005, 
Applicants state that none of the five stations exclusively served by 
CPR and DME would lose competitive rail service as a result of the 
proposed transaction due to the fact that at least one of the carriers 
was not active at each station.
    Applicants also assert that none of the ten stations served by CPR, 
DME, and one additional rail carrier (which are located in Illinois, 
Minnesota, Missouri, and South Dakota) would experience a loss of 
competitive rail service as a result of the transaction, due to a 
variety of reasons, including the fact that several stations served 
solely as a point of interchange for CPR and/or DME. Additionally, 
according to the Carload Waybill Sample, rail traffic that originated 
or terminated at several of the stations was not handled by both CPR 
and DME.
    Regarding the 14 short line carriers in DME's service territory, 
Applicants state that none will be left without competitive routing 
options involving non-Applicant carriers following the proposed 
transaction. Thirteen of these short line carriers have the ability to 
interchange with at least one railroad other than Applicants. One short 
line carrier, the Iowa Traction Railroad Company, can connect only with 
IC&E today, so its options would not be affected by the transaction.
    In response to comments filed by Iowa Northern Railway Company 
(IANR) on October 26, 2007, challenging the rigor and completeness of 
their station-specific analysis, Applicants also submitted an analysis 
of the impact on geographic (i.e., source or destination) competition, 
as well as further analysis of possible horizontal competitive issues, 
by examining Applicants' participation in rail traffic at the Bureau of 
Economic Analysis Economic Area (BEA) level. Applicants assert that the 
transaction would not reduce or eliminate source or destination 
competition for the traffic in which Applicants participate today.
    Independent Voting Trust. On October 4, 2007, Soo Properties was 
merged with and into DM&E. At that time, all the common shares of DM&E 
were deposited into an independent voting trust, pending Board approval 
of the proposed transaction, in order to avoid unlawful control of DM&E 
and IC&E in violation of 49 U.S.C. 11323. On or after the effective 
date of a Board final order authorizing the transaction, the voting 
trust would be terminated; DM&E's shares would be transferred to Soo 
Holding; and DM&E would become a wholly owned subsidiary of Soo Holding 
(and an indirect subsidiary of CPRC). In the event that the Board does 
not approve the transaction, Soo Holding would use its reasonable best 
efforts to sell or direct the trustee to sell the trust interests to 
one or more eligible purchasers or otherwise dispose of the trust 
interests during a period of 2 years after such a decision becomes 
final.
    With the exception of the Board's final approval of the 
transaction, all conditions precedent to closing of the merger have 
been satisfied.
    Environmental Impacts. Applicants contend that the transaction 
would not result in any increases in rail traffic, train operations, or 
yard activity that would exceed the Board's thresholds for 
environmental review in 49 CFR 1105.7(e)(5). Applicants therefore 
assert that the transaction does not require the preparation of 
environmental documentation under 49 CFR 1105.6(b)(4). However, 
Applicants plan to prepare a Safety Integration Plan (SIP) under the 
Board's rules at 49 CFR 1106 and 49 CFR 1180.1(f)(3) setting out how 
they would ensure that safe operations are maintained throughout the 
acquisition-implementation process, if the proposed transaction is 
approved.
    Applicants propose that the Board defer any required analysis of 
the environmental impacts of the movement of DM&E PRB coal trains over 
the lines of IC&E and/or CPR because definitive information regarding 
the likely volume, destination, and routing of DM&E PRB coal trains 
beyond DM&E's existing line remains speculative.
    The City of Winona, Mayo Clinic, and BNSF Railway Company (BNSF) 
have filed comments on Applicants' proposed environmental approach. 
Applicants replied to BNSF's comments. The Board will consider these 
comments in its review of the

[[Page 926]]

transaction; there is no need for the commenters to refile those 
submissions.
    Historic Preservation Impacts. Applicants contend that a historic 
review is not required for this transaction.
    Labor Impacts. Applicants do not anticipate that the transaction 
would result in any operational changes that would adversely affect any 
Soo employees. The operational change involving the handling by Soo of 
traffic between Minnesota City and Chicago would likely have no 
significant effect on Soo employees because cars moving from or to 
Minnesota City would simply be added to trains currently operated by 
Soo over its own lines.
    The transaction involves an operational change that would affect 
the handling of certain DME traffic to and from Chicago, which would 
affect DME employees in two ways. First, there would be a reduction of 
two crew starts per day on trains operating on the lines from Waseca, 
MN, to Nora Springs, IA. This would affect employees who report for 
work at Waseca and draw their assignments from a crew board maintained 
there. However, there would be an offsetting addition of two crew 
starts per day on trains operating from Waseca to Minnesota City, which 
would be available to employees who report to Waseca. Second, there 
would be a reduction of four crew starts per day on IC&E because two 
daily IC&E trains, each requiring two crews, would no longer operate 
between Nora Springs and Chicago. That reduction would affect IC&E 
train and engine service employees who currently report for work at 
Mason City, IA, and Dubuque, IA, and draw their assignments from crew 
boards maintained at those locations.
    Applicants further state that it is possible that, as a result of 
this operational change, there would be a need for fewer active IC&E 
train and engine service employees at Mason City and Dubuque, for at 
least a short time. Because affected IC&E train and engine service 
employees have seniority covering all of IC&E's territory, they would 
be entitled, and expected, to take work assignments elsewhere on IC&E. 
Applicants expect sufficient work to be available on IC&E for all of 
the carrier's active train and engine service employees.
    Applicants state that any carrier employees who are adversely 
affected by the proposed transaction would be entitled to the benefits 
of a fair arrangement in accordance with the requirements of 49 U.S.C. 
11326. New York Dock Ry.--Control--Brooklyn Eastern District Terminal, 
360 I.C.C. 60, aff'd sub nom. New York Dock Ry. v. United States, 609 
F.2d 83 (2d Cir. 1979). Applicants note that neither CPR nor DME has 
negotiated a protective agreement with any labor organization in 
connection with the proposed transaction.
    Application Accepted. For the reasons outlined in Decision No. 2, 
the Board finds that the transaction would be a ``significant 
transaction,'' under 49 CFR 1180.2(b), and accepts the December 5 
application for consideration because it is in substantial compliance 
with the applicable regulations governing a significant transaction. 
See 49 U.S.C. 11321-26; 49 CFR 1180. The Board reserves the right to 
require the filing of additional supplemental information, if necessary 
for a full record.
    Public Inspection. The application is available for inspection in 
the library (Room 131) at the offices of the Surface Transportation 
Board, 395 E Street, SW., in Washington, DC. In addition, the 
application may be obtained from Mr. Hynes (representing CPRC) and Mr. 
Sippel (representing DM&E) at the addresses indicated above.
    Procedural Schedule. On November 13, 2007, Applicants filed a 
petition to establish a revised procedural schedule as directed by the 
Board in Decision No. 2. On November 26, 2007, the Board issued a 
notice of the proposed procedural schedule and requested public 
comments (Decision No. 3). The Board's proposed procedural schedule was 
the same as the Applicants' proposed procedural schedule, except that 
the record would close with the filing of briefs on July 2, 2008, and 
would provide for a possible oral argument or public hearing to be held 
on a date to be determined by the Board. No comments were received in 
opposition to the Board's proposed procedural schedule.
    Accordingly, the Board adopts the procedural schedule as previously 
proposed in Decision No. 3. Under the procedural schedule adopted by 
the Board: Any person who wishes to participate in this proceeding as a 
POR must file, no later than January 25, 2008, a notice of intent to 
participate; descriptions of anticipated responsive applications 
(including inconsistent applications) and any petitions for waiver or 
clarification with respect to such applications are also due by January 
25, 2008; applicants shall file a proposed SIP with SEA and FRA by 
February 4, 2008; all environmental comments must also be filed by 
February 4, 2008, addressed to the attention of SEA; responsive 
applications, requests for conditions, and any other evidence and 
argument in opposition to the application, including filings by DOJ and 
DOT, must be filed by March 4, 2008; replies to responsive 
applications, requests for conditions, and other opposition, and 
rebuttal in support of the application must be filed by April 18, 2008; 
DOJ and DOT will be allowed to file, on the response due date (here, 
April 18), their comments in response to the comments of other parties, 
and Applicants will be allowed to file a response to any such comments 
filed by DOJ and/or DOT by April 25, 2008; rebuttals in support of 
responsive applications, requests for conditions, and other opposition 
must be filed by May 19, 2008; final briefs, if any, will be due by 
July 2, 2008. Under this schedule, a public hearing or oral argument 
may be held on a date to be determined by the Board. The Board will 
issue its final decision by September 30, 2008, and that decision will 
be effective October 30, 2008. For further information respecting 
dates, see Appendix A (Procedural Schedule).
    Notice of Intent to Participate. Any person who wishes to 
participate in this proceeding as a POR must file with the Board, no 
later than January 25, 2008, a notice of intent to participate, 
accompanied by a certificate of service indicating that the notice has 
been properly served on the Secretary of Transportation, the Attorney 
General of the United States, Mr. Hynes (representing CPRC), and Mr. 
Sippel (representing DM&E). Notices of intent to participate received 
to date have been compiled in a preliminary service list. Parties who 
have already submitted a notice of intent to participate are not 
required to resubmit an additional notice.
    If a request is made in the notice of intent to participate to have 
more than one name added to the service list as a POR representing a 
particular entity, the extra name will be added to the service list as 
a ``Non-Party.'' The final list will reflect the Board's policy of 
allowing only one official representative per party to be placed as a 
POR on the service list, as specified in Press Release No. 97-68 dated 
August 18, 1997, announcing the implementation of the Board's ``One 
Party-One Representative'' policy for service lists. Any person 
designated as a Non-Party will receive copies of Board decisions, 
orders, and notices but not copies of official filings. Persons seeking 
to change their status must accompany that request with a written 
certification that he or she has complied with the service requirements 
set forth at 49 CFR 1180.4 and any other requirements set forth in this 
decision.
    Service List Notice. The Board will serve, as soon after January 
25, 2008, as

[[Page 927]]

practicable, a notice containing the official service list (the 
service-list notice). Parties should review the preliminary service 
list, in Decision No. 4, served on December 27, 2007, and notify the 
Board of any corrections.
    Each POR will be required to serve upon all other PORs, within 10 
days of the service date of the service-list notice, copies of all 
filings previously submitted by that party (to the extent such filings 
have not previously been served upon such other parties). Each POR also 
will be required to file with the Board, within 10 days of the service 
date of the service-list notice, a certificate of service indicating 
that the service required by the preceding sentence has been 
accomplished. Every filing made by a POR after the service date of the 
service-list notice must have its own certificate of service indicating 
that all PORs on the service list have been served with a copy of the 
filing. Members of the United States Congress (MOCs) and Governors 
(GOVs) are not parties of record and need not be served with copies of 
filings, unless any Member or Governor has requested to be, and is 
designated as, a POR.
    Environmental Comments. All environmental comments must be filed by 
February 4, 2008, and addressed to the attention of SEA.
    Descriptions of Anticipated Responsive Applications and Petitions 
for Waiver or Clarification. Descriptions of anticipated responsive, 
including inconsistent, applications and petitions for waiver or 
clarification with respect to such applications must be filed by 
January 25, 2008.
    Responsive Applications, Requests for Conditions, and Other 
Opposition Evidence and Argument, Including Filings by DOJ and DOT. All 
responsive applications, requests for conditions, and any other 
evidence and argument in opposition to the application, including 
filings by DOJ and DOT, must be filed by March 4, 2008.
    Protesting parties are advised that, if they seek either the denial 
of the application or the imposition of conditions upon any approval 
thereof, on the theory that approval (or approval without conditions) 
would harm competition and/or their ability to provide essential 
services, they must present substantial evidence in support of their 
positions. See Lamoille Valley R.R. Co. v. ICC, 711 F.2d 295 (D.C. Cir. 
1983).
    Replies to Responsive Applications, Requests for Conditions, and 
Other Opposition, and Rebuttal in Support of the Application. Replies 
to responsive applications, requests for conditions, and other 
opposition, and rebuttal in support of the application must be filed by 
April 18, 2008.
    Rebuttals in Support of Responsive Applications, Requests for 
Conditions, and Other Opposition. Rebuttals in support of responsive 
applications, requests for conditions, and other opposition must be 
filed by May 19, 2008.
    Final Briefs and Public Hearing/Oral Argument. Final briefs, if 
any, will be due by July 2, 2008. The Board may hold a public hearing 
or an oral argument in this proceeding on a date to be determined by 
the Board.
    Discovery. Discovery may begin immediately. The parties are 
encouraged to resolve all discovery matters expeditiously and amicably.
    Environmental Matters. Under both the regulations of the Council on 
Environmental Quality (CEQ) implementing the National Environmental 
Policy Act of 1969, 42 U.S.C. 4321 et seq. (NEPA), and the Board's own 
environmental rules, actions whose environmental effects are ordinarily 
insignificant may be excluded from NEPA review across the board, 
without a case-by-case review. Such activities are said to be covered 
by a ``categorical exclusion,'' which CEQ defines at 40 CFR 1508.4 as:

    [A] category of actions which do not individually or 
cumulatively have a significant effect on the human environment and 
which have been found to have no effect in procedures adopted by a 
federal agency in implementation of these regulations * * * and for 
which, therefore, neither an environmental assessment nor an 
environmental impact statement is required.

    An agency's procedures for categorical exclusions ``shall provide 
for extraordinary circumstances in which a normally excluded action may 
have a significant environmental effect,'' thus requiring preparation 
of either an Environmental Assessment (EA) or an Environmental Impact 
Statement (EIS). Id. See also 49 CFR 1105.6(d). But absent 
extraordinary circumstances, once a project is found to fit within a 
categorical exclusion, no further NEPA procedures are warranted.
    In its environmental rules, the Board has promulgated various 
categorical exclusions. As pertinent here, a rail line acquisition is a 
classification of action that normally requires no environmental review 
if certain thresholds would not be exceeded.\2\ See 49 CFR 
1105.6(c)(2)(i). The Board's regulations also provide that historic 
review normally is not required for acquisitions where there will be no 
significant change in operations and properties 50 years old and older 
will not be affected. See 49 CFR 1105.8.
---------------------------------------------------------------------------

    \2\ The thresholds differ depending on whether a rail line 
segment is in an area designated as in ``attainment'' or 
``nonattainment'' with the National Ambient Air Quality Standards 
established under the Clean Air Act. For rail lines located in 
attainment areas, environmental documentation normally will be 
prepared if the proposed action would result in (1) an increase of 
at least 8 trains per day, (2) an increase in rail traffic of at 
least 100 percent (measured in annual gross ton miles), or (3) an 
increase in carload activity at rail yards of at least 100 percent. 
See 49 CFR 1105.7(e)(5)(i). For rail lines in nonattainment areas, 
environmental documentation typically is required when the proposed 
action would result in (1) an increase of at least 3 trains per day, 
(2) an increase in rail traffic of at least 50 percent (measured in 
annual gross ton miles), or (3) an increase in carload activity at 
rail yards of at least 20 percent. See 49 CFR 1105.7(e)(5)(ii).
---------------------------------------------------------------------------

    The Proposed Acquisition. Applicants assert in their application 
that most of the rail lines of DME and CPR are located in attainment 
areas.\3\ They project that the proposed transaction would not increase 
the level of train operations by more than 1 additional train per day 
along any segment of the combined CPR-DME system over the next 5 years 
(by 2012),\4\ and therefore maintain that the 3 or 8-train-per-day 
threshold in the Board's environmental rules would not be met in this 
case.\5\ Applicants assert that their traffic projections account for 
both (1) traffic that would move beyond DME's service territory on 
CPR's lines, and (2) projected growth in rail traffic on certain 
segments of DME lines that would likely occur in any case (e.g., 
anticipated growth of ethanol production).
---------------------------------------------------------------------------

    \3\ According to Applicants, the only nonattainment areas where 
traffic might change as a result of the proposed transaction are in 
the following counties: Cook and Lake Counties, IL; Lake and Porter 
Counties, IN; Kenosha, Milwaukee, Racine, and Waukesha Counties, WI; 
and Lenawee, Monroe, Washtenaw, and Wayne Counties, MI.
    \4\ Applicants project an increase of 1.5 trains per day with an 
empty back haul.
    \5\ Indeed, Applicants state that there could be a reduction in 
train activity along certain segments as traffic moving in shorter 
trains run by DME today between Huron, SD, and Chicago (via 
Owatonna, MN, Nora Springs, IA, and Dubuque) could be consolidated 
with CPR traffic at Minnesota City and moved to/from Chicago in 
existing Soo trains that operate between Minneapolis/St. Paul and 
Chicago.
---------------------------------------------------------------------------

    Applicants also project only small increases in annual gross ton 
miles as a result of the proposed transaction, which would be well 
below the thresholds for preparation of environmental documentation. 
For example, Applicants maintain that the proposed acquisition would 
result in an increase of 5,800 carloads of ``extended haul'' traffic by 
the year 2010. All of this increase, Applicants state, would occur on 
the lines of CPR (either on Soo's lines east of Chicago, or its lines 
north of Minneapolis/St. Paul). According to

[[Page 928]]

Applicants, this modest traffic increase would translate into an 
increase of about 0.5 million gross ton miles, less than a 50 or 100 
percent increase in gross ton miles over any portion of Applicants' 
rail lines. In addition, Applicants project only a modest increase by 
2010 in gross ton miles over CPR's line between Milwaukee and Chicago 
as a result of the consolidation of DM&E carloads at Minnesota City 
onto existing CPR trains that operate between Minneapolis/St. Paul and 
Chicago. Further, Applicants contend that, even if the projected 
traffic growth that likely would occur regardless of this proposal were 
considered, the CPR line would only see an increase of about 17 percent 
(about 503 million gross ton miles), and the increase on the DME lines 
would be about 8.4 percent in gross ton miles between Davis Junction, 
IL, and Chicago (approximately 153 million gross ton miles).
    Finally, Applicants anticipate only minor increases in rail yard 
activity.
    Historic Review. According to Applicants, the proposed transaction 
would not involve any line abandonments or elimination of duplicative 
rail facilities. Any future line abandonment by Applicants would 
require Board authorization or exemption. Furthermore, Applicants state 
that they have no new plans to alter or dispose of properties 50 or 
more years old.\6\
---------------------------------------------------------------------------

    \6\ Applicants note that CPR would make available to DM&E $300 
million to upgrade and rehabilitate its tracks, structures (bridges) 
and rail facilities. Applicants maintain, however, that the work 
funded by this investment relates to rail facility improvements that 
already have been the subject of extensive environmental and 
historic review by the Board in connection with the DM&E Powder 
River Basin construction project, authorizing DM&E to build a new 
280-mile rail line extension of its current system to reach the PRB 
area of Wyoming.
    Applicants note that the work to be funded by CPR would involve 
substantially the same type of work, on the same properties, that 
was reviewed and is being addressed pursuant to the Programmatic 
Agreement for the DM&E PRB construction case, which sets forth the 
historic review process for both DM&E's new line and the 
rehabilitation of DM&E's existing line in South Dakota and 
Minnesota. Thus, Applicants argue, there is no need for a separate, 
duplicative historical review for the planned rail line upgrades 
related to this case.
---------------------------------------------------------------------------

Other Actions

    1. The DM&E PRB Rail Line. In 2006, DM&E obtained authority to 
build and operate its new rail line into the PRB.\7\ Applicants argue 
that because the Board has already fully considered the environmental 
impacts of the construction and operation of that line in DM&E PRB 
Construction--in an environmental review process that encompassed the 
rehabilitation of DM&E's existing lines in South Dakota and Minnesota--
there is no need for a further environmental review of the same lines 
considered in DM&E PRB Construction here.
---------------------------------------------------------------------------

    \7\ See Dakota, MN & Eastern RR--Construction--Powder River 
Basin, 3 S.T.B. 847 (1998) (preliminary consideration); Dakota, MN & 
Eastern RR--Construction--Powder River Basin, 6 S.T.B. 8 (2002) 
(first approval), remanded sub nom. Mid States Coalition for 
Progress v. STB, 345 F.3d 520 (8th Cir. 2003) (requiring further 
consideration of four environmental issues), reauthorized Dakota, 
Minnesota & Eastern Railroad Corporation Construction into the 
Powder River Basin, STB Finance Docket No. 33407 (STB served Feb. 
15, 2006), aff'd, Mayo Foundation v. STB, 472 F.3d 545 (8th Cir. 
2006) (referred to as DM&E PRB Construction).
---------------------------------------------------------------------------

    2. The Movement of DM&E Coal Trains Over the Lines of IC&E and CPR. 
Applicants note that in a separate proceeding the Board previously 
imposed a condition prohibiting the movement of DM&E's PRB coal trains 
over IC&E's rail lines until an environmental review of the potential 
impacts of such operations was conducted.\8\ Subsequently, the Board 
determined that an EIS would be needed to comply with this 
condition.\9\ At the request of DM&E, preparation of that EIS was put 
on hold.
---------------------------------------------------------------------------

    \8\ Iowa, Chicago & Eastern Railroad Corporation--Acquisition 
and Operation Exemption--Lines of I&M Rail Link, LLC, STB Finance 
Docket No. 34177 (STB served July 22, 2002), modified (STB served 
Oct. 18, 2006) (IC&E).
    \9\ See IC&E; STB Press Release No. 07-07, available on the 
Board's Web site.
---------------------------------------------------------------------------

    Applicants assert that it would be appropriate to continue to defer 
preparation of that EIS because it is not possible at this time to 
evaluate any potential environmental issues that might be associated 
with the transportation of DM&E PRB coal traffic over the lines of IC&E 
and/or CPR. Applicants explain that DM&E has not yet secured contracts 
with shippers for the movement of PRB coal over the newly authorized 
DM&E PRB line, and that Applicants have not yet made a decision to 
build it. According to Applicants, in the absence of definitive 
transportation commitments, the identity of the CPR-DME system's future 
coal customers, the volume of coal that would be transported to 
particular locations, the destinations to which such shipments would 
move, and the routing of such shipments beyond DM&E's lines remain 
speculative. Without such information, Applicants state, it would not 
be possible for the Board to evaluate in a meaningful fashion the 
potential environmental impacts of such future coal transportation 
operations.
    At the same time, Applicants recognize the Board's obligation under 
NEPA to examine the environmental impacts of the transportation of DM&E 
PRB coal trains over the lines of IC&E and/or CPR. Accordingly, 
Applicants propose that the Board impose a condition on any decision 
authorizing this transaction that would defer any required analysis of 
the environmental impacts of the movement of DM&E PRB coal trains over 
the lines of IC&E and/or CPR until such time as more definitive 
information regarding the likely volume and routing of those trains 
becomes available.
    On October 19, 2007, Winona requested that the Board impose 
environmental mitigation for Winona as part of this acquisition 
proceeding, or alternatively, that it impose mitigation for Winona in 
connection with the currently deferred analysis of the movement of DM&E 
PRB coal trains over the lines of IC&E and/or CPR.
    On October 24, 2007, BNSF submitted comments asserting that the 
application is incomplete because it fails to address the environmental 
effects of CPR's acquisition of DM&E's authority to construct a new 
rail line into the PRB. Further, according to BNSF, the Board would not 
meet its NEPA obligations by deferring its environmental review of the 
effects of DM&E PRB coal traffic operating over the IC&E and/or CPR 
lines. BNSF asserts that the entire acquisition--both rail traffic 
moving now and DM&E PRB coal traffic that might eventually move over 
IC&E and/or CPR lines--should be examined now and together.
    On October 24, 2007, as noted previously, Mayo Clinic filed a reply 
alleging that the Board should compel the Applicants to provide 
``meaningful information'' that addresses the future movement of DM&E 
PRB coal trains through Rochester, MN, where the Mayo Clinic is 
located; that now is the time to address the potential increase in DM&E 
PRB coal traffic (and ethanol traffic) moving through Rochester; and 
that the Board should require the Applicants to prepare a SIP pursuant 
to the Board's regulations at 49 CFR 1106.
    On October 29, 2007, Applicants filed a reply to BNSF's 
environmental comments.
    Preliminary Conclusions. Based on the information provided to date 
and after consultations with SEA, the Board preliminarily concludes 
that, for the reasons discussed below, the environmental review process 
proposed by Applicants would allow the Board to meet its NEPA 
obligations. Specifically, the Board preliminarily determines that an 
environmental and historic review for the proposed acquisition is not 
warranted because it does not appear that the thresholds triggering an

[[Page 929]]

environmental review would be met, and there is nothing in the 
available environmental information to indicate the potential for 
significant environmental impacts resulting from the proposed 
acquisition.
    With respect to the handling of DM&E PRB coal trains over the lines 
of IC&E and/or CPR, the Board preliminarily concludes, based on the 
available information, that there is no need to conduct any further 
environmental review here of the rail lines considered in DM&E PRB 
Construction,\10\ and that the Board should defer the preparation of 
environmental documentation on routing DM&E PRB coal traffic over the 
rail lines of IC&E and/or CPR (including the consideration of 
mitigation for Winona) until more information is available.
---------------------------------------------------------------------------

    \10\ Mayo Clinic's suggestion that the Board should look again 
at DM&E's movement of PRB coal traffic through Rochester ignores the 
extensive environmental review of those movements (at traffic levels 
of up to 100 million tons of PRB coal per year) that has already 
taken place. See DM&E PRB Construction (imposing extensive 
mitigation for Rochester and the Mayo Clinic to minimize the 
potential impacts of that traffic). Moreover, even if there is a 
potential for more than the 100 million tons of coal per year 
analyzed in DM&E PRB Construction, there is no basis for Mayo 
Clinic's assumption that all of this traffic would move through 
Rochester, given the numerous interchange points on DM&E's existing 
system.
    DM&E's movement of ethanol would likely take place regardless of 
the proposed acquisition and, therefore, does not require NEPA 
review in this case or the DM&E PRB Construction case.
---------------------------------------------------------------------------

    BNSF's assertion that the application is incomplete because it does 
not adequately describe the potential environmental effects of running 
DM&E PRB coal trains over the IC&E and/or CPR rail lines ignores the 
fact that sufficient information does not appear to be currently 
available to conduct a meaningful environmental review now. Applicants 
state that they have not yet made a decision to build the new PRB line 
approved in DM&E PRB Construction. They note that numerous steps 
(including acquisition of the right-of-way and agreements with PRB 
mines) would have to be completed before the project would be 
justified. Moreover, it does not appear that there would be any harm to 
interested persons, potentially affected communities, or to the 
environment by deferring the environmental review because the Board 
would preclude Applicants from operating any DM&E PRB coal trains over 
lines of IC&E and/or CPR until the Board conducts an appropriate 
environmental review and issues a final decision addressing the impacts 
of such coal train operations and allowing such operations to 
begin.\11\
---------------------------------------------------------------------------

    \11\ The Board's environmental review process will provide ample 
opportunity for all to participate.
---------------------------------------------------------------------------

    Specifically, Applicants proposed two environmental conditions to 
address the potential movement of DM&E PRB coal trains operating over 
the lines of IC&E and/or CPR. After reviewing the application, the 
Board preliminarily intends to impose the following modified conditions 
on any decision authorizing the proposed transaction:

    Applicants may not transport coal unit trains originating on the 
new rail line approved for construction in DM&E PRB Construction 
over lines currently operated by IC&E and/or CPR until the Board has 
prepared an Environmental Impact Statement, and has issued a final 
decision addressing the environmental impacts of such coal 
operations and allowed such operations to begin.
    Prior to commencing any construction of the new rail line 
approved in DM&E PRB Construction, Applicants shall notify the Board 
of Applicants' intent to begin construction, and shall submit to the 
Board reasonably foreseeable projections regarding the movement of 
DM&E PRB coal traffic on the rail lines of IC&E and/or CPR, so that 
the environmental review can begin.
    Finally, regarding Mayo Clinic's argument that preparation of a SIP 
is warranted here, Applicants expressly state in their application that 
they intend to prepare a SIP and submit it to the Board. Under the 
Board's SIP rules, Applicants are to file a proposed SIP with SEA and 
FRA within 60 days of the filing date of the application, setting out 
how they intend to ensure that safe operations are maintained 
throughout the acquisition implementation process. 49 CFR 1106.4(a). 
Accordingly, the procedural schedule requires the proposed SIP to be 
filed no later than February 4, 2008.
    The proposed SIP is normally part of the environmental record, is 
reviewed by SEA, and is put out for public review and comment during 
the environmental review process. 49 CFR 1106.4(b). If the Board 
authorizes the proposed transaction and adopts the SIP, the Board 
requires compliance with the SIP as a condition to its authorization. 
49 CFR 1106.4(b)(4). The Board's rules also specifically provide that, 
in cases where no formal environmental review is required under NEPA, 
the Board will develop appropriate case-specific SIP procedures based 
on the facts and circumstances presented. 49 CFR 1106.4(c). Thus, the 
SIP process will take place here whether or not preparation of an EA or 
EIS is found to be warranted for the proposed transaction.
    The Board is requesting comments from all interested parties on 
these preliminary determinations regarding how to handle the 
environmental review here. Environmental comments must be submitted to 
the Board by February 4, 2008, addressed to the attention of SEA. SEA 
will make a final recommendation to the Board regarding the level of 
environmental review that is needed to meet the Board's NEPA 
responsibilities, and how to conduct the SIP process, after considering 
any public comments received during the environmental comment period.
    Filing/Service Requirements. Persons wishing to participate in this 
proceeding must file with the Board and serve on other parties: a 
notice of intent to participate (due by January 25, 2008) and a 
certificate of service indicating service of prior pleadings on persons 
designated as PORs on the service-list notice (due by the 10th day 
after the service date of the service-list notice). Such persons may 
file responsive applications, requests for conditions, and any other 
evidence and argument in opposition to the application (due by March 
4); and any replies to responsive applications, etc. (due by April 18), 
any rebuttal in support of responsive applications, etc. (due by May 
19), and any final briefs (due by July 2).
    Filing Requirements. Any document filed in this proceeding must be 
filed either via the Board's e-filing format or in the traditional 
paper format. Any person using e-filing should attach a document and 
otherwise comply with the instructions found on the Board's Web site at 
https://www.stb.dot.gov at the ``E-FILING'' link. Any person filing a 
document in the traditional paper format should send an original and 10 
paper copies of the document (and also an electronic version) to: 
Surface Transportation Board, 395 E Street, SW., Washington, DC 20423-
0001.
    Service Requirements. One copy of each document filed in this 
proceeding must be sent to each of the following (any copy may be sent 
by e-mail only if service by e-mail is acceptable to the recipient): 
(1) Secretary of Transportation, 1200 New Jersey Avenue, SE., 
Washington, DC 20590; (2) Attorney General of the United States, c/o 
Assistant Attorney General, Antitrust Division, Room 3109, Department 
of Justice, Washington, DC 20530; (3) Terence M. Hynes (representing 
CPRC), Sidley Austin LLP, 1501 K Street, NW., Washington, DC 20005; (4) 
William C. Sippel (representing DM&E), Fletcher & Sippel, 29 North 
Wacker Drive, Suite 920, Chicago, IL 60606; and (5) any other person 
designated as a POR on the service-list notice.
    Service of Decisions, Orders, and Notices. The Board will serve 
copies of its decisions, orders, and notices only on those persons who 
are designated on

[[Page 930]]

the official service list as either POR, MOC, GOV, or Non-Party. All 
other interested persons are encouraged either to secure copies of 
decisions, orders, and notices via the Board's Web site at https://
www.stb.dot.gov under ``E-LIBRARY/Decisions & Notices'' or to make 
advance arrangements with the Board's copy contractor, ASAP Document 
Solutions (mailing address: Suite 103, 9332 Annapolis Rd., Lanham, MD 
20706; e-mail address: asapdc@verizon.net; telephone number: 202-306-
4004), to receive copies of decisions, orders, and notices served in 
this proceeding. ASAP Document Solutions will handle the collection of 
charges and the mailing and/or faxing of decisions, orders, and notices 
to persons who request this service.
    Access to Filings. An interested person does not need to be on the 
service list to obtain a copy of the primary application or any other 
filing made in this proceeding. Under the Board's rules, any document 
filed with the Board (including applications, pleadings, etc.) shall be 
promptly furnished by the filing party to interested persons on 
request, unless subject to a protective order. 49 CFR 1180.4(a)(3). The 
primary application and other filings in this proceeding will also be 
available on the Board's Web site at https://www.stb.dot.gov under ``E-
LIBRARY/Filings.''
    This action will not significantly affect either the quality of the 
human environment or the conservation of energy resources.
    It is ordered:
    1. The application in STB Finance Docket No. 35081 is accepted for 
consideration.
    2. The parties to this proceeding must comply with the procedural 
schedule adopted by the Board in this proceeding as shown in Appendix 
A.
    3. The parties to this proceeding must comply with the procedural 
requirements described in this decision.
    4. This decision is effective on January 4, 2008.

    Decided: December 21, 2007.

    By the Board, Chairman Nottingham, Vice Chairman Buttrey, and 
Commissioner Mulvey.
Vernon A. Williams,
Secretary.

                     Appendix A: Procedural Schedule
------------------------------------------------------------------------
 
------------------------------------------------------------------------
September 10, 2007.....................  Motion for Protective Order
                                          filed.
September 21, 2007.....................  Protective Order issued.
October 5, 2007........................  Prefiling notification and
                                          Motion to Establish Procedural
                                          Schedule filed.
November 8, 2007.......................  Notice of receipt of prefiling
                                          notification published in the
                                          Federal Register.
November 29, 2007......................  Proposed procedural schedule
                                          published in the Federal
                                          Register.
December 5, 2007.......................  Application filed.
January 4, 2008........................  Board notice of acceptance of
                                          application to be published in
                                          the Federal Register.
January 25, 2008.......................  Notices of intent to
                                          participate in this proceeding
                                          due. Descriptions of
                                          anticipated responsive
                                          applications (including
                                          inconsistent applications)
                                          due. Petitions for waiver or
                                          clarification with respect to
                                          such applications due.
February 4, 2008.......................  Proposed SIP to be filed with
                                          SEA and FRA. Environmental
                                          comments due, addressed to the
                                          attention of SEA.
March 4, 2008..........................  All responsive applications,
                                          requests for conditions, and
                                          any other evidence and
                                          argument in opposition to the
                                          application, including filings
                                          of DOJ and DOT, due.
April 18, 2008.........................  Replies to responsive
                                          applications, requests for
                                          conditions, and other
                                          opposition due. Rebuttal in
                                          support of the application
                                          due. Response of DOJ and DOT
                                          to other parties' comments
                                          due.
April 25, 2008.........................  Applicants' response to
                                          responsive comments of DOJ and
                                          DOT due.
May 19, 2008...........................  Rebuttals to responsive
                                          applications, requests for
                                          conditions, and other
                                          opposition due.
TBD....................................  A public hearing or oral
                                          argument may be held.
July 2, 2008...........................  Final briefs, if any, due.
September 30, 2008.....................  Date of service of final
                                          decision.
October 30, 2008.......................  Effective date of final
                                          decision.
------------------------------------------------------------------------

[FR Doc. E7-25480 Filed 1-3-08; 8:45 am]
BILLING CODE 4915-01-P
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