[Federal Register Volume 64, Number 206 (Tuesday, October 26, 1999)]
[Notices]
[Pages 57695-57696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27776]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33803]


Utah Railway Company--Acquisition of Control Exemption--Salt Lake 
City Southern Railroad Company, Inc.

    Utah Railway Company (UTAH), a Class III rail carrier, has filed a 
verified notice of exemption to acquire the capital stock of Salt Lake 
City Southern Railroad Company, Inc. (SLCS).1 UTAH operates 
275 miles of trackage and trackage rights in Utah and Colorado and also 
operates trackage between Provo and Ogden, UT, as agent of The 
Burlington Northern and Santa Fe Railway Company (BNSF). SLCS operates 
24.95 miles of rail line from milepost 798.74 at Ninth South Street in 
Salt Lake City to milepost 775.19 at the Salt Lake County/Utah County 
boundary line near Mount (including the 1.4-mile Lovendahl Spur 
connecting with the main line at milepost 790.52), in Salt Lake County, 
UT.2
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    \1\ UTAH had filed a notice of exemption to acquire and operate 
SLCS's line in Utah Railway Company--Acquisition and Operation 
Exemption--Lines of Utah Transit Authority in Salt Lake City, UT, 
STB Finance Docket No. 33785 (STB served Aug. 30, 1999) (64 FR 
47229). UTAH states that it does not intend to exercise authority 
under the notice of exemption in STB Finance Docket No. 33785.
    \2\ SLCS operates the line under a permanent easement granted by 
the Utah Transit Authority. See Salt Lake City Southern Railroad 
Company, Inc--Acquisition and Operation Exemption--Line Between 
Mount and Salt Lake City, UT, Finance Docket No. 32276 (ICC served 
Apr. 23, 1993).
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    Under the terms of an agreement with SLCS's corporate parent, 
RailTex, Inc., UTAH was to purchase all of the issued and outstanding 
capital stock of SLCS on September 30, 1999 and place the shares into a 
voting trust. The transaction was scheduled to be consummated on 
October 13, 1999 (7 days after the exemption was filed), when UTAH was 
to acquire the stock held in the voting trust.
    UTAH indicates that SLCS's trackage runs parallel to some of the 
trackage operated by UTAH, as BNSF's agent. UTAH maintains, however, 
that, as BNSF's agent, it does not have common carrier rights or 
obligations on BNSF trackage.
    UTAH indicates that: (i) the railroads do not connect with each 
other; (ii) the transaction is not part of a series of anticipated 
transactions that would connect the railroads with each other; 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).

[[Page 57696]]

    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. 33803, 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 all pleadings must be 
served on Theodore A. McConnell, Kirkpatrick & Lockhart LLP, 1500 
Oliver Building, Pittsburgh, PA 15222.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: October 18, 1999.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 99-27776 Filed 10-25-99; 8:45 am]
BILLING CODE 4915-00-P