20070504Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER RED FO RD
COMMISSION SECRETARY
COMMISSION STAFF
FROM:DON HOWELL
DO NO V AN WALKER
DATE:MAY 3, 2007
SUBJECT:P ALOUSE RIVER & COULEE CITY RAILROAD'S PETITION TO
ABANDON 0.2 MILES OF TRACK IN MOSCOW,
CASE NO. PRC-06-
On April 30, 2007, Palouse River & Coulee City Railroad filed its Petition for
Exemption to Abandon 0.2-mile of track with the u.s. Surface Transportation Board (STB). The
exemption process allows railroads to abandon rail lines if the abandonment is of limited scope
and does not adversely affect national rail policy. 49 U.C. 99 10502 and 10101. Under STB
procedures, once the exemption is filed, the STB will publish a notice in the Federal Register
within 20 days. Unless stayed, the Railroad may abandon the rail line 30 days after the notice is
published in the Federal Register.
THE PROPOSED ABANDONMENT
The rail line and right-of-way in question runs between milepost (MP) 85.91 and
86.11 within the City of Moscow. The rail line proposed for abandonment generally runs
between College Street/8th Street and the new bridge on u.s. Highway 95 , in the southern part of
downtown and to the east of the University of Idaho campus. See attached map. The Railroad
asserts in its Petition that no local rail traffic has moved on the line in over a year. Petition at 4.
The Railroad's Historical Report notes that a parallel rail line will remain active. The Railroad
states that the line does not contain any federally granted right-of-way. Exhibit B.
The Railroad asserts that the area surrounding the line is undergoing commercial
redevelopment and the existence of the rail line is impeding this redevelopment. Petition at 4.
The Railroad reports that only one car was shipped on the subject line in 2006 and the only
DECISION MEMORANDUM
shipper (Moscow Idaho Seed Company) has closed its facilities. The Railroad maintains that
once the area is redeveloped, there is no possibility that future rail service will be needed. Id.
The Railroad concludes that the exemption process is appropriate given the limited scope of the
abandonment in this case.
STATE LAW
Although the authority to grant or deny rail abandonment rests with the STB, the
Commission does represent the State in STB abandonment proceedings. Idaho Code 9 62-424
provides that the "commission shall schedule a public hearing on the proposed abandonment."
The purpose of the hearing is for the Commission to determine whether the abandonment would:
(1) adversely affect the area be served; (2) impair the access ofldaho shippers to vital goods and
markets; and (3) whether the rail line has a potential for profitability. If the Commission finds
that the abandonment would be adverse to the public interest, then it may represent the State in
the STB abandonment proceeding. Idaho Code 9 62-424(2).
STAFF RECOMMENDATION
In the last abandonment proceeding involving the Burlington Northern Santa Fe
Railroad (BNSF) in Coeur d' Alene, the Commission decided to schedule a telephonic public
hearing in this matter. Staff recommends the same procedure be used in this case. The Staff has
previously distributed notice of the Railroad's intent to state agencies, the City, and an adjacent
rail shipper - FerrellGas.
COMMISSION DECISION
Does the Commission desire to schedule a telephonic hearing? If so, when?
Don Howell
blslM:PRC-O6-02 dh
DECISION MEMORANDUM
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Palouse River & Coulee City Railroad Abandonment
Moscow, Idaho
Case No. PRC-O6-