In February, the State of Oklahoma, by and through OKDOT, and the BIA petitioned the STB for an emergency order allowing the Rock Island to provide local rail service on the rail line owned by OKDOT and BIA and leased to Blackwell Northern Gateway Railroad Company (BNGR).
The petition followed an emergency order issued by the Federal Railroad Administration requiring BNGR to “discontinue operation of all trains, locomotives and any other on-track rail vehicles or equipment under any circumstance,” stating that the short line is operating with “a complete disregard for the safety of the public.”
The STB on March 1 authorized the Rock Island to provide emergency local rail service for an initial period of 30 days, and on March 27 extended the order until July 29.
“Petitioners [OKDOT and BIA] explain that BNGR ceased operations pursuant to Federal Railroad Administration (FRA) Emergency Order No. 33 Notice 1 and BNGR has not provided any indication that it plans to remedy the issues identified in that order and reinstate service over the Line,” the STB reported in its March 27 decision. They “further explain that they have identified Rock Island as a potential long-term operator of the Line but have not yet entered into a long-term agreement because all parties have been working to respond to the current service emergency.”
In the Sept. 27 edition of the Federal Register (download below), the STB reported that OKRL, a noncarrier, has filed a verified notice of exemption under 49 CFR 1150.31 to lease and operate the rail line owned by OKDOT and BIA. It said that the line extends from milepost 0.09 at Wellington, Kan., to milepost 35.35 at Blackwell, Okla., and from milepost 127.0 at Blackwell to milepost 125.0 also at Blackwell. “OKRL states that OKDOT owns the portions of the Line extending from milepost 18.32 at Hunnewell, Kan., to milepost 35.35, and from milepost 127.0 to milepost 126.45,” STB said. “OKRL further states that BIA owns the portions of the Line extending from milepost 0.09 to milepost 18.32 and from milepost 126.45 to milepost 125.0. The verified notice states that under the proposed transaction OKRL will replace Blackwell Northern Gateway Railroad Company (BNGR), the current common carrier service provider on the Line. See State of Okla.—Alt. Rail Serv.—Line of Blackwell N. Gateway R.R., FD 36762 (STB served July 26, 2024).”
This transaction is related to a concurrently filed verified notice of exemption in which Rock Island “seeks to continue in control of OKRL upon OKRL’s becoming a Class III rail carrier,” according to the STB. “OKRL certifies that the agreement governing the transaction does not include any provision that may limit future interchange with a third-party connecting carrier. OKRL also certifies that its projected annual revenues as a result of this transaction will not result in its becoming a Class II or Class I rail carrier and that its projected annual revenue will not exceed $5 million.”
Rock Island currently controls the Gulf & Ship Island Railroad LLC (G&SI) and Ottawa Northern Railroad LLC (ONR), both Class III’s. Rock Island operates in Mississippi; G&SI operates in Mississippi; ONR operates in Kansas; and OKRL intends to operate in Oklahoma and Kansas. Rock Island “represents that: (1) none of Rock Island’s railroad lines, G&SI’s lines, or ONR’s lines will connect with OKRL’s; (2) the transaction [by Rock Island to continue in control of OKRL] is not part of a series of anticipated transactions that would result in such interconnection; and (3) the transaction does not involve a Class I rail carrier,” according to the STB’s second notice in the Federal Register’s Sept. 27 edition (download below).
The STB reported that both transactions may be consummated on or after Oct. 13, 2024. Petitions for stay must be filed no later than Oct. 4, 2024.
