STB – Page 10 – Railfanning.org

$87M Rail Investment Coming to Upstate New York, New England

March 11, 2009 Railfanning.org News Wire

NORFOLK, Va. — The STB’s approval of Pan Am Railways’ (PAR) and Norfolk Southern’s proposed Pan Am Southern joint venture clears the way for more than $87 million in rail infrastructure investment designed to significantly enhance the service capabilities and commercial offerings that NS and PAR provide in upstate New York and New England, the railroads said. “Pan Am Southern will bring immediate benefits to shippers doing business in upstate New York and New England,” said David Fink, Pan Am Railways’ president. “The Patriot Corridor will revitalize freight rail in the region, reducing highway congestion and improving air quality.” “Both

STB: Pan Am Southern Ownership OK

March 10, 2009 Railfanning.org News Wire

WASHINGTON — The Surface Transportation Board approved the joint control and ownership of Pan Am Southern LLC, a new railroad carrier, by the Norfolk Southern Railway, Pan Am Railways Inc. (PARI), and two of PARI’s rail subsidiaries, the Boston and Maine Corp. and the Springfield Terminal Railway Co. The ownership is subject to Board-imposed conditions. In reaching its decision, the Board found that the control transaction, along with its related operational agreements, should produce substantial transportation benefits to the New England region of the United States. PAS will operate approximately 437 miles of track, including an east-west section called the

STB Seeking Public Comment on UP Request for Declaratory Order

March 10, 2009 Railfanning.org News Wire

WASHINGTON — The Surface Transportation Board has instituted a proceeding and invites public comment on a Union Pacific petition for a declaratory order. In its petition, UP requests that the Board determine the extent of the common carrier obligation to quote rates for new, lengthy movements of chlorine, a toxic inhalation hazard (TIH). The chlorine movements at issue would average 1,900 miles in distance and travel through two High Threat Urban Areas and several other large cities. UP declined to quote rates for these movements pending the outcome of this proceeding. UP believes the risk of potential exposure from long-distance

Buttrey’s Term on STB to End

February 20, 2009 Railfanning.org News Wire

WASHINGTON — Surface Transportation Board Commissioner W. Douglas Buttrey announced that he will conclude his term on the Board on March 13. Buttrey was nominated to serve on the Board by President George W. Bush on Nov. 17, 2003, for a five-year term expiring Dec. 31, 2008. On Aug. 28, 2008, Buttrey announced that he would hold over for a period into 2009 for the Board to complete certain pending matters. The Board’s governing statute permits a Board member to serve for up to one year after the end of the Member’s term, unless a successor is appointed. Since Buttrey’s

STB Orders $345M in Rate Relief

February 20, 2009 Railfanning.org News Wire

WASHINGTON — The Surface Transportation Boardgranted an estimated $345 million in reparations and rate reductions from the BNSF Railway (BNSF) to Western Fuels Association, Inc. and Basin Electric Power Cooperative Inc. The Utilities had challenged the railroad transportation rates charged by BNSF to haul 8 million tons of coal each year from mines in Wyoming’s Powder River Basin to their electric-generating plant in Moba Junction, Wyo., the STB said. The utility plant is captive to BNSF and provides electricity into grids serving consumers in Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, South Dakota, and Wyoming, the STB said.

STB Announces Speakers Lineup

February 6, 2009 Railfanning.org News Wire

WASHINGTON — The Surface Transportation Board provided a schedule of speakers’ appearances and their time allocations for the Board’s Feb. 11 public hearing on the Board’s new responsibilities under the recently passed Passenger Rail Investment and Improvement Act of 2008. The Act enhances the Board’s role with regard to Amtrak and its relationships with commuter rail operators, host railroads, states and the public.

STB: New Method for Calculating Railroad Industry Cost of Capital

January 28, 2009 Railfanning.org News Wire

WASHINGTON — the Surface Transportation Board issued its final decision revising its method for calculating the railroad industry’s cost of capital. The Board adopts a simple average of a Capital Asset Pricing model (CAPM) and a multi-stage Discounted Cash Flow (DCF) model to calculate the cost of equity—one component of the cost of capital. The Board concludes that this methodology will yield a more precise determination than relying on CAPM alone. In January 2008, the Board replaced its single-stage DCF model with a CAPM model. During the CAPM rulemaking process, several parties urged the Board to use a multi-stage DCF

STB Asks for Comments on Clean Railroads Act of 2008

January 14, 2009 Railfanning.org News Wire

WASHINGTON — The Surface Transportation Board issued a Notice of Proposed Rulemaking requesting comments on proposed rules to implement The Clean Railroads Act of 2008 (Pub. L. No. 110-432), concerning solid waste rail transfer facilities. The proposed rules also will serve as interim rules until completion of the rulemaking proceeding. The Clean Railroads Act, enacted in October 2008, adds new sections 10908-10 to Title 49 of the United States Code. Those sections limit the Board’s authority related to solid waste rail transfer facilities and expand the authority of states to regulate these facilities. The proposed rules address such topics as

Surface Transportation Board Approves Routes for Southwest Gulf Railroad Line

December 31, 2008 Railfanning.org News Wire

SAN ANTONIO — Southwest Gulf Railroad (SGR), a subsidiary of Vulcan Materials Co., announced it has received approval from the federal Surface Transportation Board to construct a 9-mile rail line in Medina County, Texas. The STB’s approval allows three environmentally acceptable route options for the SGR line. The approval follows an extensive five-year review of the project that included multiple revisions and improvements, resulting in route modifications that were requested as well as extensive mitigation measures designed to protect the environment and historic resources. SGR said it fully supports these mitigation measures. “We are pleased with the STB’s decision. We

STB Approves CN Acquisition of EJ&E

December 24, 2008 Railfanning.org News Wire

WASHINGTON — The Surface Transportation Board unanimously approved the Canadian National Railway Company and Grand Trunk Corporation application to acquire control of the Elgin, Joliet & Eastern Railway Company (EJ&E), subject to a number of Board-imposed conditions. “Approval of this important railroad merger, with the conditions we have imposed, marks a significant step forward in our nation’s efforts to alleviate rail and highway congestion,” Board Chairman Charles D. Nottingham said. “I am pleased that the Board agreed, in a bipartisan and unanimous manner, after an unprecedented public involvement process, to grant the relief that this merger will provide to the