[Federal Register Volume 74, Number 236 (Thursday, December 10, 2009)]
[Notices]
[Page 65589]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-29441]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35312]


Massachusetts Department of Transportation--Acquisition 
Exemption--Certain Assets of CSX Transportation, Inc.

    Massachusetts Department of Transportation (MassDOT), a noncarrier, 
has filed a verified notice of exemption under 49 CFR 1150.31 to 
acquire from CSX Transportation, Inc. (CSXT) certain physical assets of 
railroad lines and associated rights-of-way in Massachusetts, 
including: (1) Portions of the Grand Junction Branch, extending 4.87 
miles between milepost QBG 0.00 and milepost QBG 2.70, and between 
milepost QBG 5.70 and milepost QBG 7.87; (2) a portion of the Boston 
Terminal Running Track, extending 1.10 miles between milepost QBB 0.00 
and milepost QBB 1.10; (3) the New Bedford Secondary, extending 18.48 
miles between milepost QN 13.40 (at Cotley Junction) and milepost QN 
31.80 (at New Bedford), including CSXT's property interests in the 
right-of-way and track assets of the North Dartmouth Industrial Track 
(also known as the Watuppa Branch) between milepost QND 0.0 and 
milepost QND 0.08 and CSXT's property interests in the right-of-way but 
not the track assets between milepost QND 0.08 and milepost QND 6.0; 
\1\ (4) the Fall River Secondary, extending 14.20 miles between 
milepost QNF 0.00 (at Myricks) and milepost QNF 14.2 (at Fall River, 
Massachusetts--Rhode Island state line); (5) the Framingham to 
Worcester segment of the Boston Main Line (the BML-West), extending 
approximately 22.92 miles between milepost QB 21.38 (at Framingham) and 
milepost QB 44.30 (at Worcester); and (6) the track assets, but not the 
underlying real estate, constituting the 9.71-mile rail line between 
milepost QB 1.12 (at CP Cove) and milepost QB 10.83 (at Newton/
Riverside) (the BML-East). These properties, which include 
approximately 71.28 miles of rail line, will be referred to 
collectively as ``the Railroad Assets.'' \2\
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    \1\ CSXT previously sold the track and material, and leased the 
underlying real estate, on the Watuppa Branch between mileposts QND 
0.08 and QND 6.0 to the Bay Colony Railroad Corporation (BCLR). See 
Bay Colony Railroad Corporation--Acquisition and Operation 
Exemption--CSX Transportation, Inc., as Operator for New York 
Central Lines, LLC, STB Finance Docket No. 34446 (STB served Jan. 
16, 2004). CSXT states that, in this transaction, it will convey the 
full scope of its ownership interest in the Watuppa Branch to 
MassDOT, subject to BCLR's rights and interests and CSXT's retained 
easement over the first 0.08 miles of the branch. Pursuant to an 
agreement between CSXT and MassDOT, BCLR will continue to provide 
common carrier service over the 5.92 miles of the Watuppa Branch 
west of milepost QND 0.08, and MassDOT will acquire only the real 
estate underlying this section of the branch. Because of BCLR's 
interest in 5.92 miles of the Watuppa Branch, those 5.92 miles have 
been excluded here from the mileage total for the New Bedford 
Secondary.
    \2\ In the transaction, CSXT states that it will not transfer to 
MassDOT the right or obligation to conduct common carrier freight 
operations. According to CSXT, pursuant to its retained easements, 
it will have the exclusive right and ability to provide rail freight 
service on the Railroad Assets.
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    The transaction is scheduled to take place in two stages, pursuant 
to two separate closings later than the December 24, 2009 effective 
date of the exemption. One closing is scheduled to take place on May 
14, 2010,\3\ and the second is scheduled to take place after the first 
closing but on or before September 15, 2012.\4\
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    \3\ The first closing will encompass the sale of the Grand 
Junction Branch, the Boston Terminal Running Track Assets, the New 
Bedford Secondary (including CSXT's interests in the Watuppa 
Branch), and the Fall River Secondary. At the time that MassDOT and 
CSXT close on the sale of the New Bedford Secondary (including 
CSXT's interests in the Watuppa Branch) and the Fall River Secondary 
(collectively, the South Coast Assets), CSXT simultaneously will 
convey its retained permanent freight easement rights over the South 
Coast Assets (excluding the 5.92 miles of the Watuppa Branch, over 
which CSXT does not now possess such rights) to the Massachusetts 
Coastal Railroad, LLC (Mass Coastal), a Class III rail carrier, 
pursuant to a separate proceeding, STB Finance Docket No. 35314, 
Massachusetts Coastal Railroad, LLC--Acquisition--CSX 
Transportation, Inc. Upon consummation of the easement sale at issue 
in that proceeding, if approved, Mass Coastal will assume freight 
service operations on the South Coast Assets.
    \4\ The second closing will encompass the sale of the BML-West 
and BML-East assets.
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    If the notice contains false or misleading information, the 
exemption is void ab initio.\5\ Petitions to reopen the proceeding 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 
transaction. Petitions for stay must be filed no later than December 
17, 1009 (at least 7 days before the exemption becomes effective).
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    \5\ A motion to dismiss has been filed in this proceeding. The 
motion will be addressed in a subsequent Board decision.
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    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35312, must be filed with the Surface Transportation 
Board, 395 E Street, SW., Washington, DC 20423-0001. In addition, a 
copy of each pleading must be served on Keith G. O'Brien, Baker & 
Miller, PLLC, 2401 Pennsylvania Avenue, NW., Suite 300, Washington, DC 
20037.
    Board decisions and notices are available on our Web site at: 
http://www.stb.dot.gov.

    Decided: December 7, 2009.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. E9-29441 Filed 12-9-09; 8:45 am]
BILLING CODE 4915-01-P