|SURFACE TRANSPORTATION BOARD DECISION DOCUMENT|
|NEW YORK CENTRAL LINES, LLC--ABANDONMENT EXEMPTION--IN VERMILLION AND WARREN COUNTIES, IN|
|Director Of Proceedings|
|GRANTED FLEX-N-GATE CORPORATION (FLEX) AND FNG LOGISTICS CO.'S (FNG) REQUEST TO SUBSTITUTE FNG FOR FLEX, AS THE PURCHASER OF APPROXIMATELY 5.91 MILES OF THE RIGHT-OF-WAY FROM NYC BETWEEN MILEPOST QSO-5.18 AND MILEPOST QSO-11.09.|
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|Full Text of Decision|
33569 SERVICE DATE - APRIL 28, 2003
SURFACE TRANSPORTATION BOARD
NEW YORK CENTRAL LINES, LLC–ABANDONMENT EXEMPTION–
IN VERMILLION AND WARREN COUNTIES, IN
Decided: April 25, 2003
New York Central Lines, LLC (NYC) and CSX Transportation, Inc. (CSXT) filed a notice of exemption under 49 CFR 1152 Subpart F–Exempt Abandonments and Discontinuances of Service for NYC to abandon and CSXT to discontinue service over approximately 6.12 miles of railroad between milepost QSO-5.18 near the Illinois/Indiana State line and milepost QS0-11.30 near Olin, in Vermillion and Warren Counties, IN. Notice of the exemption was served and published in the Federal Register on September 28, 2001 (66 FR 49741-42). Under 49 CFR 1152.50(d)(3), the exemption was scheduled to become effective on October 30, 2001, but on October 11, 2001, Flex-N-Gate Corporation (Flex) late-filed a notice of intent to file an offer of financial assistance (OFA) under 49 U.S.C. 10904 and 49 CFR 1152.27(c)(1) to purchase the entire line.
By decision served January 31, 2002, Flex was found financially responsible and the effective date of the exemption authorizing the abandonment was postponed to permit the OFA process to proceed. The January 31 decision also set February 27, 2002, as the deadline for either party to request the Board to establish the terms and conditions for the purchase price if CSXT and Flex could not agree on the purchase price. Both the effective date of the exemption and the deadline for filing requests for the establishment of terms and conditions were extended several times to permit continued negotiations. On September 4, 2002, Flex informed the Board that the parties had reached an agreement for Flex to purchase approximately 5.91 miles of the right-of-way from NYC between milepost QSO-5.18 and milepost QSO-11.09. By decision served September 17, 2002, Flex was authorized to acquire the rail line between milepost QSO-5.18 and milepost QSO-11.09.
In a motion filed on April 22, 2003, Flex and FNG Logistics Co. (FNG), a wholly owned subsidiary of Flex, request permission to substitute FNG for Flex, as the purchaser of the line. Flex asserts that FNG, as a separate entity focused on transportation, will be better able to manage the rail line and that, for this reason and other business reasons, Flex desires that FNG acquire and manage the line. FNG and NYC have consummated this transaction, and FNG currently holds legal title to the property, but the line is currently undergoing rehabilitation and service has not yet commenced. In its pleading, Flex states that it will agree to the Board’s usual conditions that it guarantee the financial responsibility and performance of FNG. Therefore, the substitution of FNG for Flex will be permitted.
This decision does not significantly affect either the quality of the human environment or the conservation of energy resources.
It is ordered:
1. The motion of Flex and FNG is granted.
2. FNC is substituted as the purchaser of the line effective on the service date of this decision.
3. This decision is effective on its service date.
By the Board, David M. Konschnik, Director, Office of Proceedings.
Vernon A. Williams