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Canadian National Railway Company and Grand Trunk Corporation-- Control--EJ&E West Company
Note: EPA no longer updates this information, but it may be useful as a reference or resource.
[Federal Register: December 21, 2007 (Volume 72, Number 245)]
[Notices]
[Page 72819-72822]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21de07-141]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Finance Docket No. 35087]
Canadian National Railway Company and Grand Trunk Corporation--
Control--EJ&E West Company
AGENCY: Surface Transportation Board, DOT.
ACTION: Notice of Intent To Prepare an Environmental Impact Statement
(EIS); Notice of Initiation of the Scoping Process, Including Notice of
Availability of Draft Scope of Study for Environmental Impact
Statement; Request for Comments on Draft Scope; and Notice of Open-
House Meetings.
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SUMMARY: On October 30, 2007, Canadian National Railway Corporation
(CNR) and Grand Trunk Corporation (GTC), a noncarrier holding company
through which CNR controls its U.S. rail subsidiaries, filed an
application with the Surface Transportation Board (Board) seeking the
Board's approval of the acquisition of control of EJ&E West Company
(EJ&EW), a wholly owned noncarrier subsidiary of Elgin, Joliet and
Eastern Railway Company (EJ&E). In this document, the action before the
Board will be referred to as the proposal or the proposed acquisition
and CNR and GTC will be referred to collectively as CN or as
Applicants.
CN is one of Canada's two major railroads. It extends from Halifax,
Nova Scotia, to Vancouver and Prince Rupert, British Columbia. EJ&E is
a Class II railroad that currently operates over 198 miles of track in
northeastern Illinois and northwestern Indiana, consisting primarily of
an arc of roughly 190 miles around Chicago, IL, extending from
Waukegan, IL, southwards to Joliet, IL, then eastward to Gary, IN, and
then northwest to South Chicago along Lake Michigan. EJ&E provides rail
service to approximately 100 customers, including steel mills, coal
utilities, plastics and chemical producers, steel processors,
distribution centers, and scrap processors.
Applicants' proposed acquisition of the EJ&E would shift rail
traffic currently moving over CN's rail lines inside the EJ&E arc in
Chicago to the EJ&E, which traverses the suburbs generally to the west
and south of Chicago. Rail traffic on CNR lines inside the EJ&E arc
would generally decrease. The decreases in rail traffic would be offset
by increases in the number of trains operating on the EJ&E rail line
outside of Chicago (approximately 15-27 more trains would operate on
various segments of the EJ&E). Applicants also proposed to construct
six new rail connections and approximately 19 miles of new sidings/
double tracking. Applicants give three primary reasons for seeking
approval of the proposed acquisition: Improved rail operations in the
Chicago area; availability to EJ&E's Kirk Yard in Gary, Indiana, and
other smaller facilities in Joliet, Illinois, and Whiting, Indiana; and
improved service to companies dealing in steel, chemicals, and
petrochemicals, as well as Chicago area utilities.
To thoroughly assess the potential environmental impacts that may
result from the proposed acquisition, the Board, through its Section of
Environmental Analysis (SEA), will prepare an Environmental Impact
Statement (EIS). The purpose of this Notice is to give all interested
persons the opportunity to actively participate in the forthcoming
environmental review, the first step of which is ``scoping.'' Scoping
is an open process for determining the range of issues that should be
examined and assessed in the EIS. In addition to announcing that the
Board will prepare an EIS for this proceeding, this Notice also
announces the availability of a draft scope of study, requests comments
on the draft scope of study, and presents the schedule of Open-House
meetings to be held in the project area.
DATES, TIMES, AND LOCATIONS: Scoping Open House meetings will be held
at the dates and locations listed below. Each location will have an
afternoon and an evening session at the following times: The afternoon
Open House is scheduled from 1p.m. to 4 p.m. and the evening Open House
is scheduled from 6 p.m. to 8 p.m. There is no need to attend more than
one meeting, but all are welcome to attend as many meetings as desired.
------------------------------------------------------------------------
Date Location
------------------------------------------------------------------------
January 8, 2008......................... Crown Plaza, Salon A/C Room,
510 E. Route 83, Mundelein,
IL 60060, 847-949-5100.
January 9, 2008......................... Makray Memorial Golf Club,
Grand Ballroom, 1010 S. NW.,
Highway, Barrington, IL
60010, 847-381-6500.
[[Page 72820]]
January 10, 2008........................ Jacob Henry Mansion, Ballroom,
15 South Richards Street,
Joliet, IL 60433, 815-722-
2465.
January 15, 2008........................ Holiday Inn, Willow Room, 500
Holiday Plaza Drive,
Matteson, IL, 708-747-3500.
January 16, 2008........................ Genesis Convention Center,
Gary Lakes Room, One Genesis
Center Plaza, Gary, IN 46402,
219-882-5505.
January 17, 2008........................ St. Andrews Golf Club, St.
Andrews Room, 3N441 Route 59,
West Chicago, IL 60185, 630-
231-3100.
January 22, 2008........................ Crowne Plaza Chicago-Metro,
Ballroom, 733 West Madison,
Chicago, IL 60661, 312-602-
2106.
------------------------------------------------------------------------
The public scoping meetings will be informal meetings in an open
house format. Interested persons may ask questions about the proposal
and the Board's environmental review process, and discuss the potential
environmental effects of the proposal with SEA staff. In keeping with
the open house format of the scoping meetings, there will be no formal
presentations made by the agency. Rather, SEA staff members will be
available to answer questions and receive comments individually. A
court reporter will be available for those persons who wish to submit
oral comments. Writing stations will be available to those who wish to
submit written comments at the Open House. SEA staff will be available
to listen and make notes of comments. Additional copies of the draft
scope will be available at all Open House meetings.
The meeting locations comply with the Americans with Disabilities
Act. Persons who need special accommodations should telephone SEA's
toll-free number for the project at 1-800-347-0689. Please leave a
message and someone will return your call promptly.
SEA will issue a final Scope of Study shortly after the close of
the scoping comment period. Written comments on the draft scope are due
February 1, 2008. Directions on how to submit comments of the draft
scope are set forth below.
Summary of the Board's Review Processes for this Proceeding: The
Board will review the proposed transaction through two parallel but
distinct processes: (1) The economic process that examines the
competitive, transportation, and economic implications of the
acquisition on the national rail system, and (2) the environmental
process conducted by SEA that assesses the potential environmental
effects of the proposed acquisition on the human and natural
environment through preparation of an EIS. Interested persons may
participate in either, or both, processes, but if interests are focused
on potential impacts on communities, including grade crossing safety,
air emissions, emergency vehicle access, noise, vibration, and other
similar environmental issues, then the appropriate forum is SEA's
environmental review process.
Environmental Review Process: The National Environmental Policy Act
(NEPA) process is intended to assist the Board and the public in
identifying and assessing the potential environmental consequences of a
proposed action before a decision on that proposed action is made. SEA
is responsible for ensuring that the Board complies with NEPA and
related environmental statues. The first stage of the EIS process is
scoping. Scoping is an open process for determining the scope of
environmental issues to be addressed in the EIS and their potential for
significance.
SEA has developed a draft scope of study for the EIS for public
review and comment, which incorporates the issues and concerns raised
in the comment letters SEA has received thus far. SEA is soliciting
written comments on this draft scope of study. After the close of the
comment period on the draft scope of study, SEA will review all comments
received and then issue a final scope of study (final scope) for the EIS.
Following the issuance of the final scope, SEA will prepare a Draft
EIS (DEIS) for the project. The DEIS will address those environmental
issues and concerns identified during the scoping process. It will also
contain SEA's preliminary recommendations for environmental mitigation
measures. Upon its completion, the DEIS will be made available for
public and agency review and comment for 45 days. SEA will then prepare
a Final EIS (FEIS) that will address the comments on the DEIS from the
public and agencies. Then, in reaching its decision in this case, the
Board will take into account the DEIS, the FEIS, the public comments,
and the environmental analysis and recommendations, including any
environmental mitigation proposed by SEA.
The Procedural Schedule set for this proceeding in Decision No. 2
establishes the date of April 25, 2008 for the Board's proposed final
decision. This date will be extended if additional time is needed to
complete the full EIS process.
Submitting Comments on the Draft Scope: SEA encourages broad
participation in the EIS process. All interested agencies,
organizations, communities, and members of the public are invited to
participate in the scoping process by reviewing and commenting on the
draft scope of the EIS. Written comments on the draft scope of the EIS
may be submitted to the Board within the comment period, as described
below, no later than February 1, 2008. To file comments on the draft
scope and participate in the environmental review process, it is not
necessary to be a Party of Record (as detailed in Decision 2\1\). If
you wish to submit written comments regarding the attached proposed
draft scope, please send your comments to:
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\1\ Board Decision No. 2 was issued November 26, 2007.
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Surface Transportation Board, 395 E Street, SW., Washington, DC
20423, Attention: Phillis Johnson-Ball, Environmental Filing, STB
Finance Docket No. 35087.
Environmental comments may also be filed electronically on the
Board's Web site, http://www.stb.dot.gov, by clicking on the ``E--
FILING'' link.
Please refer to STB Finance Docket No. 35087 in all correspondence,
including E-filings, addressed to the Board.
Following these directions will help ensure that your comments are
considered in the environmental review process for this proposed
acquisition. SEA will add your name to its mailing list for
distribution of the final scope of the EIS, the DEIS, and Final EIS
(FEIS). Interested persons who wish to receive individual copies of
Board decisions, orders, and notices served in this proceeding but do
not want to be a party of record are encouraged to contact the Board's
copy contractor as soon as possible: Document Solutions, 9332 Annapolis
Rd., Suite 103, Lanham, MD 20706, telephone number (202) 306-4004, or
e-mail address:
[[Page 72821]]
asapdc@verizon.net. All Board decisions, orders, and notices in this
proceeding will also be available on the Board's Web site at
http://www.stb.dot.gov under ``E-Library,'' and ``Decisions & Notices''
or ``Filings.''
FOR FURTHER INFORMATION CONTACT: Phillis Johnson-Ball, Section of
Environmental Analysis, Surface Transportation Board, 395 E Street,
SW., Washington, DC 20423-0001, 1-800-347-0689 (project information
line) . Assistance for the hearing impaired is available through the
Federal Information Relay Service (FIRS) at 1-800-877-8339. The Web
site for the Surface Transportation Board is http://www.stb.dot.gov.
By the Board, Victoria J. Rutson, Chief, Section of
Environmental Analysis.
Vernon A. Williams,
Secretary.
Appendix A
Draft Scope of the EIS
Proposed Action and Definition of Alternatives
Applicants' proposed acquisition of the EJ&E would result in
shifting of rail traffic from rail lines in Chicago to rail lines on
the EJ&E. Rail traffic on CNR lines inside the EJ&E arc would
generally decrease. These decreases in rail traffic would be offset
by substantial increases in the number of trains operated on the
EJ&EW line outside Chicago. The increase in train traffic on the
EJ&E would vary from approximately 15 to 27 additional trains per
day. Applicants state that the proposed transaction would not impair
CNR's ability to handle commuter trains, passenger trains, or
trackage/haulage trains currently operating on its lines. Finally,
on the integrated CNR/EJ&EW system, four train pairs would be added
to EJ&E terminals: Three inbound and three outbound switch trains at
Kirk Yard, and one inbound and one outbound switch train at East
Joliet Yard. Applicants' projections for the changes in rail
operations as a result of the acquisition are set forth in the
Application, available on the Board's Web site. The proposed
transaction also includes construction of seven rail connections,
siding extensions, and installation of second track (double-tracking).
Reasonable or feasible alternatives that will be evaluated in
the EIS are (1) approval of the transaction as proposed; (2)
disapproval of the proposed transaction in whole (No-Action
alternative); or (3) approval of the proposed transaction with
conditions, including environmental mitigation conditions.\2\
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\2\ The Board has broad authority to impose conditions in
railroad control transactions under 49 U.S.C. 11324 (c). However,
the Board's power to impose conditions is not limitless: there must
be a sufficient nexus between the condition imposed and the
transaction before the agency, and the condition imposed must be
reasonable. See United States v. Chesapeake & O. Ry., 426 U.S. 500,
514-15 (1976); Consolidated Rail Corp. v. ICC, 29 F.3d 706, 714
(D.C. Cir. 1994).
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If deemed necessary, alternative configurations of proposed
connections may be considered. Proposed modifications to the
proposed transaction as requested by other parties in their
inconsistent or responsive applications will also be addressed in the EIS.
Environmental Impact Analysis
Analysis in the EIS will address proposed activities and their
potential environmental impacts, as appropriate. Existing rail
operations are the baseline from which the potential environmental
impacts of the proposed transaction will be evaluated. SEA will
evaluate only the potential environmental impacts of operational and
physical changes that are directly related to the proposed
transaction. SEA will not consider environmental impacts relating to
existing rail operations and existing railroad facilities.\3\
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\3\ In proceedings similar to this proposed acquisition, the
Board's practice consistently has been to mitigate only those
environmental impacts that result directly from the transaction. The
Board, like its predecessor, the Interstate Commerce Commission, has
not imposed mitigation to remedy preexisting conditions such as
those that might make the quality of life in a particular community
better, but are not a direct result of the merger (i.e., congestion
associated with the existing rail line traffic, or the traffic of
other railroads).
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The scope of the analysis will include the following types of
activities:
1. Anticipated changes in level of operations on rail lines
(e.g., an increase in average trains per day) for those rail line
segments that meet or exceed the Board's thresholds for
environmental review in 49 CFR 1105.7.
2. Proposed changes in activity at rail yards to the extent such
changes may exceed the Board's thresholds for environmental analysis
in 49 CFR 1105.7.
3. Proposed physical construction of improved rail connections,
siding extensions, and installation of second rail track (double-tracking).
Environmental Impact Categories
The EIS will address potential impacts on the environment that
will include the areas of safety, transportation systems, land use,
energy, air quality, noise, biological resources, water resources,
socioeconomic effects related to physical changes in the
environment, environmental justice, and cultural and historic
resources, as described below.
1. Safety
The EIS will:
A. Consider at-grade rail crossing accident probability and
safety factors. This will generally include grade crossings with
average daily traffic levels of 2,500 or more trips. Accident probability
analysis will address the potential for rail and vehicle accidents.
B. Consider increased probability of train accidents and
derailments due to increased traffic on a system-wide basis.
C. Address potential effects of increased freight traffic on
commuter and intercity passenger service operations.
D. Discuss the potential environmental impacts of the proposed
transaction on public health and safety with respect to the
transportation of hazardous materials, including:
(1) Changes in the types of hazardous materials and quantities
transported or re-routed;
(2) Nature of the hazardous materials being transported;
(3) Applicants' safety practices and protocols;
(4) Applicants' relevant safety data on derailments, accidents
and hazardous materials spills;
(5) Contingency plans to address accidental spills;
(6) Probability of increased spills given railroad safety
statistics and applicable Federal Railroad Administration requirements; and
(7) Location and types of hazardous substances at hazardous
waste sites or hazardous materials spills on the right-of-way of any
proposed connection or rail line abandonment site.
E. Address local truck traffic increases attributable to
increased intermodal activities.
F. Address safety issues associated with the integration of
differing rail operating systems and procedures.
2. Transportation Systems
The EIS will:
A. Describe system-wide and localized effects of the proposed
operational changes, construction of improved connections, siding
extensions, and installation of second track, and evaluate potential
impacts on commuter rail service and intercity passenger (Amtrak) service.
B. Evaluate those commuter rail line segments that would
experience increased freight traffic as a result of the proposed
transaction for the capability of the rail line segments to
accommodate the reasonably foreseeable addition of commuter trains.
C. Discuss potential effects on proposed passenger rail service
where such future rail operation inception or expansion is
reasonably foreseeable (i.e., where capital improvements are
planned, approved, and funded).
D. Discuss potential diversions of freight traffic from trucks
to rail and from rail to trucks, as appropriate.
E. Address vehicular delays at rail crossings and intermodal
facilities due to increases in rail-related operations as a result
of the proposed transaction. Estimates of typical delays at grade
crossings will be made for crossings that have vehicle traffic
levels of 2,500 ADT or more and that exceed train traffic increases
of three trains per day for non-attainment areas or eight trains per
day for attainment areas.
F. Discuss potential effects of increased train traffic on
railroad bridges that cross navigation channels to the extent that
such bridges allow only one mode of transportation to pass at a time.
3. Land Use and Socioeconomics
The EIS will:
A. Describe whether the proposed construction of improved rail
connections,
[[Page 72822]]
siding extensions, and installation of second track (double-
tracking) are consistent with existing land use plans.
B. Describe environmental impacts associated with the proposed
construction of improved rail connections, siding extensions, and
installation of second track (double-tracking) as to acres of prime
farmland potentially removed from production.
C. Discuss consistency of proposed construction of improved rail
connections, siding extensions, and installation of second track
(double-tracking) with applicable zoning requirements.
D. Address socioeconomic issues related to changes in the
physical environment as a result of the proposed transaction.
E. Propose mitigative measures to minimize or eliminate potential
project adverse impacts to social and economic resources, as appropriate.
4. Energy
The EIS will:
A. Describe the potential environmental impact of the proposed
transaction on transportation of energy resources and recyclable
commodities to the extent that such information is available.
B. Evaluate potential changes in fuel use arising from the transaction.
5. Air Quality
The EIS will:
A. Evaluate air emissions increases where the proposed post-
acquisition activity would exceed the Board's environmental
thresholds in 49 CFR 1105.7(e)(5)(i), for air quality nonattainment
areas as designated under the Clean Air Act. Thresholds are as
follows since the Chicago Metropolitan area is a nonattainment area:\4\
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\4\ Nonattainment areas are areas that do not comply with one or
more ambient air quality standards. Ozone non-attainment areas are
further classified as Marginal, Moderate, Serious, Severe, or
Extreme Areas. These classifications are based on the level, in
parts per million (ppm), of ozone measured for each area. Moderate
areas are defined as .092 to .107 ppm, Serious Areas are defined as
containing 0.107 ppm to 0.120 ppm, and Severe Areas are defined as
containing 0.120 to 0.187 ppm. The Chicago area is currently classified as
moderate non-attainment for ozone and non-attainment for PM2.5
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(1) A 50 percent increase in rail traffic (measured in gross-ton
miles annually) or an increase of three trains a day on any segment
of rail line affected by the proposal; or
(2) An increase in rail yard activity of at least 20 percent or
more in carload activity (rail car switching and block swapping).
(3) Increase in truck traffic greater than 10 percent of ADT or
50 trucks per day.
B. Discuss the net increase in emissions from increased railroad
operations associated with the proposed transaction. Net emissions
changes will be calculated for counties with projected transaction-
related emissions increases of:
• 100 tons per year or more of any pollutant
C. Discuss the following information regarding the anticipated
transportation of ozone depleting materials (such as nitrogen oxide
and freon):
(1) Materials and quantity;
(2) Applicants' safety practices;
(3) Applicants' safety record (to the extent available) on
derailments, accidents, and spills;
(4) Contingency plans to address accidental spills; and
(5) Likelihood of an accidental release of ozone depleting
materials in the event of a collision or derailment.
D. Discuss potential air emissions increases from vehicle delays
at rail crossings where the rail crossing is projected to experience
an increase in rail traffic over the thresholds described above in
Section 5(A) for attainment and maintenance areas, and in Section
5(B) for non-attainment areas, and which have an average daily
vehicle traffic level above 2,500. Such increases will be factored
into the net emissions estimates for the affected area.
E. Examine local impacts from the transaction caused by
increases or decreases in diesel particulate emissions.
6. Noise and Vibration
The EIS will:
A. Describe potential noise and vibration impacts of the proposed
transaction for those areas that exceed the Board's environmental
thresholds identified in Section 5A of the Air Quality discussion.
B. Identify whether the proposed transaction-related increases
in rail traffic will cause an increase to a noise level of 65
decibels Ldn or greater. If so, an estimate of the number
of sensitive receptors (e.g., schools and residences) within such
areas will be made.
C. Identify transaction-related activities that have the
potential to result in an increase in noise level of 3 decibels
Ldn or more which occur in areas exposed to less than 65
dBA Ldn.
D. Assess potential vibration effects based on Federal Transit
Administration (FTA) vibration methodology in areas where it appears
there may be vibration sensitive receptors within or immediately
adjacent to the railroad right of way.
7. Biological Resources
The EIS will:
A. Discuss the potential environmental impacts of proposed
construction of improved rail connections, siding extensions, and
installation of second track (double-tracking) on federal endangered
or threatened species or designated critical habitats.
B. Discuss the effects of proposed construction of improved rail
connections, siding extensions, and installation of second track
(double-tracking) on wildlife sanctuaries or refuges, and national
or state parks or forests.
8. Water Resources
The EIS will:
A. Discuss whether potential impacts from proposed construction
of improved rail connections, siding extensions, and installation of
second track (double-tracking) may be inconsistent with applicable
federal or state water quality standards.
B. Discuss whether permits may be required under Sections 404 or
402 of the Clean Water Act (33 U.S.C. 1344) for any proposed
construction of improved rail connections, siding extensions, and
installation of second track (double-tracking), and whether any such
projects have the potential to encroach upon any designated wetlands
or 100-year floodplains.
9. Environmental Justice
The EIS will:
A. Report on the demographics in the immediate vicinity of any
area where major activity such as construction of improved rail
connections, siding extensions, and installation of second track
(double-tracking) is proposed.
B. Report on the demographics in the vicinity of rail lines with
projected rail traffic increases above eight trains per day.
C. Evaluate whether such activities potentially have a
disproportionately high and adverse health effect or environmental
impact on any minority or low-income group.
10. Cultural and Historic Resources
The EIS will:
A. Address potential impacts from proposed construction of
improved rail connections, siding extensions, and installation of
second track (double-tracking) on cultural and historic resources
that are on, or immediately adjacent to, a railroad right-of-way.
11. Secondary and Cumulative Effects
The EIS will:
A. Address secondary and cumulative effects of environmental
impacts that have regional or system-wide ramifications. This
analysis will be done for environmental impacts that warrant such
analysis given the context and scope of the proposed transaction.
The environmental effects to be analyzed include air quality and energy.
B. Evaluate secondary and cumulative effects, as appropriate,
for other projects or activities that relate to the proposed
transaction, where information is provided to the Board that
describes (1) those other projects or activities, (2) their
interrelationship with the proposed transaction, (3) the type and
severity of the potential environmental impacts; and SEA determines
that there is the likelihood of significant environmental impacts.
This information must be provided to the Board within sufficient
time to allow for review and analysis within the schedule for the
preparation of the EIS.
C. Discuss the potential environmental impacts of construction
or facility modification activities within railroad-owned property
affected by the proposed merger, and additional environmental
impacts related to the proposed transaction but not subject to Board
approval, in order to identify secondary and cumulative impacts.
[FR Doc. E7-24835 Filed 12-20-07; 8:45 am]
BILLING CODE 4915-00-P