1986 - The Exon Library

Ensures that the Memorandum of Intent, which includes the
financial covenants (ensuring that NS maintains a Conrail
capital program and avoids deferred maintenance) and
service covenants (ensuring that the level of service
currently provided by Conrail is maintainable and that
Conrail will be retained intact), becomes the definitive
agreement unless Congress is otherwise notified, and that
no sale is consummated until NS has divested itself of
certain lines as approved by the Attorney General; requires
the Secretary to submit annual reports to the Commerce
Committees certifying NS compliance with the covenants.
Continues existing service arrangements, including
contracts; provides labor protection to those Conrail
employees who lose their jobs as a result of this purchase,
amounting to a guarantee of six years pay (known as New
York Dock protection); gives any employee of the NS/Conrail
system deprived of employment the right of first hire
anywhere on the system regardless of craft or class and
without losing seniority in the original craft or class,
and similarly gives the right of first hire to employees of
other railroads deprived of employment as a direct result
of the legislation for vacancies on the NS/Conrail system,
but only in his/her class or craft; ensures that existing
Conrail Employees Stock Ownership Plan (ESOP) members will
incur no Federal tax liability in connection with the
contributions, allocations, and withdrawal of shares from
the ESOP as provided for in the Secretary's plan.
Retires Conrail's current debt owed to the Federal
government.
Clarifies that the tax treatment of the NS purchase of
Conrail would be in accordance with existing tax law
applicable to stock sales.
Provides for the removal of existing provisions applicable
to Conrail that are no longer appropriate for a
private-sector railroad.
Continues the special court's jurisdiction over disputes,
including certain third-party claims, relating to Conrail.