[Federal Register Volume 63, Number 195 (Thursday, October 8, 1998)]
[Notices]
[Page 54186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-27047]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33644]


Tongue River Railroad Company, Inc.--Acquisition and Operation 
Exemption--Tongue River Railroad Company

    Tongue River Railroad Company, Inc. (TRRC Inc.), a noncarrier, has 
filed a verified notice of exemption under 49 CFR 1150.31 and 49 CFR 
1150.35 to acquire from Tongue River Railroad Company 
(Partnership),1 Partnership's existing transportation 
assets, including the previously issued Interstate Commerce Commission 
and the Board permits to construct and operate lines of railroad 
between Miles City and Decker/Spring Creek, MT (line). Once 
constructed, TRRC Inc. will operate approximately 120 route miles from 
milepost 0.0 at Miles City, to Spring Creek, which will be milepost 
114.8, if constructed over the Western Alignment,2 or 
milepost 126.9, if constructed over the Four Mile Creek 
Alternative.3 The line will also include the Otter Creek 
Spur, running from milepost 68.3, at Ashland, MT, to Terminus Point #2, 
approximately 7.7 miles southeast of Ashland in the Otter Creek 
Drainage. TRRC Inc. will become a Class II rail carrier upon 
commencement of operations.4
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    \1\ All of the common stock of TRRC Inc. will be owned by 
Partnership, which is a Montana limited partnership. The sole stated 
purpose of the transaction is to convert the entity that will 
construct and operate the Tongue River Railroad Company from a 
partnership to a corporation in order to facilitate certain 
transactions that will need to be undertaken in order to exercise 
the construction and operation authority previously granted in 
Tongue River Railroad Company--Rail Construction and Operation--in 
Custer, Powder River and Rosebud Counties, MT, Finance Docket No. 
30186, et al. (ICC served May 9, 1986) and Tongue River Railroad 
Co.--Rail Construction and Operation-- Ashland to Decker, Montana, 
Finance Docket No. 30186 (Sub-No. 2) (ICC served Nov. 8, 1996) (the 
1996 decision).
    \2\ Authority to construct over the Western Alignment is the 
subject of the pending application in Tongue River Railroad 
Company--Construction and Operation--Western Alignment, STB Finance 
Docket No. 30186 (Sub-No. 3).
    \3\ The Board granted Partnership authority to construct over 
the Four Mile Creek Alternative in the 1996 decision.
    \4\ TRRC Inc. represents that The Burlington Northern and Santa 
Fe Railway Company may be the operator of the property if an 
agreement can be reached between the parties.
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    Pursuant to 49 CFR 1150.35(a), TRRC Inc. must comply with the 
notice requirement of 49 CFR 1150.32(e). TRRC Inc. certified to the 
Board, on September 18, 1998, that it had complied with the notice 
requirements of section 1150.32(e) on September 4, 1998. This notice 
must be provided at least 60 days before the exemption becomes 
effective. Therefore, the earliest the transaction can be consummated 
is November 17, 1998, the effective date of the exemption (60 days 
after TRRC Inc.'s September 18, 1998 certification to the 
Board).5
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    \5\ While TRRC Inc. and Partnership maintain that there are no 
employees currently employed by either company and that 49 CFR 
1150.32(e) and 1150.35(c)(3) have no applicability to the 
transaction, they have not specifically requested a waiver of the 
compliance requirements for those sections in their verified notice 
of exemption.
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    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 revoke will not automatically stay the 
transaction.6
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    \6\ The City of Forsyth, MT, the United Transportation Union-
Montana State Legislative Board and the United Transportation Union-
General Committee of Adjustment (GO-386), two subordinate units of 
the United Transportation Union (Forsyth/UTU), and the Northern 
Plains Resource Council Inc., have filed petitions to stay the 
operation of the notice of exemption. Forsyth/UTU has also filed a 
petition to reject the notice of exemption and/or to revoke the 
exemption. These petitions are pending before the Board and will be 
addressed in a subsequent decision.
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    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 33644, 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 Mike T. Gustafson, Esq., 550 North 31st Street, Suite 250, 
Billings, MT 59101.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: October 2, 1998.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 98-27047 Filed 10-7-98; 8:45 am]
BILLING CODE 4915-00-P