83 FR 23324 - Chicago Junction Railway Company, LLC-Change in Operators Exemption Including Interchange Commitment-Chicago Terminal Railroad Company

SURFACE TRANSPORTATION BOARD

Federal Register Volume 83, Issue 97 (May 18, 2018)

[Federal Register Volume 83, Number 97 (Friday, May 18, 2018)]
[Notices]
[Page 23324]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-10665]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36193]


Chicago Junction Railway Company, LLC--Change in Operators 
Exemption Including Interchange Commitment--Chicago Terminal Railroad 
Company

    Chicago Junction Railway Company, LLC (CJR), a noncarrier, has 
filed a verified notice of exemption under 49 CFR 1150.31 to assume 
operations over approximately 25 miles of rail line owned by Union 
Pacific Railroad Company (UP) located in the Centex Industrial Park and 
11,500 feet of track in the adjacent Elk Grove Yard in Elk Grove 
Village, Ill. (the Lines). The Lines originate at the west end of UP's 
approximate 800-foot Elk Grove Lead track extending from its Milwaukee 
Subdivision at milepost 7.8.
    The verified notice indicates that the Lines are currently operated 
by Chicago Terminal Railroad Company (CTR) and that, as a result of 
this transaction, CJR will become a Class III carrier and replace CTR 
as the Lines' operator. CJR states that CTR's current operations on the 
Lines are governed by an agreement between UP and CTR that will be 
terminated as of May 31, 2018, and that CTR is ceasing its operation of 
the Lines pursuant to that termination and does not object to the 
proposed change in operators. CJR further states that it and UP have 
agreed to enter into a lease agreement providing for CJR's lease and 
operation of, and provision of rail common carrier service on, the 
Lines. CJR states that it is a newly formed, noncarrier subsidiary of 
Progressive Rail Incorporated (PGR). According to CJR, PGR is a Class 
III rail carrier that controls five other Class III rail carriers that 
operate in the Upper Midwest and North Carolina.
    This transaction is related to a concurrently filed verified notice 
of exemption in Progressive Rail Inc.--Continuance in Control 
Exemption--Chicago Junction Railway, Docket No. FD 36194, in which PGR 
seeks to continue in control of CJR upon CJR's becoming a Class III 
rail carrier.
    As required by 49 CFR 1150.33(h), CJR has disclosed in its verified 
notice that the lease agreement between CJR and UP contains an 
interchange commitment with respect to the lease payments by CJR to UP 
and that the agreement affects an interchange point with the Soo Line 
Railroad Company, d/b/a Canadian Pacific Railway, at Elk Grove 
Village.\1\ CJR has provided additional information regarding the 
interchange commitment as required by section 1150.33(h).
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    \1\ On May 9, 2018, CJR supplemented its verified notice of 
exemption to clarify the interchange point.
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    CJR certifies that its projected annual revenues as a result of 
this transaction will not exceed those that would result in the 
creation of a Class II or Class I rail carrier and further certifies 
that its projected annual revenues will not exceed $5 million. Under 49 
CFR 1150.32(b), a change in operator requires that notice be given to 
shippers. CJR certifies that notice of the change in operator was 
served on the shippers on the Lines.
    The earliest this transaction may be consummated is June 1, 2018, 
the effective date of the exemption.
    If the verified notice contains false or misleading information, 
the exemption is void ab initio. Petitions to revoke the exemption 
under 49 U.S.C. 10502(d) may be filed at any time. The filing of a 
petition to revoke will not automatically stay the effectiveness of the 
exemption. Petitions for stay must be filed no later than May 25, 2018 
(at least seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 36193, must be filed with the Surface Transportation Board, 395 E 
Street SW, Washington, DC 20423-0001. In addition, one copy of each 
pleading must be served on Audrey L. Brodrick, Fletcher & Sippel LLC, 
29 North Wacker Drive, Suite 920, Chicago, IL 60606-2832.
    According to CJR, this action is exempt from environmental 
reporting requirements under 49 CFR 1105.6(c).
    Board decisions and notices are available on our website at 
WWW.STB.GOV.

    Decided: May 15, 2018.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2018-10665 Filed 5-17-18; 8:45 am]
 BILLING CODE 4915-01-P