81 FR 22361 - KCVN, LLC and Colorado Pacific Railroad, LLC-Feeder Line Application-Line of V and S Railway, LLC, Located in Crowley, Pueblo, Otero, and Kiowa Counties, Colorado
SURFACE TRANSPORTATION BOARD Federal Register Volume 81, Issue 73 (April 15, 2016)
Federal Register Volume 81, Issue 73 (April 15, 2016)
| Page Range | 22361-22363 | |
| FR Document | 2016-08785 |
[Federal Register Volume 81, Number 73 (Friday, April 15, 2016)] [Notices] [Pages 22361-22363] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-08785] ======================================================================= ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD [Docket No. FD 36005] KCVN, LLC and Colorado Pacific Railroad, LLC--Feeder Line Application--Line of V and S Railway, LLC, Located in Crowley, Pueblo, Otero, and Kiowa Counties, Colorado On March 18, 2016, KCVN, LLC (KCVN) and its wholly owned subsidiary, Colorado Pacific Railroad, LLC (Colorado Pacific) (collectively applicants) jointly filed an application under the feeder line provision at 49 U.S.C. 10907 to acquire a 121.9-mile line of railroad owned by V and S Railway, LLC (V&S) in southeast Colorado. The line, known as the Towner Line, extends between milepost 747.5 near Towner and milepost 869.4 near NA Junction in Pueblo, Crowley, Kiowa, and Otero Counties, Colo. As discussed below, the application is substantially complete and will be accepted. However, the applicants should provide certain supplemental material described below by April 29, 2016. This decision also establishes a procedural schedule. Background The Towner Line has been the subject of two other Board proceedings during the past two years. In Docket No. NOR 42140, KCVN, the Colorado Wheat Administrative Committee, the Colorado Association of Wheat Growers, and the Colorado Wheat Research Foundation (collectively, the Colorado Interests) filed a complaint on October 28, 2014, alleging that V&S violated 49 U.S.C. 11101 and 10903 by removing certain track and related assets from a segment of the Towner Line (the Western Segment) without first seeking abandonment authority.\1\ On May 7, 2015, the Board partially granted the Colorado Interests' concurrently filed motion for preliminary injunction, and barred V&S from removing and dismantling track and related assets from the Western Segment pending the Board's ruling on the complaint. Thereafter the parties moved to hold the complaint case in abeyance pending V&S's decision to seek abandonment authority for the Towner Line. The Board granted this request in a decision served on July 17, 2015, and the complaint case remains in abeyance. --------------------------------------------------------------------------- \1\ The Western Segment extends between milepost 808.3 near Haswell, Colo., and milepost 868.5, which is approximately 0.9 miles short of the Towner Line's western terminus at milepost 869.4. --------------------------------------------------------------------------- On August 3, 2015, V&S filed a verified notice of exemption in Docket No. AB 603 (Sub-No. 4X) to abandon the Towner Line, as it had agreed to do in Docket No. NOR 42140. The Board served and published notice of the exemption in the Federal Register, and KCVN and Colorado Pacific sought information from V&S to allow them to file an offer of financial assistance under 49 U.S.C. 10904 to purchase the line. V&S provided the information, but that information suggested that the Towner Line passes through a county and zip code not included in V&S's verified notice. The Board therefore directed V&S to supplement its verified notice if necessary. Rather than filing a supplement, V&S attempted to amend the notice to seek authority to only discontinue operations over the Towner Line rather than abandon it. KCVN opposed that amendment. In a decision served on January 15, 2016, the Board [[Page 22362]] rejected V&S's November 30 amendment. The Board found that, if V&S wished to pursue discontinuance authority for the Towner Line, it must either file a petition for exemption under 49 U.S.C 10502 or a formal application under 49 U.S.C. 10903. The Board further stated that V&S could supplement its original notice of exemption if it instead decided to continue seeking abandonment authority. On January 27, 2016, V&S gave notice of its desire to withdraw its notice of exemption seeking abandonment authority.\2\ --------------------------------------------------------------------------- \2\ Withdrawal of the notice of abandonment exemption will be addressed in a separate decision. --------------------------------------------------------------------------- On March 18, 2016, KCVN and Colorado Pacific initiated this proceeding by filing a feeder line application under 49 U.S.C. 10907 to acquire the Towner Line and 12 miles of related track and facilities. Under section 10907(b)(1), the Board is authorized to require the sale of a rail line to a financially responsible person if the public convenience and necessity require or permit the sale.\3\ The applicants claim that the proposed sale is required under the public convenience and necessity criterion and that Colorado Pacific is a financially responsible person willing to pay not less than the constitutional minimum value of the line. The applicants allege that V&S engaged in a systemic plan to drive traffic off the Towner Line with the ultimate aim of abandoning it and selling the line's rail assets. The applicants assert that V&S raised rates to a prohibitive level around 2011 and engaged in other behavior forcing traffic off the line rather than meeting its common carrier obligation and maintaining the line. The applicants argue that the Board has found previously that this type of behavior can lead to a forced sale under the feeder line statute. See Keokuk Junction Ry.--Feeder Line Acquis.--Line of Toledo Peoria & W. Ry. Between La Harpe & Hollis, Ill., 7 S.T.B. 893 (2004). --------------------------------------------------------------------------- \3\ The Board also is to require a sale to a financially responsible person if the line is currently in category 1 or 2 of the owning railroad's system diagram map and the owning railroad has not filed an application to abandon the line. See 49 U.S.C. 10907(b)(1)(A)(ii); 49 CFR 1151.1. The applicants argue that the Towner Line also satisfies this criterion. --------------------------------------------------------------------------- According to the applicants, Colorado Pacific seeks to acquire the Towner Line and its related track and facilities and lease them to a connecting carrier, Kansas & Oklahoma Railroad (K&O), to operate. Although the parties are still in negotiations, the applicants provide a supporting verified statement from a representative of K&O's owner. The applicants also include verified statements supporting the application from a local farmer and representatives of Bartlett Grain Co., LP, Tallman Grain Co., Inc., and Thunderbird L&L, Inc. The applicants state that Colorado Pacific offers to buy the Towner Line for its net liquidation value (NLV), which the applicants estimate to be $2,594,551, rather than the line's going concern value (GCV), which they estimate to be $0 given that V&S provides no service. The applicants assert that rehabilitating the Towner Line would cost an additional $3,500,000, bringing the total cost to restore service to $6 million. The applicants claim that Colorado Pacific can afford these costs and that it is financially responsible. Specifically, they note that KCVN would fund Colorado Pacific's acquisition and other expenses with cash. As support, they provide a KCVN account statement showing assets of approximately $6.5 million. The applicants also note that KCVN owns 58,000 acres of farmland primarily dedicated to dryland wheat within 25 miles of the Towner Line, which collectively are valued at approximately $50 million (Application 8), and that KCVN has wealthy principals and would make funds available to meet additional acquisition, rehabilitation, maintenance, and operations costs if necessary (Application, Exhibit A at 5). Discussion and Conclusions Under 49 CFR 1151.2(b), the Board, through the Director of the Office of Proceedings, must accept a complete feeder line application, or reject one that is incomplete, no later than 30 days after the application is filed. An application is complete if it has been properly served \4\ and contains substantially all the information required by Sec. 1151.3, except as modified by advance waiver. 49 CFR 1151.2(b)(1). Notice of an acceptance must be published in the Federal Register and provide a procedural schedule for the proceeding. Id. --------------------------------------------------------------------------- \4\ As originally filed, the application failed to indicate service on the Board of County Commissioners of Otero County, Colo., but that omission was remedied by a certificate of service filed on March 28, 2016. --------------------------------------------------------------------------- The Board has determined that the applicants have provide substantially all the information required by Sec. 1151.3 and therefore accepts the feeder line application. The applicants should provide some additional information, described below, for the Board's consideration as the feeder line case proceeds.\5\ See Ore. Int'l Port of Coos Bay--Feeder Line Application--Coos Bay Line of Cent. Ore. & Pac. R.R., FD 35160 (STB served Aug. 1, 2008) (accepting the feeder line application, but encouraging the applicant to provide supplemental material). --------------------------------------------------------------------------- \5\ KCVN and Colorado Pacific request that the Board accept their application for filing subject to any environmental reporting that might be required under 49 CFR 1105.7. The Board will grant this request. The Board's Office of Environmental Analysis will determine what, if any, environmental review is required in this case and coordinate with the applicants. A historic report is not required here because the proposal clearly falls within the exception at 49 CFR 1105.8(b)(1). --------------------------------------------------------------------------- Financial Responsibility (1151.3(a)(3)). An application must include information sufficient to demonstrate that it is a financially responsible person, able to pay the higher of the NLV or GCV of the line and to cover expenses associated with providing service over the line for at least the first three years after the line is acquired. Based on the information in the application, Colorado Pacific appears to have access to considerable funds to pay the expenses of acquiring and rehabilitating the Towner Line.\6\ Colorado Pacific states that it does not anticipate incurring operating costs because they would be borne by K&O, the anticipated operator. Nonetheless, the applicants should provide financial statements showing a breakdown of three years of K&O service costs, including maintenance costs, to fully demonstrate that Colorado Pacific or KCVN could cover any revenue shortfall during the first three years. --------------------------------------------------------------------------- \6\ The applicants state that no financial statements are available because Colorado Pacific is a new company. --------------------------------------------------------------------------- Operating Plan (1151.3(a)(7)). Although the applicants and K&O have provided basic information about the common carrier freight operations K&O would perform, they indicate that the specifics of an operating plan are still being developed. The applicants should provide the Board with more detail, including an estimate of the average number of trains anticipated to be operated over the line per day. Liability Insurance (1151.3(a)(8)). Colorado Pacific and K&O anticipate that the lease and operating agreement they are negotiating would provide that K&O secure and maintain at all times an insurance policy from a reputable insurance company that provides for commercial liability coverage in an amount not less than $25 million. In addition to the information provided in the application, the applicants should also submit to the Board a certificate of K&O's existing insurance coverage over its current system. Procedural Schedule The procedural schedule is as follows: [[Page 22363]] Any supplement by KCVN and Colorado Pacific to their application is due by April 29, 2016. Competing applications by other parties seeking to acquire all or any portion of the Towner Line are due by May 16, 2016. See 49 CFR 1151.2(c)(1). Verified statements and comments addressing both the initial and competing applications must be filed by June 14, 2016. See 49 CFR 1151.2(e). Verified replies by applicants and other interested parties must be filed by July 5, 2016. See 49 CFR 1151.2(f). It is ordered: 1. KCVN's and Colorado Pacific's feeder line application is accepted and notice will be published in the Federal Register. 2. The above schedule will govern this proceeding. 3. This decision is effective on its service date. Decided: April 12, 2016. By the Board, Rachel D. Campbell, Director, Office of Proceedings. Kenyatta Clay, Clearance Clerk. [FR Doc. 2016-08785 Filed 4-14-16; 8:45 am] BILLING CODE 4915-01-P
![Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Notices 22361
DEPARTMENT OF STATE October 19, 1965 (79 Stat. 985; 22 U.S.C. near NA Junction in Pueblo, Crowley,
2459), E.O. 12047 of March 27, 1978, the Kiowa, and Otero Counties, Colo. As
[Public Notice: 9518]
Foreign Affairs Reform and discussed below, the application is
Culturally Significant Objects Imported Restructuring Act of 1998 (112 Stat. substantially complete and will be
for Exhibition Determinations: 2681, et seq.; 22 U.S.C. 6501 note, et accepted. However, the applicants
‘‘Slavery and Freedom’’ Exhibition seq.), Delegation of Authority No. 234 of should provide certain supplemental
October 1, 1999, Delegation of Authority material described below by April 29,
SUMMARY: Notice is hereby given of the No. 236–3 of August 28, 2000 (and, as 2016. This decision also establishes a
following determinations: Pursuant to appropriate, Delegation of Authority No. procedural schedule.
the authority vested in me by the Act of 257–1 of December 11, 2015), I hereby
October 19, 1965 (79 Stat. 985; 22 U.S.C. determine that the objects to be Background
2459), E. O. 12047 of March 27, 1978, included in the exhibition ‘‘Dadaglobe The Towner Line has been the subject
the Foreign Affairs Reform and Reconstructed,’’ imported from abroad of two other Board proceedings during
Restructuring Act of 1998 (112 Stat. for temporary exhibition within the the past two years. In Docket No. NOR
2681, et seq.; 22 U.S.C. 6501 note, et United States, are of cultural 42140, KCVN, the Colorado Wheat
seq.), Delegation of Authority No. 234 of significance. The objects are imported Administrative Committee, the Colorado
October 1, 1999, Delegation of Authority pursuant to loan agreements with the Association of Wheat Growers, and the
No. 236–3 of August 28, 2000 (and, as foreign owners or custodians. I also Colorado Wheat Research Foundation
appropriate, Delegation of Authority No. determine that the exhibition or display (collectively, the Colorado Interests)
257–1 of December 11, 2015), I hereby of the exhibit objects at The Museum of filed a complaint on October 28, 2014,
determine that the objects to be Modern Art, New York, New York, from alleging that V&S violated 49 U.S.C.
included in the exhibition ‘‘Slavery and on or about June 12, 2016, until on or 11101 and 10903 by removing certain
Freedom,’’ imported from abroad for about September 18, 2016, and at track and related assets from a segment
temporary exhibition within the United possible additional exhibitions or of the Towner Line (the Western
States, are of cultural significance. The venues yet to be determined, is in the Segment) without first seeking
objects are imported pursuant to a loan national interest. I have ordered that abandonment authority.1 On May 7,
agreement with the foreign owner or Public Notice of these Determinations 2015, the Board partially granted the
custodian. I also determine that the be published in the Federal Register. Colorado Interests’ concurrently filed
exhibition or display of the exhibit FOR FURTHER INFORMATION CONTACT: For motion for preliminary injunction, and
objects at the Smithsonian National further information, including a list of barred V&S from removing and
Museum of African American History the imported objects, contact the Office dismantling track and related assets
and Culture, Washington, District of of Public Diplomacy and Public Affairs from the Western Segment pending the
Columbia, from on or about September in the Office of the Legal Adviser, U.S. Board’s ruling on the complaint.
24, 2016, until on or about July 1, 2026, Department of State (telephone: 202– Thereafter the parties moved to hold the
and at possible additional exhibitions or 632–6471; email: section2459@ complaint case in abeyance pending
venues yet to be determined, is in the state.gov). The mailing address is U.S. V&S’s decision to seek abandonment
national interest. I have ordered that Department of State, L/PD, SA–5, Suite authority for the Towner Line. The
Public Notice of these Determinations 5H03, Washington, DC 20522–0505. Board granted this request in a decision
be published in the Federal Register. Dated: April 11, 2016. served on July 17, 2015, and the
FOR FURTHER INFORMATION CONTACT: For Mark Taplin,
complaint case remains in abeyance.
further information, including a list of On August 3, 2015, V&S filed a
Deputy Assistant Secretary for Policy, Bureau
the imported objects, contact the Office of Educational and Cultural Affairs,
verified notice of exemption in Docket
of Public Diplomacy and Public Affairs Department of State. No. AB 603 (Sub-No. 4X) to abandon the
in the Office of the Legal Adviser, U.S. [FR Doc. 2016–08771 Filed 4–14–16; 8:45 am]
Towner Line, as it had agreed to do in
Department of State (telephone: 202– Docket No. NOR 42140. The Board
BILLING CODE 4710–05–P
632–6471; email: section2459@ served and published notice of the
state.gov). The mailing address is U.S. exemption in the Federal Register, and
Department of State, L/PD, SA–5, Suite KCVN and Colorado Pacific sought
SURFACE TRANSPORTATION BOARD information from V&S to allow them to
5H03, Washington, DC 20522–0505.
[Docket No. FD 36005] file an offer of financial assistance under
Dated: April 11, 2016.
49 U.S.C. 10904 to purchase the line.
Mark Taplin, KCVN, LLC and Colorado Pacific V&S provided the information, but that
Deputy Assistant Secretary for Policy, Bureau Railroad, LLC—Feeder Line information suggested that the Towner
of Educational and Cultural Affairs, Application—Line of V and S Railway, Line passes through a county and zip
Department of State. LLC, Located in Crowley, Pueblo, code not included in V&S’s verified
[FR Doc. 2016–08769 Filed 4–14–16; 8:45 am] Otero, and Kiowa Counties, Colorado notice. The Board therefore directed
BILLING CODE 4710–05–P
On March 18, 2016, KCVN, LLC V&S to supplement its verified notice if
(KCVN) and its wholly owned necessary. Rather than filing a
subsidiary, Colorado Pacific Railroad, supplement, V&S attempted to amend
DEPARTMENT OF STATE
LLC (Colorado Pacific) (collectively the notice to seek authority to only
asabaliauskas on DSK3SPTVN1PROD with NOTICES
[Public Notice: 9517] applicants) jointly filed an application discontinue operations over the Towner
under the feeder line provision at 49 Line rather than abandon it. KCVN
Culturally Significant Objects Imported opposed that amendment. In a decision
for Exhibition Determinations: U.S.C. 10907 to acquire a 121.9-mile
line of railroad owned by V and S served on January 15, 2016, the Board
‘‘Dadaglobe Reconstructed’’ Exhibition
Railway, LLC (V&S) in southeast 1 The Western Segment extends between milepost
SUMMARY: Notice is hereby given of the Colorado. The line, known as the 808.3 near Haswell, Colo., and milepost 868.5,
following determinations: Pursuant to Towner Line, extends between milepost which is approximately 0.9 miles short of the
the authority vested in me by the Act of 747.5 near Towner and milepost 869.4 Towner Line’s western terminus at milepost 869.4.
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![Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Notices 22363
Any supplement by KCVN and 1. Welcome and Introductions entitlements available through July 15,
Colorado Pacific to their application is 2. Update on the Bellefonte Nuclear 2016. If congressional action is taken on
due by April 29, 2016. Plant Site future extensions which provide for
Competing applications by other 3. Summary of Public Comments additional current year and protected
parties seeking to acquire all or any received entitlements (the remaining 21 percent),
portion of the Towner Line are due by 4. Council discussion the FAA will then work with airport
May 16, 2016. See 49 CFR 1151.2(c)(1). The webinar is open to the public, sponsors to adjust accordingly. This
Verified statements and comments through registration by phone or email notification requirement does not apply
addressing both the initial and (call Beth Keel, (865) 632–6113, or email to non-primary airports covered by the
competing applications must be filed by bakeel@tva.gov). No oral comments block-grant program.
June 14, 2016. See 49 CFR 1151.2(e). from the public will be accepted during FOR FURTHER INFORMATION CONTACT: Mr.
Verified replies by applicants and the webinar session. The public may Frank J. San Martin, Manager, Airports
other interested parties must be filed by provide written comments to the RERC Financial Assistance Division, APP–
July 5, 2016. See 49 CFR 1151.2(f). at any time through links on TVA’s Web 500, on (202) 267–3831.
It is ordered: site at www.tva.com/rerc or by mailing SUPPLEMENTARY INFORMATION: Title 49 of
1. KCVN’s and Colorado Pacific’s written comments to the Regional the United States Code, section 47105(f),
feeder line application is accepted and Energy Resource Council, Tennessee provides that the sponsor of each airport
notice will be published in the Federal Valley Authority, 400 West Summit Hill to which funds are apportioned shall
Register. Drive, WT–11 B, Knoxville, Tennessee notify the Secretary by such time and in
2. The above schedule will govern 37902. a form as prescribed by the Secretary, of
this proceeding.
Dated: April 8, 2016. the airport sponsor’s intent to apply for
3. This decision is effective on its
Joseph J. Hoagland, its apportioned funds, also called
service date.
Vice President, Stakeholder Relations, entitlement funds. Therefore, the FAA is
Decided: April 12, 2016. hereby notifying such airport sponsors
Tennessee Valley Authority.
By the Board, Rachel D. Campbell, of the steps required to ensure that the
[FR Doc. 2016–08722 Filed 4–14–16; 8:45 am]
Director, Office of Proceedings. FAA has sufficient time to carry-over
BILLING CODE 8120–08–P
Kenyatta Clay, and convert remaining entitlement
Clearance Clerk. funds, due to processes required under
[FR Doc. 2016–08785 Filed 4–14–16; 8:45 am] federal laws. This notice applies only to
DEPARTMENT OF TRANSPORTATION those airports that have had entitlement
BILLING CODE 4915–01–P
Federal Aviation Administration funds apportioned to them, except those
nonprimary airports located in
[Docket No: FAA–2011–0786] designated block-grant States. Airport
TENNESSEE VALLEY AUTHORITY
sponsors intending to apply for any of
Deadline for Notification of Intent To their available entitlement funds,
Meeting of the Regional Energy
Use the Airport Improvement Program including those unused from prior
Resource Council
(AIP) Primary, Cargo, and Nonprimary years, shall make their intent known by
AGENCY: Tennessee Valley Authority Entitlement Funds Available to Date for 12:00 p.m. prevailing local time on
(TVA). Fiscal Year 2016 Monday, May 2, 2016, consistent with
ACTION: Notice of meeting. prior practice. A written indication
AGENCY: Federal Aviation
SUMMARY: The TVA Regional Energy Administration, DOT. must be provided to the designated
Resource Council (RERC) will hold a ACTION: Notice. Airports District Office (or Regional
webinar meeting on Monday, May 2, Office in regions without Airports
2016, to discuss TVA’s potential sale of SUMMARY: The Federal Aviation District Offices) stating their intent to
the Bellefonte Nuclear Site. Administration (FAA) announces May submit a grant application no later than
2, 2016, as the deadline for each airport close of business Friday, June 17, 2016
DATES: The webinar meeting will be
sponsor to notify the FAA whether or and to use their fiscal year 2016
held on Monday, May 2, 2016 from entitlement funds available under Title
not it will use its fiscal year 2016
10:30 a.m. to 12:00 p.m. EDT. 49 of the United States Code, section
entitlement funds available under
ADDRESSES: The meeting will be Section 47114 of Title 49, United States 47114. This notice must address all
conducted by webinar only. To request Code, to accomplish Airport entitlement funds available to date for
accommodation for a disability, please Improvement Program (AIP) eligible fiscal year 2016 including those
contact Beth Keel (contact information projects that the airport sponsor entitlement funds not obligated from
below) at least a week in advance of the previously identified through the prior years. By Friday, June 17, 2016,
webinar. Airports Capital Improvement Plan airport sponsors that have not yet
FOR FURTHER INFORMATION CONTACT: Beth (ACIP) process during the preceding submitted a final application to the
Keel, 400 West Summit Hill Drive, WT– year. FAA, must notify the FAA of any issues
11 B, Knoxville, Tennessee 37902, (865) The airport sponsor’s notification meeting the final application deadline
632–6113. must address all entitlement funds of Friday, July 1, 2016. Absent
SUPPLEMENTARY INFORMATION: The RERC available to date for fiscal year 2016, as notification from the airport sponsor by
asabaliauskas on DSK3SPTVN1PROD with NOTICES
was established to advise TVA on its well as any entitlement funds not the May 2 deadline and/or subsequent
energy resource activities and the obligated from prior years. After Friday, notification by the June 17 deadline of
priorities among competing objectives July 1, 2016, the FAA will carry-over the any issues meeting the application
and values. Notice of this meeting is remainder of currently available deadline, the FAA will proceed after
given under the Federal Advisory entitlement funds, and these funds will Friday, July 1, 2016 to take action to
Committee Act (FACA), 5 U.S.C. App. 2. not be available again until at least the carry-over the remainder of available
The meeting agenda includes the beginning of fiscal year 2017. Currently, entitlement funds without further
following: the AIP has 79 percent of the notice. These funds will not be available
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Document Created: 2016-04-15 00:54:51
Document Modified: 2016-04-15 00:54:51
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 22361 |
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