hrgntc.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF CAMAS PRAIRIE RAILNET’S APPLICATION TO ABANDON THE SPALDING-GRANGEVILLE BRANCH IN LEWIS, IDAHO, AND NEZ PERCE COUNTIES. )
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) CASE NO. CPR-R-00-1

NOTICE OF ABANDONMENT APPLICATION

NOTICE OF HEARING

On May 26, 2000, Camas Prairie RailNet (Camas Prairie or Railroad) filed an Application with the Surface Transportation Board (STB) to abandon the Spalding-Grangeville rail line (also known as the Second Subdivision). The STB is an agency of the U.S. Department of Transportation and is authorized to grant or deny rail line abandonments. This rail line extends 66.8 miles from Spalding in Nez Perce County to Grangeville in Idaho County. The rail line serves shippers generally located in the communities of Grangeville, Cottonwood, Ferdinand, Craigmont, Reubens, Culdesac, Lapwai and Spalding. A significant portion of the rail line transverses the Nez Perce Indian Reservation.

NOTICE OF ABANDONMENT APPLICATION
YOU ARE HEREBY NOTIFIED that Camas Prairie cites two primary reasons in its Application for the proposed abandonment. First, the Railroad asserts that the line does not generate sufficient rail shipments (i.e., revenue) to warrant its retention. App. at 1, 3. Camas Prairie maintains that despite “an aggressive marketing program which included providing additional train [service], initiation of unit grain trains, and a serious focus on customer needs,” the number of rail shipments have not increased in an amount to generate sufficient revenue. Id. at 3. Second, the Railroad asserts that prospects for any future growth and development of traffic on the line are poor. Id. at 1-2. Consequently, the Railroad maintains that the Grangeville line does not generate sufficient revenues to cover the costs of serving customers and the costs of maintaining the track and structures.
YOU ARE FURTHER NOTIFIED that the Railroad reports that its car traffic for the 1999 calendar year was 2,101. With the exception of new rail traffic attributable to U.S. Timber Company in Craigmont, Camas Prairie estimates that there will be 2,621 car shipments in the forecast year (June 1, 2000 through May 31, 2001).
YOU ARE FURTHER NOTIFIED that the Railroad estimates that it will receive approximately $1.043 million in revenue in the forecast year. This compares to its projected expenses and costs of approximately $1.985 million. In particular, the Railroad calculates that its projected expenses in maintaining the track and structures is $890,000. Exh. 1, p. 1.
YOU ARE FURTHER NOTIFIED that Camas Prairie calculates that the right-of-way for the Grangeville line has approximately 1,324 acres. The Railroad maintains that it “owns in fee” about 78.5% of the right-of-way or approximately 1,039 acres. The Railroad states that 21.5% of the right-of-way is subject to various reversionary interests. According to the Railroad’s appraiser, the value of the 1,039 acres is approximately $1.3 million. The appraiser calculated that the net liquidation value (NLV) of the Railroad’s non-reversionary property is $758,000. App. at Exh. Q. He also estimates the NLV salvage value (minus the costs of salvage) of the track and other structures is $1.8 million.
YOU ARE FURTHER NOTIFIED that the abandonment of rail lines and the discontinuance of rail services are governed by federal law. As this Commission has stated many times, the authority to grant or deny the abandonment of branch lines rests with the STB, not this Commission. However, Idaho Code § 62-424 requires that the Public Utilities Commission schedule a public hearing on the proposed abandonment. The purpose of this public hearing is for the Commission to determine whether 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 being served and the line has the potential for profitability, then the Commission may represent the State in the STB abandonment proceeding.
YOU ARE FURTHER NOTIFIED that STB regulations currently provide for an expedited proceeding when considering abandonment applications. Comments and protests regarding the proposed abandonment are due 45 days after filing of the abandonment application or by July 10, 2000. The date for the STB’s decision on the merits is due 110 days after the application, or approximately September 13, 2000. See 49 C.F.R. § 1152.26(a).

NOTICE OF HEARING
YOU ARE HEREBY NOTIFIED that the Commission has scheduled a public hearing in this matter to commence at 6:00 P.M. ON MONDAY, JUNE 19, 2000, AT HIGHLAND HIGH SCHOOL, 112 BOULEVARD STREET, CRAIGMONT, IDAHO ([phone]). The purpose of the hearing is to obtain public testimony as to whether the abandonment of the Spalding-Grangeville line would be adverse to Idaho’s public interest. The Railroad, shippers, local governmental leaders, and other interested persons are encouraged to testify.
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter for the purpose of presenting evidence or cross-examining witnesses at hearing must file a Petition to Intervene with the Commission pursuant to this Commission’s Rules of Procedure 72 and 73, IDAPA 31.01.01.072 and -.073. Persons intending to participate at the hearing must file a Petition to Intervene on or before June 9, 2000. Persons desiring to present their views without parties’ rights of participation and cross-examination are not required to intervene and may present their comments without prior notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that a copy of the Application is available for public inspection at Camas Prairie’s offices, 325 Mill Road, Lewiston, Idaho. The Railroad shall also furnish a copy of the Application or other documents in the Railroad’s possession to any interested person. Requests should be directed to the Railroad’s representative, John D. Heffner, Rea, Cross & Auchincloss, 1707 L Street NW, Suite 570, Washington, DC 20036 ([phone]) and should reference Docket No. AB-564. The Railroad’s Application and supporting documents are also available for public inspection at the Commission’s offices at 472 West Washington Street, Boise, Idaho during regular business hours.
YOU ARE FURTHER NOTIFIED that all hearings will be conducted pursuant to the Rules of Procedure adopted by the Idaho Public Utilities Commission. IDAPA 31.01.01.000 et seq.
YOU ARE FURTHER NOTIFIED that the Commission may examine the track and right-of-way, if such an inspection is possible before the public hearing. This examination is contingent upon making arrangements with Camas Prairie to provide access to the rail line and an appropriate high-rail vehicle.
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in this matter will be held in facilities meeting the accessibility requirements of the Americans with Disabilities Act. In order to participate, understand testimony and argument at a public hearing, persons needing the help of a sign language interpreter or other assistance may ask the Commission to provide a sign language interpreter or other assistance as required under the Americans with Disabilities Act. The request for assistance must be received at least five (5) working days before the hearing by contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, ID 83720-0074
[phone] (TELEPHONE)
[phone] (TEXT TELEPHONE)
[phone] (FAX)

YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this matter pursuant to Idaho Code § 62-424.
DATED at Boise, Idaho this day of June 2000 .

Barbara Barrows
Assistant Commission Secretary

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Although the STB regulations provide that the 12 months of the forecast year begin “with the first day of the month in which the application is filed with the Board” Camas Prairie’s forecast year data “is projected for the twelve months starting June 1, 2000.” 49 C.F.R. ( 1152.2(h); Exh. 1, p. 3, n2.

NOTICE OF ABANDONMENT APPLICATION
NOTICE OF HEARING 1

Office of the Secretary
Service Date
June 5, 2000