Altamont Press Discussion Board :: Discussion

Re: Santa Cruz Railroad

Author: SP5103

Date: 05-17-2018 - 10:58

> > How can Progressive Railroad take over
> operations
> > on the Santa Cruz line if Iowa Pacific has STB
> > operating authority?
> IP backed out of their contract last year and
> Santa Cruz put it back out to bid.

A little more complicated than that. There are two legal considerations in play here - the first is the contractual obligation/right for someone to operate the line on behalf of the underlying owner.

Second - is the STB common carrier authority/responsibility.

So Progress Rail will have to apply to the STB for their own authority to operate the Santa Cruz line. Typically this is a fairly clean process with the previous operator offering their consent, as an important aspect is that as part of the transfer it relieves the previous operator of any further common carrier service responsibility for the line.

In the event the outgoing party protests the change or refuses to cooperate, there is an "adverse discontinuance" process where the STB is petitioned as an outside party to revoke the common carrier authority of an existing operator/owner. This does happen (some recent trackage rights cases come to mind) now and then, and if protested can take a while to decide.

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Subject	Written By	Date/Time (PST)
Santa Cruz Railroad	Mr. Crazy	05-16-2018 - 18:31
Re: Santa Cruz Railroad	Carol L Voss	05-16-2018 - 20:01
Re: Santa Cruz Railroad	SP5103	05-17-2018 - 10:58

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SP5103 Wrote:
-------------------------------------------------------
> > > How can Progressive Railroad take over
> > operations
> > > on the Santa Cruz line if Iowa Pacific has
> STB
> > > operating authority?
> > IP backed out of their contract last year and
> > Santa Cruz put it back out to bid.
> 
> A little more complicated than that. There are two
> legal considerations in play here - the first is
> the contractual obligation/right for someone to
> operate the line on behalf of the underlying
> owner.
> 
> Second - is the STB common carrier
> authority/responsibility.
> 
> So Progress Rail will have to apply to the STB for
> their own authority to operate the Santa Cruz
> line. Typically this is a fairly clean process
> with the previous operator offering their consent,
> as an important aspect is that as part of the
> transfer it relieves the previous operator of any
> further common carrier service responsibility for
> the line.
> 
> In the event the outgoing party protests the
> change or refuses to cooperate, there is an
> "adverse discontinuance" process where the STB is
> petitioned as an outside party to revoke the
> common carrier authority of an existing
> operator/owner. This does happen (some recent
> trackage rights cases come to mind) now and then,
> and if protested can take a while to decide.

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