Federal Railroad Agency Affirms Mendocino Railway’s Carrier Status
Ruling confirms federal law will pre-empt local law with regard to railroad operations
The Surface Transportation Board (STB) on Friday issued a definitive ruling, declaring the Mendocino Railway a Class III rail carrier subject to exclusive federal jurisdiction. The STB is an independent federal agency that regulates railroads.
The ruling means that the railway can avoid liability or compliance with state and/or local requirements that conflict with federal rules with regard to rail operations, track construction, or service levels.
“This does not change our enthusiasm and willingness to work with the City [of Fort Bragg] to revitalize the mill site to benefit all parties,” Chris Hart, vice president of business development for the Sierra Railroad Company, owner of the Mendocino Railway,, said in a Facebook post.
The railway petitioned the Surface Transportation Board in July, saying that it sought “confirmation of its status due to recent legal challenges by local municipalities and state agencies.” Those ongoing legal battles “are proving to be debilitating and pose a risk of potential financial ruin for the company,” the petition stated.
The California Coastal Commission filed a reply to the petition, asking the board to deny it. The commission argued that the operations of the Mendocino Railway were limited to Mendocino and that there was no evidence it trains had carried any freight over its lines or transported any non-excursion or non-local passengers in more than 20 years of ownership.
The commission also noted that Mendocino Railway’s single connection to another railroad and to the interstate rail network has been inoperative for more than 25 years.
In its decision, the board responded that a “rail carrier does not lose its status as a common carrier by not providing freight rail service,” and it confirmed that the Mendocino Railway became a carrier when it bought the railway assets of California Western Railroad out of bankruptcy in 2004.
The board clarified that “once an entity becomes a rail carrier, it does not matter whether the line has been inactive for a time, or even if it remains inactive after it is acquired.” And it stated that the “common carrier obligation cannot be terminated or relieved without abandonment or discontinuance authorization from the Board.”
The decision was strongly supported by the American Short Line and Regional Railroad Association (ASLRRA), which filed comments arguing that an adverse decision against MRY could negatively affect other similarly situated carriers across the country. ASLRRA members, often possessing limited resources, expressed concern that courts and other non-specialized legal bodies frequently misunderstand the STB’s licensing process for common carriers.
The Mendocino Railway and the City of Fort Bragg were not immediately available for a comment.