The Surface Transportation Board has postponed exemptions that would let Southern Oklahoma Railroad operate a roughly 0.51-mile line in Carter County, Oklahoma, and sought clarifications, including on BNSF’s role.

Watco locomotive WAMX 3868 leads a freight train near Seney
Watco locomotive WAMX 3868 leads a freight train near Seney, Michigan. Photo: Milan Suvajac

In a decision served on September 30, 2026, the Board, acting through Chief Counsel Anika S. Cooper, put two related notices on hold until further order. Southern Oklahoma Railroad, L.L.C. (SOK), which is not yet a rail carrier, filed a verified notice on September 1 to operate the track in Gene Autry, Oklahoma. On the same day Watco Holdings, Inc. filed a notice to keep control of SOK once it starts common carrier service.

The track was recently bought by WP Global, LLC, which is also not a rail carrier. The Board said SOK’s proposal raised several points that need clarification and postponed SOK’s notice for that reason. It postponed Watco’s notice as well because the two proceedings are interrelated, although they are not consolidated.

BNSF’s role on the Gene Autry track

SOK told the Board that the line “was built as a private industry track.” The same notice says BNSF currently uses the line to serve WP Global’s customers. According to the Board, that wording could be read to suggest BNSF is providing common carrier service via the line.

The answer matters for how BNSF’s service could end. If BNSF serves the line as a common carrier and SOK is to become the only operator, the railroad may need Board authority to be released from that obligation. If the track is instead excepted spur, industrial, team, switching or side track under 49 U.S.C. § 10906, BNSF could stop serving it without Board authority. SOK must give the Board its view on whether BNSF acts as a common carrier there and, if it does, whether the line already qualifies as excepted track under § 10906.

In a footnote, the Board recalled that private track lies outside its jurisdiction. Such track is usually owned, built and kept up by a shipper, or for one at the shipper’s expense, and worked by that shipper or its contractor to carry its own freight. It is not held out to serve other shippers for pay.

Main line and spur tracks in the notice

SOK described about 0.51 route miles as main line trackage and said it would also work spur and industrial tracks covered by § 10906. The Board said the main line label suggests BNSF may have needed Board authorization under 49 U.S.C. § 10901 for its operations there. In that case SOK’s filing might fit better as an acquisition or a change of operators. If SOK sees BNSF’s operation as § 10906 track, it must explain why, for its own operations, part of the track should still be classed as main line and part as spur or industrial track.

The map attached as Exhibit A also drew questions. On that map, the main line runs from a clearance point close to BNSF’s main line to the west edge of Redwing Road or a spot near it. Two segments marked as other track cross Redwing Road and continue east off the map. SOK must say whether it plans to operate that eastern trackage. Even if it will not, it must describe any operations other parties run there that will interchange traffic with SOK. It must also file a revised map showing all the track it will work, or explain that the existing map already includes that track. The map names the road Peter Wates Road, and SOK must also explain that difference.

Watco’s Smoky Ridge notice earlier this year

Earlier this year the Board handled a similar Watco notice without a postponement. In January 2026 the Board issued notice of Watco Holdings’ continuance in control of Smoky Ridge Railroad, scheduled for Federal Register publication on January 8. Smoky Ridge sought to acquire from EnergySolutions, LLC and operate about 7.07 miles of track plus 6.63 miles of spur. The line is in Anderson and Roane Counties, Tennessee. The exemption’s effective date was January 22, 2026, 30 days after the notice filing date. At the time, Watco reported controlling 44 Class III carriers and one Class II carrier in 28 states and one Canadian province.

Two Watco new-railroad filings before the STB, 2025–2026
Item Southern Oklahoma Railroad Smoky Ridge Railroad
Dockets FD 36953 and FD 36954 FD 36901 and FD 36902
Track as filed About 0.51 route miles of main line, plus spur and industrial tracks About 7.07 miles of track plus about 6.63 miles of spur
Location Gene Autry, Carter County, Oklahoma Anderson and Roane Counties, Tennessee
Notices filed September 1, 2026 December 23, 2025, for FD 36902. FD 36901 was filed concurrently
Board action Decision served September 30, 2026: effective dates postponed until further order Notice in FD 36902 scheduled for Federal Register publication on January 8, 2026
Effective date Postponed until further order. If the requested information is not filed by October 30, 2026, both notices are rejected from October 31 January 22, 2026, for FD 36902, 30 days after the filing date

Unlike the Smoky Ridge notice in FD 36902, the Southern Oklahoma Railroad notices stay postponed until the Board issues a further order. Sources: STB decision in FD 36953 and FD 36954, STB notice in FD 36902.

Filing deadlines in October

SOK has until October 5, 2026, to send BNSF a copy of the decision and confirm to the Board that it did so. The supplemental and corrected information is due by October 30. If SOK does not file the requested information by then, the Board will reject both notices without issuing another order, with effect from October 31.