[Federal Register Volume 88, Number 40 (Wednesday, March 1, 2023)]
[Notices]
[Pages 13005-13006]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-04145]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36669]


Massachusetts Bay Transportation Authority--Acquisition 
Exemption--CSX Transportation, Inc.

    The Massachusetts Bay Transportation Authority (MBTA) \1\ has filed 
a verified notice of exemption under 49 CFR 1150.41 to acquire from CSX 
Transportation, Inc. (CSXT), approximately 8.86 miles of track, which 
includes: (1) an 8.4-mile segment of railroad track between milepost 
QVG 0.0, at Franklin, Norfolk County, Mass., and milepost QVG 8.4, at 
Milford, Worcester County, Mass., generally known as the Milford 
Secondary Line; and (2) a roughly 0.46-mile segment of the Franklin 
Industrial Track, contiguous with the Milford Secondary, extending 
between valuation station 1456+00 and valuation station 1480+40

[[Page 13006]]

within Franklin, Norfolk County, Mass. (collectively, the Line).\2\
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    \1\ In its verified notice, MBTA states that it is a common 
carrier by virtue of its ownership of lines of railroad not directly 
involved in this proceeding. See, e.g., Boston & Me. Corp.--
Discontinuance of Service Exemption--in Middlesex Cnty., Mass., AB 
32 (Sub-No. 56X) (STB served Feb. 10, 1994).
    \2\ MBTA also filed a motion to dismiss its notice of exemption 
on the grounds that its transaction does not require authorization 
from the Board. The motion to dismiss will be addressed in a 
subsequent Board decision.
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    MBTA states that, under the proposed transaction, it will acquire 
the Line subject to one freight common carrier service easement that 
will be retained by CSXT (the Easement). According to MBTA, CSXT will 
operate over the Franklin Industrial segment pursuant to the Easement 
and the Grafton & Upton Railroad Company (G&U), a Class III carrier, 
will operate over the Milford Secondary Line via assignment of CSXT's 
retained easement over that portion of the Line.\3\ MBTA states that 
the proposed transaction has been agreed upon pursuant to a contract 
for sale dated April 11, 2022. According to MBTA, the agreements 
governing the subject asset sale and post-transaction railroad 
operations prohibit MBTA from providing freight common carrier service, 
and from unreasonably interfering with the common carrier operations of 
the freight service provided over the Line. MBTA asserts, however, that 
it will possess the right to provide commuter rail service over the 
Line. MBTA also states that the agreements that underly the acquisition 
do not contain any provision or agreement limiting future interchange 
with a third-party connecting carrier.
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    \3\ MBTA states that G&U currently holds an easement for the 
Milford Secondary pursuant to a transaction authorized in Grafton & 
Upton Railroad--Acquisition & Operation Exemption--CSX 
Transportation, Inc., FD 36444 (STB served Sept. 28, 2020). However, 
according to MBTA, that easement is set to terminate upon the 
closing of the present transaction. MBTA asserts that, 
contemporaneously with its acquisition of the Line, CSXT intends to 
assign the portion of the Easement over the Milford Secondary to 
G&U. In Grafton & Upton Railroad--Acquisition & Operation 
Exemption--CSX Transportation, Inc., Docket No. FD 36670, G&U filed 
a verified notice of exemption for operation over the Milford 
Secondary, pursuant to 49 CFR part 1150.
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    MBTA certifies that, because it does not currently operate freight 
common carrier service over the Line (and thus generates no freight 
common carrier service revenues), MBTA's prospective annual common 
carrier revenues will not result in the creation of a Class I or Class 
II carrier.
    MBTA states that it will consummate the proposed transaction once 
the Board has rendered a favorable decision on the concurrently filed 
motion to dismiss, and upon the effectiveness of an anticipated notice 
of exemption to be filed by G&U in a separate proceeding. The earliest 
this transaction may be consummated is March 15, 2023, the effective 
date of the exemption (30 days after the verified notice of exemption 
was filed). 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 March 8, 2023 (at least 
seven days before the exemption becomes effective). All filings in 
response to this notice must refer to Docket No. FD 36669 and must be 
filed with the Surface Transportation Board either via e-filing on the 
Board's website or in writing addressed to 395 E Street SW, Washington, 
DC 20423-0001. In addition, a copy of each pleading must be served on 
Robert A. Wimbish, Fletcher & Sippel LLC, 29 North Wacker Drive, Suite 
800, Chicago, IL 60606-3268.

    Board decisions and notices are available at www.stb.gov.

    Decided: February 23, 2023.

    By the Board, Mai T. Dinh, Director, Office of Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2023-04145 Filed 2-28-23; 8:45 am]
BILLING CODE 4915-01-P