Page:United States Statutes at Large Volume 95.djvu/709

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 683

purchases such properties in accordance with the provisions of this section shall be credited against the total purchase price for such properties if such purchaser entered into such negotiations in good faith within six months after the effective date of this section. (2) Expenses for labor protection, for a maximum of a twelve-month period, incurred by a purchaser of rail properties in accordance with the provisions of this section as a result of protective conditions imposed pursuant to section 412 of the Regional Rail Reorganization Act of 1973 shall be credited against the total purchase price for such Ante, p. 673. properties if such purchaser entered into such negotiations in good faith within six months after the effective date of this section. (c) As a part of each transfer negotiation authorized and directed by section 405 of the Regional Rail Reorganization Act of 1973, the Ante, p. 657. Secretary shall promote the inclusion of those additional Conrail lines that connect with, and only with, the line or lines that are the subject of particular transfer negotiations (hereinafter in this section referred to as "associated branch lines"), and which are financially val. (d) In the event that a transfer agreement granted final approval by the Secretary under section 1142 of this subtitle does not provide for the continuation of rail service on an associated branch line, or other Conrail line not designated for transfer, that an affected State, shipper, or connecting railroad (other than a Class I or II railroad) concludes is essential, that State, shipper, or connecting railroad, or any combination of such States, shippers, or railroads, may immediately enter negotiations with the Secretary for the transfer of identified associated branch lines or other Conrail line not designated for transfer without rail-common carrier status under the requirements of subtitle IV of title 49, United States Code, to an entity 49 USC 10101 et designated by the State, shipper, railroad, or combination thereof, for seq. continued operation free of the common carrier obligations and other requirements, except those provided for in subsection (f), of subtitle IV of title 49, United States Code. Conrail shall convey an associated branch line or other Conrail line not designated for transfer in accordance with the terms of an agreement entered into by the Secretary under this subsection. (e) The Secretary may transfer lines in accordance with the provisions of this section for nominal consideration, if justified by the public benefit associated with continued rail service. (f) The Commission shall establish fair and equitable divisions of revenues on joint rates until a final order is issued. REHABILITATION AND IMPROVEMENT FINANCING

SEC. 1162. (a) Section 505(b)(2) of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 825(b)(2)) is amended— (1) in the third sentence, by striking "When making" and all that follows through "available for railroad financing, and" and inserting in lieu thereof the following: "When making such a determination, the Secretary shall evaluate and consider in the following order of priority (A) the availability of funds from other sources at a cost which is reasonable under principles of prudent railroad financial management in light of the railroad's projected rate of return for the project to be financed and the railroad's rate of return on total capital (represented by the ratio which such carrier's net income, including interest on a longterm debt, bore to the sum of average shareholder's equity, longterm debt, and accumulated deferred income tax for fiscal year

�