FR-4915-01-P
SURFACE TRANSPORTATION BOARD
[Docket No. FD 36785]
City of Charlotte, N.C.—Acquisition Exemption—Norfolk Southern Railway
Company
The City of Charlotte, N.C. (the City), a noncarrier, has filed a verified notice of
exemption under 49 CFR 1150.31 to acquire from Norfolk Southern Railway Company
(NSR) its right, title, and interests in the right-of-way, track, and related physical assets
(the Assets) of an approximately 29.04-mile portion of NSR’s O Line in Mecklenburg
and Iredell Counties, N.C. (O Line Segment).1 The O Line Segment extends from
milepost O-0.04 in Charlotte, N.C., to milepost O-29.08 in Mooresville, N.C.
According to the City, under the terms of its agreements with NSR,2 the City will
acquire the Assets, with NSR retaining a permanent and exclusive easement preserving
NSR’s ability to fulfill its common carrier and related freight services over the O Line
Segment. The City states that the acquisition is part of a planned expansion of the
Charlotte Area Transit System, the City’s regional transit network, which will better link
northern suburban communities with the City of Charlotte. The City also states that it
will be prohibited under the Agreements from providing freight rail service or
unreasonably interfering with NSR’s freight service over the O Line Segment.
According to the verified notice, NSR will retain the easement to provide rail service to
customers over, on, and connecting to the Assets.

The City also filed a motion to dismiss the notice of exemption on the grounds
that the transaction does not require authorization from the Board. The motion to
dismiss will be addressed in a subsequent Board decision.
Public and confidential versions of the Purchase and Sale Agreement and the
Draft Comprehensive Rail Agreement (Agreements) were filed with the motion to
dismiss. The confidential versions were submitted under seal concurrently with a motion
for protective order, which is addressed in a separate decision.

The City certifies that the proposed transaction does not include any provision or
agreement that would limit future interchange with a third-party connecting carrier. The
City also certifies that, because it will not conduct any freight rail carrier operations over
the Assets, its projected annual revenues will not exceed $5 million and will not exceed
those that would qualify the City as being a Class III rail carrier.
The transaction may be consummated on or after July 10, 2024, the effective
date of the exemption (30 days after the verified notice of exemption was filed).
If the verified notice contains false or misleading information, the exemption is
void ab initio. Petitions to revoke the exemption under 49 U.S.C. 10502(d) maybe
filed at any time. The filing of a petition to revoke will not automatically stay the
effectiveness of the exemption. Petitions for stay must be filed no later than July 3,
2024 (at least seven days before the exemption becomes effective).
All pleadings, referring to Docket No. FD 36785, must be filed with the Surface
Transportation Board either via e-filing on the Board’s website or in writing addressed
to 395 E Street, S.W., Washington, DC 20423-0001. In addition, a copy of each
pleading must be served on the City’s representative, Robert A. Wimbish, Fletcher &
Sippel LLC, 29 North Wacker Drive, Suite 800, Chicago, IL 60606-3208.
According to the City, this action is categorically excluded from environmental
reporting requirements under 49 CFR 1105.6(c) and from historic preservation
reporting requirements under 49 CFR 1105.8(b).
Board decisions and notices are available at www.stb.gov.
Decided: June 21, 2024.
By the Board, Mai T. Dinh, Director, Office of Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2024-13991 Filed: 6/25/2024 8:45 am; Publication Date: 6/26/2024]