Notice2021-24670
Canadian Pacific Railway Limited; Canadian Pacific Railway Company; Soo Line Railroad Company; Central Maine & Quebec Railway US Inc.; Dakota, Minnesota & Eastern Railroad Corporation; and Delaware & Hudson Railway Company, Inc.-Control-Kansas City Southern; The Kansas City Southern Railway Company; Gateway Eastern Railway Company; and The Texas Mexican Railway Company
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 12, 2021
Issuing agencies
Surface Transportation Board
Full Text
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<title>Federal Register, Volume 86 Issue 216 (Friday, November 12, 2021)</title>
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[Federal Register Volume 86, Number 216 (Friday, November 12, 2021)]
[Notices]
[Pages 62862-62865]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-24670]
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SURFACE TRANSPORTATION BOARD
[Docket No. FD 36500]
Canadian Pacific Railway Limited; Canadian Pacific Railway
Company; Soo Line Railroad Company; Central Maine & Quebec Railway US
Inc.; Dakota, Minnesota & Eastern Railroad Corporation; and Delaware &
Hudson Railway Company, Inc.--Control--Kansas City Southern; The Kansas
City Southern Railway Company; Gateway Eastern Railway Company; and The
Texas Mexican Railway Company
AGENCY: Surface Transportation Board.
ACTION: On October 29, 2021, the Canadian Pacific Railway Limited,
Canadian Pacific Railway Company, and their US rail carrier
subsidiaries Soo Line Railroad Company; Central Maine & Quebec Railway
U.S. Inc.; Dakota, Minnesota & Eastern Railroad Corporation; and
Delaware & Hudson Railway Company, Inc. (collectively, CP) and Kansas
City Southern, The Kansas City Southern Railway Company, Gateway
Eastern Railway Company, and The Texas Mexican Railway Company
(collectively, KCS) filed an application with the Surface
Transportation Board (Board) seeking the Board's approval of the
acquisition of control by CP of KCS. The proposed acquisition has the
potential to result in significant environmental impacts; therefore,
the Board's Office of Environmental Analysis (OEA) has determined that
the preparation of an Environmental Impact Statement (EIS) is
appropriate pursuant to the National Environmental Policy Act (NEPA).
The purpose of this Notice is to inform stakeholders--including members
of the public; tribes; federal, state, and local agencies; and
environmental groups--interested in or potentially affected by
[[Page 62863]]
potential environmental impacts related to the proposed acquisition.
OEA will hold online public scoping meetings as part of the NEPA
process. Oral and written comments submitted during scoping will assist
OEA in defining the range of alternatives and potential impacts to be
considered in the EIS. Public scoping meeting dates are provided below.
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DATES: Comments on the scope of the EIS are due by December 17, 2021.
OEA will hold six online public scoping meetings on the following dates
(times in Central Standard Time).
<bullet> Tuesday, November 30, 2021, 6-8 p.m.
<bullet> Wednesday, December 1, 2021, 2-4 p.m.
<bullet> Thursday, December 2, 2021, 6-8 p.m.
<bullet> Tuesday, December 7, 6-8 p.m.
<bullet> Wednesday, December 8, 2021, 2-4 p.m.
<bullet> Thursday, December 9, 2021, 6-8 p.m.
Information on how to attend and participate in an online public
scoping meeting, including how to register in advance, is available on
the Board-sponsored project website at <a href="http://www.CP-KCSMergerEIS.com">www.CP-KCSMergerEIS.com</a>.
ADDRESSES: Interested parties are encouraged to file their scoping
comments electronically through the Board-sponsored project website at
<a href="http://www.CP-KCSMergerEIS.com">www.CP-KCSMergerEIS.com</a> or through the Board's website at <a href="http://www.stb.gov">www.stb.gov</a>
by clicking on the ``File an Environmental Comment'' link. Please refer
to Docket No. FD 36500 in all correspondence, including E-filings,
addressed to the Board. Scoping comments submitted by mail should be
addressed to: Joshua Wayland, Surface Transportation Board, c/o VHB,
Attention: Environmental Filing, Docket No. FD 36500, 940 Main Campus
Dr., Suite 500, Raleigh, NC 27606.
FOR FURTHER INFORMATION CONTACT: Joshua Wayland, Office of
Environmental Analysis, Surface Transportation Board, c/o VHB, 940 Main
Campus Dr., Suite 500, Raleigh, NC 27606, or call OEA's toll-free
number for the project at 1-888-319-2337. Assistance for the hearing
impaired is available through the Federal Information Relay Service at
1-800-877-8339. The website for the Board is <a href="https://www.stb.gov">https://www.stb.gov</a>. For
further information about the Board's environmental review process and
the EIS, you may also visit the Board-sponsored project website at
<a href="http://www.CP-KCSMergerEIS.com">www.CP-KCSMergerEIS.com</a>.
SUPPLEMENTARY INFORMATION:
Background
On October 29, 2021, CP and KCS (collectively, the Applicants)
filed an application with the Board under 49 U.S.C. 11323-25 seeking
its approval of the acquisition of control of KCS by CP. CP and KCS are
two of the seven Class I railroads in the United States, which are the
largest railroads defined as having annual revenue greater than $250
million. CP is one of Canada's two major railroads, extending across
the country and connecting east and west coast ports. In the U.S., CP
connects to Buffalo and Albany, New York and Searsport, Maine. CP also
runs south into the U.S. Midwest and connects with KCS in Kansas City,
Missouri. KCS is a Class I railroad that extends from Kansas City,
Missouri to the Gulf Coast and into Mexico, operating across 10 states
in the Midwest and Southeast. CP and KCS provide rail service for a
variety of industries, including agriculture, minerals, military,
automotive, chemical and petroleum, energy, industrial, and consumer
products. CP and KCS are the two smallest Class I railroads, and the
combined railroad would be the smallest Class I railroad by revenue. At
the request of OEA, the Applicants have submitted information needed by
OEA to initiate an environmental review of the proposed acquisition.
Based on the information provided by the Applicants, OEA has determined
that the proposed acquisition has the potential to result in
significant environmental impacts and that the preparation of an EIS is
appropriate.
Summary of the Board's Review Processes for This Proceeding
The Board will review the proposed transaction through two parallel
but distinct processes: (1) The transportation-related process that
examines the competitive, transportation, and economic implications of
the proposed acquisition on the national rail system, and (2) the
environmental process conducted by OEA that assesses the potential
environmental effects of the proposed acquisition on the human and
natural environment through preparation of an EIS. Interested persons
and entities may participate in either process or both. If interested
persons or entities are primarily interested in potential environmental
impacts on communities, such as noise, vibration, air emissions, grade
crossing safety and delay, emergency vehicle access, and other similar
environmental issues, the appropriate forum is OEA's environmental
review process. The statute setting forth the procedures for Board
review of acquisitions at 49 U.S.C. 11325 and the Board's implementing
regulations at 49 CFR 1180.4 (2000) require that the Board complete its
review within approximately 15 months after the application is accepted
for a ``major'' transaction such as this, and OEA must complete the
environmental process before the Board issues a final decision.
Environmental Review Process
The NEPA process is intended to assist the Board and the public in
identifying and assessing the potential environmental consequences of a
proposed action before a decision on that proposal is made. OEA is
responsible for ensuring that the Board complies with NEPA (42 U.S.C.
4321-4370m-12) and related environmental statutes, including Section
106 of the National Historic Preservation Act (54 U.S.C. 306108) and
Section 7 of the Endangered Species Act (16 U.S.C. 1536).
Purpose and Need
The proposed transaction involves an application for Board
authority under 49 U.S.C. 11323-25 for CP to acquire KCS. The proposed
transaction is not a federal government-proposed or sponsored project.
Thus, the project's purpose and need should be informed by both the
private applicant's goals and the Board's enabling statute--the
Interstate Commerce Act as amended by the ICC Termination Act, Public
Law 104-188, 109 Stat. 803 (1996). See Alaska Survival v. STB, 705 F.3d
1073, 1084-85 (9th Cir. 2013).
According to the Applicants, the purpose of the proposed
acquisition is to combine America's two smallest but fastest-growing
Class I railroads to build a more efficient and more competitive rail
network. The Applicants state that the proposed acquisition would
further the need for expanded and more capable and efficient
transportation infrastructure while simultaneously advancing the
interests of current and future customers in more reliable and
economical rail transportation options serving important North-South
trade flows. The Applicants also state that the proposed acquisition
would generate environmental benefits by reducing truck transportation
on highways in North America by more than 60,000 trucks annually,
resulting in less congestion, less maintenance, and improved safety on
those roads, as well as less noise pollution in the places where those
trucks would have driven, and lowered air emissions, including
greenhouse gas emissions. Under the
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Interstate Commerce Act, as amended, the Board ``shall approve and
authorize a transaction'' such as this when, after considering several
factors, ``it finds the transaction is consistent with the public
interest.'' 49 U.S.C. 11324 (b) & (c).
Proposed Action and Alternatives
The Proposed Action in this proceeding is the Applicants' proposed
acquisition of KCS by CP. The combination of these two railroads would
be an `end-to-end' merger because the CP and KCS railroad networks do
not overlap. The proposed acquisition would result in changes in rail
traffic on portions of the combined rail network. Rail traffic would
increase on certain rail line segments and would decrease on others.
The largest change would occur on the CP mainline between Sabula, Iowa
and Kansas City, Missouri, which would experience an increase in rail
traffic of approximately 14.4 additional trains per day, on average.
Increases in activities at rail yards and intermodal facilities would
also occur. In addition, the Applicants propose to make certain capital
improvements within the existing rail right-of-way, including adding
approximately four miles of double track on the KCS Pittsburg
Subdivision, adding approximately five miles of facility working track
adjacent to the International Freight Gateway intermodal terminal near
Kansas City, and adding or extending 24 passing sidings along the
combined network. The Applicants do not propose to construct any new
rail lines subject to Board licensing or to abandon any rail lines as
part of the proposed acquisition.
The alternative to the Proposed Action is the No-Action
Alternative, which would occur if the Board were to deny the proposed
acquisition. Under the No-Action Alternative, CP would not acquire KCS.
Scoping
The first stage of the environmental review process is scoping.
Scoping is an open process for determining the range of issues that
should be examined and assessed in the EIS. In addition to announcing
that the Board will prepare an EIS for this proceeding, this Notice
also requests comments on the scope of the EIS and presents the
schedule of public scoping meetings. With this notice, OEA is
soliciting written comments on the scope, alternatives, and issues to
be analyzed in the EIS. After the close of the comment period on the
scope of the EIS on December 17, 2021, OEA will review all comments
received and issue a final scope of study for the EIS. OEA anticipates
issuing the final scope of study in early 2022.
Draft EIS
Following the issuance of the final scope, OEA will prepare a Draft
EIS for the proposed acquisition. The Draft EIS will identify and
analyze alternatives, including the Proposed Action and the No-Action
Alternative, and will address potential impacts on the environment as
well as issues and concerns identified during the scoping process. The
Draft EIS will focus on (1) potential impacts from changes in rail
operations along rail line segments and at rail yards that would
experience increases in rail traffic as a result of the proposed
acquisition that would exceed OEA's thresholds for environmental review
at 49 CFR 1105.7(e), (2) potential impacts related to changes in
vehicular traffic on roadways and at facilities as a result of the
proposed acquisition that would exceed OEA's thresholds for analysis,
and (3) potential impacts that could result from making capital
improvements within the rail right-of-way as part of the proposed
acquisition.
The scope of the issues that will be analyzed in the Draft EIS may
include potential impacts related to:
<bullet> Freight rail capacity and safety;
<bullet> Passenger rail capacity and safety;
<bullet> Grade crossing safety and delay;
<bullet> Motor vehicle traffic and roadway systems;
<bullet> Land use;
<bullet> Air quality;
<bullet> Noise;
<bullet> Biological resources;
<bullet> Water resources;
<bullet> Hazardous waste sites;
<bullet> Cultural resources;
<bullet> Environmental justice; and
<bullet> Cumulative impacts.
The thresholds for assessing environmental impacts from increased
rail traffic on rail lines in railroad acquisition proceedings are an
increase in rail traffic of at least 100 percent (measured in gross ton
miles annually) or an increase of at least eight trains per day. For
air quality impacts, rail lines located in areas classified as being in
nonattainment under the Clean Air Act (42 U.S.C. 7401-7671q) are also
assessed if they would experience an increase in rail traffic of at
least 50 percent (measured in gross ton miles annually) or an increase
of at least three trains per day. Based on the information provided by
the Applicants to date, OEA has identified rail lines in Illinois,
Iowa, Missouri, Kansas, Oklahoma, Arkansas, Louisiana, and Texas that
would experience increases in rail traffic that would exceed the
analysis thresholds as a result of the proposed acquisition.
In addition to assessing the environmental impacts of the proposed
acquisition, the Draft EIS will also set forth OEA's preliminary
recommendations for environmental mitigation measures. OEA anticipates
issuing the Draft EIS in the spring of 2022.
Final EIS
Upon its completion, the Draft EIS will be made available for
public and agency review and comment for 45 days. OEA will then prepare
and issue a Final EIS that will address the comments on the Draft EIS
from the public; and federal, state and local agencies; and other
interested parties and will set forth OEA's final recommended
environmental mitigation. Then, in reaching its decision in this case,
the Board will consider the Draft EIS, the Final EIS, public comments,
and any final environmental mitigation proposed by OEA. OEA anticipates
issuing the Final EIS in the fall of 2022.
Public Scoping Meetings
As noted above, scoping is the first stage of the environmental
review process. OEA will hold online public scoping meetings at the
dates and times listed below. All times are listed in Central Standard
Time. There is no need to attend more than one online meeting, but all
are welcome to attend as many meetings as desired.
<bullet> Tuesday, November 30, 2021, 6-8 p.m.
<bullet> Wednesday, December 1, 2021, 2-4 p.m.
<bullet> Thursday, December 2, 2021, 6-8 p.m.
<bullet> Tuesday, December 7, 6-8 p.m.
<bullet> Wednesday, December 8, 2021, 2-4 p.m.
<bullet> Thursday, December 9, 2021, 6-8 p.m.
The online public scoping meetings will include a brief
presentation by OEA, followed by an opportunity for interested
individuals to make oral comments. Participants who have registered in
advance will be called upon first to deliver their oral comments and
will be given three minutes in which to do so. If time permits,
participants who did not register in advance will be given the
opportunity to make oral comments. A court reporter will record the
oral comments, and OEA staff will be available to listen and make notes
of comments.
For information on how to attend an online public scoping meeting,
including how to register in advance, please visit the Public
Involvement page on the Board-sponsored project website
[[Page 62865]]
(<a href="http://www.CP-KCSMergerEIS.com">www.CP-KCSMergerEIS.com</a>). Although individuals who would like to make
oral comments are encouraged to register in advance, registration is
not required to attend the public scoping meetings. OEA will consider
all comments equally no matter how comments are received, and it is not
necessary to attend an online public scoping meeting to provide scoping
comments, as OEA will also be accepting written comments during the
comment period, which ends on December 17, 2021.
Submitting Written Comments on the Scope of the EIS
Interested parties are encouraged to file their scoping comments
electronically through the Board-sponsored project website at <a href="http://www.CP-KCSMergerEIS.com">www.CP-KCSMergerEIS.com</a>. Written comments can also be submitted electronically
on the Board's website, <a href="http://www.stb.gov">www.stb.gov</a>, by clicking on the ``E-FILING''
link. Please refer to Docket No. FD 36500 in all correspondence,
including E-filings, addressed to the Board. Scoping comments submitted
by mail should be addressed to Joshua Wayland, Surface Transportation
Board, c/o VHB, 940 Main Campus Dr., Suite 500, Raleigh, NC 27606,
Attention: Environmental Filing, Docket No. FD 36500. Following these
directions will help ensure that your comments are considered in the
environmental review process for this proposed acquisition.
All comments submitted during scoping will be made available to the
public on the Board-sponsored project website and the Board's website.
OEA will add commenters' names to its email distribution list to
announce the availability of the final scope of the EIS, the Draft EIS,
and the Final EIS, which will be posted on the Board's website and the
Board-sponsored project website. Commenters without email addresses
will receive notifications by U.S. mail if accurate mailing addresses
are provided, as needed.
All Board decisions, orders, and notices in this proceeding will
also be available on the Board's website at <a href="http://www.stb.gov">www.stb.gov</a> under ``E-
Library,'' and ``Decisions & Notices'' or ``Filings.'' For further
information about the Board's environmental review process and the EIS,
you may also visit the Board-sponsored project website at <a href="http://www.CP-KCSMergerEIS.com">www.CP-KCSMergerEIS.com</a>.
By the Board, Danielle Gosselin, Acting Director, Office of
Environmental Analysis.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2021-24670 Filed 11-10-21; 8:45 am]
BILLING CODE 4915-01-P
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