Melinda Birt v. Surface Transportation Board, Union Pacific Railroad Company and City of Nampa, Idaho, Intervenors

90 F.3d 580, 319 U.S. App. D.C. 357, 26 Envtl. L. Rep. (Envtl. Law Inst.) 21609, 1996 U.S. App. LEXIS 18930, 1996 WL 430907
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 2, 1996
Docket95-1211
StatusPublished
Cited by41 cases

This text of 90 F.3d 580 (Melinda Birt v. Surface Transportation Board, Union Pacific Railroad Company and City of Nampa, Idaho, Intervenors) 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
Melinda Birt v. Surface Transportation Board, Union Pacific Railroad Company and City of Nampa, Idaho, Intervenors, 90 F.3d 580, 319 U.S. App. D.C. 357, 26 Envtl. L. Rep. (Envtl. Law Inst.) 21609, 1996 U.S. App. LEXIS 18930, 1996 WL 430907 (D.C. Cir. 1996).

Opinions

Opinion for the Court filed by Circuit Judge WALD.

Dissenting opinion filed by Circuit Judge SENTELLE.

WALD, Circuit Judge:

Petitioner Melinda Birt owns a parcel of land in Canyon County, Idaho, across which intervenor Union Pacific Railroad Company (“UP”) held a right-of-way for its railroad tracks.1 In April of 1993, UP sought to [582]*582abandon a 16-mile segment of the line running through Canyon County, presumably because its operation was no longer profitable. Shortly thereafter, the city of Nampa, which lies near the stretch of tracks in question, indicated its interest in using the land for a nature trail pursuant to the Trails Act. The Trails Act allows a sponsoring organization to develop an unused railroad track for recreational or conservational purposes; under a “rails to trails” arrangement, the railroad does not relinquish its right to use the easement in the future, thereby preventing the reversionary interests of adjoining landowners (such as Birt) from vesting. In February of 1995, after the ICC granted several extensions in the time allotted for negotiating a rails-to-trails deal — the first of which was retroactive — UP and Nampa reached agreement and the ICC2 approved the conversion.

Birt petitions for review of the ICC’s decisions granting extensions for negotiation and final approval of the agreement. She argues that UP had already abandoned the track before these decisions were issued, depriving the Commission of jurisdiction over UP’s right-of-way. Birt also contends that the Commission lacked authority to retroactively extend the negotiating deadline. We reject both arguments. As to the first, we think that UP failed to demonstrate the requisite intent to abandon the track prior to finalizing the conversion agreement, and thus the Commission still had jurisdiction over the right-of-way when it issued the extensions and approval order. Secondly, we find that the ICC acted within its discretion in extending the negotiating period. Accordingly, we affirm the Commission’s order approving the UP/Nampa rails-to-trails agreement.

I. Background

A. “Rails-to-Trails” Conversions

For generations, American railroads played a critical role in our nation’s economic development, at peak accounting for 272,000 miles of trackage in the 1920s.3 Preseault v. ICC, 494 U.S. 1, 5, 110 S.Ct. 914, 918, 108 L.Ed.2d 1 (1990). Today, only 141,000 miles remain, and the system continues to lose an additional 3,000 miles each year. Id. Due to the competition of cars, trucks, buses, and planes, traffic on many rail lines has deteriorated to the point of unprofitability. Before it can cease service on an established line, however, a railroad must obtain a “certificate of abandonment” from the ICC. If granted, the railroad’s rights-of-way generally revert back to the adjoining landowners across whose property the tracks run. Confronted with the Hobson’s choice of forfeiting a national rail system through piecemeal abandonment of lines, or forcing railroads to maintain tracks on which they cannot turn a profit, Congress developed a third option: converting “rails” to “trails.”4 Section 1247(d) of the Trails Act5 permits a railroad [583]*583seeking to abandon a line to instead negotiate with a state or local government or private organization to assume financial and legal responsibility for the track. Under a “rails-to-trails” agreement, the railroad’s right-of-way is transferred to the third-party sponsor for interim recreational or conserva-tional purposes. Because this transfer is deemed by statute not to constitute an abandonment of the line, the reversionary interests of adjoining landowners do not vest, even though the railroad ceases service and takes up the tracks. The rail line instead retains the right to reassert control over the easement at some point in the future if it decides to revive rail service.

The regulations implementing § 1247(d) direct a potential third-party sponsor to file a statement with the ICC expressing interest in a rails-to-trails conversion and offering to assume financial and legal responsibility for the trail. 49 C.F.R. § 1152.29(a) (1996). If the third party has fully complied with the filing requirements and the railroad agrees to negotiate, the Commission will then issue a “Certificate of Interim Trail Use” (“CITU”).6 A CITU stays the railroad’s certificate of abandonment for 180 days, during which time the parties may negotiate over interim trail use. Id. § 1152.29(c)(1). During that time period, the railroad may take certain actions which are consistent with either discontinuing service as part of a trails conversion or full abandonment of the line: discontinuance of rail service, cancellation of tariffs, and removal of tracks. Id. If the parties reach agreement prior to expiration of the CITU, the sponsor takes over management of the right-of-way, subject to the railroad’s option to reassert control over the line. If the parties do not reach agreement, the certificate of abandonment becomes effective upon expiration of the CITU. Id. (“[t]he CITU will ... permit the railroad to fully abandon the line if no agreement is reached 180 days after it is issued”). Once in possession of an effective abandonment certificate, the railroad may at any time thereafter exercise its option to fully abandon the line by clearly exhibiting its intent to do so.

B. UP/Nampa Trail Use Agreement

In April of 1993, UP applied to the ICC for an abandonment certificate covering a 16-mile stretch of tracks outside Nampa called the “Stoddard Branch.”7 The railroad proffered several justifications for abandonment: a major shipper on the line had ceased rail shipments; remaining traffic on the line was insufficient to offset maintenance and operation costs; and there were no reasonable prospects of enough income to justify continued operation of the line. A month later, the City of Nampa8 wrote to the ICC indicating [584]*584its interest in negotiating a rails-to-trails agreement with UP so that a four-mile segment of the track could be used as a recreational trail. Nampa expressed its willingness to assume financial responsibility and legal liability for the line, and asked the Commission to issue a CITU staying UP’s certificate of abandonment. In response, UP informed the Commission that it was willing to enter into a trail use agreement with the City of Nampa for part, but not all, of the segment which Nampa had identified. Following up on this correspondence, Nampa reiterated its interest in a trail agreement for the portion of the Stoddard Branch referenced by UP.

On October 4, 1993, the ICC approved UP’s request for an abandonment certificate, but it did not impose a trail condition because Nampa had not yet fully complied with the filing requirements for trail sponsorship; on November 26, 1993, it issued the actual certificate of abandonment, to become effective December 26,1993.

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Bluebook (online)
90 F.3d 580, 319 U.S. App. D.C. 357, 26 Envtl. L. Rep. (Envtl. Law Inst.) 21609, 1996 U.S. App. LEXIS 18930, 1996 WL 430907, Counsel Stack Legal Research, https://law.counselstack.com/opinion/melinda-birt-v-surface-transportation-board-union-pacific-railroad-cadc-1996.