Decision No. 851-R-1993

December 9, 1993

December 9, 1993

IN THE MATTER OF a notice by the Canadian National Railway Company of an agreement to convey by transfer to the Central Western Railway Corporation a line of railway, namely 0.14 of a mile of its Stettler Subdivision from mileage 1.61 to mileage 1.75, including the track and lands comprising the "Viewpoint Ballast Pit Spur", in the province of Alberta, pursuant to subsection 158(2) of the National Transportation Act, 1987, R.S.C. 1985, c. 28 (3rd Supp.).

File No. T 6135/667


INTRODUCTION

On August 27, 1993, the Canadian National Railway Company (hereinafter CN) gave notice, in writing, to the National Transportation Agency (hereinafter the Agency) of an agreement to convey by transfer (hereinafter the Transfer Agreement) to the Central Western Railway Corporation (hereinafter the CWRC) the segment of the CN Stettler Subdivision between mileage 1.61 and mileage 1.75, a total distance of 0.14 of a mile, pursuant to the provisions of subsection 158(2) of the National Transportation Act, 1987 (hereinafter the NTA, 1987).

Pursuant to the terms of the Transfer Agreement, the following lands and assets are also to be conveyed by transfer to the CWRC:

Approximately 9.6 acres of land (the "Viewpoint Lands"), being a portion of CN's Viewpoint Ballast Pit, and the railspur through the Viewpoint Lands including the main track switch at the north end of the railspur.

The CWRC was incorporated by virtue of the Central Western Railway Corporation Act, S.A. 1984, c. 71, and was authorized to operate "the railway commonly known as the Stettler Subdivision of Canadian National Railways from the Ferlow Junction (mileage 0.00) to Dinosaur Junction (mileage 108.02), after the purchase or lease of that railway by the Corporation ...".

In 1986, the CWRC acquired ownership of that segment of the CN Stettler Subdivision between mileage 1.75 and mileage 106.5, pursuant to Order in Council P.C. 1986-2206 dated September 18, 1986, as amended by Order in Council P.C. 1986-2624 dated November 20, 1986.

According to CN, the CWRC now requires the 0.14 mile segment of the Stettler Subdivision between mileage 1.61 and mileage 1.75, including the track and lands comprising the "Viewpoint Ballast Pit Spur", for use as interchange tracks.

In this regard, CN and the CWRC have entered into an Interchange Agreement which sets out their respective rights and obligations respecting the use and operation of the interchange tracks and operations on interchange.

As the railway trackage to be conveyed is only required for interchange purposes, CN, in its application dated August 27, 1993, requested that the Agency exempt it from the requirement to give public notice of the Transfer Agreement and submitted reasons in support of its request in its letter dated September 29, 1993.

Having reviewed all of the materiel received and on file with respect to this matter, the Agency concluded that it would be in the public interest to grant CN's request and exempt it from the requirement to give public notice in this particular case. CN was advised of the decision of the Agency by letter dated October 28, 1993.

MATTERS TO BE CONSIDERED

Subsection 158(3) of the NTA, 1987 provides that:

Within six months after the receipt of a notice under subsection (2), the Agency shall, after holding such hearings, if any, as are required in its opinion to enable all persons who wish to do so to present their views on the conveyance of the line of railway or segment, approve the agreement for the conveyance unless the Agency determines that the conveyance would not be in the public interest or that the company to whom the line or segment is to be conveyed is not authorized to operate it.

CONCLUSIONS

The Agency has considered all of the material received and on file and has concluded that a public hearing is not required and that a decision can be made based on the information on file.

Further, after consideration of the matter, the Agency has concluded that there is no evidence to indicate that the proposed Transfer Agreement would not be in the public interest.

The Agency is also satisfied that the constituting statute of the CWRC gives the CWRC the authority to operate the Stettler Subdivision, in the province of Alberta.

DETERMINATION

Accordingly, pursuant to subsection 158(3) of the NTA, 1987, the Agency hereby approves the Transfer Agreement between CN and the CWRC for the transfer of a line of railway, namely 0.14 of a mile of its Stettler Subdivision from mileage 1.61 to mileage 1.75, including the track and lands comprising the "Viewpoint Ballast Pit Spur", in the province of Alberta.

Further, CN must advise the Agency in writing of the date upon which the conveyance transaction has been completed.

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