[Federal Register Volume 64, Number 200 (Monday, October 18, 1999)]
[Notices]
[Page 56244]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-26957]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33804]


Cascade Rail Corp., Inc.--Acquisition of Control Exemption--
Minnesota Central Railroad Company

    Cascade Rail Corp., Inc. (Cascade), a noncarrier holding company, 
which currently owns 100% of the common stock of Nobles Rock Railroad, 
Inc. (NRR), a Class III rail carrier,1 has filed a verified 
notice of exemption to acquire control of the Minnesota Central 
Railroad Company (MCRC), a Class III rail carrier, operating over 
approximately 146 miles of railroad in the State of Minnesota.
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    \1\ NRR operates in the States of Minnesota and South Dakota.
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    The transaction was expected to be consummated on or after October 
8, 1999.2
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    \2\ According to Cascade, it had not yet completed negotiations 
with MCRC's current owners at the time it filed the notice of 
exemption with respect to a transaction that would result in 
transfer of control over MCRC to Cascade.
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    Cascade states that (i) the rail lines of NRR do not physically 
connect with MCRC, (ii) there are no plans to acquire additional rail 
lines for the purpose of making a connection, and (iii) NRR and MCRC 
are Class III carriers. 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 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. 33804, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Unit, 1925 K Street, NW, 
Washington, DC 20423-0001. In addition, a copy of each pleading must be 
served on Robert A. Wimbish, Esq., Rea, Cross & Auchincloss, 1707 L 
Street, NW, Suite 570, Washington, DC 20036.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: October 8, 1999.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 99-26957 Filed 10-15-99; 8:45 am]
BILLING CODE 4915-00-P