Consolidated Rail Corp. v. Interstate Commerce Commission

646 F.2d 642, 207 U.S. App. D.C. 307
CourtCourt of Appeals for the D.C. Circuit
DecidedFebruary 26, 1981
DocketNo. 80-1709
StatusPublished
Cited by2 cases

This text of 646 F.2d 642 (Consolidated Rail Corp. v. Interstate Commerce Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consolidated Rail Corp. v. Interstate Commerce Commission, 646 F.2d 642, 207 U.S. App. D.C. 307 (D.C. Cir. 1981).

Opinion

Opinion for the Court by Circuit Judge WALD.

WALD, Circuit Judge:

Petitioner railroads1 seek judicial review of certain orders of the Interstate Commerce Commission2 (“ICC” or “Commission”) concerning railroad rates for transporting hazardous radioactive materials throughout the eastern United States. The Commission found that petitioners’ tariffs were based on a special train service which was unnecessary and wasteful and cancelled the petitioners’ tariffs, replacing them with prescribed, lower tariffs based on regular trainload service. We hold that the ICC acted properly in determining, on the record before it, that the use of special train service was unnecessary, and we therefore affirm the orders of the Commission.

I. BACKGROUND

For a number of years, petitioner railroads have transported spent nuclear fuel3 from nuclear-powered electric generating plants and nuclear-powered vessels to reprocessing plants, waste storage facilities, and commercial burial sites. Transporting spent nuclear fuel is potentially dangerous, since a train derailment, collision, sabotage, or terrorism could result in lethal and environmentally destructive radioactive leakage.4 For this reason both the Nuclear [309]*309Regulatory Commission (“NRC”) and the Department of Transportation (“DOT”) have required that spent nuclear fuel be transported in agency approved, heavily shielded containers, or “casks,” each of which weighs approximately 300,000 pounds and carries a payload of up to approximately 60,000 pounds. Eastern Railroads, supra, 362 ICC at 761. See generally infra at n.13. According to the ICC, the federal government is currently the only railroad customer making significant shipments of spent nuclear fuel, 362 ICC at 762, and it imposes different railroad safety restrictions5 on the shipping of its cargo than the NRC and DOT have required for shipments of spent fuel generally. However, the federal government apparently will not remain the sole shipper of spent fuel for long, since the ICC found that “nuclear reactor operators will soon have to make such shipments if they are to continue operating, as their local storage at plant locations is limited.” Id. at 762-63.

During the 1960s and into the 1970s petitioner railroads maintained a practice of “flagging out,” or abstaining from listing in their published tariffs, the rates for carriage of nuclear materials. The railroads did transport such material, however, under specific contractual arrangements with individual shippers.6 In 1978, the ICC put an end to the railroads’ “flagging out” practice, and held that the railroads were “required under their common carrier duty to handle the involved commodities and to publish reasonable and otherwise lawful tariff provisions covering such transportation and . .. their failure to do so violates sections 1(4) and 6(1) of the act and the national transportation policy.” U.S. Energy Research and Development Administration v. Akron, Canton and Youngstown Railroad Co., 359 ICC 639 (1978), aff’d sub nom. Akron, Canton & Youngstown Railroad Co. v. ICC, 611 F.2d 1162 (6th Cir. 1979), cert. denied, 449 U.S. 830, 101 S.Ct. 97, 66 L.Ed.2d 34 (1980).

[310]*310To comply with the ICC order, petitioner railroads filed tariffs applicable to shipments of spent fuel. Those tariffs — the ones at issue in this case — were premised on the use of “special train service” (hereinafter “STS”).7 Objections to the STS-based tariffs were filed by electric utilities and other shippers. See generally Petitioners’ Brief at “Certificate Required by Rule 8(c) ...,” at unnumbered second and third pages (listing of utilities and shippers). By order dated December 8,1978, the Commission suspended the operation of the tariffs and instituted an investigatory proceeding which produced the principal decision and order now before this court. On March 15, 1979, the Commission changed its mind, vacated the suspension of the STS tariffs, and the tariffs then went into effect; they have remained in effect until today by order of this court. See p. 646 infra. In the meantime, evidentiary proceedings in the case went forward. Evidence was submitted in the form of written verified statements of witnesses, both on behalf of the railroads and of opposing shipper interests. Although the Commission’s customary practice is for an Administrative Law Judge to render an initial decision, in this case the Commission chose to consider the matter ab initio.

On May 2, 1980, the Commission held, inter alia,

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646 F.2d 642, 207 U.S. App. D.C. 307, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidated-rail-corp-v-interstate-commerce-commission-cadc-1981.