Railroad Contracts

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

49 CFR Part 1313

[STB Ex Parte No. 541]

Railroad Contracts

AGENCY: Surface Transportation Board, Transportation.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Board proposes to modify its existing regulations that

govern contracts under 49 U.S.C. 10709 that are entered into between

one or more rail carriers and one or more purchasers of rail services

for the transportation of agricultural products. The proposed

regulations eliminate provisions for filings that are no longer

required, and otherwise largely continue existing filing and

information disclosure requirements for agricultural contract

summaries.

DATES: Comments are due on November 18, 1996.

ADDRESSES: Send comments (an original and 10 copies) referring to STB

Ex Parte No. 541 to: Surface Transportation Board, Office of the

Secretary, Case Control Branch, 1201 Constitution

[[Page 54145]]

Avenue, N.W., Washington, DC 20423-0001.

FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 927-5660. [TDD for

the hearing impaired: (202) 927-5721.]

SUPPLEMENTARY INFORMATION: The ICC Termination Act of 1995, Pub. L. No.

104-88, 109 Stat. 803 (1995) (ICCTA), abolished the Interstate Commerce

Commission (ICC) and transferred responsibility for regulating rail

transportation to the Surface Transportation Board (Board). As

pertinent here, the ICCTA also reduced regulatory oversight of rail

transportation contracts in several significant ways. First, the ICCTA

limited such oversight to contracts covering the transportation of

agricultural products. Second, even as to contracts for agricultural

products, the ICCTA eliminated the requirement that railroads file

copies of the contracts with the Board; railroads need only file a

summary of each contract. Third, the ICCTA removed various outdated

provisions and procedural details, leaving it to the Board to maintain

appropriate implementing procedures.

In an advance notice of proposed rulemaking in this proceeding,

served March 26, 1996 (61 FR 13147), we invited interested persons to

submit suggestions for appropriate regulations to implement 49 U.S.C.

10709, in place of the now-outdated rules at 49 CFR part 1313. In

response, we received comments from shipper, carrier and rail employee

interests. Shippers contended that the existing information disclosure

requirements for agricultural contracts have proven to be adequate, and

that all of them should be continued. Rail carriers proposed to reduce

the information required to be disclosed.

After considering the comments, we propose to revise our

regulations to eliminate provisions for filings that are no longer

required, and otherwise to continue many of the existing filing and

information disclosure requirements for agricultural contract

summaries. Certain other minor revisions, such as changes to the time

period within which the Board must take action against new and amended

contracts, are proposed to reflect related changes made by the ICCTA.

Additionally, we propose to add a new requirement that summaries for

agricultural contracts be filed within seven days of the date of a

contract or amended contract. In other respects, the proposed

regulations do not significantly change the existing rules.

Availability

The full text of the proposed rules is available to all persons for

a charge by phoning DC News and Data, Inc., at (202) 289-4357.

Request for Comments

We invite comments on all aspects of the proposed regulations. We

encourage any commenter that has the necessary technical wherewithal to

submit its comments as computer data on a 3.5-inch floppy diskette

formatted for WordPerfect 5.1, or formatted so that it can be readily

converted into WordPerfect 5.1. Any such diskette submission (one

diskette will be sufficient) should be in addition to the written

submission (an original and 10 copies).

Small Entities

The Board preliminarily concludes that these rules, if adopted,

would not have a significant economic effect on a substantial number of

small entities. One commenter, the Kansas Grain and Feed Association

(KGFA), asserts that these regulations will have a significant economic

impact on a substantial number of small entities by influencing its

members' daily markets for the sale and purchase of agricultural

products. KGFA's contention relates to the rail contracting practices

permitted by both the former and new statutes, not the impact of these

regulations. The proposed regulations merely reflect the modest changes

effected by the ICCTA, and largely continue existing contract

disclosure requirements for agricultural products.

The Board, nevertheless, seeks comment on whether there would be

effects on small entities that should be considered, so that the Board

can determine whether to prepare a regulatory flexibility analysis at

the final rule stage.

Environment

This action will not significantly affect either the quality of the

human environment or the conservation of energy resources.

List of Subjects in 49 CFR Part 1313

Agricultural products, Contract summaries, Rail carriers,

Transportation contracts.

Decided: October 4, 1996.

By the Board, Chairman Morgan, Vice Chairman Simmons, and

Commissioner Owen.

Vernon A. Williams,

Secretary.

[FR Doc. 96-26438 Filed 10-16-96; 8:45 am]

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