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49 U.S.C. § 10707 — Determination of market dominance in rail rate proceedings
Federal law — U.S. Code and appendices · legal_authorities
**(a)** In this section, “market dominance” means an absence of effective competition from other rail carriers or modes of transportation for the transportation to which a rate applies.
**(b)** When a rate for transportation by a rail carrier providing transportation subject to the jurisdiction of the Board under this part is challenged as being unreasonably high, the Board shall determine whether the rail carrier proposing the rate has market dominance over the transportation to which the rate applies. The Board may make that determination on its own initiative or on complaint. A finding by the Board that the rail carrier does not have market dominance is determinative in a proceeding under this part related to that rate or transportation unless changed or set aside by the Board or set aside by a court of competent jurisdiction.
**(c)** When the Board finds in any proceeding that a rail carrier proposing or defending a rate for transportation has market dominance over the transportation to which the rate applies, it may then determine that rate to be unreasonable if it exceeds a reasonable maximum for that transportation. However, a finding of market dominance does not establish a presumption that the proposed rate exceeds a reasonable maximum.
**(d)**
(1)
(A) In making a determination under this section, the Board shall find that the rail carrier establishing the challenged rate does not have market dominance over the transportation to which the rate applies if such rail carrier proves that the rate charged results in a revenue-variable cost percentage for such transportation that is less than 180 percent.
(B) For purposes of this section, variable costs for a rail carrier shall be determined only by using such carrier’s unadjusted costs, calculated using th
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Stable record: federal_law:legal_authorities:record_usc_be2bec5adc7876bdc97c7716
Source file: Laws/federal/codes/united-states-code/title-49/section-10707-determination-of-market-dominance-in-rail-rate-proceedings--981efbe471.md
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Passage SHA-256: 15c79f926c04e2a4735a92a05f9e3e67513921f844b2e5e2d00f630746ed10a8
Source location: Title 49, Chapter 107, § 10707; chapter-107-rates.md
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**(a)** In this section, “market dominance” means an absence of effective competition from other rail carriers or modes of transportation for the transportation to which a rate applies.
**(b)** When a rate for transportation by a rail carrier providing transportation subject to the jurisdiction of the Board under this part is challenged as being unreasonably high, the Board shall determine whether the rail carrier proposing the rate has market dominance over the transportation to which the rate applies. The Board may make that determination on its own initiative or on complaint. A finding by the Board that the rail carrier does not have market dominance is determinative in a proceeding under this part related to that rate or transportation unless changed or set aside by the Board or set aside by a court of competent jurisdiction.
**(c)** When the Board finds in any proceeding that a rail carrier proposing or defending a rate for transportation has market dominance over the transportation to which the rate applies, it may then determine that rate to be unreasonable if it exceeds a reasonable maximum for that transportation. However, a finding of market dominance does not establish a presumption that the proposed rate exceeds a reasonable maximum.
**(d)**
(1)
(A) In making a determination under this section, the Board shall find that the rail carrier establishing the challenged rate does not have market dominance over the transportation to which the rate applies if such rail carrier proves that the rate charged results in a revenue-variable cost percentage for such transportation that is less than 180 percent.
(B) For purposes of this section, variable costs for a rail carrier shall be determined only by using such carrier’s unadjusted costs, calculated using the Uniform Rail Costing System cost finding methodology (or an alternative methodology adopted by the Board in lieu thereof) and indexed quarterly to account for current wage and price levels in the region in which the carrier operates, with adjustments specified by the Board. A rail carrier may meet its burden of proof under this subsection by establishing its variable costs in accordance with this paragraph, but a shipper may rebut that showing by evidence of such type, and in accordance with such burden of proof, as the Board shall prescribe.
(2) A finding by the Board that a rate charged by a rail carrier results in a revenue-variable cost percentage for the transportation to which the rate applies that is equal to or greater than 180 percent does not establish a presumption that—
(A) such rail carrier has or does not have market dominance over such transportation; or
(B) the proposed rate exceeds or does not exceed a reasonable maximum.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment.—** The Surface Transportation Board is an independent establishment of the United States Government.
**(b) Membership.—**
(1) The Board shall consist of 5 members, to be appointed by the President, by and with the advice and consent of the Senate. Not more than 3 members may be appointed from the same political party.
(2) At all times—
(A) at least 3 members of the Board shall be individuals with professional standing and demonstrated knowledge in the fields of transportation, transportation regulation, or economic regulation; and
(B) at least 2 members shall be individuals with professional or business experience (including agriculture) in the private sector.
(3) The term of each member of the Board shall be 5 years and shall begin when the term of the predecessor of that member ends. An individual appointed to fill a vacancy occurring before the expiration of the term for which the predecessor of that individual was appointed, shall be appointed for the remainder of that term. When the term of office of a member ends, the member may continue to serve until a successor is appointed and qualified, but for a period not to exceed one year. The President may remove a member for inefficiency, neglect of duty, or malfeasance in office.
(4) No individual may serve as a member of the Board for more than 2 terms. In the case of an individual appointed to fill a vacancy occurring before the expiration of the term for which the predecessor of that individual was appointed, such individual may not be appointed for more than one additional term.
(5) A member of the Board may not have a pecuniary interest in, hold an official relation to, or own stock in or bonds of, a carrier providing transportation by any mode and may not engage in another busines
Source: Supplied U.S. Code snapshot — release unconfirmed · 49 U.S.C. § 1301
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** One or more rail carriers providing transportation subject to the jurisdiction of the Board under this part may enter into a contract with one or more purchasers of rail services to provide specified services under specified rates and conditions.
**(b)** A party to a contract entered into under this section shall have no duty in connection with services provided under such contract other than those duties specified by the terms of the contract.
**(c)**
(1) A contract that is authorized by this section, and transportation under such contract, shall not be subject to this part, and may not be subsequently challenged before the Board or in any court on the grounds that such contract violates a provision of this part.
(2) The exclusive remedy for any alleged breach of a contract entered into under this section shall be an action in an appropriate State court or United States district court, unless the parties otherwise agree. This section does not confer original jurisdiction on the district courts of the United States based on section 1331 or 1337 of title 28, United States Code.
**(d)**
(1) A summary of each contract for the transportation of agricultural products (including grain, as defined in section 3 of the United States Grain Standards Act ([7 U.S.C. 75](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section75&num=0&edition=prelim)) and products thereof) entered into under this section shall be filed with the Board, containing such nonconfidential information as the Board prescribes. The Board shall publish special rules for such contracts in order to ensure that the essential terms of the contract are available to the general public.
(2) Documents, papers, and records (and any copies thereof) relating to a contract described in s
Source: Supplied U.S. Code snapshot — release unconfirmed · 49 U.S.C. § 10709
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** A through route established by a rail carrier must be reasonable. Divisions of joint rates by rail carriers must be made without unreasonable discrimination against a participating carrier and must be reasonable.
**(b)** A rail carrier providing transportation subject to the jurisdiction of the Board under this part may not discriminate in its rates against a connecting line of another rail carrier providing transportation subject to the jurisdiction of the Board under this part or unreasonably discriminate against that line in the distribution of traffic that is not routed specifically by the shipper.
**(c)** Except as provided in subsection (d) of this section and unless a rate is prohibited by a provision of this part, a rail carrier providing transportation subject to the jurisdiction of the Board under this part may establish any rate for transportation or other service provided by the rail carrier.
**(d)**
(1) If the Board determines, under [section 10707 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title49-section10707&num=0&edition=prelim), that a rail carrier has market dominance over the transportation to which a particular rate applies, the rate established by such carrier for such transportation must be reasonable.
(2) In determining whether a rate established by a rail carrier is reasonable for purposes of this section, the Board shall give due consideration to—
(A) the amount of traffic which is transported at revenues which do not contribute to going concern value and the efforts made to minimize such traffic;
(B) the amount of traffic which contributes only marginally to fixed costs and the extent to which, if any, rates on such traffic can be changed to maximize the revenues from such traffic; and
(C)
Source: Supplied U.S. Code snapshot — release unconfirmed · 49 U.S.C. § 10701
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Federal law — U.S. Code and appendices · legal_authorities
Page 427
TITLE 49—TRANSPORTATION
§ 10707
ber 1, 1980, with respect to the obligation of rail
carriers to utilize rolling stock owned or leased
by shippers.
(b) The Board may require an organization es-
tablished or continued under an agreement ap-
proved under this section to maintain records
and submit reports. The Board may inspect a
record maintained under this section.
(c) The Board may review an agreement ap-
proved under subsection (a) of this section and
shall change the conditions of approval or ter-
minate it when necessary to comply with the
public interest and subsection (a). The Board
shall postpone the effective date of a change of
an agreement under this subsection for what-
ever period it determines to be reasonably nec-
essary to avoid unreasonable hardship.
(d) The Board may begin a proceeding under
this section on its own initiative or on applica-
tion. Action of the Board under this section—
(1) approving an agreement;
(2) denying, ending, or changing approval;
(3) prescribing the conditions on which ap-
proval is granted; or
(4) changing those conditions,
has effect only as related to application of the
antitrust laws referred to in subsection (a) of
this section.
(e)(1) The Federal Trade Commission, in con-
sultation with the Antitrust Division of the De-
partment of Justice, shall prepare periodically
an assessment of, and shall report to the Board
on—
(A) possible anticompetitive features of—
(i) agreements approved or submitted for
approval under subsection (a) of this section;
and
(ii) an organization operating under those
agreements; and
(B) possible ways to alleviate or end an anti-
competitive feature, effect, or aspect in a
manner that will further the goals of this part
and of the transportation policy of section
Source: Supplied 2024 U.S. Code historical extraction · 49 U.S.C. § 10707
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