Canadian National Railway Company and Grand Trunk Corporation-Control-Iowa Northern Railway Company, 14919-14923 [2024-04271]

Download as PDF Federal Register / Vol. 89, No. 41 / Thursday, February 29, 2024 / Notices khammond on DSKJM1Z7X2PROD with NOTICES FOR FURTHER INFORMATION CONTACT: Questions concerning the meeting should be directed to Adam M. Howard, Executive Secretary, Advisory Committee on Historical Diplomatic Documentation, Department of State, Office of the Historian, Washington, DC 20372, telephone (202) 955–0214, (email: history@state.gov). SUPPLEMENTARY INFORMATION: Closed Sessions. The Committee’s sessions in the afternoon of Monday, June 10, 2024, and in the morning of Tuesday, June 11, 2024, will be closed in accordance with section 10(d) of the Federal Advisory Committee Act (Pub. L. 92–463). The agenda calls for discussions of agency declassification decisions concerning the Foreign Relations series and other declassification issues. 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Personal data is requested pursuant to Public Law 99–399 (Omnibus Diplomatic Security and Antiterrorism Act of 1986), as amended; Public Law 107–56 (USA PATRIOT Act); and Executive Order 13356. The purpose of the collection is to validate the identity of individuals who enter Department facilities. The data will be entered into the Visitor Access Control System (VACS–D) database. Please see the Security Records System of Records Notice (State–36) at https:// www.state.gov/wp-content/uploads/ 2019/05/Security-Records-STATE36.pdf, for additional information. Note that requests for reasonable accommodation received after the dates indicated in this notice will be considered but might not be possible to fulfill. VerDate Sep<11>2014 16:39 Feb 28, 2024 Jkt 262001 (Authority: 5 U.S.C. 1009, 22 U.S.C. 2651a, and 41 CFR 102–3.150) Adam M. Howard, Executive Secretary, Advisory Committee on Historical Diplomatic Documentation, Department of State. [FR Doc. 2024–04279 Filed 2–28–24; 8:45 am] BILLING CODE 4710–34–P SURFACE TRANSPORTATION BOARD [Docket No. FD 36744] Canadian National Railway Company and Grand Trunk Corporation— Control—Iowa Northern Railway Company Surface Transportation Board. Decision No. 1 in Docket No. FD 36744; notice of acceptance of application; notice of acceptance of related filings for consideration; issuance of procedural schedule. AGENCY: ACTION: The Surface Transportation Board (Board) is accepting for consideration an application (Application) filed on January 30, 2024, by Canadian National Railway Company (CNR) and Grand Trunk Corporation (GTC), together with the Iowa Northern Railway Company (Iowa Northern or IANR) (collectively, Applicants). The Application seeks Board approval for CNR and GTC to acquire control of Iowa Northern, a Class III rail carrier that operates a total of approximately 218 route miles in the state of Iowa. This proposal is referred to as the ‘‘Proposed Transaction.’’ The Board is also accepting for consideration two related filings. Those filings are verified notices of exemption seeking Board approval of transactions involving mutual trackage rights between Iowa Northern and the Chicago, Central & Pacific Railroad Company (CCP), an indirect rail carrier subsidiary of GTC (Related Transactions). DATES: The effective date of this decision is February 29, 2024. Any person who wishes to participate in this proceeding as a Party of Record must file, no later than March 15, 2024, a notice of intent to participate. All comments, protests, requests for conditions, and any other evidence and argument in opposition to the Application and related filings, including filings by the U.S. Department of Justice (DOJ) and the U.S. Department of Transportation (DOT), must be filed by April 1, 2024. Responses to comments, protests, requests for conditions, other opposition, and rebuttal in support of the Application or related filings must be filed by May 1, SUMMARY: PO 00000 Frm 00120 Fmt 4703 Sfmt 4703 14919 2024. See Appendix (Procedural Schedule). A final decision in this matter will be served no later than July 26, 2024. Further procedural orders, if any, would be issued by the Board. ADDRESSES: Any filing submitted in this proceeding should be filed with the Board via e-filing on the Board’s website. In addition, one copy of each filing must be sent (and may be sent by email only if service by email 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) CNR’s and GTC’s representative, Matthew J. Warren, Sidley Austin LLP, 1501 K Street NW, Washington, DC 20005; (4) Iowa Northern’s representative, Kevin M. Sheys, Law Office of Kevin M. Sheys LLC, 42 Brush Hill Road, Sherborn, MA 01770; and (5) any other person designated as a Party of Record on the service list. FOR FURTHER INFORMATION CONTACT: Sarah Fancher at (202) 245–0355. If you require an accommodation under the Americans with Disabilities Act, please call (202) 245–0245. SUPPLEMENTARY INFORMATION: Applicants seek the Board’s prior review and authorization pursuant to 49 U.S.C. 11323–25 and 49 CFR part 1180 for CNR and GTC to acquire control of Iowa Northern. (Appl. 1.) Applicant GTC is a non-carrier holding company through which CNR controls its U.S. rail carrier subsidiaries.1 (Id. at 1 n.1.) Applicant Iowa Northern is a Class III rail carrier wholly owned by Cable & Ives, LLC (Cable & Ives). (Id. at 1–2, 11.) On December 6, 2023, GTC signed and closed an agreement to acquire 100% of the equity interest of Cable & Ives. (Id. at 1–2, 12.) According to Applicants, the shares of Cable & Ives were deposited into an independent voting trust pursuant to 49 CFR part 1013, pending review of the Proposed Transaction by the Board.2 (Appl. 1–2, 11–12; see also CN Letter Filing of Voting Trust Agreement, FD 36744, Dec. 6, 2023.) Upon Board approval of the Proposed Transaction, Iowa Northern would become an indirect rail carrier subsidiary of GTC and would be indirectly controlled by CNR. (Appl. 3.) 1 CNR and its U.S. rail operating subsidiaries are referred to collectively as ‘‘CN.’’ (Appl. 1 n.1.) 2 Applicants state that, during the voting trust period, Iowa Northern continues to operate independently and is controlled by existing Iowa Northern management. (Appl. 12.) E:\FR\FM\29FEN1.SGM 29FEN1 khammond on DSKJM1Z7X2PROD with NOTICES 14920 Federal Register / Vol. 89, No. 41 / Thursday, February 29, 2024 / Notices Applicants state that Iowa Northern owns or leases approximately 175 route miles of rail line in Iowa and operates via trackage rights over an additional approximately 43 route miles of track, for a total distance of 218 route miles. (Id. at 1 & n.2.) Applicants explain that Iowa Northern’s system is organized into four subdivisions. (Id., Ex. 15, Operating Plan 3.) Applicants state that Iowa Northern’s main line runs 116.7 miles extending northwest from Cedar Rapids through Waterloo (Cedar Rapids Subdivision) and Cedar Falls to Manly (Manly Subdivision). (Id. at 30; id., Ex. 15, Operating Plan 3, Fig. 2.) Applicants further state that Iowa Northern owns the Cedar Rapids and Manly Subdivisions and connects those lines via overhead trackage rights on approximately 8.7 miles of track owned by CN. (Id., Ex. 15, Operating Plan 3, 5, Fig. 4.) Applicants note that Iowa Northern also operates over a short portion of a Union Pacific Railroad Company (UP) line in Cedar Rapids, which Iowa Northern uses to access UP, CN, and the Cedar Rapids and Iowa City Railway (CRANDIC) in Cedar Rapids. (Id., Ex. 15, Operating Plan 5, Fig. 5.) Regarding the Waterloo–Oelwein subdivision (Oelwein Subdivision), Applicants state that Iowa Northern owns the branch line extending from Dewar, near Waterloo, to Oelwein, and Iowa Northern accesses that line via an approximately seven-mile track known as the ‘‘Waterloo Industrial Lead,’’ extending from Waterloo to Dewar, and leased from UP. (Id., Ex. 15, Operating Plan 3, Fig. 4.) Regarding the Forest City–Belmond subdivision (Garner Subdivision), Applicants state that Iowa Northern leases that line from North Central Iowa Rail Corridor, L.L.C., and accesses the line via approximately 30.2 miles of overhead trackage rights on a Canadian Pacific Kansas City Limited (CPKC) line from Nora Springs to Garner. (Id., Ex. 15, Operating Plan 3, 5, Fig. 2.) According to Applicants, CN’s current network spans approximately 18,600 route miles in 13 U.S. states and eight Canadian provinces. (Id., Ex. 15, Operating Plan 8.) With respect to CN’s operations in Iowa, Applicants state that CCP is the CN rail operating subsidiary that primarily owns and operates CN’s rail lines in Iowa. (Id.) Applicants note that CN currently has 226 craft employees in Iowa and operates 574 route miles in the state. (Id.) Specifically, CN operates main lines east from Sioux City and Council Bluffs that converge near Fort Dodge and run through Waterloo and Dubuque, Iowa, VerDate Sep<11>2014 16:39 Feb 28, 2024 Jkt 262001 with several secondary lines in between. (Id.) Financial Arrangements. According to Applicants, no new securities would be issued in connection with the Proposed Transaction. Applicants state that the only relevant financial arrangement is the payment of the purchase price by GTC, as provided in the Unit Purchase Agreement. (Id. at 17.) Passenger Service Impacts. Applicants anticipate no impact on commuter or other passenger service. (Id. at 39.) According to Applicants, there is no commuter or other such service on Iowa Northern, and the Proposed Transaction is not expected to impact any passenger service operating on any CN lines. (Id., Ex. 15 at 29.) Discontinuances/Abandonments. Applicants state that there are no planned abandonments or discontinuances as a result of the Proposed Transaction. (Id. at 39, Ex. 15 at 30.) Applicants note, however, that Iowa Northern has been working with the City of Cedar Falls regarding removal of Iowa Northern’s Cedar Falls Utility Spur, and that CN will cooperate with preexisting efforts by the City of Cedar Falls to abandon and remove this track after it assumes control of Iowa Northern, including obtaining any necessary Board authority. (Id. at 39, Ex. 15 at 30.) Public Interest Considerations.3 Applicants assert that the Proposed Transaction would not result in the lessening of competition, creation of a monopoly, or restraint of trade in freight surface transportation. (Appl. 17.) Indeed, Applicants state that the Proposed Transaction would have no negative competitive impacts as there would be no two-to-one rail customer stations—i.e., no shipper has access exclusively to both CN and Iowa Northern. (Id. at 18; id., App. B, V.S. Hunt 6 & Ex. 6–1.) Applicants further argue that ‘‘while the Board’s focus is generally on preserving competition between two rail carriers,’’ there are only three potential three-to-two customer stations. (Id. at 18; id., App. B, V.S. Hunt 6 & Ex. 6–1.) According to Applicants, those customer stations currently have access to CN, Iowa Northern, and UP. (Id. at 18.) Nevertheless, Applicants assert that CN has committed to ensuring continued access to UP. (Id.) 3 On January 17, 2024, the Butler County Board of Supervisors submitted a statement in support of the Proposed Transaction. Additionally, several letters raising concerns about the Proposed Transaction have been submitted by individuals. These filings will be discussed in more detail in a subsequent decision. PO 00000 Frm 00121 Fmt 4703 Sfmt 4703 Applicants further note that CN will preserve existing access between Iowa Northern and other railroads—Iowa Northern currently interchanges with three Class I railroads (including CN) and one short line. (Id.) Applicants specifically state that CN has committed to providing Iowa Northern-served customers with commercially reasonable rates and service for interline traffic with rail carriers other than CN. (Id. at 7.) According to Applicants, this commitment encompasses interline traffic that is currently interchanged with CPKC or UP at the northwestern end of Iowa Northern; traffic that is interchanged with UP or CRANDIC in Cedar Rapids; and traffic Iowa Northern moves between UP and the UP Industrial Lead at Waterloo. (Id.) Further, Applicants note that this commitment would apply equally to traffic that originates and traffic that terminates on Iowa Northern’s lines. (Id.) Additionally, Applicants assert that CN has committed to maintaining existing carrier access to locations in current CN and Iowa Northern voluntary reciprocal switch tariffs. (Id.) Applicants claim that, through the Proposed Transaction, a combined CNIowa Northern would provide more efficient and economical service, providing customers with access to new market opportunities, while supporting reliable local service on Iowa Northern’s lines. (Id. at 20.) According to Applicants, customers in a wide range of markets—including ethanol, fertilizer, and grain—would benefit from operational efficiencies and access to markets through new, more efficient single-line service on the combined CNIowa Northern system. (Id. at 8.) Applicants also state that the Proposed Transaction would provide a firm financial foundation to enable a combined CN-Iowa Northern to continue providing safe, reliable local service to customers in Iowa. (Id.) Moreover, Applicants assert that the Proposed Transaction would benefit the Iowa economy and local Iowa customers and communities by supporting the growth of local businesses via new, single-line service between points on Iowa Northern and locations throughout North America over CN’s 18,600-mile rail network. (Id.) Time Schedule for Consummation. As noted above, Applicants state that, on December 6, 2023, GTC signed and closed on an agreement to acquire from Sabin Group Holdings, L.L.C., and TCFII IANR SPE LLC, 100% of the equity interest of Cable & Ives, which wholly owns Iowa Northern. (Id. at 1.) Applicants state that the shares of Cable & Ives were deposited into an E:\FR\FM\29FEN1.SGM 29FEN1 khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 89, No. 41 / Thursday, February 29, 2024 / Notices independent voting trust pursuant to 49 CFR part 1013, pending review of the Proposed Transaction by the Board. (Id. at 2, 11–12; see also CN Letter Filing of Voting Trust Agreement, FD 36744, Dec. 6, 2023.) According to Applicants, they expect to consummate the Proposed Transaction as soon as practicable after the Board’s decision approving the Application becomes effective. (Appl. 13.) Environmental Impacts. Applicants state that, pursuant to 49 CFR 1105.6(c)(1), no environmental reporting is required because the environmental impacts of the Proposed Transaction fall below the thresholds established in 49 CFR 1105.7(e)(4) and (5). (Appl. 2, 33.) Historic Preservation Impacts. Applicants state that no historic report is required under 49 CFR 1105.8, as the Proposed Transaction is for the purpose of continued rail operations and Applicants have no plans to dispose of or alter properties subject to the Board’s jurisdiction that are 50 years old or older. (Appl. 2, 38.) Labor Impacts. Applicants state that Iowa Northern currently employs 83 craft employees. (Id., Ex. 15 at 31.) According to Applicants, while some positions may be relocated or modified to permit various efficiencies and service improvements, all Iowa Northern craft employees will be retained to maintain and expand operations. (Id.) Applicants further assert that the Board’s standard labor protection conditions have been exceeded by employees being offered substantial retention bonuses, in addition to continuation of existing compensation and benefit levels. (Id.) Notwithstanding the above, however, Applicants state that they agree to imposition of labor conditions in accordance with New York Dock Railway—Control—Brooklyn Eastern District Terminal, 360 I.C.C. 60 (1979), aff’d sub nom. New York Dock Railway v. United States, 609 F.2d 83 (2d Cir. 1979). (Appl., Ex. 15 at 31–32.) Related Filings. Two verified notices of exemption were filed in connection with the Proposed Transaction.4 Applicants state that the requests are for mutual trackage rights between Iowa Northern and CCP, and that the proposed trackage rights are intended to give the combined CN-Iowa Northern maximum operational flexibility by allowing those carriers to operate trains 4 Also, on January 30, 2024, Applicants filed a motion for protective order in Docket No. FD 36744, which was granted by decision served on February 8, 2024. VerDate Sep<11>2014 16:39 Feb 28, 2024 Jkt 262001 with their own crews over each other’s track in Iowa. (Appl. 2.) CCP Acquisition of Trackage Rights. In Docket No. FD 36744 5 (Sub-No. 1), CCP seeks overhead and limited local trackage rights from Iowa Northern, pursuant to 49 CFR 1180.2(d)(7), for a rail line extending between IANR milepost 157.5 at Cedar Falls Junction in Cedar Falls and IANR milepost 225.8 at Manly Yard in Manly, a distance of approximately 68.3 miles. CCP states that the proposed trackage rights arrangement would not be consummated until and unless CN acquires control of Iowa Northern pursuant to approval by the Board of the Proposed Transaction. CCP states that employees would be protected by the conditions set forth 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). Iowa Northern Acquisition of Trackage Rights. In Docket No. FD 36744 (Sub-No. 2), Iowa Northern seeks overhead and limited local trackage rights from CCP for: (1) rail extending from CCP milepost 275.8 at Waterloo east to CCP milepost 183.0 at Dubuque, a distance of approximately 92.8 miles; (2) rail extending from CCP milepost 275.8 at Waterloo west to CCP milepost 381.2 at Tara, Iowa, a distance of approximately 105.4 miles; and (3) an approximately 2.7-mile connecting track at Waterloo. In total, the lines consist of approximately 200.9 miles. Iowa Northern states that the proposed trackage rights arrangement would not be consummated until and unless CN acquires control of Iowa Northern pursuant to approval by the Board of the Proposed Transaction. Iowa Northern states that employees would be protected by the conditions set forth in Norfolk & Western Railway—Trackage Rights, 354 I.C.C. 605, as modified in Mendocino Coast Railway—Lease & Operate, 360 I.C.C. 653. Primary Application and Related Filings Accepted. The Board finds that the Proposed Transaction would be a ‘‘minor transaction’’ under 49 CFR 1180.2(c), and the Board accepts the Application for consideration because it is in substantial compliance with the applicable regulations governing minor transactions. See 49 U.S.C. 11321–26; 49 CFR part 1180. Additionally, the Board 5 This decision embraces the following dockets: Chicago, Central & Pacific Railroad—Trackage Rights Exemption—Iowa Northern Railway, Docket No. FD 36744 (Sub-No. 1), and Iowa Northern Railway—Trackage Rights Exemption—Chicago, Central & Pacific Railroad, Docket No. FD 36744 (Sub-No. 2). PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 14921 is accepting for consideration the related verified notices of exemption filed in Docket Nos. FD 36744 (Sub-No. 1) and FD 36744 (Sub-No. 2), which are also in compliance with the applicable regulations. The Board reserves the right to require the filing of supplemental information as necessary to complete the record. When a transaction does not involve the merger or control of two or more Class I railroads, the Board’s treatment differs depending upon whether the transaction would have ‘‘regional or national transportation significance.’’ 49 U.S.C. 11325. Under 49 CFR 1180.2, a transaction that does not involve two or more Class I railroads is to be classified as ‘‘minor’’—and thus not having regional or national transportation significance—if a determination can be made that either: (1) the transaction clearly will not have any anticompetitive effects; or (2) any anticompetitive effects of the transaction will clearly be outweighed by the transaction’s anticipated contribution to the public interest in meeting significant transportation needs. A transaction not involving the control or merger of two or more Class I railroads is to be classified as ‘‘significant’’ if neither of these determinations can be made. The Board finds the Proposed Transaction to be a ‘‘minor transaction’’ because it appears from the face of the Application that the efficiency and other public interest benefits would clearly outweigh whatever anticompetitive effects may exist. As discussed in the Application, Iowa Northern shippers could benefit from operational efficiencies and access to markets through single-line service on the combined CN-Iowa Northern system. (See Appl. 7, 14.) The Proposed Transaction, if approved and implemented, could also provide a firm financial foundation for a combined CNIowa Northern to provide safe, reliable local service to customers in Iowa. (See id. at 7, 15.) In addition, Iowa Northern customers could benefit from access to a broader range of railroad equipment and improved equipment utilization. (See id. at 15.) Further, the Proposed Transaction does not appear to pose any significant anticompetitive effects. The Application indicates that the Proposed Transaction would not result in any two-to-one customer stations (although, as Applicants acknowledge, there are three potential three-to-two customer stations). (Id. at 4, 6, 18; id., App. B, V.S. Hunt 6 & Ex. 6–1.) Additionally, CN has made a gateway commitment to ensure that Iowa Northern customers would E:\FR\FM\29FEN1.SGM 29FEN1 khammond on DSKJM1Z7X2PROD with NOTICES 14922 Federal Register / Vol. 89, No. 41 / Thursday, February 29, 2024 / Notices continue to have access to interline options on commercially reasonable terms. (Id. at 7). See also Canadian Nat’l Ry.—Control—EJ&E W. Co., FD 35087, slip op. at 10 (STB served Nov. 26, 2007) (designating transaction as minor where, among other things, Applicants committed to protecting interline options with other carriers through an open gateway commitment). Specifically, CN represents that it ‘‘will commit to the Board and to Iowa Northern customers that, if the Proposed Transaction is approved, CN would provide Iowa Northern-served customers with commercially reasonable rates and service for interline traffic with rail carriers other than CN,’’ and that such commitment would apply equally both to traffic that originates and terminates on Iowa Northern’s lines. (Appl. 7.) CN has also committed to maintain existing carrier access to locations in current CN and Iowa Northern voluntary reciprocal switch tariffs. (Id.) For these reasons, based on the information provided in the Application, the Board finds the Proposed Transaction to be a minor transaction under 49 CFR 1180.2(c). The Board emphasizes that this is not a final determination and may be rebutted by subsequent filings and evidence submitted into the record for this proceeding. Further, this determination should not be read to mean that the Proposed Transaction is insignificant or of little importance. Indeed, after the record is fully developed, the Board will conduct a careful review before making a final determination as to whether the Proposed Transaction would substantially lessen competition, create a monopoly, or restrain trade, and whether any anticompetitive effects would be outweighed by the public interest. See 49 U.S.C. 11324(d)(1)–(2). The Board may also consider imposing conditions on the Proposed Transaction. Procedural Schedule. The Board has considered Applicants’ motion for a procedural schedule, filed January 30, 2024. Any person who wishes to participate in this proceeding as a Party of Record must file a notice of intent to participate no later than March 15, 2024; all comments, protests, requests for conditions, and any other evidence and argument in opposition to the Application, including filings by DOJ and DOT, must be filed by April 1, 2024; and responses to comments, protests, requests for conditions, and other opposition on the transportation merits of the Transaction must be filed by May 1, 2024. The Board is required to issue ‘‘a final decision by the 45th day after the date on which it concludes VerDate Sep<11>2014 16:39 Feb 28, 2024 Jkt 262001 the evidentiary proceedings,’’ 49 U.S.C. 11325(d)(2), and will do so here.6 The adopted procedural schedule is in the Appendix to this decision. Notice of Intent to Participate. Any person who wishes to participate in this proceeding as a Party of Record must file with the Board, no later than March 15, 2024, 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, and Applicants’ representatives. 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 Party of Record representing a particular entity, the extra name(s) will be added to the service list as a ‘‘Non-Party.’’ 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 on Parties of Record. Each Party of Record will be required to serve upon all other Parties of Record, within 10 days of the service date of this decision, copies of all filings previously submitted by that party (to the extent such filings have not previously been served upon such other parties). Each Party of Record will also be required to file with the Board, within 10 days of the service date of this decision, a certificate of service indicating that the service required by the preceding sentence has been accomplished. Every filing made by a Party of Record after the service date of this decision must have its own certificate of service indicating that all Parties of Record on the service list have been served with a copy of the filing. Members of the United States Congress and Governors 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 Party of Record. Service of Decisions, Orders, and Notices. The Board will serve copies of its decisions, orders, and notices on those persons who are designated on the official service list as a Party of Record or Non-Party. All other interested persons are encouraged to obtain copies 6 This notice will be published in the Federal Register on February 29, 2024, and all subsequent deadlines will be calculated from this date. Deadlines for filings are calculated in accordance with 49 CFR 1104.7(a). PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 of decisions, orders, and notices via the Board’s website at www.stb.gov. Access to Filings. Under the Board’s rules, any document filed with the Board (including applications, pleadings, etc.) shall be promptly furnished to interested persons on request, unless subject to a protective order. 49 CFR 1180.4(a)(3). The Application and other filings in this proceeding will be furnished to interested persons upon request and will also be available on the Board’s website at www.stb.gov.7 In addition, the Application may be obtained from Applicants’ representatives at the addresses indicated above. 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 filed in Docket No. FD 36744 is accepted for consideration and the related verified notices of exemption filed in Docket Nos. FD 36744 (Sub-No. 1) and FD 36744 (SubNo. 2) are accepted for consideration. 2. The parties to this proceeding must comply with the procedural schedule shown in the Appendix to this decision and the procedural requirements described in this decision. 3. This decision is effective on February 29, 2024. Decided: February 26, 2024. By the Board, Board Members Fuchs, Hedlund, Oberman, Primus, and Schultz. Eden Besera, Clearance Clerk. Appendix Procedural Schedule January 30, 2024—Application filed. February 29, 2024—Board notice of acceptance of Application served. March 15, 2024—Notices of intent to participate in this proceeding due. April 1, 2024—All comments, protests, requests for conditions, and any other evidence and argument in opposition to the Application, including filings of DOJ and DOT, due. May 1, 2024—Responses to comments, protests, requests for conditions, and other opposition due. Rebuttal in support of the Application due. June 13, 2024—Record closes. July 26, 2024—Date by which a final decision will be served. 7 Applicants have submitted a public version and highly confidential version of the Application. The public version is available on the Board’s website. The highly confidential version may be obtained from the Applicants’ representatives subject to the provisions of the protective order issued by the Board on February 8, 2024. E:\FR\FM\29FEN1.SGM 29FEN1 Federal Register / Vol. 89, No. 41 / Thursday, February 29, 2024 / Notices August 25, 2024 8—Board’s decision becomes effective. [FR Doc. 2024–04271 Filed 2–28–24; 8:45 am] BILLING CODE 4915–01–P DEPARTMENT OF TRANSPORTATION Federal Highway Administration [Docket No. FHWA–2024–0014] Notice of Intent To Prepare an Environmental Impact Statement for the Cape Cod Bridges Program in Barnstable County, Massachusetts Federal Highway Administration (FHWA), Department of Transportation (DOT). ACTION: Notice of intent to prepare an environmental impact statement. AGENCY: The FHWA in coordination with the Massachusetts Department of Transportation Highway Division (MassDOT) is issuing this Notice of Intent (NOI) to solicit comments and advise the public, agencies, and stakeholders that an Environmental Impact Statement (EIS) will be prepared in accordance with the National Environmental Policy Act (NEPA) to study the potential environmental and related social and economic effects of proposed transportation improvements through the Cape Cod Bridges Program in the town of Bourne, Barnstable County, Massachusetts. The Cape Cod Bridges Program proposes critical transportation infrastructure improvements including replacement of the Bourne and Sagamore highway bridges spanning Cape Cod Canal; reconfiguration of the highway approach networks north and south of Cape Cod Canal to align with the replacement highway bridges; and provision of separated pedestrian and bicycle accommodations along the replacement bridges with connections to the local roadway network. This NOI contains a summary of the information required in the Council on Environmental Quality (CEQ) NEPA regulations. This NOI should be reviewed together with the Supplementary NOI Document, which includes important details about the Cape Cod Bridges Program and complements the information in this NOI. Persons and agencies who may be interested in or affected by the Cape Cod Bridges Program are encouraged to comment on the information in this NOI and the Supplementary NOI Document. All comments received in response to khammond on DSKJM1Z7X2PROD with NOTICES SUMMARY: 8 The final decision will become effective 30 days after it is served. VerDate Sep<11>2014 16:39 Feb 28, 2024 Jkt 262001 this NOI will be considered and any information presented herein may be revised in consideration of the comments. DATES: Publication of this NOI initiates a 30-day public comment period. Comments on the NOI or the Supplementary NOI Document are to be received by FHWA through the methods below by April 1, 2024. ADDRESSES: This NOI and the Supplementary NOI Document are also available in the docket referenced above at www.regulations.gov and on the Program website located at https:// www.mass.gov/cape-bridges. The Supplementary NOI Document will be mailed upon request. Interested parties are invited to submit comments by any of the following methods: Website: For access to the documents, go to the Federal eRulemaking Portal located at www.regulations.gov or the Program website located at https:// www.mass.gov/cape-bridges. Follow the online instructions for submitting comments. Mailing address or for hand delivery or courier: Cassandra Ostrander, Program Development Team Leader, Federal Highway Administration, 220 Binney Street, 9th Floor, Cambridge, Massachusetts 02142. Office Hours: Monday through Friday (except Federal holidays) from 8 a.m. to 4:30 p.m. All submissions should include the agency name and the docket number that appears in the heading of this Notice. All comments received will be posted without change to www.regulations.gov, including any personal information provided. A summary of the comments will be included in the Draft EIS (DEIS). FOR FURTHER INFORMATION CONTACT: FHWA: Cassandra Ostrander, Program Development Team Leader, Federal Highway Administration, 220 Binney Street,9th Floor, Cambridge, Massachusetts 02142; email: cassandra. ostrander@dot.gov; (617) 494–3113. MassDOT: Bryan Cordeiro, Project Manager, Massachusetts Department of Transportation, 10 Park Plaza, Suite 6340, Boston, Massachusetts 02116; email: bryan.j.cordeiro@dot.state.ma.us; (774) 993–9632. SUPPLEMENTARY INFORMATION: The FHWA and MassDOT are committed to public involvement for this study. The FHWA, as the Lead Federal Agency, and MassDOT, as sponsor and joint lead agency, are preparing an EIS for the Cape Cod Bridges Program to identify, analyze, and disclose the potential environmental and related social and economic effects of the Build and No Build alternatives. The EIS will be PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 14923 prepared in accordance with the requirements of the National Environmental Policy Act (NEPA) of 1969, as amended (42 United States Code [U.S.C.] 4321, et seq.); 23 U.S.C. 139; Council on Environmental Quality (CEQ) regulations implementing NEPA (40 Code of Federal Regulations [CFR] 1500–1508); FHWA regulations implementing NEPA (23 CFR 771.101– 771.139); and applicable Federal, State, and local laws and regulations. The Supplementary NOI Document provides additional information on the Purpose and Need for the proposed action, alternatives considered, and expected impacts on the human, natural and built environments. The FHWA requests comments and suggestions on the Purpose and Need, study alternatives and impacts, and the identification of any relevant information, studies or analyses of any kind concerning impacts to the quality of the human and natural environment. All public comments received in response to this NOI will be considered, and changes may be made to the study as appropriate. Program Background The Bourne and Sagamore Bridges, which were simultaneously built between 1933 and 1935, are two high level, fixed span highway bridges spanning Cape Cod Canal in the town of Bourne, Barnstable County, Massachusetts. The New England District of the U.S. Army Corps of Engineers (USACE) owns, operates, and maintains the Bourne and Sagamore Bridges (collectively referred to as the Cape Cod Canal highway bridges) as part of the Cape Cod Canal Federal Navigation Project. The Cape Cod Canal highway bridges provide the only roadway access for the more than 35 million vehicles that cross Cape Cod Canal each year and serve as the gateway to Cape Cod for more than 250,000 year-round residents of the Cape and Islands (Barnstable, Dukes, and Nantucket counties), and millions of annual visitors to the region during the height of the summer tourist season between Memorial Day and Labor Day. As the only roadway access points between mainland Massachusetts and Cape Cod, and by extension to the islands of Martha’s Vineyard and Nantucket via Cape Cod based ferry services, the Cape Cod Canal highway bridges serve as essential routes for general transportation, commerce, tourism, and evacuations in case of emergency. The Cape Cod Canal highway bridges, particularly the Bourne Bridge, also provide the only vehicular access points from the E:\FR\FM\29FEN1.SGM 29FEN1

Agencies

[Federal Register Volume 89, Number 41 (Thursday, February 29, 2024)]
[Notices]
[Pages 14919-14923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-04271]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36744]


Canadian National Railway Company and Grand Trunk Corporation--
Control--Iowa Northern Railway Company

AGENCY: Surface Transportation Board.

ACTION: Decision No. 1 in Docket No. FD 36744; notice of acceptance of 
application; notice of acceptance of related filings for consideration; 
issuance of procedural schedule.

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SUMMARY: The Surface Transportation Board (Board) is accepting for 
consideration an application (Application) filed on January 30, 2024, 
by Canadian National Railway Company (CNR) and Grand Trunk Corporation 
(GTC), together with the Iowa Northern Railway Company (Iowa Northern 
or IANR) (collectively, Applicants). The Application seeks Board 
approval for CNR and GTC to acquire control of Iowa Northern, a Class 
III rail carrier that operates a total of approximately 218 route miles 
in the state of Iowa. This proposal is referred to as the ``Proposed 
Transaction.'' The Board is also accepting for consideration two 
related filings. Those filings are verified notices of exemption 
seeking Board approval of transactions involving mutual trackage rights 
between Iowa Northern and the Chicago, Central & Pacific Railroad 
Company (CCP), an indirect rail carrier subsidiary of GTC (Related 
Transactions).

DATES: The effective date of this decision is February 29, 2024. Any 
person who wishes to participate in this proceeding as a Party of 
Record must file, no later than March 15, 2024, a notice of intent to 
participate. All comments, protests, requests for conditions, and any 
other evidence and argument in opposition to the Application and 
related filings, including filings by the U.S. Department of Justice 
(DOJ) and the U.S. Department of Transportation (DOT), must be filed by 
April 1, 2024. Responses to comments, protests, requests for 
conditions, other opposition, and rebuttal in support of the 
Application or related filings must be filed by May 1, 2024. See 
Appendix (Procedural Schedule). A final decision in this matter will be 
served no later than July 26, 2024. Further procedural orders, if any, 
would be issued by the Board.

ADDRESSES: Any filing submitted in this proceeding should be filed with 
the Board via e-filing on the Board's website. In addition, one copy of 
each filing must be sent (and may be sent by email only if service by 
email 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) CNR's and GTC's representative, Matthew J. 
Warren, Sidley Austin LLP, 1501 K Street NW, Washington, DC 20005; (4) 
Iowa Northern's representative, Kevin M. Sheys, Law Office of Kevin M. 
Sheys LLC, 42 Brush Hill Road, Sherborn, MA 01770; and (5) any other 
person designated as a Party of Record on the service list.

FOR FURTHER INFORMATION CONTACT: Sarah Fancher at (202) 245-0355. If 
you require an accommodation under the Americans with Disabilities Act, 
please call (202) 245-0245.

SUPPLEMENTARY INFORMATION: Applicants seek the Board's prior review and 
authorization pursuant to 49 U.S.C. 11323-25 and 49 CFR part 1180 for 
CNR and GTC to acquire control of Iowa Northern. (Appl. 1.) Applicant 
GTC is a non-carrier holding company through which CNR controls its 
U.S. rail carrier subsidiaries.\1\ (Id. at 1 n.1.) Applicant Iowa 
Northern is a Class III rail carrier wholly owned by Cable & Ives, LLC 
(Cable & Ives). (Id. at 1-2, 11.) On December 6, 2023, GTC signed and 
closed an agreement to acquire 100% of the equity interest of Cable & 
Ives. (Id. at 1-2, 12.) According to Applicants, the shares of Cable & 
Ives were deposited into an independent voting trust pursuant to 49 CFR 
part 1013, pending review of the Proposed Transaction by the Board.\2\ 
(Appl. 1-2, 11-12; see also CN Letter Filing of Voting Trust Agreement, 
FD 36744, Dec. 6, 2023.) Upon Board approval of the Proposed 
Transaction, Iowa Northern would become an indirect rail carrier 
subsidiary of GTC and would be indirectly controlled by CNR. (Appl. 3.)
---------------------------------------------------------------------------

    \1\ CNR and its U.S. rail operating subsidiaries are referred to 
collectively as ``CN.'' (Appl. 1 n.1.)
    \2\ Applicants state that, during the voting trust period, Iowa 
Northern continues to operate independently and is controlled by 
existing Iowa Northern management. (Appl. 12.)

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[[Page 14920]]

    Applicants state that Iowa Northern owns or leases approximately 
175 route miles of rail line in Iowa and operates via trackage rights 
over an additional approximately 43 route miles of track, for a total 
distance of 218 route miles. (Id. at 1 & n.2.) Applicants explain that 
Iowa Northern's system is organized into four subdivisions. (Id., Ex. 
15, Operating Plan 3.) Applicants state that Iowa Northern's main line 
runs 116.7 miles extending northwest from Cedar Rapids through Waterloo 
(Cedar Rapids Subdivision) and Cedar Falls to Manly (Manly 
Subdivision). (Id. at 30; id., Ex. 15, Operating Plan 3, Fig. 2.) 
Applicants further state that Iowa Northern owns the Cedar Rapids and 
Manly Subdivisions and connects those lines via overhead trackage 
rights on approximately 8.7 miles of track owned by CN. (Id., Ex. 15, 
Operating Plan 3, 5, Fig. 4.) Applicants note that Iowa Northern also 
operates over a short portion of a Union Pacific Railroad Company (UP) 
line in Cedar Rapids, which Iowa Northern uses to access UP, CN, and 
the Cedar Rapids and Iowa City Railway (CRANDIC) in Cedar Rapids. (Id., 
Ex. 15, Operating Plan 5, Fig. 5.) Regarding the Waterloo-Oelwein 
subdivision (Oelwein Subdivision), Applicants state that Iowa Northern 
owns the branch line extending from Dewar, near Waterloo, to Oelwein, 
and Iowa Northern accesses that line via an approximately seven-mile 
track known as the ``Waterloo Industrial Lead,'' extending from 
Waterloo to Dewar, and leased from UP. (Id., Ex. 15, Operating Plan 3, 
Fig. 4.) Regarding the Forest City-Belmond subdivision (Garner 
Subdivision), Applicants state that Iowa Northern leases that line from 
North Central Iowa Rail Corridor, L.L.C., and accesses the line via 
approximately 30.2 miles of overhead trackage rights on a Canadian 
Pacific Kansas City Limited (CPKC) line from Nora Springs to Garner. 
(Id., Ex. 15, Operating Plan 3, 5, Fig. 2.)
    According to Applicants, CN's current network spans approximately 
18,600 route miles in 13 U.S. states and eight Canadian provinces. 
(Id., Ex. 15, Operating Plan 8.) With respect to CN's operations in 
Iowa, Applicants state that CCP is the CN rail operating subsidiary 
that primarily owns and operates CN's rail lines in Iowa. (Id.) 
Applicants note that CN currently has 226 craft employees in Iowa and 
operates 574 route miles in the state. (Id.) Specifically, CN operates 
main lines east from Sioux City and Council Bluffs that converge near 
Fort Dodge and run through Waterloo and Dubuque, Iowa, with several 
secondary lines in between. (Id.)
    Financial Arrangements. According to Applicants, no new securities 
would be issued in connection with the Proposed Transaction. Applicants 
state that the only relevant financial arrangement is the payment of 
the purchase price by GTC, as provided in the Unit Purchase Agreement. 
(Id. at 17.)
    Passenger Service Impacts. Applicants anticipate no impact on 
commuter or other passenger service. (Id. at 39.) According to 
Applicants, there is no commuter or other such service on Iowa 
Northern, and the Proposed Transaction is not expected to impact any 
passenger service operating on any CN lines. (Id., Ex. 15 at 29.)
    Discontinuances/Abandonments. Applicants state that there are no 
planned abandonments or discontinuances as a result of the Proposed 
Transaction. (Id. at 39, Ex. 15 at 30.) Applicants note, however, that 
Iowa Northern has been working with the City of Cedar Falls regarding 
removal of Iowa Northern's Cedar Falls Utility Spur, and that CN will 
cooperate with preexisting efforts by the City of Cedar Falls to 
abandon and remove this track after it assumes control of Iowa 
Northern, including obtaining any necessary Board authority. (Id. at 
39, Ex. 15 at 30.)
    Public Interest Considerations.\3\ Applicants assert that the 
Proposed Transaction would not result in the lessening of competition, 
creation of a monopoly, or restraint of trade in freight surface 
transportation. (Appl. 17.) Indeed, Applicants state that the Proposed 
Transaction would have no negative competitive impacts as there would 
be no two-to-one rail customer stations--i.e., no shipper has access 
exclusively to both CN and Iowa Northern. (Id. at 18; id., App. B, V.S. 
Hunt 6 & Ex. 6-1.) Applicants further argue that ``while the Board's 
focus is generally on preserving competition between two rail 
carriers,'' there are only three potential three-to-two customer 
stations. (Id. at 18; id., App. B, V.S. Hunt 6 & Ex. 6-1.) According to 
Applicants, those customer stations currently have access to CN, Iowa 
Northern, and UP. (Id. at 18.) Nevertheless, Applicants assert that CN 
has committed to ensuring continued access to UP. (Id.)
---------------------------------------------------------------------------

    \3\ On January 17, 2024, the Butler County Board of Supervisors 
submitted a statement in support of the Proposed Transaction. 
Additionally, several letters raising concerns about the Proposed 
Transaction have been submitted by individuals. These filings will 
be discussed in more detail in a subsequent decision.
---------------------------------------------------------------------------

    Applicants further note that CN will preserve existing access 
between Iowa Northern and other railroads--Iowa Northern currently 
interchanges with three Class I railroads (including CN) and one short 
line. (Id.) Applicants specifically state that CN has committed to 
providing Iowa Northern-served customers with commercially reasonable 
rates and service for interline traffic with rail carriers other than 
CN. (Id. at 7.) According to Applicants, this commitment encompasses 
interline traffic that is currently interchanged with CPKC or UP at the 
northwestern end of Iowa Northern; traffic that is interchanged with UP 
or CRANDIC in Cedar Rapids; and traffic Iowa Northern moves between UP 
and the UP Industrial Lead at Waterloo. (Id.) Further, Applicants note 
that this commitment would apply equally to traffic that originates and 
traffic that terminates on Iowa Northern's lines. (Id.) Additionally, 
Applicants assert that CN has committed to maintaining existing carrier 
access to locations in current CN and Iowa Northern voluntary 
reciprocal switch tariffs. (Id.)
    Applicants claim that, through the Proposed Transaction, a combined 
CN-Iowa Northern would provide more efficient and economical service, 
providing customers with access to new market opportunities, while 
supporting reliable local service on Iowa Northern's lines. (Id. at 
20.) According to Applicants, customers in a wide range of markets--
including ethanol, fertilizer, and grain--would benefit from 
operational efficiencies and access to markets through new, more 
efficient single-line service on the combined CN-Iowa Northern system. 
(Id. at 8.) Applicants also state that the Proposed Transaction would 
provide a firm financial foundation to enable a combined CN-Iowa 
Northern to continue providing safe, reliable local service to 
customers in Iowa. (Id.) Moreover, Applicants assert that the Proposed 
Transaction would benefit the Iowa economy and local Iowa customers and 
communities by supporting the growth of local businesses via new, 
single-line service between points on Iowa Northern and locations 
throughout North America over CN's 18,600-mile rail network. (Id.)
    Time Schedule for Consummation. As noted above, Applicants state 
that, on December 6, 2023, GTC signed and closed on an agreement to 
acquire from Sabin Group Holdings, L.L.C., and TCFII IANR SPE LLC, 100% 
of the equity interest of Cable & Ives, which wholly owns Iowa 
Northern. (Id. at 1.) Applicants state that the shares of Cable & Ives 
were deposited into an

[[Page 14921]]

independent voting trust pursuant to 49 CFR part 1013, pending review 
of the Proposed Transaction by the Board. (Id. at 2, 11-12; see also CN 
Letter Filing of Voting Trust Agreement, FD 36744, Dec. 6, 2023.) 
According to Applicants, they expect to consummate the Proposed 
Transaction as soon as practicable after the Board's decision approving 
the Application becomes effective. (Appl. 13.)
    Environmental Impacts. Applicants state that, pursuant to 49 CFR 
1105.6(c)(1), no environmental reporting is required because the 
environmental impacts of the Proposed Transaction fall below the 
thresholds established in 49 CFR 1105.7(e)(4) and (5). (Appl. 2, 33.)
    Historic Preservation Impacts. Applicants state that no historic 
report is required under 49 CFR 1105.8, as the Proposed Transaction is 
for the purpose of continued rail operations and Applicants have no 
plans to dispose of or alter properties subject to the Board's 
jurisdiction that are 50 years old or older. (Appl. 2, 38.)
    Labor Impacts. Applicants state that Iowa Northern currently 
employs 83 craft employees. (Id., Ex. 15 at 31.) According to 
Applicants, while some positions may be relocated or modified to permit 
various efficiencies and service improvements, all Iowa Northern craft 
employees will be retained to maintain and expand operations. (Id.) 
Applicants further assert that the Board's standard labor protection 
conditions have been exceeded by employees being offered substantial 
retention bonuses, in addition to continuation of existing compensation 
and benefit levels. (Id.)
    Notwithstanding the above, however, Applicants state that they 
agree to imposition of labor conditions in accordance with New York 
Dock Railway--Control--Brooklyn Eastern District Terminal, 360 I.C.C. 
60 (1979), aff'd sub nom. New York Dock Railway v. United States, 609 
F.2d 83 (2d Cir. 1979). (Appl., Ex. 15 at 31-32.)
    Related Filings. Two verified notices of exemption were filed in 
connection with the Proposed Transaction.\4\ Applicants state that the 
requests are for mutual trackage rights between Iowa Northern and CCP, 
and that the proposed trackage rights are intended to give the combined 
CN-Iowa Northern maximum operational flexibility by allowing those 
carriers to operate trains with their own crews over each other's track 
in Iowa. (Appl. 2.)
---------------------------------------------------------------------------

    \4\ Also, on January 30, 2024, Applicants filed a motion for 
protective order in Docket No. FD 36744, which was granted by 
decision served on February 8, 2024.
---------------------------------------------------------------------------

    CCP Acquisition of Trackage Rights. In Docket No. FD 36744 \5\ 
(Sub-No. 1), CCP seeks overhead and limited local trackage rights from 
Iowa Northern, pursuant to 49 CFR 1180.2(d)(7), for a rail line 
extending between IANR milepost 157.5 at Cedar Falls Junction in Cedar 
Falls and IANR milepost 225.8 at Manly Yard in Manly, a distance of 
approximately 68.3 miles. CCP states that the proposed trackage rights 
arrangement would not be consummated until and unless CN acquires 
control of Iowa Northern pursuant to approval by the Board of the 
Proposed Transaction. CCP states that employees would be protected by 
the conditions set forth 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).
---------------------------------------------------------------------------

    \5\ This decision embraces the following dockets: Chicago, 
Central & Pacific Railroad--Trackage Rights Exemption--Iowa Northern 
Railway, Docket No. FD 36744 (Sub-No. 1), and Iowa Northern 
Railway--Trackage Rights Exemption--Chicago, Central & Pacific 
Railroad, Docket No. FD 36744 (Sub-No. 2).
---------------------------------------------------------------------------

    Iowa Northern Acquisition of Trackage Rights. In Docket No. FD 
36744 (Sub-No. 2), Iowa Northern seeks overhead and limited local 
trackage rights from CCP for: (1) rail extending from CCP milepost 
275.8 at Waterloo east to CCP milepost 183.0 at Dubuque, a distance of 
approximately 92.8 miles; (2) rail extending from CCP milepost 275.8 at 
Waterloo west to CCP milepost 381.2 at Tara, Iowa, a distance of 
approximately 105.4 miles; and (3) an approximately 2.7-mile connecting 
track at Waterloo. In total, the lines consist of approximately 200.9 
miles. Iowa Northern states that the proposed trackage rights 
arrangement would not be consummated until and unless CN acquires 
control of Iowa Northern pursuant to approval by the Board of the 
Proposed Transaction. Iowa Northern states that employees would be 
protected by the conditions set forth in Norfolk & Western Railway--
Trackage Rights, 354 I.C.C. 605, as modified in Mendocino Coast 
Railway--Lease & Operate, 360 I.C.C. 653.
    Primary Application and Related Filings Accepted. The Board finds 
that the Proposed Transaction would be a ``minor transaction'' under 49 
CFR 1180.2(c), and the Board accepts the Application for consideration 
because it is in substantial compliance with the applicable regulations 
governing minor transactions. See 49 U.S.C. 11321-26; 49 CFR part 1180. 
Additionally, the Board is accepting for consideration the related 
verified notices of exemption filed in Docket Nos. FD 36744 (Sub-No. 1) 
and FD 36744 (Sub-No. 2), which are also in compliance with the 
applicable regulations. The Board reserves the right to require the 
filing of supplemental information as necessary to complete the record.
    When a transaction does not involve the merger or control of two or 
more Class I railroads, the Board's treatment differs depending upon 
whether the transaction would have ``regional or national 
transportation significance.'' 49 U.S.C. 11325. Under 49 CFR 1180.2, a 
transaction that does not involve two or more Class I railroads is to 
be classified as ``minor''--and thus not having regional or national 
transportation significance--if a determination can be made that 
either: (1) the transaction clearly will not have any anticompetitive 
effects; or (2) any anticompetitive effects of the transaction will 
clearly be outweighed by the transaction's anticipated contribution to 
the public interest in meeting significant transportation needs. A 
transaction not involving the control or merger of two or more Class I 
railroads is to be classified as ``significant'' if neither of these 
determinations can be made.
    The Board finds the Proposed Transaction to be a ``minor 
transaction'' because it appears from the face of the Application that 
the efficiency and other public interest benefits would clearly 
outweigh whatever anticompetitive effects may exist. As discussed in 
the Application, Iowa Northern shippers could benefit from operational 
efficiencies and access to markets through single-line service on the 
combined CN-Iowa Northern system. (See Appl. 7, 14.) The Proposed 
Transaction, if approved and implemented, could also provide a firm 
financial foundation for a combined CN-Iowa Northern to provide safe, 
reliable local service to customers in Iowa. (See id. at 7, 15.) In 
addition, Iowa Northern customers could benefit from access to a 
broader range of railroad equipment and improved equipment utilization. 
(See id. at 15.)
    Further, the Proposed Transaction does not appear to pose any 
significant anticompetitive effects. The Application indicates that the 
Proposed Transaction would not result in any two-to-one customer 
stations (although, as Applicants acknowledge, there are three 
potential three-to-two customer stations). (Id. at 4, 6, 18; id., App. 
B, V.S. Hunt 6 & Ex. 6-1.) Additionally, CN has made a gateway 
commitment to ensure that Iowa Northern customers would

[[Page 14922]]

continue to have access to interline options on commercially reasonable 
terms. (Id. at 7). See also Canadian Nat'l Ry.--Control--EJ&E W. Co., 
FD 35087, slip op. at 10 (STB served Nov. 26, 2007) (designating 
transaction as minor where, among other things, Applicants committed to 
protecting interline options with other carriers through an open 
gateway commitment). Specifically, CN represents that it ``will commit 
to the Board and to Iowa Northern customers that, if the Proposed 
Transaction is approved, CN would provide Iowa Northern-served 
customers with commercially reasonable rates and service for interline 
traffic with rail carriers other than CN,'' and that such commitment 
would apply equally both to traffic that originates and terminates on 
Iowa Northern's lines. (Appl. 7.) CN has also committed to maintain 
existing carrier access to locations in current CN and Iowa Northern 
voluntary reciprocal switch tariffs. (Id.)
    For these reasons, based on the information provided in the 
Application, the Board finds the Proposed Transaction to be a minor 
transaction under 49 CFR 1180.2(c). The Board emphasizes that this is 
not a final determination and may be rebutted by subsequent filings and 
evidence submitted into the record for this proceeding. Further, this 
determination should not be read to mean that the Proposed Transaction 
is insignificant or of little importance. Indeed, after the record is 
fully developed, the Board will conduct a careful review before making 
a final determination as to whether the Proposed Transaction would 
substantially lessen competition, create a monopoly, or restrain trade, 
and whether any anticompetitive effects would be outweighed by the 
public interest. See 49 U.S.C. 11324(d)(1)-(2). The Board may also 
consider imposing conditions on the Proposed Transaction.
    Procedural Schedule. The Board has considered Applicants' motion 
for a procedural schedule, filed January 30, 2024. Any person who 
wishes to participate in this proceeding as a Party of Record must file 
a notice of intent to participate no later than March 15, 2024; all 
comments, protests, requests for conditions, and any other evidence and 
argument in opposition to the Application, including filings by DOJ and 
DOT, must be filed by April 1, 2024; and responses to comments, 
protests, requests for conditions, and other opposition on the 
transportation merits of the Transaction must be filed by May 1, 2024. 
The Board is required to issue ``a final decision by the 45th day after 
the date on which it concludes the evidentiary proceedings,'' 49 U.S.C. 
11325(d)(2), and will do so here.\6\ The adopted procedural schedule is 
in the Appendix to this decision.
---------------------------------------------------------------------------

    \6\ This notice will be published in the Federal Register on 
February 29, 2024, and all subsequent deadlines will be calculated 
from this date. Deadlines for filings are calculated in accordance 
with 49 CFR 1104.7(a).
---------------------------------------------------------------------------

    Notice of Intent to Participate. Any person who wishes to 
participate in this proceeding as a Party of Record must file with the 
Board, no later than March 15, 2024, 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, and Applicants' representatives.
    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 Party of Record 
representing a particular entity, the extra name(s) will be added to 
the service list as a ``Non-Party.'' 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 on Parties of Record. Each Party of Record will be required 
to serve upon all other Parties of Record, within 10 days of the 
service date of this decision, copies of all filings previously 
submitted by that party (to the extent such filings have not previously 
been served upon such other parties). Each Party of Record will also be 
required to file with the Board, within 10 days of the service date of 
this decision, a certificate of service indicating that the service 
required by the preceding sentence has been accomplished. Every filing 
made by a Party of Record after the service date of this decision must 
have its own certificate of service indicating that all Parties of 
Record on the service list have been served with a copy of the filing. 
Members of the United States Congress and Governors 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 Party of 
Record.
    Service of Decisions, Orders, and Notices. The Board will serve 
copies of its decisions, orders, and notices on those persons who are 
designated on the official service list as a Party of Record or Non-
Party. All other interested persons are encouraged to obtain copies of 
decisions, orders, and notices via the Board's website at www.stb.gov.
    Access to Filings. Under the Board's rules, any document filed with 
the Board (including applications, pleadings, etc.) shall be promptly 
furnished to interested persons on request, unless subject to a 
protective order. 49 CFR 1180.4(a)(3). The Application and other 
filings in this proceeding will be furnished to interested persons upon 
request and will also be available on the Board's website at 
www.stb.gov.\7\ In addition, the Application may be obtained from 
Applicants' representatives at the addresses indicated above.
---------------------------------------------------------------------------

    \7\ Applicants have submitted a public version and highly 
confidential version of the Application. The public version is 
available on the Board's website. The highly confidential version 
may be obtained from the Applicants' representatives subject to the 
provisions of the protective order issued by the Board on February 
8, 2024.
---------------------------------------------------------------------------

    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 filed in Docket No. FD 36744 is accepted for 
consideration and the related verified notices of exemption filed in 
Docket Nos. FD 36744 (Sub-No. 1) and FD 36744 (Sub-No. 2) are accepted 
for consideration.
    2. The parties to this proceeding must comply with the procedural 
schedule shown in the Appendix to this decision and the procedural 
requirements described in this decision.
    3. This decision is effective on February 29, 2024.

    Decided: February 26, 2024.

    By the Board, Board Members Fuchs, Hedlund, Oberman, Primus, and 
Schultz.
Eden Besera,
Clearance Clerk.

Appendix

Procedural Schedule

January 30, 2024--Application filed.
February 29, 2024--Board notice of acceptance of Application served.
March 15, 2024--Notices of intent to participate in this proceeding 
due.
April 1, 2024--All comments, protests, requests for conditions, and 
any other evidence and argument in opposition to the Application, 
including filings of DOJ and DOT, due.
May 1, 2024--Responses to comments, protests, requests for 
conditions, and other opposition due. Rebuttal in support of the 
Application due.
June 13, 2024--Record closes.
July 26, 2024--Date by which a final decision will be served.

[[Page 14923]]

August 25, 2024 \8\--Board's decision becomes effective.
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    \8\ The final decision will become effective 30 days after it is 
served.

[FR Doc. 2024-04271 Filed 2-28-24; 8:45 am]
BILLING CODE 4915-01-P
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