day's notice to this Commission and to the general public by filing and posting in the manner prescribed by the Commission under section 6 of the Interstate Commerce Act, and that this proceeding be, and it is hereby, discontinued. 357 I.C.C. APPENDIX A Supplement 23 to Tarifi 7-F SECTION 1 EXCEPTIONS TO APPLICATION AND RULES EXCEPTION (Applicable only on tank cars loaded with Liquefied Petroleum Gas, viz. :) Propane, having vapor pressure exceeding 40 lbs per square inch absolute; or Butane, suitable only for mixing, blending or processing; from and to points and under rates specified in Item 375, ATSF Tarift 15198-1.1.C.C. 15247. Provisions of Item 130,"Mileage Rate Allowance".will not apply. Mileage allowance of nine (9) cents per loaded mile will be paid for movement of tank cars. No mileage allowance will be paid for movement of empty tank cars. Empty privately-owned or leased tank cars used or to be used in intra-Mexican service will be subject to the following: (a) Owner or lessee shall secure an entry permit from the involved Mexican carrier prior to empty movement to the border crossing and permit number must be shown on the written instructions accompanying such car. (b) Subsequent to intra-Mexican service, written instructions for each car entering the U.S. must clearly indicate the exact consignee or facility for disposition of the car prior to movement beyond the border gateways. (c) Upon failure to comply with paragraphs (a) or (b), a holding charge of $10.00 NOTE A: Abilene & Southern Railway Company Atchison, Topeka and Santa Fe Railway Company Doniphan. Kensett & Searcy Railway Missouri Pacific Railway Company New Orleans and Lower Coast Railroad Company Southern Pacific Transportation Company (Southern Pacific Lines) Texas Mexican Railway Company. The Weatherford, Mineral wells and Northwestern Railway Company (The) 26 120 (New) EQUALIZATION OF MILEAGE ON TANK CARS OF PRIVATE OWNERSHIP A. AGGREGATE EMPTY MILEAGE VERSUS LOADED MILEAGE (NOTE) NOTE. -All mileage accrued as of midnight December 31, 1976. is hereby eliminated for equalization purposes. (1) Should the aggregate empty mileage accumulated by tank cars carrying any of the reporting marks assigned to any one person or company during a calendar year exceed the aggregate loaded mileage during the same calendar year by more than 10 5 percent (5%), such excess empty mileage must be paid for by the person or company to whom the reporting marks are assigned at the rate of eighteen cents (182) per mile, without minimum, subject to the procedures outlined in Paragraph D. (2) Mileage on empty cars moving on revenue billing will not be included in the equalization account. (3) Loaded or empty mileage caused by error in handling of the reporting railroad or of another railroad, will not be credited or charged in the equalization account of the reporting railroad, and the loaded or empty mileage which would have been made by the car had there been no error, shall be credited to, or charged in the equalization accounts of the railroad or railroads via which the car should have moved. It not adjusted by the railroad(s), claims for such equalization adjustments shall be submitted to the railroad(s) in the customary manner. To facilitate the prompt settlement of such claims, however, it is recommended that they be submitted within six months from the last day of the month in which the movement was reported. • Increase. (Concluded on following page) C&EI and TP ELIMINATED. Provisions of Item. as amended, will apply. TP ELIMINATED. Provisions of Item, as amended, will apply. 26 Will not apply on Texas intrastate traffic. 357 I.C.C. • 26 120 (New) (Con cluded) EQUALIZATION OF MILEAGE ON TANK CARS OF PRIVATE OWNERSHIP-Concluded A. AGGREGATE EMPTY MILEAGE VERSUS LOADED MILEAGE-Concluded (4) Loaded and empty mileage accumulated on cars moving on their own wheels to and from repair Tacilities due to railroad damage will not be included in the equalization account. (5) Mileage accumulated due to longer routes for railroad convenience.de tours and ICC Service Orders will not be included in the equalization account. If not adjusted by the railroad(s) claims for such equalization adjustments shall be submitted to the railroad in the customary manner. To facilitate the prompt settlement of such claims, however, it is recommended that they be submitted within six months from the last day of the month in which the movement was reported. (6) Aggregate loaded and empty mileage will be computed on the basis of actual distance.as defined in Item 115. Adjustments made subsequent to the deadline specified in Paragraph (D) will be computed in the subsequent equalization accounting year. B. REPORTING OF ACTUAL LOADED AND EMPTY MILEAGE Each participating carrier will submit a monthly mileage report in the format prescribed by C. CHANGE OF OWNERSHIP when a private tank car company or owner discontinues business or disposes of all tank cars equipment, any excess empty mileage balance which has accrued to the date of such action, on The tank cars bearing the reporting marks of such company or owner, shall be subject to bill as of that date, in accordance with the provisions contained in Paragraphs (A) and (D) of Item 120, subject to any applicable adjustments. D. ANNUAL NATIONAL EQUALIZATION ACCOUTING (1) All participating carriers to this tariff will prior to May 20 of each year, submit to the Secretary Operating-Transportation Division Association of American Railroads, a summary of the total actual loaded and empty mileage.separated by reporting mark.aggregated on the reporting railroad during the preceding calendar year. The Secretary will summarize this reported empty and loaded mileage by reporting marks assigned to any one person or company. Should the aggregate empty mileage exceed the aggregate loaded mileage of all participating carriers by more than 10 3. for any such group of reporting marks, the person or company to whom the reporting marks are assigned will be billed at the rate of eighteen cents ($.18) per mile without minimum and must pay the AAR on behalf of each participating carrier for such excess empty mileage. The charges collected for this excess empty mileage will be distributed to the participating carriers by the AAR in direct proportion to such carrier's portion of excess empty mileage to the total accumulated excess empty mileage. Only that mileage and any related adjustments reported to the Secretary prior to May 20 will be considered in determining any excess empty mileage, as outlined herein. (2) An annual national equalization statement detailing the excess empty mileage accumulated and any applicable charges will be tendered by the Secretary to the person or company assigned the reporting mark(s) for such cars for verification no later than July 1 of the year succeeding the equalization accounting year. Exceptions to this statement must be received by the Secretary within 30 days of the date tendered. Any adjustments made by the participating carriers up to and including the March account applicable to the prior year(s) will be incorporated in the equalization accounts for the prior equalization accounting year. Any railroad or AAR adjustments made subsequent to the March account will be carried over to the following equalization accounting year. 10 The 3 excess mileage factor is subject to adjustment subsequent to December 31, 1977 in accord with the joint settlement to ICC Docket No.35537.filed with the Commission on April 5, 1976. • Increase. 26 will not apply on Texas intrastate traffic. 357 I.C.C. EX PARTE No. 252 (SUB-No. 1) INCENTIVE PER DIEM CHARGES-1968 Decided July 18, 1977 Upon consideration of the petitions for reconsideration and replies filed in response to the Commission's order of January 21, 1977, section 1036.4 of title 49, Code of Federal Regulations, amended to provide carriers the alternative of a single 196468 test period average for all types of boxcar transactions, a matching requirement, or the previous separate test period averages, and to allow carriers to draw down incentive per diem funds for purchasing, leasing, and nonequity leasing of rebuilt as well as new boxcars. Appearances as shown in prior report, and in addition: John F. Donelan, William M. Houston, George E. Lee, E. Spencer Miller, and Harold E. Spencer. REPORT OF THE COMMISSION ON RECONSIDERATION BY THE COMMISSION: Various petitions for reconsideration were filed to the Commission's report of January 21, 1977, in this proceeding at 353 I.C.C. 336 (prior report). This proceeding had been reopened by order served February 6, 1976, to determine whether section. 1036.4, title 49 of the Code of Federal Regulations' should be amended as it applies to the test period averages on nonequity leases for unequipped general service boxcars (boxcars). We stated that since the use of nonequity leases is a relatively new concept, in $1036.4 Use of funds on boxcars.-The net cerdit balances resulting from incentive per diem settlements on boxcars, which are earmarked in accordance with $1036.3, may be drawn down in whole or in part at any time by the carrier to build, lease equivalent of purchase, or purchase, in whole or in part, new unequipped boxcars for general service described in $1036.1, provided, The carrier has in the same calendar year built, leased, or purchased its 1964-68 average acquisitions of such boxcars and made up an arrearage in having failed to maintain such average each year this order is in effect. Earmarked funds may also be used in whole or in part to lease any number of new unequipped boxcars for general use described in $1036.1 in which the carrier is not acquiring an equity interest, provided, The carrier has in the same calendar year leased its 1964-68 average number of such boxcars and made up any arrearage in having failed to maintain such average each year the order is in effect. Nonequity leases must be at least 10 years in duration, and, in connection with such leases, earmarked funds must not be used for the cost of (footnote continued on next page) many cases, the 1964-68 test period2 would not be applicable. Interested parties were requested to submit their views on whether the 1964-68 test period should be replaced with a different test period, a matching requirement, or some other requirement and to comment on "any other related matter." As a result of the views submitted by the parties, we issued our prior report which amended (footnote I continued) maintenance. Earmarked funds may be used in whole or in part to rebuild any number or portion of general service, unequipped boxcars described in $1036.1, provided, The carrier has in the same calendar year rebuilt its 1964-68 average number of such boxcars and made up any arrearage in having failed to maintain such average each year the order is in effect. Net balances on Canadian-owned cars may be drawn down without regard to prior acquisitions, but where the designee is a class I United States carrier such drawdowns shall not affect that carrier's accumulation of arrearages resulting from prior failure to build, rebuild, lease, or purchase its 1964-68 arrearages. However, upon application, including a showing that all parties to the proceeding herein have been notified by the carrier of such application and a showing of good cause why any carrier is unable to draw down in whole or in part the net credit balance resulting from incentive per diem settlements because it cannot comply with the above test period average requirement of having in the same calendar year built, rebuilt, leased, or purchased its 1964-68 average number of such boxcars and made up any arrearage in having failed to maintain such average each year this order is in effect, the Commission may, in its discretion, after consideration of all views regarding the application, modify the test period average to the extent consistent with the public interest and the national transportation policy. Such modification, as a minimum, shall require that a carrier match the earmarked funds it will use with an equal amount of its own funds. [Similarly, a carrier using earmarked funds, in whole or in part, to build, rebuild, lease, or purchase general service, unequipped boxcars of the XF designation, shall only be required, as a minimum, to match the earmarked funds it will use to purchase XF boxcars with an equal amount of its own funds.] Earmarked funds must be put to use within 18 months after the end of the calendar year in which the funds are collected and result in a net credit balance for the building, rebuilding, leasing, or purchasing of general service, unequipped boxcars described in $1036.1 for addition to such carrier's or designee's fleet in accordance with this part. Upon a showing of good cause an application, including a showing that the parties to the proceeding herein have been notified by the carrier of such application, may be made to the Commission for waiver of the said 18-month period, which may, in the Commission's discretion, be granted after consideration of all views regarding the application. If the earmarked funds are not used within the 18-month period, they may be voluntarily surrendered to Rail Box whose establishment and operation was approved in American Rail Box Car Co.-Pooling, 347 I.C.C. 862. If the carrier fails within the stated period to put to use collected earmarked funds which result in a net credit balance, has not obtained relief from that requirement, and has not surrendered such funds to Rail Box, the Commission will investigate the matter to determine what, if any, corrective action is warranted. Appropriate corrective action would include section 16(12) remedies among others. Carriers may make temporary investments of unexpended funds in Government bonds or other liquid securities. Such securities must be readily convertible to cash so that funds remain available for boxcar purchases. Interest earned must become part of the earmarked fund. As used in this section and $1036.5, "build," "rebuild," "lease," or "purchase" refer to the commitment to build, rebuild, lease, or purchase which results in the acquisition of a car on line ready for use within 10 months from the date of commitment, except that in extraordinary cases beyond the control of the carrier or the car supplier, a car that is delivered after 10 months from the date of commitment may qualify if approved by the Bureau of Accounts of this Commission. "The average annual number of boxcars during that 5-year period, plus any arrearages from this average in prior years, that were built, purchased, and leased the equivalent of a purchase; or rebuilt; or nonequity leased would have to be acquired out of general operating funds before a carrier could expend net incentive per diem credit balances for these same purposes. |