[Federal Register Volume 61, Number 89 (Tuesday, May 7, 1996)]
[Notices]
[Page 20551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11316]



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DEPARTMENT OF TRANSPORTATION
[STB Finance Docket No. 32903]


Pittsburg & Shawmut Railroad, Inc.--Acquisition and Operation 
Exemption--Rail Lines Controlled by Arthur T. Walker Estate Corporation 
(The Pittsburg & Shawmut Railroad Company, Red Bank Railroad Company 
and Mountain Laurel Railroad Company) [9544]

    Pittsburg & Shawmut Railroad, Inc. (P&S), a noncarrier, has filed a 
verified notice of exemption under 49 CFR 1150.31 to acquire and 
operate all of the lines of railroad controlled by Arthur T. Walker 
Estate Corporation (ATWEC),2 viz., the lines owned by The 
Pittsburg & Shawmut Railroad Company (Shawmut), Mountain Laurel 
Railroad Company (Mountain Laurel), and Red Bank Railroad Company (Red 
Bank).3 All of the lines to be acquired and operated by P&S are in 
the State of Pennsylvania and are from: (1) Shawmut, being 96.747 miles 
of line (a) between Brockway Yard, Brockway (milepost 0.0) and Freeport 
(milepost 88.027), a distance of 88.027 miles, (b) between milepost 
0.98 of the main line at Snyder Township (a/k/a milepost 0.0) and the 
connection with B&P (milepost 0.37), a distance of .37 miles, (c) 
between Brookville Yard (milepost 20.89) and the connection with 
Mountain Laurel (milepost 0.30), a distance of .30 miles, (d) between 
milepost 24.29 of the main line at Knox Township (a/k/a milepost 0.0) 
to the end of track (milepost 3.65), a distance of 3.65 miles, (e) 
between milepost 60.42 of the main line at Madison (a/k/a milepost 0.0) 
and the end of track (milepost 3.12), a distance of 3.12 miles, and (f) 
between Milepost 69.86 of the main line in East Franklin (a/k/a 
milepost 0.0) and the connection with B&P (milepost 1.28), a distance 
of 1.28 miles; (2) Mountain Laurel,4 being 127.7 miles of line (a) 
between Lawsonham (milepost 6.0) and Driftwood (milepost 110.0) a 
distance of 104 miles, and (b) between Rose (Brookville) (milepost 0.0) 
and Piney (milepost 23.7), a distance of 23.7 miles; and (3) Red Bank's 
12.5 miles of leased line, being (a) between Lawsonham (milepost 0.0) 
and Sligo (milepost 10.5), a distance of 10.5 miles, and (b) between 
the end of track (milepost 4.0) and Lawsonham (milepost 6.0), a 
distance of 2.0 miles, for a total mileage of 236.947.
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    \1\ The ICC Termination Act of 1995, Pub. L. No. 104-88, 109 
Stat. 803, which was enacted on December 29, 1995, and took effect 
on January 1, 1996, abolished the Interstate Commerce Commission 
(ICC) and transferred certain functions to the Surface 
Transportation Board (Board). This notice relates to functions that 
are subject to Board jurisdiction pursuant to 49 U.S.C. 10901.
    \2\ P&S maintains, and we agree, that this transaction falls 
under 49 U.S.C. 10901. Because P&S, a noncarrier, is acquiring all 
rail assets of three separate carriers, it could be argued that the 
transaction is subject to 49 U.S.C. 11323(a)(4). However, although 
Shawmut, Mountain Laurel and Red Bank are now separate, substantial 
corporate entities, together they comprise the single rail system of 
ATWEC. P&S will acquire and commence operation of the three rail 
lines simultaneously, and operate them as a single carrier. As a 
practical matter, the only effect of processing this transaction 
under section 10901, as opposed to section 11323, is that the class 
exemption at 49 CFR 1150.31 is available for section 10901 
transactions involving the creation of a Class III carrier. Because 
this transaction only involves Class III carriers, it is immaterial, 
for purposes of employee protective arrangements, whether the 
transaction falls under section 10901 or section 11323. See 49 
U.S.C. 10901(c) and 11326(c).
    \3\ Red Bank operates, with Shannon Transport, Inc. (Shannon), 
its rail lines under a lease and operating agreement authorized in 
Finance Docket No. 31705, Shannon Transport, Inc., and Red Bank 
Railroad Company--Acquisition and Operation Exemption--Consolidated 
Rail Corporation. Shannon has indicated that it will provide its 
written consent to the assignment of that agreement to P&S at the 
closing of the transaction prior to the commencement of operations 
by P&S.
    \4\ The ICC approved Mountain Laurel's acquisition of these 
lines in Finance Docket No. 31974, Mountain Laurel Railroad 
Company--Acquisition and Operation Exemption--Consolidated Rail 
Corporation. By petition filed December 28, 1993, the Brotherhood of 
Maintenance of Way Employees seeks to revoke the exemption. This 
matter is pending before the Board, and, as a result, P&S's 
acquisition of Mountain Laurel is subject to final Board action in 
Finance Docket No. 31974.
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    Consummation was expected to be on or about April 25, 1996.
    This proceeding is related to Genesee & Wyoming Inc.--Continuance 
in Control Exemption--Pittsburg & Shawmut Railroad, Inc., STB Finance 
Docket No. 32904, wherein Genesee & Wyoming, Inc. has concurrently 
filed a petition for exemption to continue in control of P&S together 
with the other railroads in its system after P&S becomes a Class III 
rail carrier.
    If the verified notice contains false or misleading information, 
the exemption is void ab initio. Petitions to reopen the proceeding to 
revoke the exemption under 49 U.S.C. 10502(d) may be filed at any time. 
The filing of a petition to reopen will not automatically stay the 
transaction. An original and 10 copies of all pleadings, referring to 
STB Finance Docket No. 32903, must be filed with the Surface 
Transportation Board, Office of the Secretary, Case Control Branch, 
1201 Constitution Avenue, N.W., Washington, DC 20423. In addition, a 
copy of each pleading must be served on Eric M. Hocky, Esquire, 
Gollatz, Griffin & Ewing, P.C., 213 West Miner Street, P.O. Box 796, 
West Chester, PA 19381-0796.

    Decided: May 1, 1996.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 96-11316 Filed 5-6-96; 8:45 am]
BILLING CODE 4915-00-P