83 FR 44688 - Clackamas Valley Railway, LLC-Lease and Operation Exemption With Interchange Commitment-Union Pacific Railroad Company

SURFACE TRANSPORTATION BOARD

Federal Register Volume 83, Issue 170 (August 31, 2018)

[Federal Register Volume 83, Number 170 (Friday, August 31, 2018)]
[Notices]
[Pages 44688-44689]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-19080]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36211]


Clackamas Valley Railway, LLC--Lease and Operation Exemption With 
Interchange Commitment--Union Pacific Railroad Company

    Clackamas Valley Railway, LLC (CVR), a noncarrier,\1\ has filed a 
verified notice of exemption under 49 CFR 1150.31 to lease from Union 
Pacific Railroad Company (UP) and to operate \2\ approximately 1.6 
miles of railroad line in Clackamas, Or. (the Line). The Line extends 
east from a connection with UP's Portland-Eugene, Or., main line 
immediately south of UP milepost 760.0, running parallel to SE Jennifer 
Street (to the south), continuing southeast across SE Jennifer Street 
and turning south to termination at Carpenter Drive. According to CVR, 
there are no mileposts associated with the Line.
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    \1\ CVR states that the transaction described here is its 
initial railroad acquisition.
    \2\ A draft copy of the operating agreement was submitted under 
seal with the notice of exemption.
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    This transaction is related to a concurrently filed verified notice 
of exemption in Progressive Rail Inc.--Continuance in Control 
Exemption--Clackamas Valley Railway, LLC, Docket No. FD 36212, in which 
Progressive Rail Incorporated seeks Board approval to continue in 
control of CVR upon CVR's becoming a Class III rail carrier.
    CVR states that the Line is currently operated by UP as excepted 
track under 49 U.S.C. 10906. However, because it will operate the Line 
as its entire line of railroad, CVR asserts that it will become a rail 
carrier upon consummation of the proposed transaction. See Effingham 
R.R.--Pet. for Declaratory Order--Constr. at Effingham, Ill., 2 S.T.B. 
606, 609-10 (1997), aff'd sub nom. United Transp. Union--Ill. 
Legislative Bd. v. STB, 183 F.3d 606 (7th Cir. 1999).
    CVR certifies that its projected annual revenues from this 
transaction will not result in the creation of a Class I or Class II 
rail carrier and will not exceed $5 million. As required under 49 CFR 
1150.33(h)(1), CVR has disclosed in its verified notice that the lease 
agreement contains an interchange commitment that prohibits CVR from 
entering into any other agreement for the movement of CVR traffic 
without the prior consent of UP. CVR has provided additional 
information regarding the interchange commitment as required by 49 CFR 
1150.33(h).
    Although CVR states in its verified notice that the transaction is 
proposed to be consummated on or about August

[[Page 44689]]

31, 2018, the earliest this transaction may be consummated is September 
15, 2018 (30 days after the verified notice was filed).
    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 to stay must be filed no later than September 7, 
2018 (at least seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 36211, must be filed with the Surface Transportation Board, 395 E 
Street SW, Washington, DC 20423-0001. In addition, a copy of each 
pleading must be served on CVR's representative, Bradon J. Smith, 
Fletcher & Sippel LLC, 29 North Wacker Drive, Suite 800, Chicago, IL 
60606-3208.
    According to CVR, this action is categorically excluded from 
environmental review under 49 CFR 1105.6(c) and from historic reporting 
under 49 CFR 1105.8(b).
    Board decisions and notices are available on our website at 
www.stb.gov.

    Decided: August 28, 2018.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2018-19080 Filed 8-30-18; 8:45 am]
 BILLING CODE 4915-01-P