[Federal Register Volume 65, Number 170 (Thursday, August 31, 2000)]
[Notices]
[Page 53083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-22357]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 33911]


KBN, Inc.--Control Exemption--Minnesota Northern Railroad, Inc. 
and St. Croix Valley Railroad Company

    KBN, Inc. (KBN), a noncarrier, has filed a verified notice of 
exemption to control two Class III railroads, Minnesota Northern 
Railroad, Inc. (MNR) and St. Croix Valley Railroad Company (SCVR), 
operating in the State of Minnesota. KBN is proposing to acquire all of 
the outstanding stock of MNR and SCVR pursuant to a letter of intent to 
sell by RailAmerica Transportation Corp. KBN further states that 
signing of a formal agreement is imminent.
    The transaction was scheduled to be consummated on or shortly after 
August 15, 2000.
    KBN states that: (i) These railroads do not connect with each 
other; (ii) the acquisition of 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 carrier. 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 verified 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. 33911, 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, one copy of each pleading must 
be served on Thomas F. McFarland, Jr., 20 North Wacker Drive, Suite 
1330, Chicago, IL 60606-2902.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: August 24, 2000.

By the Board, David M. Konschnik, Director, Office of Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 00-22357 Filed 8-30-00; 8:45 am]
BILLING CODE 4915-00-P