Stillwater Central Railroad Lease and Operation Exemption for Hollis & Eastern Railroad Line in Oklahoma
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The Surface Transportation Board (STB) has received a verified notice of exemption from Stillwater Central Railroad, L.L.C. (SLWC), a Class III carrier, under 49 CFR 1150.41. SLWC seeks to continue leasing and operating 14 miles of rail line owned by Hollis & Eastern Railroad, L.L.C. (HE), running from milepost 0.0 at Duke, Oklahoma to milepost 14.0 at Altus, Oklahoma. SLWC has held operating authority on this line since 2010 and is now formalizing updated lease terms with HE. SLWC certifies that the new agreement contains no provisions restricting traffic interchange with third-party carriers, and that its projected annual revenues will remain below the Class I or Class II carrier threshold, though they will exceed $5 million. Because revenues exceed $5 million, federal regulations normally require a 60-day advance notice to labor unions and workplace posting; however, SLWC has petitioned for a waiver of this requirement, which will be addressed separately. The STB will set the effective date of the exemption in its decision on the waiver petition. Petitions for stay must be filed no later than April 10, 2026, and petitions to revoke may be filed at any time. The action is categorically excluded from environmental review and historic preservation reporting.
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Key Changes
- SLWC renews authority to lease and operate 14-mile rail line from Duke (MP 0.0) to Altus (MP 14.0), Oklahoma under updated lease terms with HE
- New lease agreement replaces original 2010 authority (Docket FD 35217); updated terms now govern SLWC's continued operations
- SLWC projects annual revenues exceeding $5 million, triggering 49 CFR 1150.42(e) labor notification requirements (60-day advance notice to unions)
+ 3 more changes with Pro
Obligations
What this law requires
Stillwater Central Railroad must maintain a lease agreement with Hollis & Eastern Railroad that contains no provisions prohibiting or limiting traffic interchange with third-party carriers
If the verified notice contains false or misleading information, the exemption is void ab initio; SLWC must ensure all certifications and statements in the notice are accurate
SLWC must comply with 49 CFR 1150.42(e) labor notice requirements unless a waiver is granted, including posting notice at the workplace of affected employees at least 60 days before exemption becomes effective
SLWC must serve a copy of workplace notice on national offices of labor unions with employees on the affected lines at least 60 days before exemption becomes effective (unless waiver granted)
SLWC must certify to the Surface Transportation Board that it has completed the 60-day advance labor notice requirements (unless waiver granted)