28540.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF PALOUSE RIVER & COULEE CITY RAILROAD, INC.’S INTENT TO ABANDON THE HARVARD-BOVILL BRANCH LINE LOCATED IN LATAH COUNTY, IDAHO
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CASE NO. PRC-R-00-1

ORDER NO. 28540

On August 28, 2000, Palouse River & Coulee City Railroad notified the Commission that it intended to file a Notice of Exemption with the Surface Transportation Board (STB) to abandon 26 miles of branch line between Harvard and Bovill located in Latah County. The entire branch is approximately 47 miles in length running from Palouse (near the Idaho-Washington border) to Bovill. The Railroad stated that the STB filing would occur on September 18, 2000. On September 8, 2000, the Commission issued a Notice of Modified Procedure requesting interested parties to submit comments regarding the abandonment no later than September 22, 2000.
BACKGROUND
Unlike a traditional abandonment application, the exemption process allows a railroad to abandon a branch line in as few as 30 days. Palouse River indicates that it is eligible to use the STB exemption process because no rail traffic has moved on the line for the past two years. In fact, the Railroad’s Environmental and Historical Report (EHR) indicates that no traffic has moved on this branch since Palouse River purchased the line from Burlington Northern in 1996. Staff has subsequently learned that the apparent reason no traffic has moved on this line is that a portion of track was washed out in 1996. Prior to the sale of the branch to Palouse River, BN was able to work out a shipping arrangement with the St. Maries Railroad. Under the shipping agreement, St. Maries would pick up rail traffic destined either for BN or Union Pacific at Bovill and transport rail cars to Plummer where St. Maries interchanges with Union Pacific.
On September 8, 2000, the Commission issued a Notice of Abandonment and a Notice of Modified Procedure in this matter. The Commission’s Notice recognized that a proposed abandonment may occur under the exemption process in as few as 30 days. Consequently, the Commission determined that it was appropriate to process this matter via Modified Procedure. Given the shortness of time, the Commission also found that it was appropriate to set a deadline for written comments of no later than September 22, 2000. No written comments were received.
In the draft EHR, Palouse River notes that it has no intent to remove any bridge structures on the line. Palouse River also maintains that the line does not contain any federally granted right-of-way. Latah County has expressed an interest in rail banking this line. In addition, Staff subsequently learned that the Idaho Transportation Department (ITD) may be interested in acquiring some of the abandoned right-of-way for improvements to its highway system. State Highways 8 and 9 parallel portions of the Bovill branch.
Given the lack of any comments opposing the abandonment and the lack of rail traffic on this branch, Staff recommended that the Commission not file a protest with the STB. Staff also recommended that ITD be advised that it may contact the Railroad and the STB to request a public use condition of the abandoned right-of-way.
DISCUSSION
As the Commission has stated many times, the abandonment of rail lines and the discontinuance of rail services is governed by federal law. The authority to grant or deny the abandonment of branch lines rest with the STB, not this Commission. However, 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.
Turning to the particular facts of this case, we first note that no person submitted comments in response to the Railroad’s proposed abandonment. In its draft Environmental and Historical Report, the Railroad maintains that the line is in poor condition and would require substantial rehabilitation if the line were placed back into service. The Railroad also maintains that this line has not been used for approximately four years.
Based upon the lack of any protests and the fact that no traffic has moved over this branch for four years, we find that abandonment of this branch will not adversely affect the area being served. Given the lack of rail traffic and the need for substantial rehabilitation of the track, we further find that this rail line does not have a potential for profitability. Consequently, the Commission will not oppose or protest the abandonment and discontinuance of service on the Bovill line.
O R D E R
IT IS HEREBY ORDERED that based upon the findings contained above, that this case be closed.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally decided by this Order) or in interlocutory Orders previously issued in this Case No. PRC-R-00-1 may petition for reconsideration within twenty-one (21) days of the service date of this Order with regard to any matter decided in this order or in interlocutory Orders previously issued in this Case No. PRC-R-00-1. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of October 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

vld/PRC-R-00-1_dh2

ORDER NO. 28540 2