Exemption: Renewal of Lease Agreement Containing Interchange Commitment; Wichita, Tillman and Jackson Railway Co., Union Pacific Railroad Co.

Wichita, Tillman & Jackson Railway Company-Renewal of Lease Agreement Containing Interchange Commitment-Union Pacific Railroad Company

Wichita, Tillman & Jackson Railway Company (WTJR) has filed a verified notice of exemption under 49 CFR 1180.2(d)(4) for the renewal of its lease from Union Pacific Railroad Company (UP) of approximately 16.55 miles of rail line located between milepost 0.99 in Wichita Falls, Tex., and milepost 17.54 at the Texas-Oklahoma State line near Burkburnett, Tex. (the Line). ⁽¹⁾

According to the verified notice, WTJR has been leasing the Line from UP since 1991. See Wichita, Tillman & Jackson Ry.-Lease & Operation Exemption-Mo. Pac. R.R., FD 31787 (ICC served Jan. 8, 1991). The Board authorized the renewal of this lease in 2010. See Wichita, Tillman & Jackson Ry.-Lease Renewal Exemption-Union Pac. R.R., FD 35452 (STB served Dec. 23, 2010). In 2015, WTJR entered into a new lease agreement with UP for the Line with a term expiring on December 11, 2025, and the Board authorized the new lease in 2016. See Wichita, Tillman & Jackson Ry.-Lease Exemption Containing Interchange Commitment-Union Pac. R.R., FD 35998 (STB served Mar. 4, 2016).

WTJR states that it and UP have agreed to amend the lease to renew it for an additional ten years. WTJR represents that the transaction involves a renewal of a lease that the Board previously authorized, and only an extension in time is involved. Therefore, the transaction is exempt from the prior approval requirements of 49 U.S.C. 11323. See 49 CFR 1180.2(d)(4). WTJR has disclosed in its verified notice that the lease agreement contains an interchange commitment that affects the interchange point at Wichita Falls. WTJR has provided additional information regarding the interchange commitment as required by 49 CFR 1180.4(g)(3)(i). ⁽²⁾

As a condition to the use of this exemption, any employees affected by this transaction will be protected by the conditions imposed in Mendocino Coast Ry.-Lease& Operate-Cal. W. R.R., 354 I.C.C. 732 (1978), modified, 360 I.C.C. 653 (1980).

This transaction may be consummated on or after March 20, 2026, the effective date of the exemption (30 days after the verified notice was filed).

If the verified notice contains false or misleading information, the exemption is void ab initio. Petitions to revoke the exemption under 49 U.S.C. 10502(d) may be filed at any time. The filing of a petition to revoke will not automatically stay the effectiveness of the exemption. Petitions for stay must be filed no later than March 13, 2026 (at least seven days before the exemption becomes effective).

All pleadings referring to Docket No. FD 36903 must be filed with the Surface Transportation Board either via e-filing on the Board's website or in writing addressed to 395 E Street SW, Washington, DC 20423-0001. In addition, one copy of each pleading must be served on WTJR's representative, Karl Morell, 440 1st Street NW, Suite 440, Washington, DC 20001.

According to WTJR, this action is categorically excluded from environmental review under 49 CFR 1105.6(c) and from historic reporting requirements under 49 CFR 1105.8(b).

Board decisions and notices are available at www.stb.gov.

⁽¹⁾  After WTJR filed a verified notice of exemption to renew the lease on January 9, 2026, the Board directed WTJR to submit a revised notice or supplement, as appropriate, addressing whether an interchange commitment in the original lease would be renewed. WTJR filed its revised verified notice on February 18, 2026.

⁽²⁾  The exhibits to the 2015 lease agreement were submitted with the 2016 verified notice.