20100917Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: NEIL PRICE
DEPUTY ATTORNEY GENERAL

DATE: SEPTEMBER 14, 2010

SUBJECT: PROPOSED ABANDONMENT OF A SECTION OF UNION PACIFIC
RAILROAD COMPANY’S RAIL LINE FROM MILEPOST 0.9 TO
MILEPOST 1.75, A TOTAL DISTANCE OF 0.85 MILES, IN CANYON
COUNTY, IDAHO, CASE NO. UPR-R-10-01

On September 14, 2010, Union Pacific Railroad Company (“UPR” or “Company”)
issued a letter declaring that UPR intends to request authority from the Surface Transportation
Board (“STB”) to abandon and discontinue service, from Milepost 0.9 to Milepost 1.75, on the
Stoddard Industrial Lead in Nampa, Canyon County, Idaho. UPR’s action before the STB is
referenced as Docket No. AB-33 (Sub-No. 294X). In addition, the Company attached a map
outlining the portion of the rail line it intends to abandon.
THE COMMISSION'S ROLE IN ABANDONMENTS
The STB is the federal entity with the authority to approve or deny railroad
abandonments. However, Idaho Code § 62-424 provides that the Commission “shall schedule a
public hearing on the proposed abandonment.” The purpose of the state abandonment 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 the potential for profitability. If the Commission finds that the abandonment
would adversely affect the area being served and the line has the potential for profitability, then
the Commission may represent the State of Idaho in the STB abandonment proceeding.
Unlike the traditional abandonment process, the exemption process allows a railroad
to abandon a rail line in as few as 30 days. Under the exemption process, there is no requirement
DECISION MEMORANDUM 2
to file a notice of intent to abandon or an annual system diagram map showing rail lines in
jeopardy. To be eligible to file a petition for 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 procedure, the STB will publish a notice in
the Federal Register within 20 days after the petition for exemption is filed. Thirty (30) days
after the notice is published in the Federal Register, the railroad is permitted to abandon the rail
line unless the STB stays the abandonment.
FACTUAL BACKGROUND
UPR requests “assistance in identifying any potential effects of this action. . . .” UPR
Letter at 1. Pursuant to federal law and STB regulations, UPR is required to submit an
Environmental Report to the STB analyzing the potential environmental impact caused by the
proposed abandonment. Id. UPR states that it does not “anticipate any adverse environmental
impacts.” Id.
A preliminary investigation conducted by Commission Staff revealed several
potential shippers along the .85 mile section of the rail line subject to abandonment. These
shippers are currently trucking their goods to another section of the rail line for service because
the .85 mile section of the Stoddard Industrial Lead is currently in disrepair. These shippers have
expressed at least some interest in receiving rail service at their business situs.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Proposed Abandonment and Notice
of Telephonic Hearing?

M:UPR-R-10-01_np