20081223Vol I Telephonic Hearing.pdf

ORIGINAL
e BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF UNION PACIFIC
RAILROAD COMPANY'S INTENT TO
ABANDON THE COEUR D' ALENE
INDUSTRIAL LEAD FROM MP 7. 5 TO MP
8.97 IN KOOTENAI COUNTY, IDAHO
CASE NO.
UPR-R-08-01
Telephonic Hearing
HEARING BEFORE
COMMISSIONER MACK A. REDFORD (Presiding)
COMMISSIONER JIM D. KEMPTON
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PLACE:Commission Hearing Room
472 West Washington Street
Boise, Idaho
DATE:December 11, 2008
VOLUME I - Pages 1 - 25
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1 APPEARANCES
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3 For the Staff:DONALD L. HOWELL, II, Esq.
Deputy Attorney General
472 West Washington
Boise, Idaho 83702
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For Union Pacific:DAN HARBEKE, Director
Public Affairs - Western Region
Union Pacific Railroad
280 South 400 West
Salt Lake City, UT 84101
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
APPEARANCES
1 I N D E Xe2
WITNESS EXAMINATION BY PAGE3
Ellis Hire Mr.Howell (Direct)104(Staff)Commissioner Kempton 17
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12 EXHIBITS
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NUMBER PAGE14
15 For the Staff:
16 10L.08/14/08 Photograph Premarked
Admitted 1117
102.08/14/08 Photograph Premarked18Admitted 11
19 103.08/14/08 Photograph Premarked
Admitted 1120
104.08/14/08 Photograph Premarked21Admitted 11
22 105.Prefiled Testimony of Ellis Hire,Premarked
5 pgs Admitted 1123
106.08/26/08 Letter,Gridley to Law Premarked24Admitted 11
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EXHIBITS
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1 BOISE, IDAHO, THURSDAY, DECEMBER 11, 2008, 9:30 A.M.
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4 COMMISSIONER REDFORD: This will be a hearing
5 before the Idaho Public Utili ties Commission, and it's in the
6 matter of Union Pacific Railroad Company's intent to abandon
7 the Coeur d' Alene industrial lead from milepost 7.5 to milepost
8 8.9 -- excuse me -- 8.97 in Kootenai County, Idaho.
9 Are there -- first, I'll take the appearances.
10 Is there anyone appearing telephonically by -- from Union
11 Pacific?
12 Apparently not.
13 MR. HARBEKE: Hello? Apologize.
14 COMMISSIONER REDFORD: Hello.
15 MR. HARBEKE: Yes. Dan Harbeke with Union
16 Pacific Railroad public affairs via telephone.
17 COMMISSIONER REDFORD: Okay. Thank you very
18 much, sir. Could you -- could you spell your name, please?
19 MR. HARBEKE: You bet. First name is Dan. Last
20 name, Harbeke, spelled H-A-R-B, as in bravo, E-K-E, out of Salt
21 Lake City.
22 COMMISSIONER REDFORD: Oh. Thank you,
23 Mr. Harbeke. I appreciate it.
24 MR. HARBEKE: You bet.
25 COMMISSIONER REDFORD: First of all, let me say
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HEDRICK COURT REPORTING
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1 that there are two Commissioners in attendance, Mr. Jime2Kempton, Commissioner, and myself, Mack Redford, Commissioner.
3 Commissioner Smith is absent and excused.
4 Before we get started, also I'll take your
5 appearance, Mr. Howell.
6 MR. HOWELL: For the Staff, I am Don Howell,
7 Deputy Attorney General, on behalf of the Staff.
8 COMMISSIONER REDFORD: Thank you. I'd like to
9 read a couple of things into the record just to make sure the
10 record is complete.
11 On July 3, 2008, Union Pacific Railroad notified
12 the Commission that it intends to file a Petition with the
e 13 Surface Transportation Board to abandon a portion of the
14 Coeur d i Alene industrial lead located in Kootenai County,
15 Idaho. This short stretch of track is approximately 1.9 miles
16 in length, running from milepost 7.5 near Gibbs to the end of
17 the line at milepost 8. 79 in Coeur d i Alene.
18 The STB is the entity of the US Department of
19 Transportation authorized to deny -- or, authorize or deny rail
20 abandonment.
21 Idaho Public Utilities Commission involvement in
22 this matter is very small, and the only thing that this hearing
23 will be for today is to make the determine -- determination
24 whether the abandonment would, one, adversely affect the area
e 25 being served; two, impair access to Idaho shippers to vi tal
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1 goods and markets; and, three, whether the rail line has the
2 potential for profi tabili ty. If the Commission finds that the
3 abandonment would adversely affect the area being served and
4 the line has the potential for profi tabili ty, then the
5 Commission would represent the State of Idaho in the STB
6 abandonment proceeding. So, with that limited involvement,
7 we're here to make the determination as to the four things --
8 or, the three things that I previously read into the record.
9 The record is not complete as to the notification
10 by Union Pacific. I presume that it was sent to us, but I just
11 don i t have a copy of it. And since we all know what we're here
12 for 1'm sure that it i S around someplace, but the Notice
13 supplied by the Union Pacific is sufficient to go ahead and
14 proceed.
15 There are -- Mr. Ellis Hire, on behalf of the
16 Idaho Public Utilities Commission, has submitted to us six
17 documents which, without objection, I will put on the record.
18 First one is Staff Exhibit 101. This is a
19 picture of the railroad line.
20 Exhibit 102, which is also a picture of the line
21 as it goes through the small tunnel.
22 Exhibit 103, which is part of the line near a
23 stud mill.
24 And Exhibit No.4, which is also a portion of the
25 line.
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1 In addition, I want to include in the record
2 Exhibi t 105, which is Mr. Ellis Hire's direct testimony.
3 And the final, Exhibit 106, is a letter from the
4 City of Coeur d' Alene which indicates that Coeur d' Alene
5 supports the abandonment, and they also go on to state that
6 they do not believe that this abandonment will effectively
7 affect Idaho or citizens of the Coeur d' Alene area.
8 In the scheme of things, I will
9 Mr. Harbeke -- is it Harbeke?
10 MR. HARBEKE: Yes, it is. It's pronounced
11 Harbeck (phonetic), yes.
12 COMMISSIONER REDFORD: Do you have anything else
13 to add, Mr. Harbeke? The record seems to be fairly complete.
14 MR. HARBEKE: No. And truth be told, I
15 actually -- for future reference, I'd be happy to pass on my
16 contact information at a later time. I simply found out about
17 this via an Internet search or a Google alert that this was
18 happening. I've been aware of it for a long time. Typically,
19 these matters, as you all know, are handled by our real estate
20 department or legal department back in Omaha, Nebraska, where
21 we i re headquartered.
22 I know City Attorney Gridley. I i ve met with him
23 and the mayor this past year and was made aware of it. As far
24 as I know, things are progressing along. And so, simply, I was
25 attending this call at least just more for informational
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e 1 purposes, and so to that point I have nothing to add at this
2 point.
3 COMMISSIONER REDFORD: Okay. Have you received a
4 copy of the exhibits that I previously read into the record?
5 MR. HARBEKE: I have -- I don i t believe I've
6 received the exhibits, but I do have a copy of the abandonment
7 notice with, obviously, including all the different groups,
8 including the PUC, that have to sign off on it. So I don't
9 know if I happen to have the in terms of my own copies, but
10 1'm certain that, whether it i S our legal or real estate
11 department, I'm sure that they have the necessary copies. And
12 it i S probably okay that I don 't, but if I do need to see them,
e 13 I know that I have access to them internally.
14 COMMISSIONER REDFORD: Okay. You would certainly
15 be entitled to see all of the exhibits, and if it's your
16 request we could postpone this hearing until a later date, but
17 I would add that all the exhibits demonstrate that the PUC
18 Staff and the City of Coeur d' Alene all agree to the
19 abandonment.
20 MR. HARBEKE: Terrific. That's exactly what we
21 had thought, what we had planned for, and we i re certainly
22 pleased about it.
23 COMMISSIONER REDFORD: Okay. There i s only one
24 little issue that I have, and maybe it i s just procedural or so
e 25 de minimis that it might make any difference:
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e 1 When Mr. Hire went to walk the line, he noticed
2 that there was a gondola on the track. I don't know whether it
3 was exactly on the track or on the Union Pacific track or
4 whether it was on -- near the stud mill and owned by someone
5 else. But in August of 2008, there was a gondola there picking
6 up scrap and other items, I suppose demolition of the stud
7 mill, and one of the employees of the people who were doing the
8 work stated that this would be the last car and so on.
9 And the only difficulty I have is and while it
10 may be a technicality and Mr. Howell might be able to help us
11 on that, there is certification by Union Pacific that the line
12 has not been used in two years, when, in fact, in 2008, there
e 13 was a gondola on that line. And it might be the case that
14 Union Pacific didn i t really know that it was there, but on the
15 other hand, there had to be some sort of engine to get it there
16 and -- do you have any comment on that, Mr. Harbeke?
17 MR. HARBEKE: No, I don't. I mean, I guess -- I
18 guess more information on purpose -- I can't either confirm or
19 deny, you know -- you know, that. And certainly, you know,
20 having -- as a personal note, I'm fairly new to the area
21 geographically. I mean, I'm from Omaha, Nebraska, moved to
22 Sal t Lake City, and so while I've seen the line myself when
23 I've been up there, I don't have the specific knowledge as to
24 whether or not it was Union Pacific who responded or moved that
e 25 car, whether it was a private industry, whether it was a
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1 Trackmobile, or whether they had some other means to move that
2 car. It's difficult, you know, to say. But if there's
3 addi tional information on that or if there's something that I
4 could look into -- and for point of clarification, I'm on the
5 road right now so don't happen to have the best means in front
6 of me to look into that immediately, but would be glad to
7 certainly do so.
8 COMMISSIONER REDFORD: Well, I think it's pretty
9 evident that the line, with the exception of that gondola, has
10 been abandoned for more than two years. I -- and as such, I'd
11 ask Mr. Howell if he has an opinion on it. It seems to be so
12 de minimis that I don't think it demonstrates that the line has
13 been actively used wi thin two years. And, so, do you have any
14 comment on that, Mr. Howell?
15 MR. HOWELL: Thank you, Mr. Chairman. I believe
16 that the answer is indicated or the detail that you're seeking
17 is indicated in the Railroad's Combined Environmental and
18 Historical Report on page 4.
19 On page 4, Union Pacific indicates that it ceased
20 operation on its own line and is using portions of the adj acent
21 Burlington Northern Santa Fe line to move this traffic, and so
22 because those lines are immediately adj acent -- in fact, one on
23 either side of the stud mill -- the gondola car was being used
24 by the mill to deconstruct the mill or demolish the mill, and
25 use the BN line to actually pull that car.
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1 COMMISSIONER REDFORD: Oh, so it really wasn't on
2 Union Pacific?
3 MR. HOWELL: According -- I i II read it. It says:
4 In October 2003, Union Pacific ceased operation
5 of its own service over the line in favor of Burlington
6 Northern Santa Fe, which began providing service for UP
7 pursuant to a haulage agreement between the two carriers.
8 I would just also point out that under the STB
9 regulations, typically, the general rule of thumb is no traffic
10 over two years, but an exemption process would allow any
11 carrier -- or railroad, for that matter -- to seek an exemption
12 from the normal abandonment rules for anything where they can
13 identify that the traffic will cease. And I think, together
14 with the cessation of service by Union Pacific in favor of the
15 BN line and the fact that the only shipper on the line is being
16 dismantled, was the other one of two reasons why Union Pacific
17 filed the Application as an exemption.
18 COMMISSIONER REDFORD: Okay. Well, do you have
19 any questions, Mr. Kempton, on that issue?
20 COMMISSIONER KEMPTON: No.
21 COMMISSIONER REDFORD: Well, I think I'll rule.
22 Certainly, the de minimis rule applies and Union Pacific has
23 had no rail traffic on the line the past two years. And,
24 certainly, it would also be prudent to acknowledge that before
25 you can abandon the line if it's servicing something, that that
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1 line might need to be used for the very purpose of complying
2 with the exemption.
3 MR. HOWELL: Mr. Chairman, would you like me to
4 put Mr. Hire on the stand to have him sworn so he can testify
5 as to the testimony in his Exhibit 105?
6 COMMISSIONER REDORD: Okay. Why don't you do
7 that. Just as to the issue of the use of the rail line?
8 MR. HOWELL: Correct.
9 COMMISSIONER REDFORD: Or everything?
10 MR. HOWELL: Well, just, I mean, his testimony,
11 al though it is in written form, we had anticipated to read into
12 the record, but since it i S marked as an exhibit, I can just
13 have him swear to the truthfulness of the answers.
14 COMMISSIONER REDFORD: Okay. Good. That would
15 be fine.
16 MR. HOWELL: I i d call Ellis Hire to the stand
17 then.
18 COMMISSIONER REDFORD: Thank you.
19 Please be seated.
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1 ELLIS HIRE,
2 produced as a witness at the instance of the Staff, being first
3 duly sworn, was examined and testified as follows:
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5 DIRECT EXAMINATION
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7 BY MR. HOWELL:
8 Could you state your name and spell your lastQ.
9 name for the record?
10 My name is Ellis Hire, H-I-R-E.A.
11 And, Mr. Hire, whom are you employed by and inQ.
12 what capacity?
13 I am employed by the Idaho Public Utili tiesA.
14 Commission as a rail safety specialist.
15 And did you have occasion this week to prepareQ.
16 testimony in preparation for this hearing?
17 A.Yes, I did.
18 And has that testimony been marked forQ.
19 identification as Exhibit 105?
20 Yes, it has.A.
21 And if I were to ask you the questions laid outQ.
22 in that exhibit, would your answers be the same today?
23 Yes, they would.A.
24 Do you have any corrections to your testimony?Q.
25 A.No, I don't.
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HIRE (Di)Staff
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1 Q.And is it your testimony that abandonment of this
2 line would not adversely affect Idaho's interests?
3 A.That's true. That's correct.
4 MR. HOWELL: With that, Mr. Chairman, I would
5 move that the testimony contained in Exhibit 105 be spread upon
6 the record as if read, and those exhibits marked 101, 102, 103,
7 104, and 105, and 106 be admitted.
8 COMMISSIONER REDFORD : Without obj ection, I'll
9 rule that they may be admitted.
10 (Staff Exhibit Nos. 101 through 106,
11 having been premarked for identification, were admitted into
12 evidence. )
13 (The following prefiled testimony of Mr. Hire was
14 .spread upon the record.)
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
HIRE (Di)Staff
e Q. Please state your name and spell your last name
for the record.
A. My name is Ellis Hire.
Q. By whom are you employed and in what capacity?
A. I am employed by the Idaho Public Utilities
Commission as a Rail Safety Specialist.
Q. What is your educational and professional
background?
A. I am aU. S. Air Force veteran of nearly 23 years
active duty. I attended Chapman College in Criminal Justice, and
later the Community College of the Air Force where I received
several diploma certificates in Missile and Space Systems
e maintenance, Quality Management, Quality Control, Quality
Assurance, Leadership, and Management. After the Air Force I
worked for the Gem County Sheriff's office and completed the
Peace Officers Standardization Training Academy. My professional
background includes Air Force Space Command Inspector General
Team, Headquarters Command Evaluator, and Base
Evaluator/Inspector.
I began work at the Commission as a Rail Safety
Specialist in March of 2005. I received my Federal Railroad
Administration Certification in August of 2005. My duties at the
Commission currently include inspections of railroads and
shippers for compliance with Federal and State Regulations, thee
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crossing inspections, safe operations of railroads, and
reporting inspection of findings for corrective actions and
possible civil penal ties.
Q. What is the purpose of your testimony in this
case?
A. The purpose of my testimony is twofold. First, I
provide an eye-witness account regarding the status of the
railroad line in this case. Second, I provide testimony about
whether the abandonment is contrary to Idaho's public interest.
Q. Could you tell us the location of the rail right-
of-way identified by Union Pacific Railroad for abandonment?
e A.Yes. The rail right -of -way in question runs 1.29
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miles between milepost (MP) 7.5 and MP 8.79 wi thin the city
limits of Coeur d' Alene. The right-of-way generally runs from
Beebe Street in an easterly direction, under the U. S. Highway 95
Spokane River bridge, then veers to the south to the old
DeArmond Stud Mill, and terminates at River Street (just short
of the city park) .
Q. What are your observations regarding this section
of railroad track and the right-of-way?
A. On August 14, 2008, I viewed the right-of-way
proposed for abandonment. I walked the track from Beebe Street
to the end of the line at River Street. The rail line runs under
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the Spokane River bridge through a small tunnel and by the city
waste water treatment plant, and included a short spur to the
old stud mill being dismantled. The line terminates at River
Street. There was a gondola rail car at the DeArmond Stud Mill
that was being used for disposal of building materials. I talked
with a dismantling worker who told me the gondola car would be
the last one used for transporting materials from the stud mill.
After that, they would be done with the rail line. I looked for
other possible rail service customers along the abandonment
route and found no signs of current or future customers on the
i ine proposed for abandonment.
Q. Did you take any pictures along the right of way?
A. Yes. I have attached four photographs as Exhibits
101 through 103 to this testimony.
Q. Could you describe the photographs marked for
identification?
A. Exhibit "101" is looking east at milepost 7.5 at
Beebe Street. It shows a lack of use of this track by the
vegetation growing between the tracks and along the right-of-
way. The second photograph marked as Exhibit "102" is looking
east through the railroad tunnel with the Highway 95 bridge
above. Exhibit "103" is looking at the dismantled stud mill with
the gondola rail car being used to transport dismantled building
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materials. Finally, Exhibit "104" is looking east past an old
loading dock at the stud mill and terminating at River Street.
Q. Has the city of Coeur d'Alene commented on this
abandonment?
A. A letter dated August 26, 2008, from city
attorney Michael C. Gridley, stated that he believes that the
city of Coeur d' Alene supports this abandonment. The letter is
in the record.
Q. What are the Idaho standards for evaluating
railroad abandonments?
A. Idaho Code § 62-424 requires that the Commission
consider all proposed abandonments. Under the statute, the
Commission is to determine whether the abandonment would: (1)
adversely affect the area being served; (2) impair the access to
Idaho shippers to vital goods and markets; and (3) determine
whether the rail line has the potential for profitability.
Q. In view of these standards and your observations,
what do you recommend?
A. Gi ven the lack of other shippers, the dismantling
of the stud mill, and the city's letter, I do not believe that
abandonment of this branch will adversely affect the area being
served, or impair access to goods and markets . Given the lack of
rail shippers, this rail line does not have a potential for
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profitability. Consequently, I believe that the abandonment will
not adversely affect the Idaho's interests.
Q. Does this conclude your testimony?
A. Yes it does.
I move the admission of Exhibits 101 through 104.
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1 (The following proceedings were had in open
2 hearing. )
3 COMMISSIONER REDFORD: Mr. Harbeke, do you have
4 any questions you'd like to direct to Mr. Hire on
5 cross-examination?
6 MR. HARBEKE: I appreciate again, not having here
7 in front of me but again having spoken with officials with the
8 Ci ty and also having spoken with my own internal legal and real
9 estate teams, what has been said I guess matches or coincides
10 wi th what I i ve been told verbally, and so I would agree and
11 appreciate that clarification.
12 COMMISSIONER REDFORD: Okay. Well, then, I'll
13 take that as a "no."
14 I think the record is complete, and I don't have
15 any questions for you, Mr. Hire.
16 Do you have, Mr. Kempton?
17 COMMISSIONER KEMPTON: Mr. Chairman.
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19 EXAMINATION
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21 BY MR. KEMPTON:
22 Mr. Hire, what was the date of this testimony,Q.
23 other than the fact that you reconfirmed it today? What was
24 the -- roughly -- the date of this testimony, how far back?
25 Let's see here. The testimony I had wrote fromA.
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1 notes that I had taken in August I want to say Monday, past
2 Monday.
3 Q.August is good enough. So the issue is only
4 coming back to the gondola car that was there at the time that
5 you were looking at it and they said it was going to be the
6 last car out of the station. I assume that that work has been
7 completed and that the last car has gone; or if that is not the
8 case, then we would write the Order in terms of when that car
9 does leave, when the last car goes out?
10 A.That's true. From -- from the time in August
11 when the car was there, the gentleman there, which I believe
12 was a supervisor -- he was locking up, it ~as at the end of the
13 day had told me that. But since then I have not been back
14 to see that that gondola car has left or departed that area.
15 It may still be there.
16 COMMISSIONER KEMPTON: That's all I have,
17 Mr. Chairman.
18 COMMISSIONER REDFORD: Mr. Hire, could you check
19 on that and confirm with us what the status is?
20 THE WITNESS: I will.
21 COMMISSIONER REDFORD: Mr. Howell, is there
22 anything else you'd like to bring before the Commission?
23 MR. HOWELL: No redirect.
24 COMMISSIONER REDFORD: Thank you very much.
25 (The witness was excused.)
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1 COMMISSIONER REDFORD: Mr. Harbeke, is there
2 anything else you'd like to provide to us today?
3 MR. HARBEKE: No, Mr. Chairman.
4 HEARING OFFICER: Okay. Thank you very much.
5 I think as a result, the record is complete and
6 we will make a Decision shortly.
7 Thank you very much for all your attendance.
8 MR. HOWELL: Mr. Chairman, I'm not sure that
9 there was another person who plugged in. You might make an
10 inquiry if there is anybody else on the phone, like the City
11 Attorney Mr. Gridley.
12 COMMISSIONER REDFORD: Is there anyone else on
13 the line other than Mr. Harbeke?
14 MR. JOHNSTON: Yes, I i m on the line. This is
15 Don Johnston. I have a warehouse on the line.
16 COMMISSIONER REDFORD: I'm sorry that I didn i t
17 ask that sooner. Have you been on the phone since this all
18 started, this hearing started?
19 MR. JOHNSTON: No, I didn't come on until about
20 9:40.
21 COMMISSIONER REDFORD: Well, that's about when we
22 started. Do you have anything you would like to offer by way
23 of--
24 MR. JOHNSTON: I don't know if I'm in the right
25 forum or not. I just need to ask a question.
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1 The abandonment of the line, my warehouse becomes
2 suspect, I guess. I have -- my problem with the rail being
3 abandoned, it's not just black and white to me. It's the rates
4 that the Railroad has charged that has encouraged all of my
5 tenants to use auto freight. And while I guess I don't really
6 obj ect to the abandonment of the line, I do in the respect that
7 that's my livelihood. It could very much affect the warehouse
8 to remain economically viable. I don i t know if I properly
9 explained that or not.
10 I'm on the end of the line. I'm right next to
11 the ballpark.
12 COMMISSIONER REDFORD: Okay. You've heard the
13 testimony I hope, sir. And what is your name again so that I
14 can write it down?
15 MR. JOHNSTON: Don Johnston.
16 COMMISSIONER REDFORD: John Smith?
17 MR. JOHNSTON: Don -- normal -- Johnston,
18 J-O-H-N-S-T-O-N.
19 COMMISSIONER REDFORD: Okay.
20 MR. JOHNSTON: My question is is whether or
21 not I'm going to be able to exist with the abandonment of the
22 line. I'm sure -- and my contract or my lease is with the
23 Burlington Northern. I guess my question is do Burlington
24 Northern and UP share the same line that goes to my warehouse?
25 COMMISSIONER REDFORD: Well, if your line is --
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1 it appeared to me, at least, that if your contract is with
2 Burlington Northern and the track that's in question is with
3 Union Pacific, it would appear that you're being serviced by
4 another line. Do you have any knowledge of that, sir?
5 MR. JOHNSTON: That's my question. I'm not sure
6 which line my contract is with Burlington Northern, but I
7 don't know if that's the same line that you alluded to.
8 COMMISSIONER REDFORD: Okay. Well, why don't we
9 do this, and in an effort to give you an opportunity to
10 supplement the record with any statements or any further
11 witness, it would seem to me that maybe you need to get
12 together with Burlington Northern and ask them how they intend
13 to provide the service. And we can postpone this for --
14 MR. JOHNSTON: That's my question. I don't know
15 if I'm in the right forum or not.
16 COMMISSIONER REDFORD: Well, if it's Burlington
17 Northern, you know, we're not talking about that line. It's
18 the line that's with Union Pacific. But, quite frankly, you
19 know, with their exchange programs, Burlington Northern may be
20 using the Union Pacific line. I just don't know.
21 We'll ask the Staff to also check into this, and
22 if you would like to, we can postpone this for or adj ourn this
23 for a couple of weeks for you to check into this matter.
24 MR. JOHNSTON: I don't want the blockage here.
25 It's just that I'm trying to determine whether the abandonment
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1 is the same line that Burlington Northern is using and as a
2 result of it that I will be affected. And I apologize for
3 coming in late, but I only heard about this by reading the
4 article in the paper.
5 COMMISSIONER REDFORD: Okay. Maybe this will
6 help: When was the last time your facility was accessed by any
7 kind of rail traffic?
8 MR. JOHNSTON: Oh, it's been some time, and like
9 I say, mainly because of the rates. They're not competi ti ve
10 with auto freight.
11 COMMISSIONER REDFORD: Well, when you say, "some
12 time," could you put a little --
13 MR. JOHNSTON: More than two years.
14 COMMISSIONER REDFORD: Two years?
15 MR. JOHNSTON: More than two years .
16 COMMISSIONER REDFORD: More than two years. Do
17 you expect in the future that that line will be used?
18 MR. JOHNSTON: If the rates were competitive,
19 yes, I have every confidence that it would increase my ability
20 to lease the warehouse.
21 COMMISSIONER REDFORD: Okay. Well, in an effort
22 to make sure that everyone gets heard, why don't we just
23 adjourn this hearing for two weeks, and at that time or in the
24 mean time you can talk to our Staff, possibly Mr. Howell who is
25 the Deputy Attorney General, and clarify these types of
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1 issues.
2 MR. JOHNSTON: I have no idea how to get ahold of
3 him.
4 MR. HOWELL: Here's my telephone number,
5 Mr. Johnston. It's 208-334-0312.
6 MR. JOHNSTON: Okay, zero eight --
7 MR. HOWELL: It's -- let me read it to you again.
8 208--
9 MR. JOHNSTON: Oh, 208. Okay.
10 MR. HOWELL: -- 334-0312.
11 MR. JOHNSTON: Okay. I got it. And you are who?
12 MR. HOWELL: I'm Don Howell, H-O-W-E-L-L.
13 MR. JOHNSTON: Okay. I appreciate that. Sorry
14 to take up your time. I'm more or less trying to get
15 information.
16 COMMISSIONER REDFORD: How can we get ahold of
17 you, sir?
18 MR. JOHNSTON: By phone I am at 208-640-6080.
19 COMMISSIONER REDFORD: Okay. I think that's
20 MR. JOHNSTON: Do you want my address?
21 COMMISSIONER REDFORD: Yes, please.
22 MR. JOHNSTON: I'm at 6080 North Fifteenth
23 Street, Dalton Gardens, Idaho.
24 COMMISSIONER REDFORD: Did you get that,
25 Mr. Howell?
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1 MR. HOWELL: I did.
2 MR. JOHNSTON: That was my cell phone. My home
3 phone is 208-772-6080.
4 COMMISSIONER REDFORD: Okay, Mr. Johnston, we'll
5 be expecting you to contact Burlington Northern. And also I'm
6 sure our Staff will be in touch with you if there's any other
7 issues that need to be explored.
8 MR. JOHNSTON: Thank you very much for your time.
9 COMMISSIONER REDFORD: Yes. Thank you.
10 So we'll adj ourn for two weeks. I don't know
11 what the date is, Mr. Howell, but --
12 MR. HOWELL: It would be the 25th.
13 COMMISSIONER REDFORD: Okay. Well let's extend
14 it out till the following Monday.
15 Is there anything else to come before the
16 Commission? Hearing nothing, I'll stand adjourned.
17 (The hearing adj ourned at 9: 55 a.m.)
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1 AUTHENTICATION
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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 Union Pacific Railroad
7 Company's intent to abandon the Coeur d' Alene industrial lead
8 from MP 7.5 to MP 8.97 in Kootenai County, Idaho, Case No.
9 UPR-R-08-01, commencing on Thursday, December 11, 2008, at the
10 Commission Hearing Room, 472 West Washington, Boise, Idaho, and
11 the original thereof for the file of the Commission.
12 Accuracy of all prefiled testimony as
13 originally submitted to this Reporter and incorporated herein
14 at the direction of the Commission is the sole responsibility
15 of the submitting parties.
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WENDY J. MURRAY,
in and for the
residing at Meridian,
My Commission expires
Idaho CSR No. 475
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
AUTHENTICATION
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Staff Exhibit "Tal"
UPR-R-08-01
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StaffExliibit "102"
UPR-R-08-01
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Shiff Exhihit "lOT'
UPR-R-08-01
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StaJfEx1iilit "104"
UPR-R-08-01
e Q.P~ease state your name and spell your last name
for the record.
A. My name is Ellis Hire.
Q. By whom are you employed and in what capacity?
A. Ii am employed by the Idaho Public Utilities
Commission as a Rail Safety Specialist.
Q. What is your educational and professional
background?
A. Ii am aU. S. Air Force veteran of nearly 23 years
active duty. I attended Chapman College in Criminal Justice, and
later the Community College of the Air Force where I received
several diploma certificates in Missile and Space Systems
maintenance, QuaRity Management, Quality Control, Quality
Assurance, Leadekship, and Management. After the Air Force I
worked for the G~m County Sheriff's office and completed the
Peace Officers Standardization Training Academy. My professional
background includes Air Force Space Command Inspector General
Team, Headquartets Command Evaluator, and Base
Evaluator/Inspector.
I i began work at the Commission as a Rail Safety
Specialist in March of 2005. I received my Federal Railroad
Administration Certification in August of 2005. My duties at the
Commission curreptly include inspections of railroads and
e shippers for compliance with Federal and State Regulations, the
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e safe transportation of hazardous materials, railroad-grade
crossing inspections, safe operations of railroads, and
reporting inspection of findings for corrective actions and
possible civil penal ties.
Q. What is the purpose of your testimony in this
case?
A. The purpose of my testimony is twofold. First, I
provide an eye-witness account regarding the status of the
railroad line in this case. Second, I provide testimony about
whether the abandonment is contrary to Idaho's public interest.
Q. Could you tell us the location of the rail right-
of-way identified by Union Pacific Railroad for abandonment?e A.Yes. The rail right-of-way in question runs 1.29
miles between milepost (MP) 7.5 and MP 8.79 within the city
limits of Coeur d' Alene. The right-of-way generally runs from
Beebe Street in an easterly direction, under the U. S. Highway 95
Spokane River bridge, then veers to the south to the old
DeArmond Stud Mill, and terminates at River Street (j ust short
of the city park) .
Q. What are your observations regarding this section
of railroad track and the right-of-way?
A. On August 14, 2008, I viewed the right-of-way
proposed for abandonment. I walked the track from Beebe Street
e to the end of the line at River Street. The rail line runs under
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the Spokane River bridge through a small tunnel and by the city
waste water treatment plant, and included a short spur to the
old stud mill being dismantled. The line terminates at River
Street. There was a gondola rail car at the DeArmond Stud Mill
that was being used for disposal of building materials. I talked
with a dismantling worker who told me the gondola car would be
the last one used for transporting materials from the stud mill.
After that, they would be done with the rail line. I looked for
other possible rail service customers along the abandonment
route and found no signs of current or future customers on the
line proposed for abandonment.
Q. Did you take any pictures along the right of way?
A. Yes. I have attached four photographs as Exhibits
101 through 103 to this testimony.
Q. Could you describe the photographs marked for
identification?
A. Exhibit "101" is looking east at milepost 7.5 at
Beebe Street. It shows a lack of use of this track by the
vegetation growing between the tracks and along the right-of-
way. The second photograph marked as Exhibit "102" is looking
east through the railroad tunnel with the Highway 95 bridge
above. Exhibit "103" is looking at the dismantled stud mill with
the gondola rail car being used to transport dismantled building
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materials. Finally, Exhibit "104" is looking east past an old
loading dock at the stud mill and terminating at River Street.
Q. Has the city of Coeur d' Alene commented on this
abandonment?
A. A letter dated August 26, 2008, from city
attorney Michael C. Gridley, stated that he believes that the
city of Coeur d' Alene supports this abandonment. The letter is
in the record.
Q. What are the Idaho standards for evaluating
railroad abandonments?
A. Idaho Code § 62 -424 requires that the Commission
consider all proposed abandonments. Under the statute, the
Commission is to determine whether the abandonment would: (1)
adversely affect the area being served; (2) impair the access to
Idaho shippers to vital goods and markets; and (3) determine
whether the rail line has the potential for profitability.
Q. In view of these standards and your observations,
what do you recommend?
A. Given the lack of other shippers, the dismantling
of the stud mill, and the city's letter, I do not believe that
abandonment of this branch will adversely affect the area being
served, or impair access to goods and markets . Given the lack of
rail shippers, this rail line does not have a potential for
4
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e profi tabili ty. Consequently, I believe that the abandonment will
not adversely affect the Idaho's interests.
Q. Does this conclude your testimony?
A. Yes it does.
I move the admission of Exhibits 101 through 104.
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CIT OF COEUR D'ALEN
LEGAL DEPARTMT RECElVEO
i_iUG,!:' AM. 8:-2 l
\pAt°lNALiON
U1Li'f\ES. . ¡ ....:.
City Ha, 710 E. Mulan Avenue
Coeur d Alene, Idao 83814
[phone] - FAX [phone]
Legal~cdad.org
ww.cdad.org
Augu 26, 2008
um --R-'o8~(Mr. Ron Law
Executive Admsttor
Idao Public Utities Coinssion
P.O. Box83720
Boise, ID 83720-0074
RE: Proposed Union P8cc Ralroad Abandonment in Coeur d'Alene,
(STB Docket No. AB-33 (Sub-No. 272X)
Dea Ron:
Th you for your letter of July 29, 2008 inormg me of Union Pacific's intet to abandon the .
above referenced ra line. I will tr to follow the progrss of ths abandonment thugh the STB's
website but I would alo appreiate it if you would copy me with any inormtion tht is filed with
the Idao PUC as well as notice of any public heargs.
'.
I believe tht the city of Coeur d'Alene support th abaidonment and I do not 'believe th th .
abandonment wi adverly afec Idao. or the citiens of Coeur d'Alene. There ar curtly no
ra shippes on ths lie and I am not awa of any prspective shippe.
'T agai for the letter and I look forward to seeing you and the commssioners in Coe d'Alene
for the public hearg. .
Miè i . Grdley
City Attmey .
cc:Honorable Sandi Bloem - Mayor, City of Coeur d'Alene
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