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539, 542 (1956), Transamerican Freight Lines, Inc., Ext.-Dover, Del., 108 M.C.C. 791, 796-797 (1969). Most recently, in Tanksley Trucking, Inc., Ext.-Louisville, Ky., 120 M.C.C. 793, 799-800 (1974), it was found that the advantages to the public in granting an application which proposed substitution of an applicant's direct, single-line service for its prior joint-line service outweighed any real or potential disadvantages to existing carriers. In that proceeding, the extensive participation by applicant in shipper's traffic and the lack of opposition by the other carrier involved in the joint-line operations were emphasized. Both of these factors are present in this proceeding, as well as the additional factor of lack of participation by protestants in shipper's traffic. Although protestants do hold authority to perform direct, singleline service and no deficiencies in their service have been specified by shipper, additional authority may be granted where existing motor carrier service is considered "adequate," but where other factors indicate the public interest would be best served by a grant. Nashua Motor Exp., Inc.-Petition for Modification, 96 M.C.C. 583 (1964), and Gateway Transp. Co., Inc., Ext.-St. Marys, Ga., 114 M.C.C. 484 (1971). Additional factors, as in Tanksley, supra, lend further support to our decision in this proceeding. Applicant has indicated its intention to continue its current joint-line arrangement to serve Solar Gas, even if this application is denied. Thus, while a denial would, for all practical purposes, have no effect on the amount of service available-albeit by interlining-to the public, a grant would improve the quality of existing service by eliminating circuity and generally enhancing the efficiency of applicant's operations. Along with a decrease in the number of miles traveled, savings in fuel consumption and time in transit will be realized. Such savings and economies of operation have been actively encouraged by this Commission. See the General Policy Statement of November 15, 1973, on operational feasibility. That policy requires carriers filing applications for operating authority on or after December 1, 1973—such as applicant herein-to explain how the proposed operation will decrease circuity and empty mileage in its operations. The instant application represents just such an effort to eliminate circuity, and while empty mileage on backhaul may not necessarily be decreased, it will be no greater than it is under the present interline operation. A complete denial of this application would result in an unwarranted maintenance of the status quo at the expense of efficiency, economy, and fuel savings. As was noted in

Cassens Transport Co. Extension-Three States, 67 M.C.C. 410, 413 (1956), "The transportation industry should be dynamic, rather than static; and we would be remiss in our duty, if we hampered, rather than promoted, the free flow of commerce." As in all instances where new operating authority is sought, it is our duty and within our discretion to weigh the advantages to the public of a grant of authority against any potential disadvantages to existing carriers. Because of the reasons discussed above, and because of the greater importance which the efficient movement of LPG, an energy source itself, takes on in an energy-conscious environment, it is our judgment that authority be granted to applicant.

This grant will be limited, however, to authorize only that service now provided by applicant in joint-line operations. Applicant moves traffic to, and shipper has shown customers located at, points in only the southwest corner of Minnesota. Because our intent here is to substitute single for joint-line service already provided by applicant, the grant will thus correspond to the scope of that present operation.

FINDINGS

On reconsideration, we find that the present and future public convenience and necessity require operation by applicant, in interstate or foreign commerce, as a common carrier by motor vehicle, over irregular routes, of liquefied petroleum gas, in bulk, from the site of the pipeline terminal outlet of Mid-America Pipeline Company at or near Sanborn, Iowa, to points in Big Stone, Swift, Kandiyohi, Renville, Chippewa, Lac qui Parle, Yellow Medicine, Brown, Redwood, Lyon, Lincoln, Pipestone, Murray, Cottonwood, Watonwan, Martin, Jackson, Nobles, and Rock Counties, Minn.; that applicant is fit, willing, and able properly to perform such service and to conform to the requirements of the Interstate Commerce Act and the Commission's rules and regulations thereunder, that an appropriate certificate should be granted; that this decision is not a major Federal action significantly affecting the quality of the human environment within the meaning of the National Environmental Policy Act of 1969; and that the application in all other respects should be denied.

Upon compliance by applicant with the requirements of sections 215, 217, and 221(c) of the Interstate Commerce Act, and with the Commission's rules and regulations thereunder, within the time specified in the order entered concurrently herein, an appropriate certificate will be issued. An appropriate order will be entered.

No. MC-119557 (SUB-NO. 7)

HOWARD KAYLOR AND KENNETH L. STUART EXTENSIONCOPPERHILL, TENN.

Decided March 24, 1976

On reconsideration, findings in prior order (not printed), decided April 1, 1974, reversed. Public convenience and necessity found to require operation by applicant as a common carrier by motor vehicle, over irregular routes, of sulphur dioxide, in bulk, in tank vehicles, from Copperhill, Tenn., to points in Georgia, Alabama, South Carolina, Mississippi, Florida, and Missouri (except points in Missouri in the St. Louis, Mo.-East St. Louis, Ill., commercial zone). Issuance of a certificate approved upon compliance by applicant with certain conditions.

Paul M. Daniell and K. Edward Wolcott for applicant.
Thomas J. O'Brien for protestant.

REPORT OF THE COMMISSION ON RECONSIDERATION

DIVISION 1, ACTING AS AN APPELLATE Division.
COMMISSIONERS MURPHY. GRESHAM, AND MACFARLAND

MURPHY. Commissioner:

By application filed February 20, 1973, Howard Kaylor and Kenneth L. Stuart, a partnership, doing business as K & S Tank line, of Copperhill, Tenn., seeks a certificate of public convenience and necessity authorizing operation, in interstate or foreign commerce, as a common carrier by motor vehicle, over irregular routes, of sulphur dioxide, in bulk, in tank vehicles, from Copperhill, Tenn., to points in Georgia, Alabama, South Carolina, Mississippi, Florida, and Missouri (except points in the St. Louis, Mo., commercial zone). The application is opposed by Chemical Leaman Tank Lines, Inc., a motor common carrier.

The modified procedure was followed. By order entered April 1, 1974, Review Board Number 3 denied the application on the grounds (a) that the evidence failed to show that protestant cannot

substantially satisfy shipper's service needs when reasonably requested, (b) that because of operational difficulties shipper's production has decreased, (c) that under temporary authority applicant has diverted a substantial amount of traffic hauled by protestant, and (d) that there is no specific evidence that shipper's competitive position has been adversely affected by transportation problems. Thereafter, upon consideration of a petition for reconsideration filed by applicant, to which Chemical Leaman replied, the proceeding was reopened for reconsideration on the present record by order of Division 1, Acting as an Appellate Division, entered July 2, 1975.

On petition, applicant contends that the review board failed (1) to give proper consideration to shipper's claim for a need for additional motor carrier service in view of an expected production increase, pointing out protestant's failure to provide sufficient equipment, (2) to take into account consignees' problems with equipment and delivery schedules, (3) to find that shipper has been adversely affected by lack of available transportation, and (4) to recognize applicant's past and present involvement in this traffic, instead suggesting that shipper apply for emergency authority when necessary. In reply, protestant argues that the review board recognized applicant's salient contentions, but found the evidence of record supportive of its conclusions, with applicant failing to show that protestant's service is inadequate to meet the reasonable needs of the supporting shipper.

The evidence, the review board's order, and the pleadings have been considered. Although we disagree with the review board's ultimate findings, we find its statement of facts, as supplemented and modified herein, to be correct in all material respects, and we adopt that statement as our own. Certain facts will be set forth as necessary for clarity of discussion.

STATEMENT OF THE EVIDENCE

Applicant is an irregular-route motor common carrier specializing in the transportation of sulphur dioxide. As here pertinent, it holds. certificated authority to transport sulphur dioxide, in bulk, in tank

Applicant also filed a petition for reopening of the proceeding for the receipt of additional evidence, or in the alternative, for oral hearing. In addition, applicant filed subsequent petitions. requesting that the Commission take official notice of the granting of specified emergency temporary authorities. The petition for reopening was denied, and the additional evidence was rejected. Official notice has been taken of the emergency temporary authority granted to applicant in Nos MC-119557 R-9 and R-10.

vehicles, from Copperhill to named points in South Carolina, Mississippi, Georgia, Alabama, and Florida. It also holds temporary authority to serve the supporting shipper, currently participating in traffic to Alabama and Georgia. In addition, applicant has received emergency temporary authority a number of times and has leased vehicles with drivers to protestant at shipper's request on occasion, citing a loss of money on the revenue split. It maintains a terminal at Copperhill, and operates four tractors, three specially built sulphur dioxide trailers, and one reserve trailer. Applicant states that its drivers are familiar with the special requirements used in loading and unloading sulphur dioxide and contends that its unique unloading system of operating the compressor from the tractor engine is superior to protestant's use of a separate gasoline compressor because it avoids the hazard of fire, maintenance problems, and contamination of the product. There is no dispute as to applicant's fitness and ability, financially and otherwise, properly to conduct the proposed operation.

Cities Service, Industrial Chemicals Division, the supporting shipper, produces sulphur dioxide as a byproduct at its Copperhill mining facility. Shipper formerly relied on rail service but has switched to trucks because of the ease in loading and unloading, production scheduling and efficiency factors, and the lack of rail sidings at newer customer locations. Although shipper has experienced problems with production, it is in an expansionary phase and suffers from a lack of adequate equipment. In 1971, it shipped 13,000 tons of sulphur dioxide to the destination States. The 1972 total was 16,000 tons and in the first 6 months of 1973, it shipped 11,000 tons, mostly by motor carrier. Translated into equipment needs, an average of 56 truckloads a month was shipped in 1971, and 94 a month in late 1972, with an expected increase to 124 a month.

Shipper has relied on protestant's service, but has found it necessary to support applicant for both temporary and emergency temporary authority, and has requested applicant to lease equipment to protestant during peak demand periods. When using applicant's service under temporary authority, Cities Service has found a marked increase in sales because customers are able to depend on it for a steady supply of sulphur dioxide. It claims that even with the availability of applicant's equipment, there still is an occasional lack of equipment, pointing out that protestant has authority to serve. destination States beyond those applied for herein. Thus, equipment is diverted from the territory applicant seeks to serve. Protestant's Applicant has received seven grants of emergency temporary authority

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