20041206Final Order No 29571.pdf

Office of the Secretary
Service Date
December 6, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF UNION PACIFIC
RAILROAD'S INTENT TO ABANDON THE
COEUR D' ALENE INDUSTRIAL LEAD FROM
MP 2.25 TO MP 7.5 IN KOOTENAI COUNTY, IDAHO. CASE NO. UPR-O4-
ORDER NO. 29571
In March 2004 Union Pacific Railroad initially notified the Commission that it
intended to file a Notice with the Surface Transportation Board (STB) to abandon the Coeur
d' Alene "industrial lead" located in Kootenai County, Idaho. This short stretch of track is
approximately 5.25 miles in length running from the Feeley spur at Mile Post (MP) 2.25 to MP
5 near Gibbs. The STB is the entity of the U.S. Department of Transportation authorized by
federal law to grant or deny rail line abandonments.
On June 30, 2004, the Commission issued a Notice of Intent to Abandon and a Notice
of Hearing. Pursuant to Idaho Code 9 62-424, the Commission held a public hearing July 27
2004, in Coeur d' Alene. The purpose of the hearing was to obtain public testimony so the
Commission could determine whether abandonment of the industrial lead would be adverse to
Idaho s public interest. On November 26, 2004, Union Pacific filed its Notice of Exception with
the STB to abandon the line. As discussed below, the Commission finds that the abandonment
of this rail segment will not adversely affect Idaho s shippers.
THE INDUSTRIAL LEAD
The industrial lead proposed for abandonment generally runs in northwest-
southwest direction from the Union Pacific main line located between Spokane and Athol. The
portion of the lead proposed for abandonment runs from the east of Meyer Road to Ramsey
Road, then south crossing under Interstate 90, then east along the Spokane River about one mile
and terminates about a half mile west of U.S. Highway 95. This line was originally constructed
in 1911 by Union Pacific s predecessor, Coeur d' Alene and Pend Oreille Railway Company.
In Union Pacific s Notice of Exemption, it certified that no local rail traffic has
moved over the line for at least two years. The railroad also noted that shipper traffic
(commonly referred to as "overhead traffic ) has been shifted to an adjacent Burlington Northern
ORDER NO. 29571
Santa Fe rail line. Notice at 3. The Notice also stated that a portion of the line to be abandoned
may be reclassified for use as an industrial track and that the 100-foot right-of-way for the line
does not contain any federally granted right-of-way property. Id.
On October 13 , 2004 the Commission received the Railroad'Combined
Environmental and Historical Report regarding the line to be abandoned. As previously
mentioned, Union Pacific filed its Notice of Exemption on November 26 , 2004. Unlike the
traditional abandonment process, the exemption process allows a railroad to abandon a rail line
in an expedited proceeding. To be eligible to file a Notice of Exemption, a railroad must certify
that no rail traffic has moved on the line for the past two years and there are no outstanding
complaints about the lack of rail service on the line. Under the exemption process, the STB will
publish a notice in the Federal Register within 20 days after the Petition for Exemption is filed.
Thirty days after the notice is published in the Federal Register, the railroad is permitted by STB
regulations to abandon the rail line unless the STB stays the abandonment.
THE COMMISSION'S ABANDONMENT RESPONSIBILITIES
Although the authority to grant or deny rail line abandonments rests with the STB
Idaho Code 9 62-424 requires that the Commission schedule a public hearing when railroads
propose to abandon a rail line. The purpose of the 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 a
potential for profitability. If the Commission finds that the abandonment would adversely affect
the area being served and the line has a potential for profitability, then the Commission may
represent the State of Idaho in the STB abandonment proceeding.
THE COMMISSION'S PUBLIC HEARING
Neither Union Pacific nor any shipper testified at the Commission s public hearing.
The Commission did receive testimony from two public witnesses. The first witness was the
Coeur d' Alene City Attorney, Michael Gridley. He presented a letter from the City of Coeur
d' Alene indicating the City does not object to the abandonment of the line. The letter states that
the "abandonment will not adversely affect the area being served and will not impair the access
of Idaho shippers to vital goods and markets." He also presented a letter from the North Idaho
Centennial Trail Foundation.Once Union Pacific filed its abandonment Notice, the
Foundation s letter said it would file a public use condition and a request for interim trail use.
ORDER NO. 29571
Mr. Gridley testified that the City of Coeur d' Alene and the Trail Foundation both seek to have
this portion of the line rail banked. Rail banking preserves the right-of-way in the event that rail
service is restored at some point in the future.
Peter Cooper also testified and indicated his desire to purchase this line segment. Tr.
at 5. He suggested that rail operations could continue, while at the same time allow a portion of
the right-of-way to be used as a trail. Continuing rail operation would eliminate the substantial
cost of reconstructing new tracks if the line were rail banked and then returned to service at a
later time. Tr. at 6-
DISCUSSION
At the outset, we note that it is the STB that has the authority to grant or deny rail line
abandonments. As stated in our Notice, the purpose of the Commission s public hearing is 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 a
potential for profitability. Idaho Code 9 62-424. Based upon the testimony and the letters
offered at our hearing, we find that Idaho shippers will not be adversely affected. The portion of
the rail line proposed for abandonment has no active shippers and has not had any rail car
shipments for more than two years. Thus, we conclude that there is little likelihood that this line
has a potential for profitability.
We recognize that Mr. Cooper expressed an interest in purchasing this line and
making a portion of the right-of-way available for trail usage. Mr. Cooper is free to pursue
purchase of the rail line as provided for in federal law and STB regulations. 49 U.C. 9 10904.
Even if he were to purchase the line, he indicated a willingness to consider trail usage. In
summary, we find that Idaho s public interest will not be adversely affected by the abandonment.
One other issue merits discussion. The Idaho Department of Environmental Quality
previously submitted environmental comments to the railroad in preparation of Union Pacific
Environmental Report. We are hopeful that the Railroad will adequately address DEQ'
concerns. As was the case with the recent abandonment of J aype Line, we are confident that
DEQ will file environmental comments with the STB as it deems necessary.
ORDER
IT IS HEREBY ORDERED that this case be closed. The Commission will not file
comments with the STB.
ORDER NO. 29571
THIS IS A FINAL ORDER. Any person interested in this Order issued in this Case
No. UPR-04-1 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 previously issued in this Case
No. UPR-04-1. Within seven (7) days after any person has petitioned for reconsideration, any
other person may cross-petition for reconsideration. See Idaho Code 9 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this tR
'fI"-
day of December 2004.
Out of the Office on this Dat
MARSHA H. SMITH, COMMISSIONER
ENNIS S. HANSEN, COMMISSIONER
ATTEST:
J a D. Jewel
. issi Secretary
vld/O: UPRR040 1 dh2
ORDER NO. 29571