LAS VEGAS-CALIFORNIA HIGH-SPEED RAIL LINE UNDER STB JURISDICTION, SURFACE TRANSPORTATION BOARD REAFFIRMS

[STBNews@xxxxxxxxxxx]

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>From the Surface Transportation Board, Washington, D.C.
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The federal Surface Transportation Board today reaffirmed its jurisdiction
over DesertXpress, a planned high-speed rail line linking Las Vegas and
Victorville, Calif.

         Supporters of a rival rail service proposal had asked the Board to
         reopen and reverse its 2007 decision. The California-Nevada Super
         Speed Train Commission and the American Magline Group, who want to
         build a magnetic levitation transportation system largely along
         the same corridor, contend that DesertXpress's project is not
         within the Board's jurisdiction over interstate commerce and the
         national rail system because the DesertXpress project would not
         directly connect to any other rail line.

         But the Board said that the California-Nevada Super Speed Train
         Commission and the American Magline Group had not identified any
         new evidence or changed circumstances that would justify
         revisiting the 2007 decision. "Moreover, federal regulation of
         rail transportation in interstate commerce is intended to avoid a
         patchwork of conflicting and parochial regulatory actions that
         impede the flow of people and goods throughout the nation,''
         today's decision said. "We have reviewed the statutory mandates
         that underlie the need for uniformity and consistency of
         interstate commerce regulation, and have concluded that these
         considerations require federal oversight of interstate passenger
         rail construction projects."

         DesertXpress, a privately financed group of companies, plans to
         construct and operate an approximately 200-mile passenger rail
         line between California and Las Vegas. The planned route would
         largely be along Interstate 15. In March 2009, the Federal
         Railroad Administration issued a draft environmental impact
         statement on the project. DesertXpress said it intends to apply to
         the Board for permission to construct and operate the line at the
         conclusion of the environmental review process.

         The Board held an oral hearing on the matter on Oct. 27, 2009.

         The full decision in the case, DesertXpress Enterprises,
         LLC—Petition for Declaratory Order, STB Finance Docket No. 34914
         ( http://www.stb.dot.gov/decisions/readingroom.nsf/WebDecisionID/40043?OpenDocument )

         , can be found on the Board's website, www.stb.dot.gov.
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