[Federal Register Volume 63, Number 132 (Friday, July 10, 1998)]
[Notices]
[Page 37445]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18454]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33619]


Richard B. Webb and Susan K. Lundy--Continuance in Control 
Exemption--Stillwater Central Railroad, Inc.

    Richard B. Webb and Susan K. Lundy (Applicants), have filed a 
verified notice of exemption to continue in control of Stillwater 
Central Railroad, Inc. (SCRR), upon SCRR becoming a Class III railroad.
    The transaction was scheduled to be consummated on or shortly after 
June 19, 1998.
    This transaction is related to two simultaneously filed verified 
notices of exemption: (1) STB Finance Docket No. 33620, State of 
Oklahoma by and through the Oklahoma Department of Transportation--
Acquisition Exemption--The Burlington Northern and Santa Fe Railway 
Company, wherein the State of Oklahoma by and through the Oklahoma 
Department of Transportation (ODOT) seeks to acquire rail lines from 
The Burlington Northern and Santa Fe Railway Company (BNSF), and (2) 
STB Finance Docket No. 33621, Stillwater Central Railroad, Inc.--Lease 
and Operation Exemption--Oklahoma Department of Transportation, wherein 
SCRR seeks to lease and operate the lines being acquired by ODOT.
    In addition to SCRR,1 Applicants control two Class III 
rail carriers.: These carriers are South Kansas and Oklahoma Railroad 
Company, operating in the States of Kansas and Oklahoma, and the 
Palouse River & Coulee City Railroad, Inc., operating in the States of 
Washington and Idaho.2
---------------------------------------------------------------------------

    \1\ SCRR is a noncarrier corporation formed for the purpose of 
leasing the rail lines acquired by ODOT from BNSF and operating the 
124.78 miles of rail line.
    \2\ On May 15, 1998, Applicants filed a petition for exemption 
seeking Board approval to indirectly control the Blue Mountain 
Railroad, Inc., and the Southeast Kansas Railroad Company in STB 
Finance Docket No. 33603, Richard B. Webb and Susan K. Lundy--
Control Exemption--Blue Mountain Railroad, Inc. and Southeast Kansas 
Railroad Company. This proceeding is currently pending.
---------------------------------------------------------------------------

    Applicants state that: (i) the rail lines operated by SCRR do not 
connect with any railroad in the corporate family; (ii) the transaction 
is not part of a series of anticipated transactions that would connect 
SCRR's lines with any railroad in the corporate family; and (iii) 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 rail carriers. Because this 
transaction involves Class III rail carriers only, the Board, under the 
statute, may not impose labor protective conditions for this 
transaction.
    If the verified 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 will not automatically stay the transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 33619, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Unit, 1925 K Street, N.W., 
Washington, DC 20423-0001. In addition, a copy of each pleading must be 
served on Karl Morell, Esq., BALL JANIK, LLP, 1455 F Street, N.W., 
Suite 225, Washington, DC 20005.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: July 1, 1998.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 98-18454 Filed 7-9-98; 8:45 am]
BILLING CODE 4915-00-P