20090120Petition for Exemption to STB.pdf

81
Gabriel S. Meyer
Assistant General Attorney
RECEI r\
2009 JAN 20 PM 3: 04
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UTILITIES COMivHSSJOi";!
January 14, 2009
Via Electronic Filng
The Honorable Anne Quinlan
Acting Secretary
Surface Transportation Board
395 E Street, SW
Washington, DC 20423
uPR -- R -08 -0 I
Re: Proposed Abandonment of the Coeur d'Alene Industrial Lead from Milepost
7.5 near Gibbs to Milepost 8.79; STB Docket No. AB-33 (Sub-No. 272X)
Dear Secretary Quinlan:
Pursuant to 49 U.S.C. § 10502, Union Pacific Railroad Company ("UP") submits
the enclosed Petition for Exemption, with verification, to abandon the above-referenced
rail line. A Certificate of Service and Publication pursuant to 49 C.F.R. §1152.60(d) and
49 C.F.R. § 1105.12, and a draft Federal Register notice pursuant to 49 C.F.R. §
1152.60(c) are attached to the Petition. UP is submitting its payment form for the
$6,300 filing fee separately via fax.
Thank you for your time and attention to this matter. Please do not hesitate to
contact me if you have any questions.
Sincerely,~~~
Gabriel S. Meyer
Enclosures
UNION PACIFIC RAILROAD 1400 Douglas Street STOP 1580 Omaha. NE 68179 [phone] fax [phone] gmeyerliup.com
BEFORE THE
SURFACE TRANSPORTATION BOARD
Docket No. AB-33 (Sub-No. 272X)
UNION PACIFIC RAILROAD COMPANY
--EXEMPTION--
IN KOOTENAI COUNTY, ID
(COEUR D'ALENE INDUSTRIAL LEAD)
Petition for Exemption
UNION PACIFIC RAILROAD COMPANY
Gabriel S. Meyer
Assistant General Attorney
1400 Douglas Street
STOP 1580
Omaha, NE 68179
[phone]
[phone] (FAX)
Dated and filed: January 14, 2009
BEFORE THE
SURFACE TRANSPORTATION BOARD R£CEnn-h
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Docket No. AB-33 (Sub-No. 272X)
UNION PACIFIC RAILROAD COMPANY
--EXEMPTION--
IN KOOTENAI COUNTY, ID
(COEUR D'ALENE INDUSTRIAL LEAD)
Petition for Exemption
I. Introduction
Union Pacific Railroad Company ("UP") files this petition for exemption from the
requirements of 49 U.S.C. § 10903 in accordance with 49 U.S.C. § 10502. The
exemption, if granted, will permit UP to abandon a portion of its Coeur d'Alene Industrial
Lead, from Milepost 7.5 near Gibbs, to the end of the line at Milepost 8.79 near Coeur
d'Alene, a distance of 1.29 miles in Kootenai County, Idaho (the "Line").
No customers use the Line, nor is there any likelihood of new rail-served
customers locating on the Line. UP does not expect that the proposed abandonment
wil have any negative impact upon existing or future customers.
II. The Proposed Transaction
The proposed action involves UP's abandonment of its Coeur d'Alene Industrial
Lead, from Milepost 7.5 near Gibbs, to the end of the line at Milepost 8.79 near Coeur
d'Alene, a distance of 1.29 miles in Kootenai County, Idaho. The abandonment of the
Line will have no adverse effect on any shippers, as no traffic currently moves over the
2
Line and no traffic is expected to use the Line in the future. Only one customer,
Stimson Lumber Company ("Stimson"), whose DeArmond Stud Mill was located on the
Line, has moved traffic over the Line within the past two years.1 The last Stimson
shipment moved over the Line in May, 2008, at about the time that the DeArmond Stud
Mill ceased operations. The facility is being dismantled and the property will be
converted for other, non-industrial uses. During the past two years, the only commodity
moving to or from the DeArmond Mil via the Line was lumber products (STCC No.
2421184).
As indicated in the attached letter (Attachment No.2) from Stimson's Jeff
Webber, Stimson has no objection to UP's proposed abandonment. Additionally, in a.
December 24, 2008 voicemail message.Stimson.s Chief Executive Officer Andrew W.
Miller informed UP that Stimson has entered into a contract to sell the property
associated with the DeArmond Stud Mil to North Idaho College, which will use the
property to expand its nearby campus. Mr. Miler stated that he expects the sale of the
property to close in early 2009. Because there wil be no industrial or commercial
activity on the property, there is no need for future rail service.
There are no reasonable alternatives to UP's abandonment of the Line, as there
is no reasonable li(elihood that a new industi:iFifl§Rcant rail service weId
locate on the Line. As noted above, the Stimson property will not be used for industrial
or commercial purposes. Moreover, UP is unaware of any other locations along the
1 In November 2003, BNSF obtained trackage rights over the Line, pursuant to STB Finance Docket No.
34436. Since then, BNSF has provided haulage service for UP over the Line. In a subsequent filing,
BNSF wil separately seek an exemption or Board authority to discontinue the trackage rights.
Accordingly, the Board should condition exercise of the abandonment exemption requested in this
Petition upon BNSF's obtaining authority or an exemption to discontinue its trackage rights on the Line.
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Line suitable for establishment of rail-served industries, as the area the Line serves is
changing from an industrial orientation, toward commercial, residential, and educational
uses.2 UP expects that the proposed abandonment will be beneficial to interstate
commerce, as it wil allow UP to redirect resources away from an unused rail line that
has no likelihood of generating future business, and toward rail service on actively used
rail lines.
The abandonment, if approved, wil not adversely impact transportation options in
the area, as the area will continue to be served by BNSF Railway Company, which
operates its own line adjacent to the Line proposed for abandonment, as indicated on
the Attachment 1 map. The area is also served by numerous major city streets and
highways, including Interstate 90, which runs east/west through the area, and U.S.
Highway 95, a north/south route. Additionally, UP wil continue to offer rail service at its
station, Feeley Spur, located several miles northwest of Coeur d'Alene.
III. The Exemption Standards Have Been Met
Rail line abandonments require authorization and approval of the Board pursuant
to 49 U.S.C. § 10903. However, 49 U.S.C. § 10502 requires the Board to exempt
transactions where it finds: (1) continued regulation is not necessary to carry out the
2 UP has received inquiries from a Mr. Peter Cooper of Hayden, ID regarding the possibility of a barge-to-
rail transload facility for logs at an unspecified location along the Line. According to Mr. Cooper, this
facility would transfer logs received, via barge on the Spokane River, to rail for movement to a UP-served
lumber mill in Chilco, ID. UP views this proposal as highly unrealistic. There is currently no barge-to-rail
transload facility along the Line. To UP's knowledge, Mr. Cooper has not acquired any property along the
Line for such a facility and has no prospect of doing so. In December 2008, UP verified with the property
owner of a specific site that Mr. Cooper mentioned as a possible location for his transload facility that the
location was not in fact available. Due to the commercial, residential, and educational development of the
land along the Line, UP believes that there are no sites suitable for use as the transload facility that Mr.
Cooper envisions. Additionally, UP marketing personnel have reviewed Mr. Cooper's proposal and have
found it to be infeasible. For example, the UP-served lumber mil at Chilco cannot handle the types and
quantities of rail traffic that Mr. Cooper projects.
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Rail Transportation Policy of 49 U.S.C. § 10101; and (2) either the transaction is of
limited scope or Board regulation is not necessary to protect shippers from an abuse of
market power. UP's proposed abandonment clearly satisfies these exemption
standards.
Detailed scrutiny by the Board under 49 U.S.C. § 10903 is not necessary to carry
out the Rail Transportation Policy of 49 U.S.C. § 10101. An exemption wil minimize
UP's administrative costs and expenses that would otherwise be associated with
pursuing the proposed abandonment through a full application proceeding. An
exemption will expedite regulatory action and wil reduce regulatory barriers to
abandonment consistent with Sections 10101(2) and (7). An exemption wil also foster
sound economic conditions in the transportation industry consistent with Section
10101(5), by allowing UP to abandon a line that is unlikely to be used again by any
shipper.
Additionally, the proposed abandonment is a transaction of limited scope. The
Line is only 1.29 miles long and does not serve any shippers. Because there are no
shippers on the Line, regulation of this abandonment is not needed to protect them from
an abuse of market power.
iv. Other Information
a. Line History and Description
The proposed action involves UP's abandonment of its Coeur d'Alene Industrial
Lead, from Milepost 7.5 near Gibbs to the end of the line at Milepost 8.79 near Coeur
d'Alene, a distance of 1.29 miles in Kootenai County, Idaho. No overhead traffic or
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passenger service operates over the Line. The Line traverses U.S. Postal Service Zip
Code 83814.
The Line was originally constructed in 1911 by the Coeur d'Alene and Pend
Oreile Railway Company. The majority of the Line is constructed with 112, 131, and
133-pound jointed rail laid secondhand in 1985 and 1998. Approximately one sixth of a
mile of the Line contains 72-pound raiL.
The Line's right-of-way, which varies from 20 to 100 feet wide, runs through
industrial, commercial, and residential areas. The Milepost 8.29 to 8.68 portion of the
Line crosses municipally owned land pursuant to an operating easement, while the
Milepost 8.68 to 8.79 portion of the Line crosses Stimson's property pursuant to an
operating easement. The topography along the Line is generally leveL.
A map of the Line is attached as Attachment No.1. Other rail lines in the area,
principal highways, and other roads are also shown on the map. The Line does not
contain any structures that are 50 years old, or older. No stations will be closed as a
result of abandonment of the Line.
b. Federal Grant Information and Public Use
Based upon information in UP's possession, the Line does not contain any
federally granted right of way. Any-oCHmetan in UP's possession will be made
available to those requesting it. The Line contains some reversionary property. A map
of the Line is attached as Attachment No.1.
UP believes that the Line may be suitable for use as a recreational traiL.
Pursuant to discussions with the City Attorney and a developer, an existing biking/hiking
trail along the Spokane River, may be moved 250 feet northeast onto the Line's right of
way.
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However, the Line does not appear to be suitable for other public purposes
including roads or highways, or other forms of mass transportation, as the Line lies in
the city of Coeur d'Alene, which is served by numerous local streets and highways,
including Interstate 90. Nor does the Line appear suitable for energy transmission lines.
Portions of the Line may be suitable for assemblage with adjacent property for
industrial, commercial, residential or other new development.
c. Labor.
UP is agreeable to the labor protection conditions imposed in abandonment
proceedings, as prescribed in Oregon Short Line R. Co. - Abandonment - Goshen, 360
i.C.C. 91(1979).
d. Environmental and Historic Report
The required environmental and historic information is contained in the combined
Environmental and Historic Report (the "EHR"), whìch was filed on October 30,2008. A
copy of the EHR transmittal letter is attached as Attachment No.3. The original and
ten (10) copies ofthe EHR were sentto Ms. Victoria Rutson, STB Section of
Environmental Analysis, on October 28, 2008, for filng.
e. Petitioner Background and Representative
UP has rail operations in the states of Arizona, Arkansas, California,
Colorado, Idaho, Illinois, Iowa, Kansas, Louisiana, Minnesota, Missouri, Montana,
Nebraska, Nevada, New Mexico, Oklahoma, Oregon, Tennessee, Texas, Utah,
Washington, Wisconsin, and Wyoming.
The name, address, and telephone number of UP's representative is listed
below:
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Gabriel S. Meyer
Assistant General Attorney
1400 Douglas Street, STOP 1580
Omaha, NE 68179
[phone]
[phone] (FAX)
f. Shipper Information
Stimson Lumber Company's address is as follows:
Stimson Lumber Company
520 S.W. Yamhill Street, Suite 700
Portland, OR 97204
As noted above, during the past two years, the only commodity moving to or from
the DeArmond Mill via the Line was lumber products (STCC No. 2421184.)
WHEREFORE, Union Pacific Railroad Company respectfully requests that the
Board issue a decision exempting the proposed abandonment from the provisions of 49
U.S.C. § 10903.
Dated this 14th day of January, 2009.
Respectfully submitted,
UNION PACIFIC RAILROAD COMPANY_~4'. ~
Gabriel S. Meyer
Assistant General Attorney
1400 Douglas Street
STOP 1580
Omaha, NE 68179
[phone]
[phone] (FAX)
8
VERIFICATION
STATE OF NEBRASKA )
) ss:COUNTY OF DOUGLAS )
I, RAYMOND E. ALLAMONG, JR., Senior Manager Rail Line Planning of Union
Pacific Railroad Company, declare under penalty of perjury, under the laws of the United States
of America, that i have read the foregoing document and that its assertions are true and correct to
the best of my knowledge, information and belief. I further declare that I am qualified and
authorized to submit this verification on behalf of Union Pacific Railroad Company.
Dated at Omaha, Nebraska, this 14h day of January, 2009.
~e.ø~q~Allamong, Jr. -p.
SUBSCRIBED AND SWORN TO
before me this 14th day of
January, 2009
i ~ Vy l1 r1. (1 tdbrrun.~Notâ Public
My Commission expires:GENERA NOTARY. St of Nebraska
DONNA M. COLTRANE
My Com. Ex. May 6. 2012
Attachment 1
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BEGIN
ABANDONMENT
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ABANDONMENT
MP 8.79
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Legend
NOTE: THERE ARE NO 50+ YEAR OLD STRUCTURES
COEUR D'ALENE INDUSTRIAL LEAD
UPRR LINES TO BE ABANDONED
OTHER UPRR LINES
OTHER RAILROADS
· · .. PRINCIPAL HIGHWAYS
OTHER ROADS
MP 7.50 TO MP 8.79
TOTAL OF 1.29 MILES IN KOOTENAI COUNTY
IN IDAHO
:Iab ndonmentslab33 272 Coeur d Alene IndL.mxd
UNION PACIFIC RAILROAD CO.
COEUR D'ALENE INDUSTRIAL LEAD
IDAHO
INCLUDING 50+ YEAR OLD STRUCTURESo 0.5 1 2
Miles- -- -
Attachment 2
A~
Stimon Lumber Company
Executive Offces
520 SW Yamhii Suite 700
Portland, OR 97204
Phone [phone]
Fax [phone]
December 17, 2008
GabeMeyer
Assistant General Attorney
Union Pacific Railroad
Stop 1580
1400 Douglas Street
Omaha, NE 68179
RE: Docket No. AB-33 (Sub-No. 272X)
Dear Mr. Meyer:
Stimon Lumber Company has no objection to Union Pacific Railroad Company's proposed
abandonment of its Coeur d'Alene Industrial Lead from milepost 7.5 near Gibbs to the end ofthe
line at milepost 8.79 near Coeur d'Alene, a distance of 1.29 mies in Kottenai County, Idaho.
The abandonment of this line wil have no adverse effect on Stimson Lumber Company.,
w~
Jeff Webber
tR;?3~%7
81
Gabrl.1 S. M.r.r
A)SI~lanl 'icoeral AiiOrn~y
Attachment 3
October 28, 2008
Via UPS 2nd Day Air ot~d1
Surfce Transportation Board
395 E Stet, SW
Washington, DC 20024
OCT 31 2008
PøotPubli íl
Attntion: Victoria Rumon
Re: Proposed Abandonment of the Coeur dAlene Industrial Lead from Milepost
7.5 near Gibbs to Milepost 8.79; STB Docket No. AB-33 (Sub-No. 272X)
Dear Ms. Rutson
Enclosed for filing in the above-referenced matter are the original and ten (10)
copies of Union Pacific Railroad Company's Combined Environmental and Histonc
Report prepared pursuant to 49 C F.R. Sections 1105.7 and 1105.8, with a Certifcate
of Service' and a transmittal letter pursuant to 49 C F R Section 1105.11.
Union Pacifc anticipates filing a Petition for Exemption in this matter on or after
November 17, 2008. Please do not hesitate to contact me if you have any questions
Sincerely,~.4~
Gabriel S. Meyer
Enclosures
UlilON PACIFIC U.ii.OAP 1100 Uouiila~ "11~fI \1"1' 15RU Omaha:lt "8179 (4021 ~44.11i51l fix (402) SOI.Uin B_~tI"up(om
DRAFT FEDERAL REGISTER NOTICE
(49 C.F.R. § 1152.60(c))
STB Docket No. AB-33 (Sub-No. 272X)
Notice of Petition for Exemption to Abandon or
to Discontinue Service
On January 14, 2009, Union Pacific Railroad Company filed with the Surface
Transportation Board, Washington, D.C. 20423, a petition for exemption for the
abandonment of its Coeur d'Alene Industrial Lead, from Milepost 7.5 near Gibbs to the end
of the line at Milepost 8.79 near Coeur d'Alene, a distance of 1.29 miles in Kootenai
County, Idaho (the "Line"). The Line traverses U.S. Postal Zip Code 83814. There are no
shippers on the Line that wil be adversely affected by the proposed abandonment. There
are no stations or structures that wil be adversely affected by the proposed abandonment.
The Line does not contain federally granted rights-of-way. Any documentation in
the railroad's possession will be made available promptly to those requesting it.
The interest of railroad employees will be protected as required by 49 U.S.C.
1 0903(b )(2).
Any offer of financial assistance wil be due no later than 10 days after service of a
decision granting the petition for exemption.
All interested persons should be aware that following abandonment of rail service
and salvage of the Line, the Line may be suitable for other public use, including interim trail
use.
Any request for a public use condition and any request for trail use/rail banking wil
be due no later than 20 days after notice of the filing of the petition for exemption is
published in the Federal Register.
Persons seeking further information concerning abandonment procedures may
contact the Surface Transportation Board or refer to the full abandonment or
discontinuance regulations at 49 CFR Part 1152. Questions concerning environmental
issues may be directed to the Board's Section of Environmental Analysis.
An environmental assessment (EA) (or environmental impact statement (EIS), if
necessary), prepared by the Section of Environmental Analysis wil be served upon all
parties of record and upon any agencies or other persons who commented during its
preparation. Any other persons who would like to obtain a copy of the EA (or EIS) may
contact the Section of Environmental Analysis. EAs in these abandonment proceedings
normally will be made available within 60 days of the filng of the petition. The deadline for
submission of comments on the EA will generally be within 30 days of its service.
.
CERTIFICATE OF SERVICE AND PUBLICATION
The undersigned hereby certifies that a copy ofthe foregoing Petition for Exemption
in Docket No. AB-33 (Sub-No. 272X) by Union Pacific Railroad Company was served on
the date indicated below by mailing a copy, first class mail postage prepaid to the following:
Headquarters - Military Surface Deployment and
Distribution Command
Transportation Engineering Agency
ATTN: SDTE-SA (Railroads for National Defense)
709 Ward Drive, Building 1990
Scott AFB, IL 62225-5357
Idaho Public Utilities Commission
472 W Washington 83702
Boise,ID 83702
Idaho Transportation Department
3311 W. State Street Â- P.O. Box 7129
Boise, ID 83707-1129
Stimson Lumber Company
520 S.W. Yamhil Street, Suite 700
Portland, OR 97204
National Park Service - Pacific West Region
1111 Jackson Street, Suite 700
Oakland, CA 94607
U.S. Department of Agriculture
Chief of the Forest Service
4th Floor NW, Auditors Building
14th Street & Independence Ave., S.W.
Washington, D.C. 20250
Peter Cooper
1671 E. Miles Avenue
Hayden, Idaho 83835
The undersigned further certifies that a notice of the proposed abandonment and
discontinuances was published one time in the county where the rail lines are located as
follows:
County Newspaper Date
Kootenai Coeur d'Alene Press November 15, 2008
The above newspaper is generally circulated in the county where the rail line is
located. The Notice as published was in the form prescribed by the Board for a Petition for
Exemption at 49 CFR 1105.12.
Dated this 14th day of January, 2009
(Jn Y-Jl~Colleen K. Graham