Long Descriptions for Guidelines Respecting Net Salvage Value Determination Applications

Process for the transfer or discontinuance of a railway line

This diagram shows the process for the transfer or discontinuance of a railway line. First, as per subsection 141(1) of the Act, the railway company must list the railway line on its three-year plan. Next, as per subsection 143(1) of the Act, the company must advertise the availability of the railway line.

If no interested party comes forward, then the railway line is not transferred to a third party operator. If an interested party does come forward, the railway company and the party have six months to reach an agreement after the final date of advertisement, as per subsection 144(4) of the Act. If an agreement is reached, the railway is transferred to a third party operator. If an agreement is not reached, there may be an application for NSV. If there is no application for NSV, the railway is not transferred to a third party operator. If there is an application for NSV, the Agency will make an NSV determination under subsection 144(3.1) of the Act. If at this point an agreement is reached, then the railway is transferred to a third party operator. If no agreement is reached, the railway is not transferred to a third party operator.

Once it has been established that the railway will not be transferred to a third party operator, then the railway line must be offered to all levels of government, as per section 145 of the Act. At this point, there may be an application for a non-binding NSV. If not, and if the offer that is then made is not accepted, then the railway is not transferred to government. In this case, the railway company is free to discontinue the railway line.

If there is an application for a non-binding NSV, the Agency will make an NSV determination under subsection 146.3(1) of the Act. If the offer that is then made is not accepted, then the railway is not transferred to government. In this case, the railway company is free to discontinue the railway line. If the offer that is then made is accepted, there may be an application for a binding NSV. If there is no application, then the railway line is transferred to the government. If there is an application for a binding NSV, then the Agency will make an NSV determination under section 145.5 of the Act. The railway line is then transferred to government.return to figure 1

Process for the dismantling of a siding or spur in a metropolitan area (including railway station with the modifications that are required)

This diagram shows the process for the transfer or discontinuance of a siding or spur in a metropolitan area. First, as per subsection 146.2(2) of the Act, the railway company must publish a list of the metropolitan sidings and spurs to be dismantled on its Internet site. Next, as per subsection 146.2(3) of the Act, the company must wait 12 months from when the siding or spur is added on the list to dismantle it. At the same time, as per subsection 146.2(4) of the Act, the railway company must offer the siding or spur to all levels of government and to any urban transit authorities before dismantling it.

At this point, there may be an application for a non-binding NSV. If not, and if the offer that is then made is not accepted, then the siding or spur is not transferred to government. In this case, the railway company is free to discontinue the metropolitan siding or spur.

If there is an application for a non-binding NSV, the Agency will make an NSV determination under subsection 146.3(1) of the Act. If the offer that is then made is not accepted, then the siding or spur is not transferred to government. In this case, the railway company is free to discontinue the metropolitan siding or spur.

If the offer that is then made is accepted, there may be an application for a binding NSV. If there is no application, then the siding or spur is transferred to the government. If there is an application for a binding NSV, then the Agency will make an NSV determination under subsection 146.2(7) of the Act. The siding or spur is then transferred to government. return to figure 2

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