
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 49USC10709]

 
                        TITLE 49--TRANSPORTATION
 
                 SUBTITLE IV--INTERSTATE TRANSPORTATION
 
                              PART A--RAIL
 
                           CHAPTER 107--RATES
 
                     SUBCHAPTER I--GENERAL AUTHORITY
 
Sec. 10709. Contracts

    (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) 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 subsection (a) shall not be subject to the 
mandatory disclosure requirements of section 552 of title 5.
    (e) Any lawful contract between a rail carrier and one or more 
purchasers of rail service that was in effect on October 1, 1980, shall 
be considered a contract authorized by this section.
    (f) A rail carrier that enters into a contract as authorized by this 
section remains subject to the common carrier obligation set forth in 
section 11101, with respect to rail transportation not provided under 
such a contract.
    (g)(1) No later than 30 days after the date of filing of a summary 
of a contract under this section, the Board may, on complaint, begin a 
proceeding to review such contract on the grounds described in this 
subsection.
    (2)(A) A complaint may be filed under this subsection--
        (i) by a shipper on the grounds that such shipper individually 
    will be harmed because the proposed contract unduly impairs the 
    ability of the contracting rail carrier or carriers to meet their 
    common carrier obligations to the complainant under section 11101 of 
    this title; or
        (ii) by a port only on the grounds that such port individually 
    will be harmed because the proposed contract will result in 
    unreasonable discrimination against such port.

    (B) In addition to the grounds for a complaint described in 
subparagraph (A) of this paragraph, a complaint may be filed by a 
shipper of agricultural commodities on the grounds that such shipper 
individually will be harmed because--
        (i) the rail carrier has unreasonably discriminated by refusing 
    to enter into a contract with such shipper for rates and services 
    for the transportation of the same type of commodity under similar 
    conditions to the contract at issue, and that shipper was ready, 
    willing, and able to enter into such a contract at a time 
    essentially contemporaneous with the period during which the 
    contract at issue was offered; or
        (ii) the proposed contract constitutes a destructive competitive 
    practice under this part.

In making a determination under clause (ii) of this subparagraph, the 
Board shall consider the difference between contract rates and published 
single car rates.
    (C) For purposes of this paragraph, the term ``unreasonable 
discrimination'' has the same meaning as such term has under section 
10741 of this title.
    (3)(A) Within 30 days after the date a proceeding is commenced under 
paragraph (1) of this subsection, or within such shorter time period 
after such date as the Board may establish, the Board shall determine 
whether the contract that is the subject of such proceeding is in 
violation of this section.
    (B) If the Board determines, on the basis of a complaint filed under 
paragraph (2)(B)(i) of this subsection, that the grounds for a complaint 
described in such paragraph have been established with respect to a rail 
carrier, the Board shall, subject to the provisions of this section, 
order such rail carrier to provide rates and service substantially 
similar to the contract at issue with such differentials in terms and 
conditions as are justified by the evidence.
    (h)(1) Any rail carrier may, in accordance with the terms of this 
section, enter into contracts for the transportation of agricultural 
commodities (including forest products, but not including wood pulp, 
wood chips, pulpwood or paper) involving the utilization of carrier 
owned or leased equipment not in excess of 40 percent of the capacity of 
such carrier's owned or leased equipment by major car type (plain 
boxcars, covered hopper cars, gondolas and open top hoppers, coal cars, 
bulkhead flatcars, pulpwood rackcars, and flatbed equipment, including 
TOFC/COFC).
    (2) The Board may, on request of a rail carrier or other party or on 
its own initiative, grant such relief from the limitations of paragraph 
(1) of this subsection as the Board considers appropriate, if it appears 
that additional equipment may be made available without impairing the 
rail carrier's ability to meet its common carrier obligations under 
section 11101 of this title.
    (3)(A) This subsection shall cease to be effective after September 
30, 1998.
    (B) Before October 1, 1997, the National Grain Car Council and the 
Railroad-Shipper Transportation Advisory Council shall make 
recommendations to Congress on whether to extend the effectiveness of or 
otherwise modify this subsection.

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109 Stat. 
817; amended Pub. L. 104-287, Sec. 5(24), Oct. 11, 1996, 110 Stat. 
3390.)


                            Prior Provisions

    Provisions similar to those in this section were contained in 
section 10713 of this title prior to the general amendment of this 
subtitle by Pub. L. 104-88, Sec. 102(a).
    Prior sections 10709 to 10713 were omitted in the general amendment 
of this subtitle by Pub. L. 104-88, Sec. 102(a).
    Section 10709, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1382; Pub. L. 
96-448, title II, Sec. 202, Oct. 14, 1980, 94 Stat. 1900, related to 
determination of market dominance in rail carrier rate proceedings. See 
section 10707 of this title.
    Section 10710, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1383, related 
to elimination of discrimination against recyclable materials.
    Section 10711, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1383, related 
to effect of former sections 10701(a), (b), 10707, 10709, 10727, and 
10728 of this title on rail rates and practices.
    Section 10712, added Pub. L. 96-448, title II, Sec. 206(a), Oct. 14, 
1980, 94 Stat. 1906, related to inflation-based rate increases.
    Section 10713, added Pub. L. 96-448, title II, Sec. 208(a), Oct. 14, 
1980, 94 Stat. 1908; amended Pub. L. 97-468, title V, Sec. 502, Jan. 14, 
1983, 96 Stat. 2552; Pub. L. 99-509, title IV, Sec. 4051, Oct. 21, 1986, 
100 Stat. 1910, related to contracts between rail carriers and 
purchasers of rail services. See section 10709 of this title.


                               Amendments

    1996--Subsec. (e). Pub. L. 104-287 substituted ``October 1, 1980,'' 
for ``the effective date of the Staggers Rail Act of 1980''.

                  Section Referred to in Other Sections

    This section is referred to in sections 10741, 11101, 11904 of this 
title.
