Oak Harbor Freight Lines, Inc. - Page 4




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               In November 1994, the State of Washington passed temporary             
          emergency rules to effectuate the requirements of the FAAAA,                
          later adopting permanent rules.  Similarly, the State of Oregon             
          adopted the amendment as a temporary rule before the effective              
          date of the FAAAA, and later passed permanent rules to effectuate           
          the requirements of the FAAAA.                                              
               The Washington State Utilities and Transportation Commission           
          (Washington UTC) allowed motor carriers holding a valid operating           
          authority on December 31, 1994, to continue to operate after that           
          date by providing that the pre-1995 authority would be recognized           
          as an interim permit for the conduct of operations on and after             
          January 1, 1995, until the new permit documentation was received            
          or until July 15, 1995, whichever came first.  Later, during                
          1995, the State issued petitioner a new permit to replace the               
          interim permit.                                                             
               Similarly, the Public Utility Commission of Oregon (Oregon             
          PUC) provided that any motor carrier holding a valid pre-1995               
          operating authority was to be issued automatically a new "1A                
          permit", which, regardless of when issued, was effective as of              
          January 1, 1995.  The holder of a 1A permit was allowed to                  
          operate anywhere within the State.  Petitioner was issued a 1A              
          permit during 1995.                                                         
               The value of a pre-1995 operating authority derived from the           
          right granted to the holders to conduct business within the                 





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