Notice2025-04525
Canadian National Railway Company and Grand Trunk Corporation -Control-Iowa Northern Railway Company (General Oversight)
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
March 19, 2025
Issuing agencies
Surface Transportation Board
Abstract
On January 30, 2024, Canadian National Railway Company (CNR) and Grand Trunk Corporation (GTC), together with the Iowa Northern Railway Company (IANR) (collectively, Applicants) filed an application seeking approval for CNR and GTC to acquire control of IANR and operate IANR's 218-mile rail system in Iowa. By decision served on January 14, 2025 (Decision No. 3), the Board approved Applicants' application. As a condition of its approval, the Board imposed a three-year oversight period, during which the Board will closely monitor Applicants' compliance with, and the effectiveness of, the conditions imposed by the Board. Throughout the oversight period, Applicants are required to report service, operational, and competition-related metrics at prescribed frequencies, as described in Decision No. 3. The Board now institutes this proceeding to implement the general oversight condition and provide further guidance regarding Applicants' reporting obligations. ---------------------------------------------------------------------------
Full Text
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<title>Federal Register, Volume 90 Issue 52 (Wednesday, March 19, 2025)</title>
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[Federal Register Volume 90, Number 52 (Wednesday, March 19, 2025)]
[Notices]
[Pages 12926-12928]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-04525]
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SURFACE TRANSPORTATION BOARD
[Docket No. FD 36744 (Sub-No. 3) \1\]
Canadian National Railway Company and Grand Trunk Corporation --
Control--Iowa Northern Railway Company (General Oversight)
AGENCY: Surface Transportation Board.
ACTION: Decision No. 1; Notice of General Oversight Proceeding and
Guidance on Reporting Requirements.
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SUMMARY: On January 30, 2024, Canadian National Railway Company (CNR)
and Grand Trunk Corporation (GTC), together with the Iowa Northern
Railway Company (IANR) (collectively, Applicants) filed an application
seeking approval for CNR and GTC to acquire control of IANR and operate
IANR's 218-mile rail system in Iowa. By decision served on January 14,
2025 (Decision No. 3), the Board approved Applicants' application. As a
condition of its approval, the Board imposed a three-year oversight
period, during which the Board will closely monitor Applicants'
compliance with, and the effectiveness of, the conditions imposed by
the Board. Throughout the oversight period, Applicants are required to
report service, operational, and competition-related metrics at
prescribed frequencies, as described in Decision No. 3. The Board now
institutes this proceeding to implement the general oversight condition
and provide further guidance regarding Applicants' reporting
obligations.
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\1\ A copy of this decision is being served on all parties of
record on the service list in the main docket, FD 36744.
DATES: Any person who wishes to participate in this proceeding as a
party of record must file, by March 24, 2025,
[[Page 12927]]
a notice of intent to participate. Applicants' first data submission,
including information for the required two-year lookback period and Q1
2025, is due by April 30, 2025. Subsequent quarterly files must be
submitted 30 days following the end of each calendar quarter.
Applicants' initial plan and report regarding scheduled local service
is due by November 13, 2025. Applicants' first quarterly narrative
regarding changes to any operating plans on the former IANR system
shall be submitted to the Board and any impacted shippers by January
30, 2026. Subsequent quarterly narratives must be submitted 30 days
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following the end of each quarter.
ADDRESSES: Any filing submitted in this proceeding must be filed with
the Board via e-filing on the Board's website or in writing addressed
to 395 E Street SW, Washington, DC 20423-0001. In addition, one copy of
each filing must be sent to (1) CNR and GTC's representative, Matthew
J. Warren, Sidley Austin LLP, 1501 K Street NW, Washington, DC 20005;
(2) IANR's representative, Kevin M. Sheys, Law Office of Kevin M. Sheys
LLC, 42 Brush Hill Road, Sherborn, MA 01770; and (3) any other person
designated as a party of record on the service list for this subdocket.
FOR FURTHER INFORMATION CONTACT: Sarah Fancher at (202) 740-5507. If
you require an accommodation under the Americans with Disabilities Act,
please call (202) 245-0245.
SUPPLEMENTARY INFORMATION: In Decision No. 3,\2\ the Board established
oversight for a period of three years, during which the Board will
closely monitor Applicants' compliance with, and the effectiveness of,
the conditions imposed on the control transaction. Decision No. 3, FD
36744 et al., slip op. at 21, 27-28 (STB served Jan. 14, 2025). The
Board is now instituting this proceeding to implement the general
oversight condition and provide further guidance regarding Applicants'
reporting obligations during the oversight period.
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\2\ The Board corrected the employee protective conditions in a
subsequent decision. See Canadian Nat'l Ry.--Control--Iowa N. Ry.,
FD 36744 et al. (STB served Jan. 31, 2025).
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Reporting Guidance and Clarification. As part of the Board's
oversight conditions, for the duration of the oversight period,
Applicants will report on competition-related, service, and operational
metrics at prescribed frequencies, as described in Decision No. 3, FD
36744 et al., slip op. at 27-28. Applicants will also submit a plan for
scheduled local service and quarterly narratives regarding changes to
any operating plans on the former IANR system. Id. at 27.
Quarterly Reports on Volumes Interchanged at Gateways. In Decision
No. 3, the Board explained that Applicants would be required to
provide, during the oversight period, the total count of cars
interchanged, categorized by two-digit STCC and broken out by
interchange partner. Id. at 19. With the first submission, Applicants
are also to provide, to the extent possible, the same historical
quarterly information for a two-year period dating back from the
effective date of Decision No. 3. Id. The Board's decision noted that a
report on this data would allow the Board to monitor traffic levels at
gateways and take appropriate action if necessary. Id.
By letter filed on January 31, 2025, POET Bioprocessing (POET), a
railroad shipper of biofuels and other hazardous commodities that would
be affected by the transaction, requests that the Board clarify or
revisit the reporting requirement in Decision No. 3 that directs
Applicants to provide quarterly reports on interchange volumes. POET
Letter 1-2, Canadian Nat'l Ry.--Control--Iowa N. Ry., FD 36744. POET
states that it is the only biofuels producer on the IANR system and
that its volumes are currently transported through all the interchange
points on the IANR. Id. at 2. Accordingly, POET argues that the public
disclosure of its interchanged carloads by two-digit STCC code would
reveal not only the volumes of biofuels shipped by POET from its
facilities, but also the markets to which such shipments are being
sent. Id. To balance the Board's oversight goals with confidentiality,
POET, therefore, requests that the Board instead require Applicants to
publicly report only the count of cars interchanged in total and for
each interchange partner. Id. POET suggests, however, that should the
Board elect to retain the two-digit STCC requirement, this information
be submitted under seal pursuant to the protective order in Docket No.
FD 36744. Id.
As the Board found in Decision No. 3, data reflecting traffic
volumes interchanged at gateways, categorized by two-digit STCC and
broken out by interchange partner, will allow the Board to monitor the
traffic levels at gateways and take appropriate action as necessary.
Decision No. 3, FD 36744 et al., slip op. at 27-28. The Board, however,
finds that public reporting at the STCC level might unnecessarily make
commercially sensitive information public. Therefore, the Board will
require Applicants to publicly report only the count of cars
interchanged in total and for each interchange partner. Applicants
also, however, will be required to file under seal the total count of
cars interchanged, categorized by two-digit STCC. As previously
directed in Decision No. 3, with the first submission, Applicants will
be required to provide, to the extent possible, the same historical
quarterly information for a two-year period dating back from the
effective date of Decision No. 3, and subject to the same requirements
regarding what should be public and what should be filed under seal.
Reporting Format. Applicants must submit reports on interchange
volumes as filings to the Board, consisting of an electronic copy of
the data. Templates have been posted in this docket to help facilitate
Applicants' data submissions. Reports on service will be in narrative
form.
Protective Order. For the oversight subdocket, the Board adopts the
protective order imposed in the main docket of this proceeding. See
Canadian Nat'l Ry.--Control--Iowa N. Ry., FD 36744 et al. (STB served
Feb. 8, 2024). Parties may submit filings, as appropriate, under seal
marked Confidential or Highly Confidential pursuant to the protective
order.
Service List. A copy of this decision is being served on all
parties of record in Docket No. FD 36744. This decision will serve as
notice that persons who were parties of record in Docket No. FD 36744
will not automatically be placed on the service list as parties of
record in the general oversight proceeding, Docket No. FD 36744 (Sub-
No. 3). Any person who wishes to participate in this oversight
proceeding as a party of record must file, in this subdocket, no later
than March 24, 2025, a notice of intent to participate, accompanied by
a certificate of service indicating that the notice has been properly
served on Applicants' representatives.
It is ordered:
1. Any person who wishes to participate in this oversight
proceeding as a party of record must file, in this subdocket, a notice
of intent to participate, no later than March 24, 2025, accompanied by
a certificate of service indicating that the notice has been properly
served on Applicants' representatives.
2. POET's request to modify the reporting requirement for volumes
interchanged at gateways is granted to the extent discussed above.
3. Applicants' first data submission, including information for the
two-year lookback period, is due by April 30, 2025. Subsequent filings
shall contain
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quarterly files and must be submitted 30 days following the end of each
quarter.
4. Applicants' initial plan and report regarding scheduled local
service is due by November 13, 2025. Applicants' first quarterly
narrative regarding changes to any operating plans on the former IANR
system shall be filed with the Board and submitted to any impacted
shippers by January 30, 2026. Subsequent quarterly narratives must be
filed and submitted 30 days following the end of each quarter.
5. This decision will be published in the Federal Register.
6. This decision is effective on its service date.
By the Board, Board Members Fuchs, Hedlund, Primus, and Schultz.
Board Member Primus concurred with a separate expression.
Board Member Primus, concurring:
I concur with today's decision. However, I maintain my objections
to the Board's approval of the transaction, as stated in my January 14,
2025 dissent.
Decided: March 13, 2025.
Tammy Lowery,
Clearance Clerk.
[FR Doc. 2025-04525 Filed 3-18-25; 8:45 am]
BILLING CODE 4915-01-P
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</html>Indexed from Federal Register on March 19, 2025.
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