I suspect that if you can read the file as LINE SEQUENTIAL, the path/file permissions allow you at least read access.
Suggest you look in the cobol manual for the release/version of cobol you are using to learn what causes a file status 35 in that environment. This is an input or an output file? If this is an input file, perform an experiment by opening this file as output and see what happens. Use a test file name and not the real file name.
Hope this helps,