Decision No. 378-R-2008

July 21, 2008

File No. T 6338/198

Background

In its Decision No. LET-R-74-2008, the Canadian Transportation Agency (the Agency) made its interim ruling on an application by the Town of Bengough and the Rural Municipality of Bengough No. 40 (Bengough), pursuant to section 146.3 of the Canada Transportation Act (the CTA). The Agency:

• determined the total interim net salvage value of the Canadian Pacific Railway Company's (CP) Radville Subdivision located between mileages 0.5 and 70.5 (the railway line) to be $2,928,303, excluding the value of its land; and
• directed Bengough to advise the Agency within 14 days from the date of Decision No. LET-R-74-2008 if it wished the Agency to proceed to engage an independent land appraiser so that the final determination could be completed.

By letter dated May 12, 2008, Bengough requested an extension to May 28, 2008. The extension was granted.

On May 27, 2008, Bengough advised the Agency that it believed that through further discussions a fair land value may be set between the parties involved and, therefore, it did not wish to proceed with the offer of a land appraisal of the railway line.

Conclusion

The interim decision in this matter, referenced above, was issued for the reasons specified at paragraphs 101 and 102 of that decision. That is, at that time, the Agency had completed its net salvage value assessment of the railway line, excluding land components, and acknowledged that finalizing any assessment of the latter would entail additional time as well as incremental costs to Bengough. Rather than awaiting the completion of a land valuation and the issuance of a final all-inclusive determination at some future date, an interim (excluding land) valuation was issued. In providing such an advance ruling, the Agency alluded to the opportunity for continuing negotiations between the parties during the intervening period including, if desired, an Agency-assisted mediation.

Bengough has now advised the Agency that it does not wish the Agency to proceed with the land assessment. As the applicant in these proceedings which are commenced under section 146.3 of the CTA, Bengough has this right to so advise the Agency and the Agency has the power, pursuant to subsection 27(4) of the CTA, to permit such an amendment to the section 146.3 application made by Bengough.

In this circumstance, the original application filed by Bengough for a determination pursuant to section 146.3 of the CTA for net salvage value of the railway line is therefore amended and will be dealt with as an application pursuant to section 146.3 for net salvage value of the railway line excluding an assessment of land value.

As no new relevant facts or circumstances have arisen since the issuance of the interim decision, that is Decision No. LET-R-74-2008, the asset values, expenses and costs set out therein are hereby confirmed. Accordingly, the Agency's final determination of the net salvage value of the railway line is $2,928,303.

Members

• John Scott
• Geoffrey C. Hare