[Federal Register Volume 64, Number 226 (Wednesday, November 24, 1999)]
[Proposed Rules]
[Pages 66157-66158]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-30542]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

49 CFR Part 1180

[Ex Parte No. 282 (Sub-No. 15)]


Railroad Consolidation Procedures: Class Exemption for 
Transactions Subject to the Statutory Consolidation Provision

AGENCY: Surface Transportation Board.

ACTION: Proposed rule, withdrawal.

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SUMMARY: The Surface Transportation Board (Board) is withdrawing the 
proposed rule and discontinuing the Ex Parte No. 282 (Sub-No. 15) 
rulemaking proceeding relating to a class exemption for railroad 
transactions subject to the statutory consolidation provision.

DATES: The proposed rule is withdrawn and the rulemaking proceeding is 
discontinued on November 24, 1999.

FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 565-1600. [TDD for 
the hearing impaired: (202) 565-1695.]


[[Page 66158]]


SUPPLEMENTARY INFORMATION: In a notice of proposed rulemaking (NPR) 
served July 13, 1992 (published in the Federal Register on July 14, 
1992, at 57 FR 31165), the Interstate Commerce Commission (Commission) 
proposed to expand the scope of its 49 CFR 1180.2(d)(2) class 
exemption. That exemption, as it existed in 1992 and as it continues to 
exist today, exempts from the otherwise applicable prior approval 
requirements the acquisition or continuance in control of a 
nonconnecting railroad or one of its lines where (i) the railroads 
would not connect with each other or any railroads in their corporate 
family, (ii) the acquisition or continuance in control is not part of a 
series of anticipated transactions that would connect the railroads 
with each other or any railroad in their corporate family, and (iii) 
the transaction does not involve a Class I railroad. In the NPR, the 
Commission proposed to expand the 49 CFR 1180.2(d)(2) exemption so that 
it would embrace any transaction that required approval and 
authorization under former 49 U.S.C. 11343, provided that the 
transaction did not involve (i) the merger or control of at least two 
Class I railroads, (ii) a reduction in the number of noncommonly-
controlled railroads conducting operations between any two points, or 
(iii) a reduction from three to two in the number of noncommonly-
controlled railroads serving any interchange point.
    The ICC Termination Act of 1995, Public Law 104-88, 109 Stat. 803 
(ICCTA), which was signed into law by President Clinton on December 29, 
1995, abolished the Commission, established the Board, reenacted (with 
certain changes not presently of consequence) the relevant statutory 
provision, and transferred to the Board responsibility for the 
performance of functions respecting that statutory provision. See ICCTA 
section 101 (abolition of the Commission); new 49 U.S.C. 701(a), as 
enacted by ICCTA section 201(a) (establishment of the Board); new 49 
U.S.C. 11323, as enacted by ICCTA section 102(a) (this is the post-1995 
version, as respects railroads, of what had been 49 U.S.C. 11343); new 
49 U.S.C. 702, as enacted by ICCTA section 201(a) (except as otherwise 
provided, the functions previously performed by the Commission shall 
henceforth be performed by the Board); ICCTA section 204(b)(1) (any 
proceeding pending before the Commission at the time of the enactment 
of ICCTA shall be transferred to the Board, insofar as that proceeding 
concerns functions transferred to the Board). In accordance with the 
mandate of ICCTA section 204(b)(1), the Ex Parte No. 282 (Sub-No. 15) 
rulemaking proceeding, which had been instituted by the Commission in 
the 1992 NPR, was transferred to the Board.
    We have decided to withdraw the rule proposed by the Commission in 
the 1992 NPR and to discontinue the Ex Parte No. 282 (Sub-No. 15) 
rulemaking proceeding. Our experience with the administration of cases 
handled under new 49 U.S.C. 11323 has led us to conclude that there is 
no pressing necessity for the expansion of the 49 CFR 1180.2(d)(2) 
class exemption. Any 49 U.S.C. 11323 transaction that is not embraced 
by any of the existing 49 CFR 1180.2(d) class exemptions but that would 
be embraced by the expanded 49 CFR 1180.2(d)(2) class exemption 
proposed by the Commission can be handled under the individualized 
exemption procedures now codified at 49 CFR part 1121, and appropriate 
determinations can be made on a case-by-case basis.

Small Entities

    The Board certifies that the action taken in this proceeding will 
not have a significant economic impact on a substantial number of small 
entities.

Environmental and Energy Considerations

    The action taken in this proceeding will not significantly affect 
either the quality of the human environment or the conservation of 
energy resources.

Board Releases Available Via the Internet

    Decisions and notices of the Board, including this notice, are 
available on the Board's website at ``WWW.STB.DOT.GOV.''

    Decided: November 17, 1999.

    By the Board, Chairman Morgan, Vice Chairman Clyburn, and 
Commissioner Burkes.
Vernon A. Williams,
Secretary.
[FR Doc. 99-30542 Filed 11-23-99; 8:45 am]
BILLING CODE 4915-00-P