Canadian Pacific Railway Limited; Canadian Pacific Railway Company; Soo Line Railroad Company; Central Maine & Quebec Railway US Inc.; Dakota, Minnesota & Eastern Railroad Corporation; and Delaware & Hudson Railway Company, Inc.-Control-Kansas City Southern; The Kansas City Southern Railway Company; Gateway Eastern Railway Company; and The Texas Mexican Railway Company, 62862-62865 [2021-24670]
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Federal Register / Vol. 86, No. 216 / Friday, November 12, 2021 / Notices
By the Board, Scott M. Zimmerman, Acting
Director, Office of Proceedings.
Tammy Lowery,
Clearance Clerk.
[FR Doc. 2021–24695 Filed 11–10–21; 8:45 am]
BILLING CODE 4915–01–P
SURFACE TRANSPORTATION BOARD
[Docket No. FD 36553]
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3i RR Holdings GP LLC, 3i Holdings
Partnership L.P., 3i RR Intermediate
Holdings LLC, 3i RR LLC, Regional
Rail Holdings, LLC, and Regional Rail,
LLC—Continuance in Control
Exemption—Port Manatee Railroad
LLC
3i RR Holdings GP LLC, 3i Holdings
Partnership L.P., 3i RR Intermediate
Holdings LLC, and Regional Rail
Holdings, LLC, (collectively 3i RR) and
Regional Rail, LLC (Regional Rail), all
noncarriers, have filed a verified notice
of exemption under 49 CFR 1180.2(d)(2)
to continue in control of Port Manatee
Railroad, LLC (PMR), a noncarrier
controlled by Regional Rail, upon PMR’s
becoming a Class III rail carrier.1
According to the verified notice, the
proposed transaction will allow
Regional Rail to acquire direct control,
and 3i RR to acquire indirect control, of
PMR.
This transaction is related to a
verified notice of exemption filed
concurrently in Port Manatee
Railroad—Operation Exemption—
Manatee County Port Authority, Docket
No. FD 36552, in which PMR seeks to
operate approximately seven miles of
rail line within the Port of Manatee, in
Manatee County, Fla.
According to the verified notice, 3i RR
Holdings GP LLC controls 3i Holdings
Partnership L.P., which in turn controls
3i RR Intermediate Holdings LLC, which
in turn controls 3i RR LLC, which in
turn controls Regional Rail Holdings,
LLC, which controls Regional Rail. The
verified notice states that Regional Rail
is a non-carrier holding company that
directly controls the following seven
Class III railroads: (1) East Penn
Railroad, LLC, which operates in
Delaware and Pennsylvania; (2)
Middletown & New Jersey Railroad,
LLC, which operates in New York; (3)
Tyburn Railroad LLC, which operates in
Pennsylvania; (4) the Florida Central
Railroad Company, Inc., which operates
in Florida; (5) Florida Midland Railroad
Company, Inc., which operates in
1 On November 3, 2021, 3i RR and Regional Rail
filed a motion for protective order under 49 CFR
1104.14(b), which will be addressed in a separate
decision.
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Florida; (6) Florida Northern Railroad
Company, Inc., which operates in
Florida; and (7) Carolina Coastal
Railway, Inc., which operates in North
Carolina and South Carolina
(collectively, the Subsidiary Railroads).2
3i RR and Regional Rail certify that the
proposed transaction will not create a
provision or agreement that may limit
future interchange with a third-party
connecting carrier.
3i RR and Regional Rail represent
that: (1) The rail line to be operated by
PMR does not connect with the
Subsidiary Railroads; (2) the acquisition
of control of PMR is not intended to
connect with any railroads in the
corporate family of 3i RR or Regional
Rail; and (3) the transaction does not
involve a Class I rail carrier. The
proposed transaction is therefore
exempt from the prior approval
requirements of 49 U.S.C. 11323
pursuant to 49 CFR 1180.2(d)(2).
This transaction may be
consummated on or after November 28,
2021, the effective date of the exemption
(30 days after the verified notice was
filed).
Under 49 U.S.C. 10502(g), the Board
may not use its exemption authority to
relieve a rail carrier of its statutory
obligation to protect the interests of its
employees. However, 49 U.S.C. 11326(c)
does not provide for labor protection for
transactions under 49 U.S.C. 11324 and
11325 that involve only Class III rail
carriers. Because this transaction
involves Class III rail carriers only, the
Board, under the statute, may not
impose labor protective conditions for
this transaction.
If the verified notice contains false or
misleading information, the exemption
is void ab initio. Petitions to revoke the
exemption under 49 U.S.C. 10502(d)
may be filed at any time. The filing of
a petition to revoke will not
automatically stay the effectiveness of
the exemption. Petitions for stay must
be filed no later than November 19,
2021 (at least seven days before the
exemption becomes effective).
All pleadings, referring to Docket No.
FD 36553, should be filed with the
Surface Transportation Board via efiling on the Board’s website. In
addition, one copy of each pleading
must be served on 3i RR and Regional
Rail’s representative, Louis E. Gitomer,
2 See Reg’l Rail Holdings, LLC—Acquis. of Control
Exemption—Reg’l Rail, LLC, FD 35945 (STB served
Aug. 7, 2015); 3i RR Holdings GP LLC—Control
Exemption—Reg’l Rail Holdings, LLC, FD 36289
(STB served Apr. 19, 2019); 3i RR Holdings GP
LLC—Control Exemption—Fla. Cent. R.R., FD 36365
(STB served Nov. 22, 2019); 3i RR Holdings GP
LLC—Control Exemption—Carolina Coastal Ry., FD
36383 (STB served Feb. 14, 2020).
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Law Offices of Louis E. Gitomer, LLC,
600 Baltimore Avenue, Suite 301,
Towson, MD 21204.
According to 3i RR and Regional Rail,
this action is categorically excluded
from environmental review under 49
CFR 1105.6(c) and from historic
reporting requirements under 49 CFR
1105.8(b).
Board decisions and notices are
available at www.stb.gov.
Decided: November 5, 2021.
By the Board, Scott M. Zimmerman, Acting
Director, Office of Proceedings.
Raina White,
Clearance Clerk.
[FR Doc. 2021–24699 Filed 11–10–21; 8:45 am]
BILLING CODE 4915–01–P
SURFACE TRANSPORTATION BOARD
[Docket No. FD 36500]
Canadian Pacific Railway Limited;
Canadian Pacific Railway Company;
Soo Line Railroad Company; Central
Maine & Quebec Railway US Inc.;
Dakota, Minnesota & Eastern Railroad
Corporation; and Delaware & Hudson
Railway Company, Inc.—Control—
Kansas City Southern; The Kansas
City Southern Railway Company;
Gateway Eastern Railway Company;
and The Texas Mexican Railway
Company
Surface Transportation Board.
On October 29, 2021, the
Canadian Pacific Railway Limited,
Canadian Pacific Railway Company, and
their US rail carrier subsidiaries Soo
Line Railroad Company; Central Maine
& Quebec Railway U.S. Inc.; Dakota,
Minnesota & Eastern Railroad
Corporation; and Delaware & Hudson
Railway Company, Inc. (collectively,
CP) and Kansas City Southern, The
Kansas City Southern Railway
Company, Gateway Eastern Railway
Company, and The Texas Mexican
Railway Company (collectively, KCS)
filed an application with the Surface
Transportation Board (Board) seeking
the Board’s approval of the acquisition
of control by CP of KCS. The proposed
acquisition has the potential to result in
significant environmental impacts;
therefore, the Board’s Office of
Environmental Analysis (OEA) has
determined that the preparation of an
Environmental Impact Statement (EIS)
is appropriate pursuant to the National
Environmental Policy Act (NEPA). The
purpose of this Notice is to inform
stakeholders—including members of the
public; tribes; federal, state, and local
agencies; and environmental groups—
interested in or potentially affected by
AGENCY:
ACTION:
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Federal Register / Vol. 86, No. 216 / Friday, November 12, 2021 / Notices
potential environmental impacts related
to the proposed acquisition. OEA will
hold online public scoping meetings as
part of the NEPA process. Oral and
written comments submitted during
scoping will assist OEA in defining the
range of alternatives and potential
impacts to be considered in the EIS.
Public scoping meeting dates are
provided below.
Comments on the scope of the
EIS are due by December 17, 2021. OEA
will hold six online public scoping
meetings on the following dates (times
in Central Standard Time).
• Tuesday, November 30, 2021, 6–8
p.m.
• Wednesday, December 1, 2021, 2–4
p.m.
• Thursday, December 2, 2021, 6–8
p.m.
• Tuesday, December 7, 6–8 p.m.
• Wednesday, December 8, 2021, 2–4
p.m.
• Thursday, December 9, 2021, 6–8
p.m.
Information on how to attend and
participate in an online public scoping
meeting, including how to register in
advance, is available on the Boardsponsored project website at www.CP–
KCSMergerEIS.com.
ADDRESSES: Interested parties are
encouraged to file their scoping
comments electronically through the
Board-sponsored project website at
www.CP–KCSMergerEIS.com or through
the Board’s website at www.stb.gov by
clicking on the ‘‘File an Environmental
Comment’’ link. Please refer to Docket
No. FD 36500 in all correspondence,
including E-filings, addressed to the
Board. Scoping comments submitted by
mail should be addressed to: Joshua
Wayland, Surface Transportation Board,
c/o VHB, Attention: Environmental
Filing, Docket No. FD 36500, 940 Main
Campus Dr., Suite 500, Raleigh, NC
27606.
FOR FURTHER INFORMATION CONTACT:
Joshua Wayland, Office of
Environmental Analysis, Surface
Transportation Board, c/o VHB, 940
Main Campus Dr., Suite 500, Raleigh,
NC 27606, or call OEA’s toll-free
number for the project at 1–888–319–
2337. Assistance for the hearing
impaired is available through the
Federal Information Relay Service at 1–
800–877–8339. The website for the
Board is https://www.stb.gov. For
further information about the Board’s
environmental review process and the
EIS, you may also visit the Boardsponsored project website at www.CP–
KCSMergerEIS.com.
SUPPLEMENTARY INFORMATION:
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DATES:
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Background
On October 29, 2021, CP and KCS
(collectively, the Applicants) filed an
application with the Board under 49
U.S.C. 11323–25 seeking its approval of
the acquisition of control of KCS by CP.
CP and KCS are two of the seven Class
I railroads in the United States, which
are the largest railroads defined as
having annual revenue greater than
$250 million. CP is one of Canada’s two
major railroads, extending across the
country and connecting east and west
coast ports. In the U.S., CP connects to
Buffalo and Albany, New York and
Searsport, Maine. CP also runs south
into the U.S. Midwest and connects
with KCS in Kansas City, Missouri. KCS
is a Class I railroad that extends from
Kansas City, Missouri to the Gulf Coast
and into Mexico, operating across 10
states in the Midwest and Southeast. CP
and KCS provide rail service for a
variety of industries, including
agriculture, minerals, military,
automotive, chemical and petroleum,
energy, industrial, and consumer
products. CP and KCS are the two
smallest Class I railroads, and the
combined railroad would be the
smallest Class I railroad by revenue. At
the request of OEA, the Applicants have
submitted information needed by OEA
to initiate an environmental review of
the proposed acquisition. Based on the
information provided by the Applicants,
OEA has determined that the proposed
acquisition has the potential to result in
significant environmental impacts and
that the preparation of an EIS is
appropriate.
Summary of the Board’s Review
Processes for This Proceeding
The Board will review the proposed
transaction through two parallel but
distinct processes: (1) The
transportation-related process that
examines the competitive,
transportation, and economic
implications of the proposed acquisition
on the national rail system, and (2) the
environmental process conducted by
OEA that assesses the potential
environmental effects of the proposed
acquisition on the human and natural
environment through preparation of an
EIS. Interested persons and entities may
participate in either process or both. If
interested persons or entities are
primarily interested in potential
environmental impacts on communities,
such as noise, vibration, air emissions,
grade crossing safety and delay,
emergency vehicle access, and other
similar environmental issues, the
appropriate forum is OEA’s
environmental review process. The
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statute setting forth the procedures for
Board review of acquisitions at 49
U.S.C. 11325 and the Board’s
implementing regulations at 49 CFR
1180.4 (2000) require that the Board
complete its review within
approximately 15 months after the
application is accepted for a ‘‘major’’
transaction such as this, and OEA must
complete the environmental process
before the Board issues a final decision.
Environmental Review Process
The NEPA process is intended to
assist the Board and the public in
identifying and assessing the potential
environmental consequences of a
proposed action before a decision on
that proposal is made. OEA is
responsible for ensuring that the Board
complies with NEPA (42 U.S.C. 4321–
4370m–12) and related environmental
statutes, including Section 106 of the
National Historic Preservation Act (54
U.S.C. 306108) and Section 7 of the
Endangered Species Act (16 U.S.C.
1536).
Purpose and Need
The proposed transaction involves an
application for Board authority under 49
U.S.C. 11323–25 for CP to acquire KCS.
The proposed transaction is not a
federal government-proposed or
sponsored project. Thus, the project’s
purpose and need should be informed
by both the private applicant’s goals and
the Board’s enabling statute—the
Interstate Commerce Act as amended by
the ICC Termination Act, Public Law
104–188, 109 Stat. 803 (1996). See
Alaska Survival v. STB, 705 F.3d 1073,
1084–85 (9th Cir. 2013).
According to the Applicants, the
purpose of the proposed acquisition is
to combine America’s two smallest but
fastest-growing Class I railroads to build
a more efficient and more competitive
rail network. The Applicants state that
the proposed acquisition would further
the need for expanded and more capable
and efficient transportation
infrastructure while simultaneously
advancing the interests of current and
future customers in more reliable and
economical rail transportation options
serving important North-South trade
flows. The Applicants also state that the
proposed acquisition would generate
environmental benefits by reducing
truck transportation on highways in
North America by more than 60,000
trucks annually, resulting in less
congestion, less maintenance, and
improved safety on those roads, as well
as less noise pollution in the places
where those trucks would have driven,
and lowered air emissions, including
greenhouse gas emissions. Under the
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Interstate Commerce Act, as amended,
the Board ‘‘shall approve and authorize
a transaction’’ such as this when, after
considering several factors, ‘‘it finds the
transaction is consistent with the public
interest.’’ 49 U.S.C. 11324 (b) & (c).
Proposed Action and Alternatives
The Proposed Action in this
proceeding is the Applicants’ proposed
acquisition of KCS by CP. The
combination of these two railroads
would be an ‘end-to-end’ merger
because the CP and KCS railroad
networks do not overlap. The proposed
acquisition would result in changes in
rail traffic on portions of the combined
rail network. Rail traffic would increase
on certain rail line segments and would
decrease on others. The largest change
would occur on the CP mainline
between Sabula, Iowa and Kansas City,
Missouri, which would experience an
increase in rail traffic of approximately
14.4 additional trains per day, on
average. Increases in activities at rail
yards and intermodal facilities would
also occur. In addition, the Applicants
propose to make certain capital
improvements within the existing rail
right-of-way, including adding
approximately four miles of double
track on the KCS Pittsburg Subdivision,
adding approximately five miles of
facility working track adjacent to the
International Freight Gateway
intermodal terminal near Kansas City,
and adding or extending 24 passing
sidings along the combined network.
The Applicants do not propose to
construct any new rail lines subject to
Board licensing or to abandon any rail
lines as part of the proposed acquisition.
The alternative to the Proposed
Action is the No-Action Alternative,
which would occur if the Board were to
deny the proposed acquisition. Under
the No-Action Alternative, CP would
not acquire KCS.
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Scoping
The first stage of the environmental
review process is scoping. Scoping is an
open process for determining the range
of issues that should be examined and
assessed in the EIS. In addition to
announcing that the Board will prepare
an EIS for this proceeding, this Notice
also requests comments on the scope of
the EIS and presents the schedule of
public scoping meetings. With this
notice, OEA is soliciting written
comments on the scope, alternatives,
and issues to be analyzed in the EIS.
After the close of the comment period
on the scope of the EIS on December 17,
2021, OEA will review all comments
received and issue a final scope of study
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for the EIS. OEA anticipates issuing the
final scope of study in early 2022.
Draft EIS
Following the issuance of the final
scope, OEA will prepare a Draft EIS for
the proposed acquisition. The Draft EIS
will identify and analyze alternatives,
including the Proposed Action and the
No-Action Alternative, and will address
potential impacts on the environment as
well as issues and concerns identified
during the scoping process. The Draft
EIS will focus on (1) potential impacts
from changes in rail operations along
rail line segments and at rail yards that
would experience increases in rail
traffic as a result of the proposed
acquisition that would exceed OEA’s
thresholds for environmental review at
49 CFR 1105.7(e), (2) potential impacts
related to changes in vehicular traffic on
roadways and at facilities as a result of
the proposed acquisition that would
exceed OEA’s thresholds for analysis,
and (3) potential impacts that could
result from making capital
improvements within the rail right-ofway as part of the proposed acquisition.
The scope of the issues that will be
analyzed in the Draft EIS may include
potential impacts related to:
• Freight rail capacity and safety;
• Passenger rail capacity and safety;
• Grade crossing safety and delay;
• Motor vehicle traffic and roadway
systems;
• Land use;
• Air quality;
• Noise;
• Biological resources;
• Water resources;
• Hazardous waste sites;
• Cultural resources;
• Environmental justice; and
• Cumulative impacts.
The thresholds for assessing
environmental impacts from increased
rail traffic on rail lines in railroad
acquisition proceedings are an increase
in rail traffic of at least 100 percent
(measured in gross ton miles annually)
or an increase of at least eight trains per
day. For air quality impacts, rail lines
located in areas classified as being in
nonattainment under the Clean Air Act
(42 U.S.C. 7401–7671q) are also
assessed if they would experience an
increase in rail traffic of at least 50
percent (measured in gross ton miles
annually) or an increase of at least three
trains per day. Based on the information
provided by the Applicants to date,
OEA has identified rail lines in Illinois,
Iowa, Missouri, Kansas, Oklahoma,
Arkansas, Louisiana, and Texas that
would experience increases in rail
traffic that would exceed the analysis
thresholds as a result of the proposed
acquisition.
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In addition to assessing the
environmental impacts of the proposed
acquisition, the Draft EIS will also set
forth OEA’s preliminary
recommendations for environmental
mitigation measures. OEA anticipates
issuing the Draft EIS in the spring of
2022.
Final EIS
Upon its completion, the Draft EIS
will be made available for public and
agency review and comment for 45
days. OEA will then prepare and issue
a Final EIS that will address the
comments on the Draft EIS from the
public; and federal, state and local
agencies; and other interested parties
and will set forth OEA’s final
recommended environmental
mitigation. Then, in reaching its
decision in this case, the Board will
consider the Draft EIS, the Final EIS,
public comments, and any final
environmental mitigation proposed by
OEA. OEA anticipates issuing the Final
EIS in the fall of 2022.
Public Scoping Meetings
As noted above, scoping is the first
stage of the environmental review
process. OEA will hold online public
scoping meetings at the dates and times
listed below. All times are listed in
Central Standard Time. There is no need
to attend more than one online meeting,
but all are welcome to attend as many
meetings as desired.
• Tuesday, November 30, 2021, 6–8
p.m.
• Wednesday, December 1, 2021, 2–4
p.m.
• Thursday, December 2, 2021, 6–8
p.m.
• Tuesday, December 7, 6–8 p.m.
• Wednesday, December 8, 2021, 2–4
p.m.
• Thursday, December 9, 2021, 6–8
p.m.
The online public scoping meetings
will include a brief presentation by
OEA, followed by an opportunity for
interested individuals to make oral
comments. Participants who have
registered in advance will be called
upon first to deliver their oral comments
and will be given three minutes in
which to do so. If time permits,
participants who did not register in
advance will be given the opportunity to
make oral comments. A court reporter
will record the oral comments, and OEA
staff will be available to listen and make
notes of comments.
For information on how to attend an
online public scoping meeting,
including how to register in advance,
please visit the Public Involvement page
on the Board-sponsored project website
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(www.CP–KCSMergerEIS.com).
Although individuals who would like to
make oral comments are encouraged to
register in advance, registration is not
required to attend the public scoping
meetings. OEA will consider all
comments equally no matter how
comments are received, and it is not
necessary to attend an online public
scoping meeting to provide scoping
comments, as OEA will also be
accepting written comments during the
comment period, which ends on
December 17, 2021.
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Submitting Written Comments on the
Scope of the EIS
Interested parties are encouraged to
file their scoping comments
electronically through the Boardsponsored project website at www.CP–
KCSMergerEIS.com. Written comments
can also be submitted electronically on
the Board’s website, www.stb.gov, by
clicking on the ‘‘E–FILING’’ link. Please
refer to Docket No. FD 36500 in all
correspondence, including E-filings,
addressed to the Board. Scoping
comments submitted by mail should be
addressed to Joshua Wayland, Surface
Transportation Board, c/o VHB, 940
Main Campus Dr., Suite 500, Raleigh,
NC 27606, Attention: Environmental
Filing, Docket No. FD 36500. Following
these directions will help ensure that
your comments are considered in the
environmental review process for this
proposed acquisition.
All comments submitted during
scoping will be made available to the
public on the Board-sponsored project
website and the Board’s website. OEA
will add commenters’ names to its email
distribution list to announce the
availability of the final scope of the EIS,
the Draft EIS, and the Final EIS, which
will be posted on the Board’s website
and the Board-sponsored project
website. Commenters without email
addresses will receive notifications by
U.S. mail if accurate mailing addresses
are provided, as needed.
All Board decisions, orders, and
notices in this proceeding will also be
available on the Board’s website at
www.stb.gov under ‘‘E-Library,’’ and
‘‘Decisions & Notices’’ or ‘‘Filings.’’ For
further information about the Board’s
environmental review process and the
EIS, you may also visit the Boardsponsored project website at www.CP–
KCSMergerEIS.com.
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17:42 Nov 10, 2021
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By the Board, Danielle Gosselin,
Acting Director, Office of Environmental
Analysis.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2021–24670 Filed 11–10–21; 8:45 am]
BILLING CODE 4915–01–P
SURFACE TRANSPORTATION BOARD
[Docket No. FD 36554]
Union Pacific Railroad Company—
Trackage Rights Exemption—BNSF
Railway Company
Union Pacific Railroad Company (UP)
has filed a verified notice of exemption
under 49 CFR 1180.2(d)(7) for the
acquisition of trackage rights over an
approximately 7.8-mile rail line owned
by BNSF Railway Company (BNSF)
between milepost 436.5, near Eton, Mo.,
and milepost 444.3, near Congo, Mo.
(the Line).
UP states that it originally acquired
these trackage rights 1902.1 The verified
notice states that UP and BNSF have
executed a new agreement that provides
UP with substantially similar trackage
rights and will allow operations to
continue without material change.2
The transaction may be consummated
on or after November 28, 2021, the
effective date of the exemption (30 days
after the verified notice of exemption
was filed).
As a condition to this exemption, any
employees affected by the acquisition of
trackage rights will be protected by the
conditions imposed in Norfolk &
Western Railway—Trackage Rights—
Burlington Northern, Inc., 354 I.C.C. 605
(1978), as modified in Mendocino Coast
Railway—Lease & Operate—California
Western Railroad, 360 I.C.C. 653 (1980).
If the verified notice contains false or
misleading information, the exemption
is void ab initio. Petitions to revoke the
exemption under 49 U.S.C. 10502(d)
may be filed at any time. The filing of
a petition to revoke will not
automatically stay the effectiveness of
the exemption. Petitions for stay must
be filed by November 19, 2021 (at least
seven days before the exemption
becomes effective).
1 UP states that, because the 1902 trackage rights
agreement predates passage of the Transportation
Act of 1920, Public Law 66–152, 41 Stat. 456, it was
not required to be submitted to the agency for
authorization.
2 A redacted version of the agreement was filed
with UP’s verified notice of exemption. UP
simultaneously filed a motion for a protective order
to protect the confidential and commercially
sensitive information in the unredacted version of
the agreement, which UP submitted under seal.
That motion will be addressed in a separate
decision.
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62865
All pleadings, referring to Docket No.
FD 36554, should be filed with the
Surface Transportation Board via efiling on the Board’s website. In
addition, a copy of each pleading must
be served on UP’s representative, Jeremy
M. Berman, 1400 Douglas Street, STOP
1580, Omaha, NE 68179.
According to UP, this action is
categorically excluded from
environmental review under 49 CFR
1105.6(c)(3) and from historic
preservation reporting requirements
under 49 CFR 1105.8(b)(3).
Board decisions and notices are
available at www.stb.gov.
Decided: November 5, 2021.
By the Board, Scott M. Zimmerman, Acting
Director, Office of Proceedings.
Eden Besera,
Clearance Clerk.
[FR Doc. 2021–24612 Filed 11–10–21; 8:45 am]
BILLING CODE 4915–01–P
SURFACE TRANSPORTATION BOARD
[Docket No. FD 36555]
Union Pacific Railroad Company—
Trackage Rights Exemption—BNSF
Railway Company
Union Pacific Railroad Company
(UP), a Class I rail carrier, has filed a
verified notice of exemption under 49
CFR 1180.2(d)(7) for trackage rights over
approximately 98.8 miles of rail line
owned by BNSF Railway Company
(BNSF) between milepost 9 plus 1487.0
feet near Riverside, Cal., and milepost
737 plus 2126.7 feet near Daggett, Cal.
(the Line).
Pursuant to a written trackage rights
agreement,1 BNSF has agreed to grant
trackage rights to UP over the Line.
According to the verified notice, UP
originally acquired the trackage rights
pursuant to an agreement dated
February 1, 1916.2 According to UP, a
new agreement has now been executed
that allows for the trackage rights
operations to continue as they have
since 1916 without material change. The
purpose of this transaction is to allow
UP to continue its operations over the
Line.
The transaction may be consummated
on or after November 28, 2021, the
1 An executed, redacted version of the trackage
rights agreement was filed with the verified notice.
An executed, unredacted version of the agreement
was submitted to the Board under seal concurrently
with a motion for protective order, which was
granted on November 8, 2021.
2 UP states that because the 1916 agreement
predated the passage of the Transportation Act of
1920, Public Law 66–152, 41 Stat. 456, it was not
required to be submitted to the agency for
authorization.
E:\FR\FM\12NON1.SGM
12NON1
]]>Agencies
[Federal Register Volume 86, Number 216 (Friday, November 12, 2021)]
[Notices]
[Pages 62862-62865]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24670]
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SURFACE TRANSPORTATION BOARD
[Docket No. FD 36500]
Canadian Pacific Railway Limited; Canadian Pacific Railway
Company; Soo Line Railroad Company; Central Maine & Quebec Railway US
Inc.; Dakota, Minnesota & Eastern Railroad Corporation; and Delaware &
Hudson Railway Company, Inc.--Control--Kansas City Southern; The Kansas
City Southern Railway Company; Gateway Eastern Railway Company; and The
Texas Mexican Railway Company
AGENCY: Surface Transportation Board.
ACTION: On October 29, 2021, the Canadian Pacific Railway Limited,
Canadian Pacific Railway Company, and their US rail carrier
subsidiaries Soo Line Railroad Company; Central Maine & Quebec Railway
U.S. Inc.; Dakota, Minnesota & Eastern Railroad Corporation; and
Delaware & Hudson Railway Company, Inc. (collectively, CP) and Kansas
City Southern, The Kansas City Southern Railway Company, Gateway
Eastern Railway Company, and The Texas Mexican Railway Company
(collectively, KCS) filed an application with the Surface
Transportation Board (Board) seeking the Board's approval of the
acquisition of control by CP of KCS. The proposed acquisition has the
potential to result in significant environmental impacts; therefore,
the Board's Office of Environmental Analysis (OEA) has determined that
the preparation of an Environmental Impact Statement (EIS) is
appropriate pursuant to the National Environmental Policy Act (NEPA).
The purpose of this Notice is to inform stakeholders--including members
of the public; tribes; federal, state, and local agencies; and
environmental groups--interested in or potentially affected by
[[Page 62863]]
potential environmental impacts related to the proposed acquisition.
OEA will hold online public scoping meetings as part of the NEPA
process. Oral and written comments submitted during scoping will assist
OEA in defining the range of alternatives and potential impacts to be
considered in the EIS. Public scoping meeting dates are provided below.
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DATES: Comments on the scope of the EIS are due by December 17, 2021.
OEA will hold six online public scoping meetings on the following dates
(times in Central Standard Time).
Tuesday, November 30, 2021, 6-8 p.m.
Wednesday, December 1, 2021, 2-4 p.m.
Thursday, December 2, 2021, 6-8 p.m.
Tuesday, December 7, 6-8 p.m.
Wednesday, December 8, 2021, 2-4 p.m.
Thursday, December 9, 2021, 6-8 p.m.
Information on how to attend and participate in an online public
scoping meeting, including how to register in advance, is available on
the Board-sponsored project website at www.CP-KCSMergerEIS.com.
ADDRESSES: Interested parties are encouraged to file their scoping
comments electronically through the Board-sponsored project website at
www.CP-KCSMergerEIS.com or through the Board's website at www.stb.gov
by clicking on the ``File an Environmental Comment'' link. Please refer
to Docket No. FD 36500 in all correspondence, including E-filings,
addressed to the Board. Scoping comments submitted by mail should be
addressed to: Joshua Wayland, Surface Transportation Board, c/o VHB,
Attention: Environmental Filing, Docket No. FD 36500, 940 Main Campus
Dr., Suite 500, Raleigh, NC 27606.
FOR FURTHER INFORMATION CONTACT: Joshua Wayland, Office of
Environmental Analysis, Surface Transportation Board, c/o VHB, 940 Main
Campus Dr., Suite 500, Raleigh, NC 27606, or call OEA's toll-free
number for the project at 1-888-319-2337. Assistance for the hearing
impaired is available through the Federal Information Relay Service at
1-800-877-8339. The website for the Board is https://www.stb.gov. For
further information about the Board's environmental review process and
the EIS, you may also visit the Board-sponsored project website at
www.CP-KCSMergerEIS.com.
SUPPLEMENTARY INFORMATION:
Background
On October 29, 2021, CP and KCS (collectively, the Applicants)
filed an application with the Board under 49 U.S.C. 11323-25 seeking
its approval of the acquisition of control of KCS by CP. CP and KCS are
two of the seven Class I railroads in the United States, which are the
largest railroads defined as having annual revenue greater than $250
million. CP is one of Canada's two major railroads, extending across
the country and connecting east and west coast ports. In the U.S., CP
connects to Buffalo and Albany, New York and Searsport, Maine. CP also
runs south into the U.S. Midwest and connects with KCS in Kansas City,
Missouri. KCS is a Class I railroad that extends from Kansas City,
Missouri to the Gulf Coast and into Mexico, operating across 10 states
in the Midwest and Southeast. CP and KCS provide rail service for a
variety of industries, including agriculture, minerals, military,
automotive, chemical and petroleum, energy, industrial, and consumer
products. CP and KCS are the two smallest Class I railroads, and the
combined railroad would be the smallest Class I railroad by revenue. At
the request of OEA, the Applicants have submitted information needed by
OEA to initiate an environmental review of the proposed acquisition.
Based on the information provided by the Applicants, OEA has determined
that the proposed acquisition has the potential to result in
significant environmental impacts and that the preparation of an EIS is
appropriate.
Summary of the Board's Review Processes for This Proceeding
The Board will review the proposed transaction through two parallel
but distinct processes: (1) The transportation-related process that
examines the competitive, transportation, and economic implications of
the proposed acquisition on the national rail system, and (2) the
environmental process conducted by OEA that assesses the potential
environmental effects of the proposed acquisition on the human and
natural environment through preparation of an EIS. Interested persons
and entities may participate in either process or both. If interested
persons or entities are primarily interested in potential environmental
impacts on communities, such as noise, vibration, air emissions, grade
crossing safety and delay, emergency vehicle access, and other similar
environmental issues, the appropriate forum is OEA's environmental
review process. The statute setting forth the procedures for Board
review of acquisitions at 49 U.S.C. 11325 and the Board's implementing
regulations at 49 CFR 1180.4 (2000) require that the Board complete its
review within approximately 15 months after the application is accepted
for a ``major'' transaction such as this, and OEA must complete the
environmental process before the Board issues a final decision.
Environmental Review Process
The NEPA process is intended to assist the Board and the public in
identifying and assessing the potential environmental consequences of a
proposed action before a decision on that proposal is made. OEA is
responsible for ensuring that the Board complies with NEPA (42 U.S.C.
4321-4370m-12) and related environmental statutes, including Section
106 of the National Historic Preservation Act (54 U.S.C. 306108) and
Section 7 of the Endangered Species Act (16 U.S.C. 1536).
Purpose and Need
The proposed transaction involves an application for Board
authority under 49 U.S.C. 11323-25 for CP to acquire KCS. The proposed
transaction is not a federal government-proposed or sponsored project.
Thus, the project's purpose and need should be informed by both the
private applicant's goals and the Board's enabling statute--the
Interstate Commerce Act as amended by the ICC Termination Act, Public
Law 104-188, 109 Stat. 803 (1996). See Alaska Survival v. STB, 705 F.3d
1073, 1084-85 (9th Cir. 2013).
According to the Applicants, the purpose of the proposed
acquisition is to combine America's two smallest but fastest-growing
Class I railroads to build a more efficient and more competitive rail
network. The Applicants state that the proposed acquisition would
further the need for expanded and more capable and efficient
transportation infrastructure while simultaneously advancing the
interests of current and future customers in more reliable and
economical rail transportation options serving important North-South
trade flows. The Applicants also state that the proposed acquisition
would generate environmental benefits by reducing truck transportation
on highways in North America by more than 60,000 trucks annually,
resulting in less congestion, less maintenance, and improved safety on
those roads, as well as less noise pollution in the places where those
trucks would have driven, and lowered air emissions, including
greenhouse gas emissions. Under the
[[Page 62864]]
Interstate Commerce Act, as amended, the Board ``shall approve and
authorize a transaction'' such as this when, after considering several
factors, ``it finds the transaction is consistent with the public
interest.'' 49 U.S.C. 11324 (b) & (c).
Proposed Action and Alternatives
The Proposed Action in this proceeding is the Applicants' proposed
acquisition of KCS by CP. The combination of these two railroads would
be an `end-to-end' merger because the CP and KCS railroad networks do
not overlap. The proposed acquisition would result in changes in rail
traffic on portions of the combined rail network. Rail traffic would
increase on certain rail line segments and would decrease on others.
The largest change would occur on the CP mainline between Sabula, Iowa
and Kansas City, Missouri, which would experience an increase in rail
traffic of approximately 14.4 additional trains per day, on average.
Increases in activities at rail yards and intermodal facilities would
also occur. In addition, the Applicants propose to make certain capital
improvements within the existing rail right-of-way, including adding
approximately four miles of double track on the KCS Pittsburg
Subdivision, adding approximately five miles of facility working track
adjacent to the International Freight Gateway intermodal terminal near
Kansas City, and adding or extending 24 passing sidings along the
combined network. The Applicants do not propose to construct any new
rail lines subject to Board licensing or to abandon any rail lines as
part of the proposed acquisition.
The alternative to the Proposed Action is the No-Action
Alternative, which would occur if the Board were to deny the proposed
acquisition. Under the No-Action Alternative, CP would not acquire KCS.
Scoping
The first stage of the environmental review process is scoping.
Scoping is an open process for determining the range of issues that
should be examined and assessed in the EIS. In addition to announcing
that the Board will prepare an EIS for this proceeding, this Notice
also requests comments on the scope of the EIS and presents the
schedule of public scoping meetings. With this notice, OEA is
soliciting written comments on the scope, alternatives, and issues to
be analyzed in the EIS. After the close of the comment period on the
scope of the EIS on December 17, 2021, OEA will review all comments
received and issue a final scope of study for the EIS. OEA anticipates
issuing the final scope of study in early 2022.
Draft EIS
Following the issuance of the final scope, OEA will prepare a Draft
EIS for the proposed acquisition. The Draft EIS will identify and
analyze alternatives, including the Proposed Action and the No-Action
Alternative, and will address potential impacts on the environment as
well as issues and concerns identified during the scoping process. The
Draft EIS will focus on (1) potential impacts from changes in rail
operations along rail line segments and at rail yards that would
experience increases in rail traffic as a result of the proposed
acquisition that would exceed OEA's thresholds for environmental review
at 49 CFR 1105.7(e), (2) potential impacts related to changes in
vehicular traffic on roadways and at facilities as a result of the
proposed acquisition that would exceed OEA's thresholds for analysis,
and (3) potential impacts that could result from making capital
improvements within the rail right-of-way as part of the proposed
acquisition.
The scope of the issues that will be analyzed in the Draft EIS may
include potential impacts related to:
Freight rail capacity and safety;
Passenger rail capacity and safety;
Grade crossing safety and delay;
Motor vehicle traffic and roadway systems;
Land use;
Air quality;
Noise;
Biological resources;
Water resources;
Hazardous waste sites;
Cultural resources;
Environmental justice; and
Cumulative impacts.
The thresholds for assessing environmental impacts from increased
rail traffic on rail lines in railroad acquisition proceedings are an
increase in rail traffic of at least 100 percent (measured in gross ton
miles annually) or an increase of at least eight trains per day. For
air quality impacts, rail lines located in areas classified as being in
nonattainment under the Clean Air Act (42 U.S.C. 7401-7671q) are also
assessed if they would experience an increase in rail traffic of at
least 50 percent (measured in gross ton miles annually) or an increase
of at least three trains per day. Based on the information provided by
the Applicants to date, OEA has identified rail lines in Illinois,
Iowa, Missouri, Kansas, Oklahoma, Arkansas, Louisiana, and Texas that
would experience increases in rail traffic that would exceed the
analysis thresholds as a result of the proposed acquisition.
In addition to assessing the environmental impacts of the proposed
acquisition, the Draft EIS will also set forth OEA's preliminary
recommendations for environmental mitigation measures. OEA anticipates
issuing the Draft EIS in the spring of 2022.
Final EIS
Upon its completion, the Draft EIS will be made available for
public and agency review and comment for 45 days. OEA will then prepare
and issue a Final EIS that will address the comments on the Draft EIS
from the public; and federal, state and local agencies; and other
interested parties and will set forth OEA's final recommended
environmental mitigation. Then, in reaching its decision in this case,
the Board will consider the Draft EIS, the Final EIS, public comments,
and any final environmental mitigation proposed by OEA. OEA anticipates
issuing the Final EIS in the fall of 2022.
Public Scoping Meetings
As noted above, scoping is the first stage of the environmental
review process. OEA will hold online public scoping meetings at the
dates and times listed below. All times are listed in Central Standard
Time. There is no need to attend more than one online meeting, but all
are welcome to attend as many meetings as desired.
Tuesday, November 30, 2021, 6-8 p.m.
Wednesday, December 1, 2021, 2-4 p.m.
Thursday, December 2, 2021, 6-8 p.m.
Tuesday, December 7, 6-8 p.m.
Wednesday, December 8, 2021, 2-4 p.m.
Thursday, December 9, 2021, 6-8 p.m.
The online public scoping meetings will include a brief
presentation by OEA, followed by an opportunity for interested
individuals to make oral comments. Participants who have registered in
advance will be called upon first to deliver their oral comments and
will be given three minutes in which to do so. If time permits,
participants who did not register in advance will be given the
opportunity to make oral comments. A court reporter will record the
oral comments, and OEA staff will be available to listen and make notes
of comments.
For information on how to attend an online public scoping meeting,
including how to register in advance, please visit the Public
Involvement page on the Board-sponsored project website
[[Page 62865]]
(www.CP-KCSMergerEIS.com). Although individuals who would like to make
oral comments are encouraged to register in advance, registration is
not required to attend the public scoping meetings. OEA will consider
all comments equally no matter how comments are received, and it is not
necessary to attend an online public scoping meeting to provide scoping
comments, as OEA will also be accepting written comments during the
comment period, which ends on December 17, 2021.
Submitting Written Comments on the Scope of the EIS
Interested parties are encouraged to file their scoping comments
electronically through the Board-sponsored project website at www.CP-KCSMergerEIS.com. Written comments can also be submitted electronically
on the Board's website, www.stb.gov, by clicking on the ``E-FILING''
link. Please refer to Docket No. FD 36500 in all correspondence,
including E-filings, addressed to the Board. Scoping comments submitted
by mail should be addressed to Joshua Wayland, Surface Transportation
Board, c/o VHB, 940 Main Campus Dr., Suite 500, Raleigh, NC 27606,
Attention: Environmental Filing, Docket No. FD 36500. Following these
directions will help ensure that your comments are considered in the
environmental review process for this proposed acquisition.
All comments submitted during scoping will be made available to the
public on the Board-sponsored project website and the Board's website.
OEA will add commenters' names to its email distribution list to
announce the availability of the final scope of the EIS, the Draft EIS,
and the Final EIS, which will be posted on the Board's website and the
Board-sponsored project website. Commenters without email addresses
will receive notifications by U.S. mail if accurate mailing addresses
are provided, as needed.
All Board decisions, orders, and notices in this proceeding will
also be available on the Board's website at www.stb.gov under ``E-
Library,'' and ``Decisions & Notices'' or ``Filings.'' For further
information about the Board's environmental review process and the EIS,
you may also visit the Board-sponsored project website at www.CP-KCSMergerEIS.com.
By the Board, Danielle Gosselin, Acting Director, Office of
Environmental Analysis.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2021-24670 Filed 11-10-21; 8:45 am]
BILLING CODE 4915-01-P
