Re: Some thoughts about the plight of Oregon Shortlines
Author: Little Lake Listener
Date: 01-13-2008 - 10:05
Exercise of eminent domain might gain the state ownership of the tracks (expect a legal storm and where would the State get the $100s of millions), but under the Interstate Commerce Act, only the STB can convey authority to use those tracks (49 USC §10502), much less to set rates and terms of common carriage. STB authority over railroad operations is exclusive and preempts all other local, state and federal law. Also, unless a commodity has been specifically exempted from regulation, any rate that is higher than 180% of variable cost is subject to regulation (49 USC §10701). If the shipper knows or suspects he is paying 300% of VC, that shipper can file a complaint with the STB. The STB recently simplified its regulations governing the filing of small rate cases, making the challenge even easier (49 CFR §1111). There are armies of lawyers and consultants in Washington who would be most eager to help. Has that shipper exercised his presently available rights and remedies?