[Federal Register Volume 78, Number 229 (Wednesday, November 27, 2013)]
[Notices]
[Pages 71037-71038]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-28472]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35777]


New Orleans & Gulf Coast Railway Company, Inc.--Lease Exemption 
Containing Interchange Commitment--Union Pacific Railroad Company

    New Orleans & Gulf Coast Railway Company, Inc. (NOGC), a Class III 
rail carrier, has filed a verified notice of exemption under 49 CFR 
1150.41 to continue to lease from Union Pacific Railroad Company (UP) 
and operate approximately 11.52 miles of rail line. The line consists 
of 7.02 miles of UP's main line located between milepost 0.98 at 
Goldsboro, La., and milepost 8.00 near Westwego, La., and the 4.5-mile

[[Page 71038]]

Hooper Spur extending from Harvey Yard, at Harvey, La., south to the 
end of the spur at Bayou Street.\1\
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    \1\ NOGC was granted authority to lease and operate the rail 
line in New Orleans & Gulf Coast Railway--Lease Exemption--Union 
Pacific Railroad, FD 34411 (STB served Oct. 20, 2003).
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    NOGC and UP have recently entered into a First Supplement to their 
2003 Lease Agreement that adds the following new provisions: (1) The 
lease term is extended from September 24, 2013, to September 23, 2023 
(Section 1); (2) NOGC is permitted to construct a new yard on the 
leased premises (Section 2); and (3) NOGC is permitted to assess a 
surcharge on all NOGC traffic in order to undertake capital investments 
(Section 3).
    NOGC has certified that the Lease Agreement contains a provision 
that may limit future interchange at Westwego with a third-party 
connecting carrier by adjustment in the purchase price or rental 
(interchange commitment). Consequently, the Board's new rules 
established in Information Required in Notices and Petitions Containing 
Interchange Commitments, EP 714 (STB served Sept. 5, 2013), require 
applicant to submit the additional information set forth at 49 CFR 
1150.43(h)(1). Applicant has provided that information.\2\
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    \2\ Regarding Sec.  1150.43(h)(1)(vi), NOGC states that, 
although there is no direct connection to a third-party railroad, 
BNSF Railway Company and the New Orleans Public Belt are located in 
very close proximity to the leased lines.
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    NOGC has certified that its projected annual revenues as a result 
of this transaction will not result in NOGC's becoming a Class II or 
Class I rail carrier, but that its projected annual revenues will 
exceed $5 million. Accordingly, NOGC is required, at least 60 days 
before this exemption is to become effective, to send notice of the 
transaction to the national offices of the labor unions with employees 
on the affected lines, post a copy of the notice at the workplace of 
the employees on the affected lines, and certify to the Board that it 
has done so. 49 CFR 1150.42(e).
    NOGC, concurrently with its notice of exemption, filed a petition 
for waiver of the 60-day advance labor notice requirement under Sec.  
1150.42(e), asserting that: (1) No UP employees will be affected 
because no UP employees have performed operations or maintenance on the 
line since 2003; and (2) no NOGC employees will be affected because 
NOGC will continue to provide the same service and maintenance on the 
line as it has been providing since the inception of the lease. NOGC's 
waiver request will be addressed in a separate decision.
    NOGC states that it intends to consummate the transaction on or 
shortly after the effective date of this transaction. The Board will 
establish in the decision on the waiver request the earliest date this 
transaction may be consummated.
    If the notice contains false or misleading information, the 
exemption is void ab initio. Petitions to revoke the exemption under 49 
U.S.C. 10502(d) may be filed at any time. The filing of a petition to 
revoke will not automatically stay the effectiveness of the exemption. 
Petitions for stay must be filed no later than December 5, 2013.
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 35777, must be filed with the Surface Transportation Board, 395 E 
Street SW., Washington, DC 20423-0001. In addition, one copy of each 
pleading must be served on Karl Morell, Ball Janik LLP, Suite 225, 655 
Fifteenth St. NW., Washington, DC 20005.
    Board decisions and notices are available on our Web site at 
www.stb.dot.gov.

    Decided: November 21, 2013.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2013-28472 Filed 11-26-13; 8:45 am]
BILLING CODE 4915-01-P