Notice2026-04023

BNSF Railway Company-Trackage Rights Exemption-Union Pacific Railroad Company

Primary source

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Published
March 2, 2026

Issuing agencies

Surface Transportation Board

Full Text

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<title>Federal Register, Volume 91 Issue 40 (Monday, March 2, 2026)</title>
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[Federal Register Volume 91, Number 40 (Monday, March 2, 2026)]
[Notices]
[Pages 10178-10179]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04023]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36377 (Sub-No. 13)]


BNSF Railway Company--Trackage Rights Exemption--Union Pacific 
Railroad Company

    By petition filed on December 17, 2025, BNSF Railway Company (BNSF) 
requests that the Board permit the trackage rights over two rail lines 
granted to it under 49 CFR 1180.2(d)(7) in Docket No. FD 36377 (Sub-No. 
12) to expire under the terms agreed to by BNSF and the grantor of the 
rights, Union Pacific Railroad Company (UP).
    As explained by BNSF in its verified notice of exemption in Docket 
No. FD 36377 (Sub-No. 12), BNSF and UP entered into an agreement to 
extend the term of the trackage rights agreement granting BNSF 
restricted, temporary trackage rights over the UP rail lines located 
between: (1) UP milepost 93.2, at Stockton, Cal., on UP's Oakland 
Subdivision, and UP milepost 219.4, at Elsey, Cal., on UP's Canyon 
Subdivision, a distance of 126.2 miles; and (2) UP milepost 219.4, at 
Elsey, and UP milepost 280.7, at Keddie, Cal., on UP's Canyon 
Subdivision, a distance of 61.3 miles. The parties' trackage rights 
agreement restricts BNSF's use of the trackage rights lines to 
movements of BNSF unit ballast trains (loaded and empty) to and from 
the ballast pit located at Elsey. BNSF Verified Notice of Exemption 2, 
Dec. 17, 2025, BNSF Ry.--Trackage Rts. Exemption--Union Pac. R.R., FD 
36377 (Sub-No. 12). According to BNSF, it filed its verified notice of 
exemption under the Board's trackage rights class exemption at 49 CFR 
1180.2(d)(7), instead of the temporary trackage rights exemption at 49 
CFR 1180.2(d)(8), because the trackage rights covered by the notice are 
local rather than overhead. (BNSF Pet. 1 n.1.)

[[Page 10179]]

    In its petition, BNSF asks the Board to partially revoke the 
exemption as necessary to permit the trackage rights to expire at 
midnight on December 31, 2026, pursuant to the parties' agreement. 
(BNSF Pet. 3.) BNSF argues that granting this petition would promote 
the rail transportation policy at 49 U.S.C. 10101 and that the partial 
revocation would be consistent with the limited scope of the 
transaction, and would not have an adverse effect on shippers. (BNSF 
Pet. 3-4.) In addition, BNSF asserts that the Board has granted similar 
petitions for partial revocation to permit temporary trackage rights to 
expire, including petitions involving prior iterations of the trackage 
rights agreement at issue here. (Id. at 4.)

Discussion and Conclusions

    Although BNSF and UP have expressly agreed on the duration of the 
proposed trackage rights, trackage rights approved under the class 
exemption at 49 CFR 1180.2(d)(7) typically remain effective 
indefinitely, regardless of any contractual provisions. At times, 
however, the Board has taken action to allow such rights to expire 
after a limited time rather than lasting in perpetuity, based on the 
parties' agreement. See, e.g., BNSF Ry.--Trackage Rts. Exemption--Union 
Pac. R.R., FD 36377 (Sub-No. 11) (STB served April 30, 2025) (allowing 
trackage rights under 49 CFR 1180.2(d)(7) to expire).
    Permitting the trackage rights to expire as agreed by the parties 
would eliminate the need for BNSF to separately seek discontinuance 
authority at a later date, thereby minimizing the need for federal 
regulatory control (49 U.S.C. 10101(2)), reducing regulatory barriers 
to entry into and exit from the rail industry (49 U.S.C. 10101(7)), and 
allowing for the expeditious handling and resolution of this 
transaction (49 U.S.C. 10101(15)). Moreover, doing so would not result 
in an abuse of market power because the trackage rights at issue are 
solely to allow BNSF to move empty and loaded unit ballast trains to 
and from the ballast pit in Elsey for use in BNSF's maintenance-of-way 
projects. (See BNSF Pet. 2-3.) \1\ Therefore, the Board will grant the 
petition and permit the trackage rights exempted in Docket No. FD 36377 
(Sub-No. 12) to expire at midnight on December 31, 2026.
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    \1\ Because the proposed transaction would not result in an 
abuse of market power, the Board need not determine whether it is 
limited in scope. See 49 U.S.C. 10502(a).
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    To provide the statutorily mandated protection to any employee 
adversely affected by the discontinuance of trackage rights, the Board 
will impose the employee protective conditions set forth in Oregon 
Short Line Railroad--Abandonment Portion Goshen Branch Between Firth & 
Ammon, in Bingham & Bonneville Counties, Idaho, 360 I.C.C. 91 (1979).
    This action is categorically excluded from environmental review 
under 49 CFR 1105.6(c).
    It is ordered:
    1. BNSF's petition to permit expiration of the trackage rights in 
Docket No. FD 36377 (Sub-No. 12) per the agreement of the parties is 
granted.
    2. As discussed above, the trackage rights in Docket No. FD 36377 
(Sub-No. 12) are permitted to expire at midnight on December 31, 2026, 
subject to the employee protective conditions set forth in Oregon Short 
Line.
    3. Notice of this decision will be published in the Federal 
Register.
    4. This decision is effective on March 27, 2026. Petitions for stay 
must be filed by March 9, 2026. Petitions for reconsideration must be 
filed by March 17, 2026.

    Decided: February 25, 2026.

    By the Board, Board Members Fuchs, Hedlund, and Schultz.
Regena Smith-Bernard,
Clearance Clerk.
[FR Doc. 2026-04023 Filed 2-27-26; 8:45 am]
BILLING CODE 4915-01-P


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Indexed from Federal Register on March 2, 2026.

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