[Federal Register Volume 64, Number 202 (Wednesday, October 20, 1999)]
[Notices]
[Pages 56571-56572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27412]


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

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Docket No. MC-F-20956] 1
---------------------------------------------------------------------------

    \1\ This proceeding embraces STB Docket No. MC-F-20956 TA.
---------------------------------------------------------------------------


Northwest Motor Coach L.L.C.--Control--Evergreen Stage Line, Inc. 
and Evergreen Bus Company, Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice tentatively approving finance application and granting 
interim approval.2
---------------------------------------------------------------------------

    \2\ Interim approval will be effective on October 18, 1999.
---------------------------------------------------------------------------

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

SUMMARY: Northwest Motor Coach L.L.C. (Northwest) and L & K Acquisition 
Corp. (L & K), two noncarrier holding companies, and Evergreen Stage 
Line, Inc. (ESL) and Evergreen Bus Company, Inc. (EBC), two regulated 
motor passenger carriers, all of Portland, OR (collectively, 
applicants), have filed: (1) An application under 49 U.S.C. 14303(a) 
for Northwest to acquire control of ESL and EBC; and (2) a request for 
interim approval of the transaction under 49 U.S.C. 14303(i) pending 
determination of the application. Persons wishing to oppose the 
application must follow the rules at 49 CFR part 1182, subpart B. The 
Board has tentatively approved the application. If no opposing comments 
are timely filed, this notice will be the final Board action.

DATES: Comments are due by December 6, 1999. Applicants may reply by 
December 21, 1999. If no comments are received by December 6, 1999, 
this approval is effective on that date.

ADDRESSES: Send an original and 10 copies of any comments referring to 
STB Docket No. MC-F-20956 to: Surface Transportation Board, Office of 
the Secretary, Case Control Unit, 1925 K Street, NW, Washington, DC 
20423-0001. In addition, send one copy of any comments to applicants' 
representative: Jeremy Kahn, Kahn & Kahn, 1730 Rhode Island Ave., NW, 
Suite 810, Washington, DC 20036.

FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar, (202) 565-1600. 
(TDD for the hearing impaired: (202) 565-1695.)

SUPPLEMENTARY INFORMATION: Applicants state that ESL 3 and 
EBC 4 are currently controlled by L & K; Northwest is 
controlled by Larry S. Black and Jerry L. Kilb. L & K owns all of the 
stock of ESL, and ESL, in turn, owns all of the stock of EBC. 
Applicants state that none of the entities involved in this proceeding 
is affiliated with any other motor carrier, except that Jerry L. Kilb, 
a principal in L & K and president of ESL and EBC, is a principal of 
Northwest and will remain president of ESL and EBC following the 
proposed transaction.
---------------------------------------------------------------------------

    \3\ ESL holds federally-issued operating authority in Docket No. 
MC-29839, authorizing the transportation of passengers in charter 
and special operations, between points in the United States. It also 
holds Motor Carrier Permit No. 118436 issued by the Oregon Public 
Utility Commission authorizing certain intrastate operations. ESL 
had gross operating revenues of $1,860,000 for the 12-month period 
ending June 30, 1999.
    \4\ EBC holds federally-issued operating authority in Docket No. 
MC-39416, authorizing the transportation of passengers, in charter 
and special operations, between points in the United States. It also 
holds a Motor Carrier Certificate in File No. 237, Class 1P, MEP 
960003 issued by the Oregon Department of Transportation, 
authorizing certain intrastate operations. EBC had gross operating 
revenues of $4,450,000 for the 12-month period ending June 30, 1999.
---------------------------------------------------------------------------

    Applicants state that: (1) L & K has agreed to sell Northwest all 
of its assets (including its stock in ESL) and all of its liabilities; 
(2) upon consummation of the transaction, Northwest will control two 
regulated passenger carriers and the previous shareholders of L & K 
will own approximately 7.5% of the shares of Northwest; and (3) L & K 
will no longer have any control of any regulated passenger carriers.
    Applicants state that the proposed transaction will have no impact 
on the adequacy of transportation services available to the public. The 
proposal involves only a sale of the two carriers from one holding 
company to a second, and there will be no change in carrier operations. 
Applicants assert that Northwest's acquisition of control, with a new 
infusion of funds, will assure the continued viability of ESL and EBC 
and result in the continued availability of adequate service to the 
public.
    According to applicants, the transaction includes a fixed payment 
to L & K shareholders which can readily be paid from Northwest's equity 
investment and third party financing without affecting carrier 
operations. Applicants add that no carrier employees will be adversely 
affected by the transaction, as the carriers will continue to perform 
the same operations with the same employees.
    Applicants certify that: (1) ESL and EBC hold a satisfactory safety 
rating

[[Page 56572]]

from the U.S. Department of Transportation; (2) ESL and EBC maintain 
sufficient liability insurance; (3) none of the involved carriers is 
domiciled in Mexico nor owned or controlled by persons of that country; 
and (4) approval of the transaction will not significantly affect 
either the quality of the human environment or the conservation of 
energy resources.
    Under 49 U.S.C. 14303(b), the Board must approve and authorize 
transactions it finds consistent with the public interest, taking into 
account at least: (1) The effect of the transactions on the adequacy of 
transportation to the public; (2) the total fixed charges that result; 
and (3) the interest of affected carrier employees.
    On the basis of the application, we find that the proposed 
acquisition of control is consistent with the public interest and 
should be authorized. If any opposing comments are timely filed, this 
finding will be deemed vacated and, unless a final decision can be made 
on the record as developed, a procedural schedule will be adopted to 
reconsider the application.5 If no opposing comments are 
filed by the expiration of the comment period, this decision will take 
effect automatically and will be the final Board action.
---------------------------------------------------------------------------

    \5\ Under 49 CFR 1182.6(c), a procedural schedule will not be 
issued if we are able to dispose of opposition to the application on 
the basis of comments and the reply.
---------------------------------------------------------------------------

    In their interim approval request, applicants state that, because 
the current owners of ESL and EBC are not prepared to make necessary 
long term investments in them, it is necessary that Northwest be 
allowed to assume their temporary control on or immediately after 
October 18, 1999, or the carriers could lose their market position to 
competitors, thereby causing severe injury to the ESL and EBC 
properties. Applicants have explained that the failure to grant such 
interim approval may result in injury to the motor carrier properties 
or substantially interfere with their future usefulness in providing 
adequate and continuous service to the public. Accordingly, the interim 
approval will be granted.6
---------------------------------------------------------------------------

    \6\ The Board will entertain petitions to reconsider a grant of 
interim approval. Such petitions may be filed only by a person who 
has filed a comment in opposition to the application. See 49 U.S.C. 
1182.7(e) for further details.
---------------------------------------------------------------------------

    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''
    This decision will not significantly affect either the quality of 
the human environment or the conservation of energy resources.
    It is ordered:
    1. Northwest's control of ESL and EBC is approved and authorized, 
subject to the filing of opposing comments.
    2. Northwest is granted interim approval to operate the properties 
of ESL and EBC for a period of not more than 180 days pending 
determination of the application.
    3. If timely opposing comments are filed, the findings made in this 
decision will be deemed vacated.
    4. This decision will be effective on December 6, 1999, unless 
timely opposing comments are filed.
    5. A copy of this notice will be served on: (1) The U.S. Department 
of Transportation, Office of Motor Carriers-HIA 30, 400 Virginia 
Avenue, SW, Suite 600, Washington, DC 20024; (2) the U.S. Department of 
Transportation, Office of the General Counsel, 400 7th Street, SW, 
Washington, DC 20590; and (3) the U.S. Department of Justice, Antitrust 
Division, 10th Street and Pennsylvania Avenue, NW, Washington, DC 
20530.

    By the Board, Chairman Morgan, Vice Chairman Clyburn, and 
Commissioner Burkes.

    Decided: October 14, 1999.
Vernon A. Williams,
Secretary.
[FR Doc. 99-27412 Filed 10-19-99; 8:45 am]
BILLING CODE 4915-00-P