030295.docx

DECISION MEMORANDUM
TO:COMMISSIONER SMITH
COMMISSIONER NELSON
COMMISSIONER HANSEN
MYRNA WALTERS
TONYA CLARK
MARY FRIDDLE
GARY RICHARDSON
WORKING FILE (PAT)
FROM:DON HOWELL
DATE:MARCH 2, 1995
RE:IDAHO NORTHERN & PACIFIC RAILROAD'S ABANDONMENT OF THE COUNCIL BRANCH, CASE NO. IN-RR-95-1
On or about March 10, 1995, the Idaho Northern & Pacific Railroad (IN&P) will file a Petition with the Interstate Commerce Commission (ICC) seeking an exemption from the normal abandonment procedures outlined in Federal Regulations.  The Council branch runs 83 miles from Weiser to near New Meadows in Washington and Adams Counties.  With the recent announcement by Boise Cascade that it intends to close the Council sawmill, the railroad believes there will be insufficient remaining traffic to operate the line at a profit.  According to IN&P, Boise Cascade normally shipped approximately 1,100 rail cars per year and the next largest shipper (Evergreen Timber in Tamarack) ships approximately 480 cars per year.
Once a railroad has notified the Commission that it intends to abandon a rail line, then the Commission is required by Idaho Code § 62-424 to schedule a public hearing on the proposed abandonment.  The purpose of the hearing is to determine whether the abandonment would adversely affect Idaho’s public interest.  More specifically, the Commission seeks evidence addressing two issues:  
1.  Would the closure impair the access of Idaho communities to vital goods, services, and markets; and
2.  Whether the line has a potential for profitability.
Idaho Code  § 62-424 and Executive Order No. 94-1 provides that the Commission is the agency responsible for representing the State before the ICC.
Federal regulations require that abandonment applications contain a host of economic information so that the ICC can determine whether the line is operating at a profit or loss.  For example, an abandonment application normally includes detailed operating practices on the line, 36 months of historical expenses and revenues, track conditions, and the salvage value of the tracks and structures.  On the other hand, a petition for an exemption contains only minimal information such as a map, name of representative, whether the right-of-way is suitable for other public uses, and an environmental report.  Even the ICC’s exemption procedures are informal.  Each exemption request is considered on its individual merits and “public comments are not sought during consideration of exemption petition proposals.”  49 C.F.R. § 1121.4(b).
Unlike a regular abandonment proceeding which takes approximately 200 days from start to finish, unopposed exemption requests are approved within 30 days after publication in the Federal Register.  The timeline for an exemption proceeding is: a 10-day notice (we received ours February 21, 1995); filing the Petition for Exemption with the ICC (March 10); publication in the Federal Register within 20 days (approx. March 30); and the granting of an exemption within 30 days (May 1) unless protested or opposed.
Staff Recommendation
Given the speed with which exemption petitions are handled by the ICC, the Staff recommends that the Commission consider holding a public hearing in this matter as soon as possible.  The Commission’s calendar is open Friday, March 10.  Commissioner Nelson is gone the week of March 13-17, 1995.
Commission Decision
What date would be convenient for the Commission to schedule a hearing in this matter?  Where should such a hearing be held?
Don Howell
vld/M-IN-RR-95-1.dh