20090922Vol I Telephonic Hearing.pdf

L
e BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF PALOUSE RIVER & COULEE CITY
RAILROAD FOR APPROVAL TO
ABANDON A THREE-MILE SECTION OF
ITS RAIL LINE IN MOSCOW, IDAHO
CASE NO. PRC-R-09-01
TELEPHONIC HEARING
HEARING BEFORE
~~~-0NN
~\..,c.ç
;0rnC)rn:2;nr4"",,,.,G
COMMISSIONER JIM D. KEMPTON (Presiding)
COMMISSIONER MARSHA H. SMITH
COMMISSIONER MACK A. REDFORD
-
PLACE:Commission Hearing Room
472 West Washington Street
Boise, Idaho
DATE:September lS, 2009
VOLUME I - Pages 1 - 10
'-i...l! !4t__,
HEDRICK
POST OFFICE BOX 578
BOISE, IDAHO 83701
208-336-9208
--COURT REPORTING
ttl1f de ~ ßO/IaJtl ~íree19
1 APPEARANCES-2
3 ~For the Staff:D.NEIL PRICE,Esq.
Deputy Attorney General
4 472 West Washington
Boise,Idaho 83702
5
6
7
8
9
10
11
12
e 13
14
15 I N D E X
16 WITNESS EXAMINATION BY PAGE
17 Jeff Lannigan Statement 7
(Public)Commissioner Smith 8
18
19
20
21
22
23
24
e 25
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
APPEARANCES
INDEX
e
e
e
1 BOISE, IDAHO, TUESDAY, SEPTEMBER 15, 2009, 10: 08 A.M.
2
3
4 COMMISSIONER KEMPTON: This is the 15th of
5 September, 2009. The place is the Idaho Commission hearing
6 room in Boise, Idaho. It's the time, date, and place to
7 conduct a hearing by telephone connection and under the
8 Application of Palouse River and Coulee City Railroad for
9 approval to abandon a three-mile section of rail line in
10 Moscow, Idaho, more specifically described at Case No.
11 PRC-R-09-01.
12 The purpose of the hearing is for the Commission
13 to determine whether the abandonment would, one, adversely
14 affect the area being served; two, impair the access of Idaho
15 shippers to vi tal goods and markets; and, three, to determine
16 whether the rail line has a potential for profi tabili ty.
17 The Commissioners in attendance are Chairman
18 Jim Kempton, Commissioner Mack Redford, and Commissioner
19 Marsha Smith.
20 Proceedings in this case are being conducted in
21 accordance with Commission jurisdiction under Title 61, Idaho
22 Code, and Commission Rules of Procedure under Idaho
23 Administrative Procedures Act 31.01.01. The Commission has
24 further jurisdictions over this matter under Idaho Code 64-24,
25 and the Governor's Executive Order No. 98-08 dated June 12,
1
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
COLLOQUY
e
e
e
1 1998.
2 If the Commission finds that the abandonment
3 would be adverse to the public interest, then it may represent
4 the State in the Surface Transportation Board abandonment
5 proceeding. Additionally, the Commission shall approve all
6 State agency submissions to the Surface Transportation Board
7 prior to transmittal to the Board.
8 In this regard, the Commission notes that the
9 date for appearance before the Surface Transportation Board has
10 passed; therefore, it is discharging its responsibilities under
11 Idaho Code and recognizing an abandonment has been
12 automatically approved under STB rule. The Commission is
13 holding this hearing in consideration of any requirement for
14 the Commission to request reconsideration by the Board.
15 It is further noted that approval of Idaho
16 Division of Environmental Quality comments were approved for
17 transmission to the STB -- the Surface Transportation Board --
18 by Commission staff assigned to the Idaho Attorney General's
19 office.
20 This is a public hearing and Notice of the
21 hearing, along with the telephone number, was established in
22 Commission Order No. 30891 and by public news release.
23 The hearing procedures for a telephonic
24 communication are relatively short:
25 The participants must identify themselves before
2
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
COLLOQUY
e
e
e
1 speaking and must identify who they are representing when first
2 speaking.
3 Only two people will converse at one time; no
4 interruptions.
5 Deputy Attorney General Neil Price will guide the
6 telephonic discussions, and the Commissioners may ask questions
7 at any time through the Chair.
8 The Attorney General's representative will
9 administer the oath and will request personal information from
10 each person who desires to testify.
11 At this time, are there any Motions or Petitions
12 that would come before the Commission before we actually get
13 started?
14 There being none, Mr. Price, if you would define
15 the case as it relates to Commission considerations and the
16 Decision of the Commission.
17 MR. PRICE: Thank you, Chairman Kempton.
18 I guess by way of background, I would note that
19 on May 22, 2009, the Commission received correspondence from
20 the Idaho Department of Environmental Quality regarding Palouse
21 River Railroad's proposal to abandon approximately a three-mile
22 section of its rail line in Moscow, Idaho. That rail line is
23 adjacent to Paradise Creek. The Railroad also submitted
24 environmental and historic reports describing the expected
25 environmental and historical effects of the Company's proposed
3
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
COLLOQUY
e
e
-
1 abandonment. The Company also included a map of the affected
2 area.
3 On July 10, 2009, Palouse Railroad notified the
4 Commission of its intent to file on or shortly after July 20th
5 of 2009, and there was an exemption with the Surface
6 Transportation Board. Subsequently, Palouse Railroad filed a
7 Notice of Intent to file a Notice of Exemption with the
8 Commission. The Company stated the rail lines subj ect to
9 abandonment are in poor condition and in need of substantial
10 rehabili tation. This is found in the Company's environmental
11 report.
12 The rail lines subject to abandonment are located
13 between milepost 84 at the Washington/Idaho State line and
14 milepost 85.91 in Moscow, Idaho; milepost 86.11 and milepost
15 86.9 in Moscow; and milepost 85.5 at the end of the line at the
16 intersection of A street and Almon Street in Moscow, Idaho.
17 The Company stated that once i t receives
18 authority for abandonment, it intends to remove the rail, track
19 material, and ties.
20 The Company states that there is one small bridge
21 located on the rail line at issue in this case. That bridge
22 and ballast will not be removed.
23 Local entities have expressed an interest in rail
24 banking all or most of the lines.
25 The Railroad claims that the proposed abandonment
4
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
COLLOQUY
e
e
e
1 of the rail lines will have no adverse effect on regional or
2 local transportation systems and patterns, because no local
3 overhead traffic has been handled on the lines in over two
4 years. Thus, it says that -- the Railroad says that there is
5 no -- little or no likelihood that the rail corridors are
6 needed for transit or highway corridor.
7 I would note for the record that on September 9,
8 2009, the Surface Transportation Board issued its Decision,
9 allowing the rail abandonment to proceed. It issued that
10 Decision in conj unction with some very specific conditions:
11 The Surface Transportation Board noted that the
12 Railroad would consult and notify the National Geodetic Service
13 at least 90 days prior to beginning salvage acti vi ties that
14 will disturb or destroy any geodetic station monitors.
15 It also noted that prior to commencement of any
1 6 salvage activities, Palouse Railroad will develop a hazardous
17 waste contingency plan and consult with Idaho Department of
18 Environmental Quality regarding salvaging and abandonment
19 procedures, and report the results of the consultations in
20 wri ting to the Surface the section of environmental analysis
21 wi th the Surface Board Transportation Board.
22 That's by way of background.I would yield back
23 to Mr. Chairman for further questioning.
24 COMMISSIONER KEMPTON: Okay. Thank you,
25 Mr. Price.
5
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
COLLOQUY
e
e
20
21
22
1 Is there any representative of Palouse River and
2 Coulee City Railroad on the line?
3 There being none, is there anyone on the
4 telephone connection who would like to testify in this matter?
5 MR. LANNIGAN: This is Jeff Lannigan. I do think
6 it's noteworthy that --
7 COMMISSIONER KEMPTON: Jeff, would you speak up
8 into your telephone as much as you can?
9 MR. LANNIGAN: I do think it's noteworthy that a
10 substantial portion of the connection to be included for mile
11 sections of
12 COMMISSIONER KEMPTON: Jeff, we absolutely can't
13 hear you here. This is a bad connection.
14 MR. LANNIGAN: Does this help?
15 COMMISSIONER SMITH: Yeah, that helped.
16 COMMISSIONER KEMPTON: Say again now.
17 MR. LANNIGAN: Does that work better?
18 COMMISSIONER KEMPTON: Works a little better. Go
19 ahead.
MR. LANNIGAN: I was j list going to note that a
number of years ago I think it's been about three years now,
if my memory serves there was a right-of-way swap with the
23 University of Idaho and a good about a mile of that route line
24 was reconstructed, so it's probably in better shape than most
e 25 on the railway. I don't know that it makes any difference in
6
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
COLLOQUY
e
e
e
1 terms of the traffic. If there isn't any business, there isn't
2 any. That's another issue. But it seems that it would be a
3 difficult argument that it's in poor condition when it's
4 actually in better condition than most on the line, but --
5 COMMISSIONER KEMPTON: Okay. Your comments,
6 first of all, if you would, I need to -- for formal testimony,
7 and that's what you're providing at this point in time, I need
8 to go ahead and swear you in and get the particulars on who you
9 represent even if it's yourself, and then we can go ahead with
10 this discussion.
11 Neil, if you would go ahead and take that oath?
12 MR. PRICE: Sure.
13
14 JEFF LANNI GAN ,
15 appearing as a public witness, being first duly sworn, was
16 examined and testified as follows.
17
18 MR. PRICE: Please proceed.
19 COMMISSIONER KEMPTON: And, Mr. Lannigan, do you
20 represent yourself or do you represent the Uni versi ty of Idaho
21 or who do you represent?
22 THE WITNESS: I represent myself. I would just
23 consider myself just a -- I'm a railroad advocate, if you will,
24 and I would hate to see Moscow lose its service; however, you
25 know, there's a lot of factors at play, so --
7
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
LANNIGAN
Public
e
e
20
21
22
1 COMMISSIONER KEMPTON: Okay. I think all of the
2 right-of-way issues have been addressed. There have been no
3 concerns expressed by the Uni versi ty of Idaho over right-of-way
4 or right-of-way taking in this process.
5 THE WITNESS: And that wasn't my intent. My
6 point was that there was almost a mile of that line that was
7 completely rebuilt a few years ago that the University of Idaho
8 swapped the right-of-way, I believe, with the railway to get
9 the railroad further out and towards -- it was kind of running
10 through the campus at that time. So they rebuilt a good mile
11 of that line in the process, and that's part of the section
12 that's going to be abandoned here. So, it's kind of here nor
13 there, but I thought it was noteworthy.
14 COMMISSIONER KEMPTON: Okay. Thank you for the
15 information.
16 Are there any questions from the Commission?
17 COMMISSIONER REDFORD: No.
18 COMMISSIONER KEMPTON: Commissioner Smith?
19 COMMISSIONER SMITH: Yes, just one question.
EXAMINATION
23 BY COMMISSIONER SMITH:
24
e 25
Q.Do you know if there -- have you known of trains
going over the line that are actually serving shippers on the
8
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
LANNIGAN (Com)
Public
e
e
20
21
22
23
24
e 25
1 line?
2 A.What was the question? I'm sorry.
3 Q.The question is do you know if there have been
4 trains going over the line that are actually serving shippers
5 on that line?
6 A.I don't believe so, but I -- I'm not sure that I
7 would know either way.
8 Q.All right. Thank you.
9 COMMISSIONER KEMPTON: Okay. Thank you,
10 Mr. Lannigan.
11 (The witness was excused.)
12 COMMISSIONER KEMPTON: Is there anybody else on
13 the telephone connection who would like to make a comment or
14 testimony?
15 Okay, there being none, the record is now fully
16 submitted and the hearing is adjourned.
17 Thank you, Mr. Lannigan, for your comments.
18 (The hearing concluded at 10:22 a.m.)
19
9
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
COLLOQUY
--1 AUTHENTICATION
2
3
4 This is to certify that the foregoing is a
5 true and correct transcript to the best of my ability of the
6 proceedings held in the matter of the Application of Palouse
7 Ri ver & Coulee City Railroad for approval to abandon a
8 three-mile section of its rail line in Moscow, Idaho, Case No.
9 PRC-R-09-01, commencing on Tuesday, September 15, 2009, at the
10 Commission Hearing Room, 472 West Washington, Boise, Idaho, and
11 the original thereof for the file of the Commission.
-
20
21
22
23
24-25
12
13
14
15
16 ",''"...............,' ~URRA i:.ll~.... \' ..."Ã~~.... A .. '\!~ì' ~~y .\:ClI 0 , \ :
:~:~,. ~:ci!;" ~"8tJ:~ .. \ pü l' :t li....?. ".~"I"
.".... ...~~H!l.. Go ~ .:",'",.,.",...8., A 1'B O~"",
",."
1 7
18
19
y Public
in and for the t e of Idaho,
residing at Meridian, Idaho.
My Commission expires 2-5-2014.
Idaho CSR No. 475
10
AUTHENTICATIONHEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701