On January 21, 2000, at 0558 central standard time, there was a near collision between a taxing British Aerospace Jetstream 3101 and a departing Boeing 727-200 from runway 1L at the General Mitchell International Airport, Milwaukee, Wisconsin. The British Aerospace Jetstream 3101, N842JS, was operating under the provisions of 14 CFR Part 121 as Chataqua Flight 4376. The Boeing 727-200, N283SC, was operating under the provisions of 14 CFR Part 121 as Sun Country Flight 603. Visual meteorological conditions prevailed during this incident. There were no revenue passengers aboard either airplane and the respective crews did not report any injuries. According to Federal Aviation Administration (FAA) records, Chataqua Flight 4376 was issued a clearance to taxi to runway 25L via taxiways bravo and mike and to hold short of runway 1L. Chataqua Flight 4376 read back the taxi-clearance, including the hold-short clearance. Sun Country Flight 603 was issued a clearance to takeoff from runway 1L and fly the runway heading. Full transcripts of Air Traffic Control (ATC) voice transmissions are attached to this factual report. According to a written statement, provided by the captain of Sun Country Flight 603, just prior to rotation the crew noticed a Jetstream taxing onto runway 1L at the mike taxiway/runway intersection. The Boeing 727-200 captain reported that that his aircraft was able to clear the taxing airplane without taking any "extraordinary" actions. The captain stated that their aircraft cleared the Jetstream by approximately 50-feet and the position of the taxing aircraft was approximately 30-feet left of the runway 1L centerline. The captain stated that his inboard landing lights, runway turnoff lights, and strobe lighting systems were on at the time of the incident. According to a written statement, provided by the captain of Chataqua Flight 4376, he was taxing the aircraft and the first officer was handling the radio communications. The captain reported that prior to crossing runway 1L, he and the first officer visually checked to see if the runway was clear. The captain stated that visibility was restricted from de-icing fluid on the side windows. The captain reported that the runway was clear of traffic, and he continued to taxi across runway 1L. The captain stated that after crossing runway 1L the crew was informed that a departing Boeing 727-200 had just cleared them. The captain stated that he did not hear the hold-short clearance given by ground control. According to a written statement, provided by the first officer of Chataqua Flight 4376, the crew was issued instructions to taxi to runway 25L via taxiways bravo and mike and to hold short of runway 1L. The first officer stated that he acknowledged the clearance by reading-back the taxi instructions to ground control. Airport operations inspected the taxiway/runway intersection and found the wigwag lighting system operating normally, and the doublewide hold short lines visible at the center of the taxiway, with snowdrifts obscuring the taxiway edges. According to the captain's written statement, "Contributing Factors: (1) The crew was on a CDO (Continuous Duty Over-Night) and the incident in question occurred some 12+ hrs into the duty period. While at the hotel the crew had only 4 hours sleep. (2) The aircraft was parked outside in sub-zero degree-Fahrenheit temperatures for approximately 5 hrs. Temperatures in the cockpit at the time of taxi was approx. 10 degrees-Fahrenheit. (3) Due to heavy frost on the aircraft, de-icing was required. With Glycol on the aircraft windows there was reduced visibility to the sides of the aircraft."