HomeMy WebLinkAbout20041213_1028.pdfDECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
FROM:DON HOWELL
DATE:DECEMBER 8, 2004
RE:UNION PACIFIC'S INTENT TO ABANDON AND SELL A PORTION OF
THE DRY VALLEY LINE, CASE NO. UPR-04-
On November 10, 2004, Union Pacific Railroad filed its Combined Environmental
and Historical Report for the partial abandonment of the Dry Valley line. In its Report, Union
Pacific indicated that it will likely file a Notice of Exemption seeking to abandon a short stretch
of track approximately 0.21 miles in length known as the Dry Valley Subdivision located in
Caribou County, Idaho. Union Pacific indicated that it will file its Notice seeking an
abandonment exemption with the STB on or after December 29 2004.
The quarter mile of track in question is used to serve a single shipper which ships
phosphate ore from a mining operation in Dry Valley. There are no other shippers in the area
and there is no overhead rail traffic. In its Combined Report, Union Pacific states that the sole
reason for the proposed abandonment is to reclassify the line and sell it to the mining shipper
Agrium (formerly known as Astaris). Selling this short portion of track to Agrium will provide
more track space so that Agrium can assemble larger, dedicated unit trains. Consequently,
abandonment and reclassification of the line will not result in a loss of rail service to Agrium.
Once a railroad notifies the Commission that it intends to abandon a rail line Idaho
Code ~ 62-424 requires that the Commission schedule a public hearing on the proposed
abandonment. The purpose of this hearing is for the Commission to determine if the
abandonment would: (1) adversely affect the area being served; (2) impair the access of Idaho
shippers to vital goods and markets; and (3) whether the rail line has the potential for
profitability. If the Commission finds that the abandonment would adversely affect the area
DECISION MEMORANDUM
being served and the line has the potential for profitability, then the Commission may represent
the State of Idaho in the STB abandonment proceeding.
ST AFF RECOMMENDATION
Rather than schedule a public hearing to consider the "abandonment " the Staff
believes that the facts of this case support the Commission s use of Modified Procedure instead
of convening a formal hearing. As set out above, Union Pacific is utilizing the abandonment
process merely to "reclassify" this portion of line so that it may sell it to the sole shipper
Agrium. Union Pacific anticipates no discontinuance of service to Agrium. Selling this short
portion of track to Agrium would provide more track space so that the shipper can assemble
larger, dedicated unit trains.
Given this unique set of facts, the Staff recommends that this case be processed under
Modified Procedure, rather than convene a formal public hearing.
COMMISSION DECISION
Does the Commission find based upon this unique set of facts that Modified
Procedure is the appropriate way to process this abandonment case?
Don Howell
Vld/M:UPRRO402 dh
DECISION MEMORANDUM