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Re: Sierra Northern Railroad
Author: Jeff Moore
Date: 05-01-2014 - 21:59
The STB did deal with this issue back in late November 2012...following is a summary of what I wrote for the Yahoo Calrailfans list at the time.
"Greetings...
The litigation between Sierra Railroad and Patriot Rail stemming at least in part from Patriot's Sacramento Valley Railroad taking over operations in the McClellan business park was, at least briefly, a topic of conversation on this list some months back. The legal contest has been working its way through both U.S. District Court and, until recently, in proceedings in front of the Surface Transportation Board.
The STB rendered their decision in the matter yesterday, in which it set aside Sierra's complaint, but in so doing has made things very, very interesting down there...
As a quick refresher, the McCellan business park initially awarded the operation contract to Yolo Shortline (later Sierra Northern) in 2001, and then in 2008 McClellan awarded the exclusive operating contract to Patriot, who set up the Sacramento Valley Railroad. According to Patriot and McClellan, Patriot has the exculsive operating contract for the trackage; however, in its decision, the STB reminded all parties that only they can make decisions on who can operate a rail line, and McClellan's "exclusive" license and operating agreement with Patriot does not by itself relieve Sierra of its obligations.
As things stand now, the STB has granted both Sierra AND Patriot authority to provide common carrier service on the McClellan trackage. As the STB says in the decision...
"No party has sought Board authorization to discontinue SERA's operations; thus, both SERA and SAV are rail carriers authorized by the Board to operate on the lines in McClellan Park. Accordingly, if SERA were to receive a reasonable request for service today from a shipper at McClellan Park, it would have not only the right, but the common carrier obligation, to provide such service, notwithstanding the absence of a licensing agreement between McClellan and Sierra and the existence of a purportedly "exclusive" licensing agreement between McClellan and SAV. In short, termination of the 2001 license agreement and execution of the 2008 license agreement with SAV do not impair SERA's right to continue to operate there."
Basically, any one of the shippers in McClellan could call Sierra and ask them for rail service, and then Sierra would be on the hook to provide said service. The situation will persist until such time as Sierra's common carrier obligations are revoked, either by Sierra's request or an adverse abandonment proceedings initiated by Patriot or McClellan.
Entire decision can be viewed at:
[www.stb.dot.gov]
The lawsuits in U.S. District Court between Sierra and Patriot continue..."
Jeff Moore
Elko, NV
"Greetings...
The litigation between Sierra Railroad and Patriot Rail stemming at least in part from Patriot's Sacramento Valley Railroad taking over operations in the McClellan business park was, at least briefly, a topic of conversation on this list some months back. The legal contest has been working its way through both U.S. District Court and, until recently, in proceedings in front of the Surface Transportation Board.
The STB rendered their decision in the matter yesterday, in which it set aside Sierra's complaint, but in so doing has made things very, very interesting down there...
As a quick refresher, the McCellan business park initially awarded the operation contract to Yolo Shortline (later Sierra Northern) in 2001, and then in 2008 McClellan awarded the exclusive operating contract to Patriot, who set up the Sacramento Valley Railroad. According to Patriot and McClellan, Patriot has the exculsive operating contract for the trackage; however, in its decision, the STB reminded all parties that only they can make decisions on who can operate a rail line, and McClellan's "exclusive" license and operating agreement with Patriot does not by itself relieve Sierra of its obligations.
As things stand now, the STB has granted both Sierra AND Patriot authority to provide common carrier service on the McClellan trackage. As the STB says in the decision...
"No party has sought Board authorization to discontinue SERA's operations; thus, both SERA and SAV are rail carriers authorized by the Board to operate on the lines in McClellan Park. Accordingly, if SERA were to receive a reasonable request for service today from a shipper at McClellan Park, it would have not only the right, but the common carrier obligation, to provide such service, notwithstanding the absence of a licensing agreement between McClellan and Sierra and the existence of a purportedly "exclusive" licensing agreement between McClellan and SAV. In short, termination of the 2001 license agreement and execution of the 2008 license agreement with SAV do not impair SERA's right to continue to operate there."
Basically, any one of the shippers in McClellan could call Sierra and ask them for rail service, and then Sierra would be on the hook to provide said service. The situation will persist until such time as Sierra's common carrier obligations are revoked, either by Sierra's request or an adverse abandonment proceedings initiated by Patriot or McClellan.
Entire decision can be viewed at:
[www.stb.dot.gov]
The lawsuits in U.S. District Court between Sierra and Patriot continue..."
Jeff Moore
Elko, NV
| Subject | Written By | Date/Time (PST) |
|---|---|---|
 Sierra Northern Railroad
|
RWS | 05-01-2014 - 14:43 |
|
Re: Sierra Northern Railroad
|
George Andrews | 05-01-2014 - 18:31 |
|
Re: Sierra Northern Railroad
|
Rich Hunn | 05-01-2014 - 18:34 |
|
Re: Sierra Northern Railroad |
Jeff Moore | 05-01-2014 - 21:59 |
|
Re: Sierra Northern Railroad
|
Graham Buxton | 05-03-2014 - 08:04 |