[Federal Register Volume 65, Number 142 (Monday, July 24, 2000)]
[Notices]
[Page 45648]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-18430]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 33898]


Watco Company, Inc., South Kansas and Oklahoma Railroad Company, 
Palouse River & Coulee City Railroad, Inc., Southeast Kansas Railroad 
Company, and Blue Mountain Railroad, Inc.--Corporate Family Transaction 
Exemption

    Watco Company, Inc. (Watco), South Kansas and Oklahoma Railroad 
Company (SKO), Palouse River & Coulee City Railroad, Inc. (PRCC), 
Southeast Kansas Railroad Company (SEK), and Blue Mountain Railroad, 
Inc. (BMR) have filed a verified notice of exemption.\1\ The exempt 
transaction involves the merger of SEK into SKO, with SKO as the 
surviving corporation, and the merger of BMR into PRCC, with PRCC as 
the surviving corporation.
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    \1\ Watco, a noncarrier, directly controls SKO and PRCC. SKO, in 
turn, owns all of the outstanding stock of SEK, and PRCC, in turn, 
owns all of the outstanding stock of BMR.
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    The transaction was expected to be consummated on or shortly after 
July 7, 2000.
    The transaction is intended to simplify Watco's corporate structure 
and eliminate costs associated with separate accounting, tax, 
bookkeeping and reporting functions. In addition, the transaction will 
enhance the operating economies of, and improve service on, the two 
surviving carriers.
    This is a transaction within a corporate family of the type 
specifically exempted from prior review and approval under 49 CFR 
1180.2(d)(3). The parties state that the transaction will not result in 
adverse changes in service levels, significant operational changes, or 
a change in the competitive balance with carriers outside the corporate 
family.
    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 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 reopen will not automatically stay the 
transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 33898, 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 Karl Morell, Esq., Ball Janik LLP, 1455 F Street, NW., Suite 
225, Washington, DC 20005.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: July 13, 2000.

    By the Board, Joseph H. Dettmar, Acting Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 00-18430 Filed 7-21-00; 8:45 am]
BILLING CODE 4915-00-P