WCRC was incorporated on September 23, 1999, for the purpose of providing rail service over the line for the State of Vermont.

30569 SERVICE DATE - NOVEMBER 3, 1999
DO
FR-4915-00-P
DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33807]

Washington County Railroad Company—Modified Rail Certificate

On October 6, 1999, Washington County Railroad Company (WCRC), a noncarrier, filed a notice for a modified certificate of public convenience and necessity under 49 CFR 1150, Subpart C, Modified Certificate of Public Convenience and Necessity, to operate a 14-mile rail line owned by the State of Vermont (the line).

The line was approved for abandonment by Montpelier and Barre Railroad Company in Montpelier and Barre Railroad Company--Entire Line Abandonment--From Graniteville to Montpelier Junction in Washington County, VT, Docket No. AB-202 F (ICC served Mar. 12, 1980), and acquired by the State of Vermont on November 21, 1980. The Washington County Railroad Corporation (WACR) filed a notice for a modified certificate of public convenience and necessity on November 17, 1980, and a modified rail certificate was issued to WACR authorizing it to operate the line as of November 17, 1980. On February 2, 1999, WACR agreed to assign its lease of the line to New England Central Railroad, Inc. (NECR). NECR accepted the assignment on February 9, 1999, and operated the line through the close of business on September 8, 1999, when it terminated operations over the line. Vermont Railway, Inc. (VTR) filed a notice for a modified certificate of public convenience and necessity on September 14, 1999, and a modified rail certificate was issued to VTR for the immediate interim operation of the line while VTR and the State of Vermont negotiated and entered into a lease and operating agreement that would govern future operations of the line by VTR or a subsidiary of VTR. On September 30, 1999, WCRC and the State of Vermont entered into an agreement whereby WCRC would operate the line, unless modified, through June 30, 2004. WCRC states that, effective immediately, it will replace VTR as the operator of the line.

The line extends between Montpelier Junction, VT, and Graniteville, VT, a distance of approximately 14 miles. WCRC expects to conduct operations between Montpelier Junction and Websterville, a distance of approximately 12 miles. At Montpelier Junction, the line connects with NECR.

The rail segment qualifies for a modified certificate of public convenience and necessity.

See Common Carrier Status of States, State Agencies and Instrumentalities and Political

Subdivisions, Finance Docket No. 28990F (ICC served July 16, 1981).

STB Finance Docket No. 33807

A subsidy is involved. Under the agreement, the State of Vermont’s Agency of Transportation (VAOT) agrees to pay WCRC a subsidy equivalent to $5,000 per week, through June 30, 2000. The agreement further provides that VAOT, beginning July 1, 2000 and for each subsequent year of the agreement, agrees to pay a subsidy of $260,000 per year, reduced by a subsidy credit equivalent to 50% of all gross revenues between $150,000 and $670,000. WCRC represents that it has obtained general liability insurance coverage and that there are no preconditions for shippers to meet in order to receive rail service.

This notice will be served on the Association of American Railroads (Car Service Division) as agent for all railroads subscribing to the car-service and car-hire agreement: Association of American Railroads, 50 F Street, N.W., Washington, DC 20001; and on the American Short Line and Regional Railroad Association: American Short Line and Regional Railroad Association, 1120 G Street, N.W., Suite 520, Washington, DC 20005.
Decided: October 28, 1999.
By the Board, David M. Konschnik, Director, Office of Proceedings.
Vernon A. Williams
Secretary

 

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