I've never heard of a federal regulation like that, but there may be a state rule. Here in Pennsylvania, if there are multiple tracks crossing a public roadway, lights and gates are required. When I was railroading, in two different locations, we decided to end runaround tracks short of crossings, even though it would have been better operationally to have them longer, to avoid the requirement for lights and gates. I've also seen one place where the railroad removed the track across the road to avoid the same situation. So it certainly makes sense that Monson's manager would do the same thing.