| SURFACE TRANSPORTATION BOARD DECISION DOCUMENT | |||
| Decision Information | |||
Docket Number:   | FD_30186_0 | ||
Case Title:   | TONGUE RIVER RAILROAD COMPANY--RAIL CONSTRUCTION AND OPERATION--IN CUSTER, POWDER RIVER AND ROSEBUD COUNTIES, MT | ||
Decision Type:   | Decision | ||
Deciding Body:   | Entire Board | ||
| Decision Summary | |||
Decision Notes:   | DECISION: (1) DISMISSED TWO TONGUE RIVER PROCEEDINGS AND REOPENS TONGUE RIVER I DUE TO SUBSTANTIAL CHANGES IN THE ORIGINAL PROPOSAL; (2) REQUIRED TONGUE RIVER RAILROAD COMPANY (TRRC) TO REVISE ITS APPLICATION THAT FULLY REFLECTS TRRC'S CURRENT PLANS; (3) DISMISSED THE NORTHERN PLAINS RESOURCE COUNCIL, MARK FIX (NPRC) PETITION FOR RECONSIDERATION; AND (4) DENIED NPRC'S REQUEST TO REOPEN ALL THREE TONGUE RIVER PROCEEDINGS. | ||
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| Full Text of Decision | |||
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42434 SERVICE DATE – JUNE 18, 2012 EB SURFACE
TRANSPORTATION BOARD DECISION Docket
No. FD 30186 TONGUE
RIVER RAILROAD COMPANY—RAIL CONSTRUCTION AND OPERATION—IN CUSTER, POWDER RIVER
AND ROSEBUD COUNTIES, MONT. Docket
No. FD 30186 (Sub-No. 2) TONGUE RIVER RAILROAD COMPANY—CONSTRUCTION AND OPERATION—ASHLAND
TO DECKER, MONT. Docket
No. FD 30186 (Sub-No. 3) TONGUE
RIVER RAILROAD COMPANY, INC.—CONSTRUCTION AND OPERATION—WESTERN ALIGNMENT Digest:[1]
This decision sets up a process for
responding to the court’s decision in Northern Plains Resource Council v.
STB, 668 F.3d 1067 (9th Cir. 2011), affirming in part, reversing in part,
and remanding for further environmental review the Board’s decisions in two Tongue
River proceedings, FD 30186 (Sub-No. 2) and FD 30186 (Sub-No. 3),
authorizing the construction of portions of the Tongue River Railroad in
Montana. The Board is dismissing both of
these proceedings because the railroad no longer intends to construct the rail
lines that were the subject of those applications. The Board will reopen FD 30186 to require the
railroad to submit a revised application that reflects its current plans for
the line that the railroad still wants to build, and to conduct a new environmental
review. The Board will also dismiss as
moot a pending petition for reconsideration of the Board’s 2011 denial of an
earlier petition to reopen, deny a request that it set a procedural schedule,
and address certain other procedural requests. Decided: June 13, 2012 INTRODUCTION Over the course of the
past 30 years, the agency issued three decisions authorizing construction of portions
of the proposed 130-mile Tongue River Railroad, subject to environmental
conditions. No portion of the proposed
line has ever been built. Petitions for
review of the last two decisions, known as Tongue River II[2]
and Tongue River III,[3]
were filed in the Ninth Circuit, and, in 2011, the court partially reversed and
remanded those decisions for additional environmental review.[4] The Tongue River Railroad Company, Inc.
(TRRC) has now informed the Board that it does not intend to build the Tongue
River II and Tongue River III portions of the railroad. TRRC does propose to
build the approximately 80-mile portion initially authorized in 1986 in the
proceeding known as Tongue River I,[5]
as modified in Tongue River III. Although
Tongue River I was not directly at issue before the Ninth Circuit in the
Tongue River II and Tongue River III appeal,[6]
the court’s decision requires the Board to revisit the environmental baseline
data and cumulative impacts analyses that also would apply to the Tongue River
I rail line because the Board made the resulting mitigation conditions
applicable to all three rail lines in its Tongue River III decision. See Tongue River III, slip op.
at 34-35. TRRC has also informed the
Board of a recent transfer in ownership of TRRC and changes in the purpose and
need for the proposed line. Thus, the
Board must now decide which Tongue River proceeding to reopen; what type
of revised application should be required to reflect the changes in TRRC’s
proposal; and whether to supplement existing environmental documents or prepare
a new environmental review. The recent Ninth
Circuit decision and TRRC’s new ownership and modified plans all constitute changed
circumstances that warrant reopening. For
the reasons discussed below, the Board will dismiss the Tongue River II
and Tongue River III proceedings and will reopen Tongue River I. The Board will also require TRRC to file a revised
application that presents the railroad’s current plans for the railroad it
still intends to build and the information required by 49 C.F.R. pt. 1150. In addition, the Board will conduct a new environmental
review that is consistent with the court’s decision rather than a supplemental
environmental review based on the three prior environmental reviews that began
in the 1980s. This decision also dismisses
as moot a pending petition for reconsideration of the Board’s 2011 denial of an
earlier petition to reopen, denies a request that the agency set a procedural
schedule, and addresses requests for the release of a confidential agreement
and a new service list. BACKGROUND The Prior Tongue River Decisions. In 1986, the Interstate Commerce Commission
gave approval to TRRC to build
and operate an 89-mile rail line between Miles City and Ashland, Montana (Tongue
River I). The line was
intended to serve future coal mines in the Ashland area and to connect with a
line of the BNSF Railway Company (BNSF) at Miles City for shipment of the coal
to eastern and western destinations. In 1996,
in its Tongue River II decision, the Board authorized TRRC to build and
operate a 41-mile extension of the proposed line previously authorized in Tongue
River I, running south from Ashland to Decker, Montana, over the Four Mile
Creek Alternative. The line
extension was intended to serve existing coal mines at Decker, and to offer a
shortcut of between 130 and 160 miles for BNSF’s Powder River Basin coal moving
from the Gillette, Wyoming, area to Midwest
destinations. In 2007, in Tongue
River III, the Board authorized TRRC to build and operate the Western
Alignment, a 17.3-mile alternative route for the southernmost portion of the already-approved
Four Mile Creek Alternative. TRRC
proposed the Western Alignment to eliminate potential economic, operational,
and environmental concerns that the railroad had with respect to the Four Mile
Creek Alternative route. The
Board undertook environmental review of the proposals in all three proceedings
pursuant to the National Environmental Policy Act (NEPA), 42 U.S.C. §
4321-4370f, with public input and consultation with federal, state, and local
agencies and entities. In all three
proceedings, the Board prepared Environmental Impact Statements (EISs).[7] The environmental review in Tongue River
III not only compared the potential impacts of the Western Alignment with
the Four Mile Creek Alternative, but also supplemented and reevaluated the
reviews previously performed in Tongue River I and Tongue River II.
As a result, the Board’s 2007 decision
in Tongue River III approved the railroad’s proposed modifications to
the original Tongue River I route alignment that the railroad had
proposed and imposed 92 environmental mitigation conditions that applied to the
entire line between Miles City and Decker. Again, no portion of any of these lines has
been built. Northern
Plains Resource Council, Mark Fix (collectively,
NPRC), the City of Forsyth, Native Action, Inc. (Native Action), and the United
Transportation Union—General Committee of Adjustment (UTU-GCA) filed timely
petitions in the Ninth Circuit for judicial review of the Tongue River II
and Tongue River III decisions, raising both environmental and
transportation-related concerns.[8] On July 26, 2010, while the petitions for
review were pending, NPRC asked the Board to reopen Tongue River I, Tongue
River II, and Tongue River III.
NPRC alleged both changed circumstances and new evidence to justify
asking the Board to reopen these cases and to prepare a Supplemental EIS (SEIS)
for the entire rail line. NPRC pointed
to recent leases of Otter Creek coal tracts in Montana as a changed
circumstance that, it asserted, made the transportation and ultimate burning of
this coal by power plants reasonably foreseeable and required the preparation
of additional environmental review.[9] NPRC also submitted allegedly new scientific
information that it claimed demonstrated the accelerating effects of climate
change caused by the burning of fossil fuels and urged the Board to conduct a
new cumulative air quality impacts analysis to take into account the emissions
of carbon dioxide and other greenhouse gases at the power plants that would
receive coal transported by TRRC. In a
decision served June 15, 2011, the Board denied reopening (Reopening Denial).
The Board explained that, in deciding
whether NPRC had alleged sufficient grounds to support its reopening request,
it had to weigh the magnitude of the alleged bases for reopening against
countervailing equitable concerns regarding administrative finality, repose,
and detrimental reliance by the applicant and the public. Given the fact that NPRC had sought reopening
years after the environmental review here was completed and the Board’s final
decision in Tongue River III was issued, the Board determined that NPRC
had a “heavy burden” to meet to justify reopening. After considering the evidence presented by
NPRC and TRRC’s reply, the Board concluded that NPRC had not alleged the kind
of new evidence or changed circumstances that would justify withdrawing the
Board’s authorization of the TRRC rail line to prepare an SEIS at that time,
particularly where TRRC had asserted that it had detrimentally relied on the
Board’s decisions and would be prejudiced by reopening.[10] NPRC filed a timely petition for reconsideration
of the Board’s decision in July 2011, which remains pending. The Court’s Decision. On December 29, 2011, in
Northern Plains the court reversed in part and affirmed in part the
Board’s decisions in Tongue River II and Tongue River III. The court upheld the Board’s decisions with
respect to all but one of the transportation-related issues, but remanded the
cases for further Board review on certain environmental issues. Among other things, the court found that the
Board erred in finding that the Otter Creek coal mine development was too
speculative to be addressed as part of the Board’s environmental analysis in Tongue
River III. The court also determined
that the Board failed to provide adequate baseline data to document the direct
impacts of the railroad on several resources, including the pallid sturgeon,
sage grouse, fish and aquatic resources, other wildlife, and sensitive
plants. The court found fault with the
Board’s reliance on mitigation conditions that called for additional surveys
and analyses to be performed prior to the start of rail construction where
baseline data was not sufficiently provided.
In the court’s view, these surveys should have been conducted before the
Board’s decisions authorizing Tongue River II and Tongue River III. Moreover, the court ruled that the agency’s
aerial surveys performed in 1985, 1992, and 1997 were too old to provide
adequate information regarding the current habitat and populations of various
species and, also that the Board had not shown how aerial surveys were a
sufficient method to identify fish populations in rivers, sensitive plant
species, and other potentially at risk wildlife and plants. Further Developments. On July 7, 2011, TRRC
filed an Amended Corporate Disclosure Statement with the court in the
then-pending Northern Plains case to inform the court and the other parties
of a transfer in ownership of the railroad to a holding company, TRR Holding. TRRC also filed an amended Board-required status
report (Four Month Report) with the Board on July 8, 2011. In both, TRRC explained that 1/3 ownership
shares in the holding company are held respectively by BNSF, Arch Coal (the
developer of the Otter Creek coal tracts), and a private investment entity
subsequently identified as TRR Financing LLC, a company controlled by Mr. Forrest
Mars, Jr., who is a landowner along the route approved in Tongue River II.
TRRC explained that, under the terms of an
agreement among the new owners, the approval of TRR Financing LLC (or its
designee, successors, or assigns) would be required before any construction or
certain pre-construction activities for the portion of the proposed rail line
defined as the Tongue River II-III route could take place. In a September 2, 2011 letter to the
Board’s Office of Environmental Analysis, TRRC clarified that the new owners
“have determined that they will not, in the reasonably foreseeable future,
construct the portion of the TRRC line south of the Ashland/Otter Creek
area. Instead, TRRC will concentrate on
moving toward construction of the line between Miles City and the Ashland/Otter
Creek area, i.e., the (Tongue River I) portion of the line.”[11] Several parties have filed pleadings proposing
how the Board should proceed in light of the court’s partial remand in Northern
Plains. On April 13, 2012, NPRC
filed a petition to reopen all three Tongue River proceedings based on
the court’s partial remand and requested a 775-day procedural schedule to
conduct a new SEIS for all three proceedings that is consistent
with the court’s decision. NPRC further
claimed that the Board should continue to process its pending petition for
reconsideration of the June 15, 2011 denial of NPRC’s 2010 petition to reopen
the three Tongue River proceedings. NPRC also asked for a new and accurate service
list that reflects only the parties that are still involved in the cases. On April 19, 2012, TRRC filed a Statement
of Intent offering its suggestions on how best to proceed. TRRC informed the Board that it no longer
intends to construct the rail lines south of Ashland that were the subject of
its applications in Tongue River II and Tongue River III and that
it intends to focus its future activities on construction of the line between
Miles City and Ashland/Otter Creek previously authorized in Tongue River I,
with the modifications to that rail line considered in Tongue River III. TRRC stated that it planned to withdraw its
application to construct Tongue River II. Because it viewed Tongue River I as
administratively final, it proposed to file an amended application in Tongue
River III to “refocus” that application so that it would no longer seek
authority to construct the Western Alignment, but rather would only seek
whatever approval might be needed for the modifications to Tongue River I
considered in Tongue River III, as well as to provide updated information
on TRRC’s ownership, traffic forecasts, financial projections, and other
relevant information. According to TRRC,
this would give the Board the information needed to prepare a thorough review
of the transportation and environmental matters relevant to TRRC’s current
construction plans, as well as to address the matters identified by the court
in Northern Plains as warranting further review, to the extent those
issues remain relevant to TRRC’s current plans. On May 7, 2012, TRRC replied to NPRC’s
April 13, 2012 petition. It opposed reopening
Tongue River I on grounds that Tongue River I is
administratively final and was not directly before the court in Northern
Plains. It reiterated that NPRC’s
pending petition for reconsideration of the 2011 Reopening Denial
decision (and NPRC’s underlying petition to reopen) are mooted by TRRC’s
decision not to seek to construct any lines south of Ashland and by TRRC’s
suggestion that the Board prepare an SEIS in Tongue River III to address
the remanded issues and the issues raised in NPRC’s 2010 petition. The railroad objected to NPRC’s proposed
schedule, arguing that (1) the time frames for handling applications for rail
construction cases at 49 C.F.R. § 1150.10 (providing time frames for comments
on applications and replies to such comments) should be applied in handling the
merits side of the proceedings on remand, and (2) NPRC’s proposed two-year
schedule for completing the environmental review process is too long.[12]
TRRC agreed with NPRC that the Board
should develop a new service list for the proceeding on remand. In similar filings dated May 7, 2012,
UTU-GCA and Native Action argue that, in light of TRRC’s statement that it no
longer intends to construct the rail lines south of Ashland that were the
subject of Tongue River II and Tongue River III, those
applications should be dismissed. UTU-GCA
and Native Action also contend that the Board should reject TRRC’s proposal to
use Tongue River III as a vehicle to consider modifications to Tongue
River I and that future proceedings in these cases should take place in Tongue
River I or in an entirely new Tongue River IV. In addition, these parties ask that the
agreement between BNSF, Arch Coal, and TRR Financing LLC, controlled by Mr.
Mars, be made publicly available, and noted that the involvement of BNSF and
the relationship between BNSF and TRRC could raise potential concerns. On May 8, 2012, NPRC submitted a reply
to TRRC’s Statement of Intent arguing that the only appropriate proceeding for
further environmental review consistent with Northern Plains in these
cases is Tongue River I because the modified Tongue River I line
is the only line that TRRC still seeks to build. NPRC also claimed that its pending petition
for reconsideration of the Board’s 2011 Reopening Denial of the three Tongue
River proceedings is not moot. DISCUSSION AND CONCLUSIONS 1. Reopening
Tongue River I and Dismissing Tongue River II and Tongue River III. The Board must decide how to respond to
the court’s partial remand in Northern Plains now that it is clear that
TRRC does not intend to construct the alignments proposed in the applications
filed in Tongue River II and Tongue River III, and how to respond
to TRRC’s Statement of Intent to move forward with the rail line authorized in Tongue
River I, as modified in Tongue River III. There is no dispute here that at least one of
the Tongue River proceedings needs to be reopened in order for TRRC to
move forward with its current plan to build the modified Tongue River I
rail line. The court’s decision in Northern
Plains makes it clear that TRRC may not build any part of the Tongue River Railroad
without further environmental review.
Several aspects of the court’s decision in Northern Plains found
fault with the Board’s environmental mitigation—which applied to the entire
line, including Tongue River I.
The court also criticized the Board’s decision not to analyze the
potential cumulative impacts from the Otter Creek mines (which TRRC hopes to
serve with its currently proposed rail line), and rejected as stale and
inadequate the baseline data and surveys in the EIS, some of which were done in
the 1980s in Tongue River I.
Thus, while Tongue River I was not directly before the court (see
Northern Plains, 668 F.3d at 1073), the court’s decision nevertheless
affects the line authorized in Tongue River I. The Board considers reopening requests
under 49 U.S.C. § 722(c), which provides that the Board may, at any time, on
its own initiative or on a party’s petition, reopen an administratively final
proceeding because of material error, new evidence, or substantially changed
circumstances. See also 49
C.F.R. § 1115.4. In deciding whether a
party has alleged sufficient grounds to support a reopening request, the Board
weighs the magnitude of the alleged bases for reopening against countervailing
equitable concerns regarding administrative finality and repose and detrimental
reliance by the applicant and the public.
In its 2011 Reopening Denial, the
Board relied heavily on the need for administrative finality and repose in
finding that NPRC had not supported its request to reopen the three Tongue
River proceedings at that time. For
example, the Board concluded that NPRC had failed to show that the Board should
reevaluate the environmental impacts that might result from prospective coal
mining in the Otter Creek tracts based on recent leases of Otter Creek coal
tracts when NPRC had filed its petition to reopen four years after completion
of the environmental review in Tongue River III, and three years after
the Board’s decision authorizing Tongue River III and imposing
environmental mitigation for the entire line had become final.[13] As the Board explained,[14]
once the 2007 decision in Tongue River III became effective, TRRC had
the right to proceed with the many preconstruction steps incidental to any
major new rail line such as obtaining the requisite easements or rights-of-way,
securing financing commitments, complying with the Board’s mitigation and other
federal and state regulations and processes, and developing final construction
design and engineering plans. Another
round of administrative review by the Board in 2011, the agency found, would
not have changed the result reached in Tongue River III and would have
caused “significant and prejudicial uncertainty, delay, and expense to this
project.”[15] Accordingly, it was appropriate to give
concerns of administrative finality and repose great weight in 2011. Circumstances have changed significantly
since then. The Northern Plains
court has issued its partial remand requiring that the Board do substantial
additional environmental analysis before the Tongue River II-III rail
lines could be constructed and revisit the baseline data and mitigation that
apply to Tongue River I, II, and III. However, TRRC has stated that it no longer
wants to build the routes identified in Tongue River II-III. TRRC has also stated that, although it now wants
to build the Tongue River I rail line (as modified in Tongue River
III), TRRC has new ownership and the purpose and need for that proposed
line has changed. Thus, it is necessary
for the Board to reopen one or more of the Tongue River cases. Having found that these changed circumstances
warrant reopening, we must determine whether we should reopen Tongue River I
or Tongue River III. TRRC
suggests that the Board could reopen Tongue River III to do all of the
additional environmental analysis required by the court that impacts the approximately
80-mile Tongue River I line, as modified in Tongue River III,
even though TRRC has no intention of moving forward with the Western Alignment
route that was the subject of its application in Tongue River III. On the other hand, NPRC, UTU-GCA, and Native
Action contend that the additional analysis required by Northern Plains
should be done in Tongue River I, given the railroad’s decision not to
move forward with the Western Alignment.
The most reasonable approach here is to
dismiss both Tongue River II[16]
and Tongue River III and to reopen Tongue River I to require a revised
application under 49 U.S.C. § 10901 and 49 C.F.R pt. 1150 that presents fully TRRC’s current
proposal to build the rail line between Miles City and Ashland. The revised application should provide, at a
minimum, current information regarding TRRC’s ownership; the planned terminus
points for the proposed line; the purpose of the proposed rail line; the demand
and need for its construction; and TRRC’s financial fitness to proceed. As noted above, TRRC itself proposed to file
an amended application containing information relevant to its current plans,
although it would prefer to file it in Tongue River III. Moreover, it makes sense to conduct the
additional environmental review in Tongue River I, not Tongue River
III. First, because TRRC no longer
intends to build the Western Alignment proposed in its application in Tongue
River III, it is unnecessary to undertake any additional
environmental review of that proposal. Second, the railroad hopes to build the Tongue
River I line as modified in Tongue River III; thus conducting the additional
environmental review in Tongue River I is appropriate. Because of the recent transfer of
ownership of the railroad to BNSF, Arch Coal, and TRR Financing LLC, and the
other changes to TRRC’s plans that have taken place since 1986, the Board on
remand will not be addressing the same proposal that was before the agency in Tongue
River I. Although the railroad has
advised the Board of these changes, it has provided few details and interested
parties and the general public have had no chance to address any concerns about
the transfer of ownership and changes in TRRC’s plans that they might have. Requiring a revised application containing
the information discussed above will ensure that, when the Board again
considers the transportation merits of TRRC’s proposal, it will have before it
a complete and current description of TRRC’s plans and financial fitness, and
any replies raising concerns about TRRC’s revised application that might be
filed. Therefore, the Board will dismiss
Tongue River II and Tongue River III and reopen Tongue River I
to require a revised application that reflects TRRC’s current plans. 2. A New EIS Rather Than a SEIS
in Tongue River I. Agencies are required to prepare a
supplement to a Draft EIS or Final EIS where the agency makes “substantial
changes in the proposed action that are relevant to environmental concerns” or
there are “significant new circumstances or information relevant to
environmental concerns and bearing on the proposed action or its impacts.” 40
C.F.R. § 1502.9(c)(1).
Agencies may also prepare supplements (as opposed to new EISs) when they
determine that the purposes of NEPA will be furthered by doing so. Id. The decision to undertake a
supplemental EIS is subject to a “rule of reason.” Marsh v. Or. Natural
Res. Council, 490 U.S.
360, 374 (1989). TRRC has suggested that an SEIS might be sufficient to respond to the court’s
concerns in Northern Plains and to comply with the requirements of
NEPA. The Board disagrees, for several
reasons. First, in Northern Plains,
the court held that the baseline data used to assess the potential impacts of
TRRC’s proposals in the prior EISs were too stale and that some of the Board’s
surveys were inadequate, which means that they could not be used in the
environmental review on remand. The fact
that the agency’s prior EISs are old, going back in Tongue River I to
environmental analysis prepared in the 1980s and in Tongue River II to
the 1990s, might not be enough standing alone to make them invalid. Given the court’s partial remand, however, it
would not be appropriate to continue building on an environmental foundation
that has been found to be unsound. Second,
most of the Board’s more recent environmental analysis pertains to the area
around the Four Mile Creek Alternative and the Western Alignment, neither of
which the railroad still proposes to build. Third, scoping is required for new EISs
but is not for supplements. 40 C.F.R. §§ 1501.7, 1502.9.
Scoping is meant to be an early and open process to determine the scope
of issues to be addressed in an EIS and the significant issues related to a
proposed action. 40
C.F.R. § 1501.7. As part of
scoping, the Board issues for public review and comment a notice of intent to
prepare an EIS and a draft scope, invites the participation of potentially
affected agencies, Indian tribes, and other interested persons, and typically
holds a scoping meeting in the project area.
A final scope is issued following the receipt of comments on the
draft. 49 C.F.R. §
1105.10(a). It is appropriate to do
scoping again here given the passage of time since the Board issued its Tongue
River I decision, the fact that no part of the Tongue River Railroad has
been built, the changes to the railroad’s original proposal discussed above, and
the fact that different individuals, tribes, and agencies might be interested
in this project now than those who participated in the 1980s.[17]
Finally, a new EIS will encourage and
facilitate public participation throughout the environmental review on remand
because interested parties will have all the relevant information in one place
and will not need to review multiple EISs prepared over the course of 30 years
that include extensive analysis on lines the railroad no longer intends to
build.[18] This approach will further one of the key
purposes of NEPA, which is to ensure that relevant information regarding a proposed
federal action is available to the public. Robertson v. Methow Valley Citizens Council, 490 U.S. 332, 349
(1989). This case presents a unique set of facts
that we have not seen in other rail construction licensing proceedings. Given the passage of time, the failure to
begin any construction of the Tongue River Railroad, the types of issues that
were remanded (such as baseline data), the other changes that have taken place
(such as the Otter Creek leases), TRRC’s decision not to move forward with the
Western Alignment or the Four Mile Creek Alternative, and its decision to build
a different project than what was originally proposed in Tongue River I,
a new EIS is appropriate. 3. Denial of NPRC’s 2011 Reconsideration
Petition and 2012 Reopening Petition. The Board will dismiss as moot NPRC’s
pending petition for reconsideration of the June 2011 Reopening Denial. As previously noted, NPRC asked the Board in
2010 to reopen all three Tongue River proceedings to prepare an SEIS for
the entire rail line. NPRC’s
reconsideration petition asks the Board to reconsider its 2011 Reopening
Denial decision. Because Tongue
River II and Tongue River III are being dismissed, there is no need
for the Board to consider further NPRC’s requests for additional environmental
review in those proceedings. Moreover, the
new (not merely supplemental) environmental review that will take place
relating to the currently proposed Tongue River I rail line will
address, as appropriate, the issues on which NPRC’s petitions to reopen and to reconsider were
based. NPRC also will be free to raise the
concerns addressed in its petitions during the scoping process on the new EIS
and in comments to the Draft EIS. See
49 C.F.R. § 1105.10(a). The Board is
also dismissing NPRC’s 2012 petition to reopen.
This decision fully addresses the issues raised in that petition. 4. Timetable for Reopened Proceeding. As noted above, NPRC proposed a schedule
for handling the reopened proceeding, which mixes together a schedule for the
merits and environmental phases of the proceeding. The Board will not adopt NPRC’s proposed
schedule. For the merits side of the
proceeding, the regulations at 49 C.F.R. § 1150.10 (providing time frames for
the filing of comments on applications for authority to construct and operate
rail lines and replies to such comments) will apply to the revised application
that TRRC will file under 49 U.S.C. § 10901.
The Board does not normally set a schedule for the environmental review
process in rail construction cases and will not do so in this decision. Prior to scoping, the Board cannot predict accurately
how long the agency’s environmental review will take. The Board intends to expedite this case to
the extent possible. 5. Requests for Confidential Agreement and New
Service List. It is premature to consider the request
of UTU-GCA and Native Action asking the Board to order TRRC to make publicly
available the confidential agreement between BNSF, Arch Coal, and TRR Financing
LLC. In its revised application, TRRC
will need to submit detailed information about the applicant, as required by 49
C.F.R. § 1150.3, that may satisfy UTU-GCA and Native Action’s concerns. If not, UTU-GCA and Native Action may renew their
request at that time. However, the Board agrees with the
parties that a new service list should be prepared for the proceedings on reopening
of the Tongue River I proceeding. See 49 C.F.R. § 1104.12. The Board will thus require that any persons
or entities who are interested in participating in the reopened Tongue River
I proceeding file a notice of intent within 30 days from date of service of
this decision, indicating whether they wish to remain listed either as a party
of record or as a non-party on the service list. This action will not significantly
affect either the quality of the human environment or the conservation of
energy resources. It is ordered: 1.
Docket Nos. FD 30186 (Sub-No. 2) and FD 30186 (Sub-No. 3) are dismissed. 2.
Docket No. FD 30186 is reopened for the purpose of requiring the
railroad to file a revised application for the currently proposed rail line and
preparing a new environmental review. 3.
Any persons or entities who are interested in participating in the
reopened Tongue River I proceeding shall file a notice of intent by July
18, 2012 indicating whether they wish to remain listed either as a party of
record or as a non-party on the service list.
A party of record will be served all filings in this proceeding; a
non-party of record will only receive copies of Board decisions. 4.
NPRC’s July 2011 petition for reconsideration is denied as moot. 5.
NPRC’s April 2012 petition to reopen the three Tongue River
proceedings is denied. 6.
This decision is effective on its date of service. By the Board, Chairman
Elliott, Vice Chairman Mulvey, and Commissioner Begeman. Chairman
Elliott did not participate. [1] The digest constitutes no part of the
decision of the Board but has been prepared for the convenience of the
reader. It may not be cited to or relied
upon as precedent. Policy Statement
on Plain Language Digests in Decisions, EP 696 (STB served Sept. 2,
2010). [2] Tongue River R.R.—Rail Construction and
Operation—Ashland to Decker, Mont. (Tongue River II), 1 S.T.B. 809
(1996), pet. for reconsid.
denied (STB served Dec. 31, 1996). [3] Tongue River R.R.—Rail Construction and
Operation—Ashland to Decker, Mont. (Tongue River III), FD 30186
(Sub-No. 3) (STB served Oct. 9, 2007), pet. for reconsid. denied (STB served
Mar. 13, 2008). [4] See N. Plains Res. Council v. STB, 668 F.3d 1067 (9th Cir. 2011) (Northern Plains). [5] Tongue River R.R.—Rail Construction and
Operation—In Custer, Powder River and Rosebud Cntys.,
Mont. (Tongue River I), FD 30186 (ICC served Sept. 4, 1985), modified
(ICC served May 9, 1986), pet. for judicial review
dismissed, N. Plains Res. Council v. ICC, 817 F.2d 758 (9th Cir.), cert.
denied, 484 U.S. 976 (1987).
Although the decision granting Tongue River I authorized the
construction of an 89-mile line, TRRC now describes that line as being
approximately 80 miles based on refinements straightening and shortening the
alignment. [6] Northern Plains, 668 F.3d at 1073. [7] An EIS is the detailed written statement required by NEPA for “major federal actions significantly affecting the quality of the human environment.” 42 U.S.C. § 4332(2)(c). The Board normally prepares an EIS for rail construction proposals for which its approval is required. 49 C.F.R. § 1105.6(a). [8]
The court held in abeyance the petitions for review of Tongue River
II until Tongue River III was issued. [9] Previously, the Board had stated that the possibility of Otter Creek coal being transported was too speculative to consider in the Tongue River III environmental review. Tongue River III at 30. [10] Reopening Denial at 5-17. [11] Railroad’s
Letter 1, Sept. 2, 2011. [12] In particular, TRRC contended that NPRC had
failed to show why 240 days should be provided for environmental scoping
comments and why it would be necessary to include time for depositions and
written discovery. [13]
Reopening Denial at 8-13. [14]
Id. at 8. [15]
Id. [16]
The parties all agree that Tongue
River II should be dismissed. [17] TRRC
has suggested that, although not required, the Board could initiate scoping with an SEIS as well.
However, the scope of an SEIS is, by
definition, narrower, and could limit the range of concerns and comments that
would be communicated to the Board and that the Board would consider in its
subsequent environmental review. [18] The tribes engaged in ongoing tribal consultation regarding this project have complained about the difficulty of having to consult numerous EISs to understand TRRC’s proposal. | |||