Surface Transportation Board: Lease Renewal Exemption for Wichita, Tillman & Jackson Railway

Regs.gov: Surface Transportation Board

Published March 20th, 2026

Detected March 15th, 2026

Summary

The Surface Transportation Board (STB) has issued a notice of exemption for the renewal of a lease between Wichita, Tillman & Jackson Railway Company (WTJR) and Union Pacific Railroad Company (UP). This renewal extends the lease for approximately 16.55 miles of rail line for an additional ten years, continuing a lease arrangement that has been in place since 1991.

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What changed

The Surface Transportation Board (STB) has published a notice of exemption for the renewal of a lease between Wichita, Tillman & Jackson Railway Company (WTJR) and Union Pacific Railroad Company (UP). This renewal pertains to approximately 16.55 miles of rail line and extends the existing lease for an additional ten years. The transaction is considered exempt from prior approval requirements as it is a renewal of a previously authorized lease, with only an extension in time involved. The STB has also noted that affected employees will be protected under conditions previously established in the Mendocino Coast Ry. case.

Regulated entities, specifically WTJR and UP, should note that the exemption becomes effective on March 20, 2026. Petitions to revoke the exemption can be filed at any time, but a petition for stay must be filed no later than March 13, 2026. All pleadings should refer to Docket No. FD 36903 and be filed with the STB. The notice also states that the transaction is categorically excluded from environmental review and historic reporting requirements.

What to do next

File petitions to revoke the exemption by March 20, 2026, if applicable.
File petitions for stay by March 13, 2026, if applicable.
Refer to Docket No. FD 36903 for all pleadings.

Penalties

If the verified notice contains false or misleading information, the exemption is void ab initio.

Source document (simplified)

Content

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.

Decided: March 3, 2026. By the Board, Anika S. Cooper, Chief Counsel, Office of Chief Counsel.

Tammy Lowery, Clearance Clerk. [FR Doc. 2026-04414 Filed 3-5-26; 8:45 am] BILLING CODE 4915-01-P

Footnotes

(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.