Surface Transportation Board November 2007 – Federal Register Recent Federal Regulation Documents

The Surface Transportation Board (Board) invites public comments on a proposed procedural schedule for this proceeding. On October 5, 2007, Canadian Pacific Railway Corporation (CPRC), Soo Line Holding Company, a Delaware Corporation and indirect subsidiary of CPRC (Soo Holding), Dakota, Minnesota & Eastern Railroad Corporation (DM&E), and Iowa, Chicago & Eastern Railroad Corporation, a wholly-owned rail subsidiary of DM&E (IC&E) (collectively referred to as the ``Applicants'') submitted a filing with the Board seeking approval under 49 U.S.C. 11321-26 of the acquisition of control of DM&E and IC&E by Soo Holding (and, indirectly, by CPRC). In Decision No. 2, served on November 2, 2007, and published in the Federal Register at 72 FR 63232- 36 on November 8, 2007, the Board accepted the October 5 submission as a prefiling notification, thus allowing the Applicants to perfect their application, and provide any supplemental materials or information, on or after December 5, 2007.\1\

The Surface Transportation Board (Board) has reviewed the submission filed October 5, 2007, by Canadian Pacific Railway Corporation (CPRC), Soo Line Holding Company, a Delaware Corporation and indirect subsidiary of CPRC (Soo Holding), Dakota, Minnesota & Eastern Railroad Corporation (DM&E), and Iowa, Chicago & Eastern Railroad Corporation, a wholly owned rail subsidiary of DM&E (IC&E). The submission is styled as an application seeking Board approval under 49 U.S.C. 11321-26 of the acquisition of control of DM&E and IC&E by Soo Holding (and, indirectly, by CPRC). This proposal is referred to as the ``transaction,'' and, for ease, CPRC, Soo Holding, DM&E, and IC&E are referred to collectively as ``Applicants.'' The Board finds that the transaction would be a ``significant transaction'' under 49 CFR 1180.2(b). The Board's rules at 49 CFR 1180.4(b) require that applicants give notice 2 to 4 months prior to the filing of an application in a ``significant'' transaction. Because Applicants did not file the required prefiling notification before their October 5 submission seeking Board approval of this ``significant'' transaction, and did not pay the filing fee for a ``significant'' transaction, their submission cannot be treated as an application at this time. The Board will, however, consider the October 5 submission a prefiling notification and publish notice of it in the Federal Register, which has the effect of permitting Applicants to perfect their application, and provide any supplemental materials or information, on or after December 5, 2007. When filing a prefiling notification, merger applicants in a ``significant'' transaction must propose a procedural schedule for Board review of their proposed transaction. As part of their tender of an application for a ``minor'' transaction, Applicants had proposed a procedural schedule that tracks the statutory deadlines for processing ``minor'' applications. Because the Board finds the proposed transaction to be ``significant,'' Applicants must file with the Board no later than November 13, 2007, a revised proposed procedural schedule that reflects the Board's determination that this is a ``significant'' transaction. The Board will promptly seek public comments on a proposed procedural schedule, with comments due 10 days after publication of the proposed procedural schedule in the Federal Register. Section 1180.4(b) also calls for merger applicants to indicate in their prefiling notification the year to be used for the impact analysis required in ``significant'' transactions. In their October 5 submission, Applicants cite the 2005 Carload Waybill Sample in their market analysis. The Board therefore designates 2005 as the year to be used for impact analysis in the application. In addition, Applicants must submit the difference between the filing fee for a ``minor'' transaction (which Applicants already have paid) and the fee for a ``significant'' transaction when they perfect their application on or after December 5, 2007.

The Surface Transportation Board is requesting comments on proposed rules to require that parties seeking to exempt, or to invoke class exemptions covering, transactions involving the sale or lease of railroad lines, identify provisions in their agreements that restrict the ability of the purchaser or tenant railroad to interchange traffic with rail carriers other than the seller or landlord railroad (interchange commitments). The proposed rules also provide a procedure whereby shippers or other affected parties may obtain access to such provisions. The Board is taking this action to facilitate the case- specific review of the reasonableness of interchange commitments and to facilitate the Board's monitoring of their usage.