[Federal Register Volume 61, Number 141 (Monday, July 22, 1996)]
[Notices]
[Pages 37959-37960]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18519]


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[[Page 37960]]


DEPARTMENT OF TRANSPORTATION
Surface Transportation Board \1\
[STB Finance Docket No. 32992]


Varlen Corporation--Acquisition of Control Exemption--
Commonwealth Railway, Inc., Carolina Coastal Railway, Inc., and 
Talleyrand Terminal Railroad Company, Inc.

    Varlen Corporation (Varlen), a noncarrier, has filed a notice of 
exemption to acquire control of Commonwealth Railway, Inc. (CRI), 
Carolina Coastal Railway, Inc. (CCR), and Talleyrand Terminal Railroad 
Company, Inc. (TTR), through its acquisition pursuant to the 
anticipated success of a tender offer for a controlling percentage of 
the stock of Brenco, Incorporated (Brenco), a noncarrier, and, 
indirectly, its wholly owned subsidiary Rail Link, Inc., which is the 
parent noncarrier holding company of CRI, CCR, and TTR. Following a 
successful tender offer, Brenco would be merged with BAS, Inc. 
(BAS),\2\ an existing, wholly owned subsidiary of Varlen. The 
transaction was to be consummated on or after the July 3, 1996 
effective date of the exemption.
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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 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. 11323.
    \2\ BAS is not a rail carrier and does not control any rail 
carriers.
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    Varlen states that: (1) these railroads do not connect with each 
other; (2) the acquisition of control is not part of a series of 
anticipated transactions that would connect the railroads with each 
other or any railroad in their corporate family; and (3) the 
transaction does not involve a Class I carrier. Therefore, the 
transaction is exempt from the prior approval requirements of 49 U.S.C. 
11323. See 49 CFR 1180.2(d)(2).
    Under 49 U.S.C. 10502(g), the Board may not use its exemption 
authority to relieve a rail carrier of its statutory obligation to 
protect the interests of its employees. Section 11326(c), however, does 
not provide for labor protection for transactions under sections 11324 
and 11325 that involve only Class III railroad carriers. Because this 
transaction involves Class III rail carriers only, the Board, under the 
statute, may not impose labor protective conditions for this 
transaction.
    Petitions to revoke the exemption under 49 U.S.C. 10502(d) may be 
filed at any time. The filing of a petition to revoke will not 
automatically stay the transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 32992, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Branch, 1201 Constitution 
Avenue, N.W., Washington, DC 20423 and served on: Kelvin J. Dowd, 
Slover & Loftus, 1224 Seventeenth Street, NW, Washington, DC 20036.

    Decided: July 12, 1996.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 96-18519 Filed 7-19-96; 8:45 am]
BILLING CODE 4915-00-P