HARTUNG.docx

May 25, 1995
Mary Hartung, Special Assistant
Office of the Governor
Statehouse
Boise, ID  83720-0034
RE:Abandonment of two Union Pacific rail lines
Dear Mary:
Attached for your information are two Abandonment notices that the Commission recently received from Union Pacific Railroad.  Briefly, Union Pacific intends to file Abandonment Applications with the Interstate Commerce Commission (ICC) for permission to abandon two railroad branches: (1) the Idaho Northern branch running between Nampa and Emmett; and (2) the Grace branch serving the community of Grace in Caribou County.  
The Commission is the designated state clearinghouse for disseminating abandonment information to other state agencies.  Our primary role in rail abandonment proceedings is to determine whether the abandonment would be adverse to Idaho’s interests and to coordinate the submission of agency comments to the Railroad and the ICC.  The Commission generally convenes a public hearing on each proposed abandonment.  If the Commission finds that the abandonment of a rail line would be adverse to Idaho’s interests and that the line has a potential for profitability, then it represents the State before the ICC.  
Executive Order No. 94-1 provides that state agencies coordinate any submissions to the Railroad or the ICC with the Commission prior to transmittal.  This Executive Order was issued to ensure that the State speaks with one voice.  If agencies have divergent views regarding abandonment, then these differences are brought to the Governor for decision.  A copy of the Executive Order is enclosed.
There are two kinds of abandonment proceedings.  The normal abandonment process is for the Railroad to file an Application with the ICC.  An Abandonment Application normally contains specific economic and financial information outlining the reasons a railroad desires to abandon the rail line.  Abandonment is usually completed in approximately 200 days.  The other type of abandonment proceeding is a Petition for Exemption from the normal abandonment requirements.  A Petition for Exemption contains only minimal information.  Exemptions are usually used where there has been no traffic on the line for two years or where there is a significant change in operations, e.g., a bridge or trestle fails or a major shipper goes out of business.  Exemption requests, unless opposed, are approved within 30 days after publication in the Federal Register.
From prior experience in litigating these cases, the Commission’s efforts in proceedings before the ICC are not, in themselves, always sufficient to carry the day.  Participation by current and potential shippers, those most affected by a proposed abandonment, is important.  Once the State has decided to challenge an abandonment, we usually solicit the assistance of the Governor and our congressional delegation.  Although the Commission cannot represent the specific interests of individual shippers, we can provide advice and assistance, and we may coordinate our efforts with those of local shippers.
I hope you find this information helpful.  If you have further questions, please contact me at 334-2898.
Sincerely,
Ralph Nelson
President
JR\L-HARTUNG.DH
cc:Commissioners
Tonya Clark
Don Howell
Enclosures