[Federal Register Volume 62, Number 48 (Wednesday, March 12, 1997)]
[Notices]
[Page 11521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6198]


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DEPARTMENT OF TRANSPORTATION
[STB Finance Docket No. 33316] 1


RailAmerica, Inc.; Continuance in Control Exemption; Minnesota 
Northern Railroad, Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice of exemption.

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SUMMARY: RailAmerica, Inc. (RailAmerica) has filed a notice of 
exemption under 49 CFR 1180.2(d) and 1180.4(g) from the prior approval 
requirements of 49 U.S.C. 11323 to continue in control of Minnesota 
Northern Railroad, Inc. (MNR) upon MNR's becoming a Class III rail 
carrier. The transaction was scheduled to be consummated on or about 
December 27, 1996.
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    \1\ RailAmerica, Inc. (RailAmerica) originally filed the notice 
of exemption on December 11, 1996. On December 16, 1996, the United 
Transportation Union (UTU) filed a petition to revoke the exemption, 
reject, and/or stay the effectiveness of the notice. On December 18, 
1996, RailAmerica filed a notice of withdrawal. On December 20, 
1996, RailAmerica filed an amended notice of exemption. On December 
24, 1996, UTU filed a supplemental petition to revoke, reject, and/
or stay. The stay was filed too close to the consummation date for 
it to be acted on. The petition to reject or revoke will be handled 
in a subsequent decision.
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    MNR is a corporation newly formed for the purpose of acquiring and 
operating 204.10 miles of rail line from Burlington Northern Railroad 
Company (BN) 2 in Minnesota. MNR has concurrently filed a notice 
of exemption in Minnesota Northern Railroad, Inc.--Exemption--
Acquisition, Operation, and Incidental Trackage Rights Exemption, 
Burlington Northern Railroad Company, STB Finance Docket No. 33315, to 
acquire and operate the rail lines together with incidental overhead 
trackage rights. MNR has also filed a notice of exemption for 2 miles 
of trackage rights from BN in Erskine, MN, in Minnesota Northern 
Railroad, Inc.--Trackage Rights Exemption--The Burlington Northern and 
Santa Fe Railway Company, STB Finance Docket No. 33337.
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    \2\ On December 31, 1996, The Atchison, Topeka and Santa Fe 
Railway Company merged with and into the Burlington Northern 
Railroad Company. The name of the surviving corporation is The 
Burlington Northern and Santa Fe Railway Company. In this notice we 
will continue to refer to this entity as BN.
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    RailAmerica controls 10 Class III railroads in addition to MNR. 
These other carriers are: Evansville Terminal Company, Inc.; Huron & 
Eastern Railway Company, Inc.; Saginaw Valley Railway Company, Inc.; 
West Texas & Lubbock Railroad Company, Inc.; Plainview Terminal 
Company; Dakota Rail, Inc.; South Central Tennessee Railroad Company; 
Cascade and Columbia River Railroad Company; Gettysburg Railway 
Company; and Otter Tail Valley Railroad.
    RailAmerica states that: (1) MNR does not connect with any other 
railroads in its corporate family; (2) the continuance in control is 
not part of a series of anticipated transactions that would connect MNR 
with any other railroad in its corporate family; and (3) the 
transaction does not involve a Class I carrier. The transaction is thus 
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 section 11324 
and 11325 that involve only Class III railroad carriers. Because this 
transaction involves Class III railroad carriers only, the Board, under 
statute, may not impose labor protective conditions for this 
transaction.
    If the notice contains false or misleading information, the 
exemption is void ab initio. 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 does not automatically stay the transaction.
    An original and 10 copies of all pleadings that are filed up to and 
including March 12, 1997 referring to STB Finance Docket No. 33316, 
must be filed with the Surface Transportation Board, Office of the 
Secretary, Case Control Branch, 1201 Constitution Avenue, NW, 
Washington, DC 20423. Pleadings filed after March 18, 1997, must be 
filed with the Surface Transportation Board, Office of the Secretary, 
Case Control Branch, 1925 K Street, N.W., Washington, DC 20006.3 A 
copy of all pleadings must be served on petitioner's representative: 
Edward D. Greenberg, Esq., Galland, Kharasch, & Garfinkle, P.C., Canal 
Square, 1054 Thirty-First St., N.W., Washington, DC 20007.

    \3\  Because the Board is relocating between March 13 and March 
18, 1997, mail will not be received until March 19, 1997. See 
Surface Transportation Board--1997 Office Relocation Business Plan, 
STB Ex Parte No. 546 (served February 21, 1997).
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    Decided: February 28, 1997.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 97-6198 Filed 3-11-97; 8:45 am]
BILLING CODE 4915-00-P