[Federal Register Volume 65, Number 188 (Wednesday, September 27, 2000)]
[Notices]
[Page 58148]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-24692]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 33932]


ParkSierra Corp., Arizona & California Railroad Company Limited 
Partnership, and California Northern Railroad Company, L.P.-Corporate 
Family Transaction Exemption

    ParkSierra Corp. (ParkSierra), Arizona & California Railroad 
Company Limited Partnership (ARZC), and California Northern Railroad 
Company, L.P. (CFNR) have filed a verified notice of exemption. The 
exempt transaction involves the contribution of all of ARZC's and 
CFNR's assets to ParkSierra in exchange for shares of common stock of 
ParkSierra.\1\ Upon consummation of the transaction, ParkSierra will 
assume the common carrier obligations of ARZC and CFNR, and ARZC, CFNR, 
and PSAP each will continue to provide railroad service as a d/b/a and 
separate operating division of ParkSierra.\2\
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    \1\ ParkSierra, a noncarrier, is the sole general partner of 
ARZC and CFNR, both Class III rail carriers. In addition to owning 
rail lines in the States of Arizona and California, ARZC owns rail 
lines in the State of Washington that are operated by an operating 
division of ARZC d/b/a Puget Sound & Pacific Railroad (PSAP). CFNR 
operates in the State of California. None of the rail lines of ARZC, 
CFNR, or PSAP connect to each other.
    \2\ Redacted versions of the trackage rights agreements between 
the parties were filed with the verified notice of exemption. Also, 
full versions of the trackage rights agreements, as required by 49 
CFR 1180.6(a)(7)(ii), were filed under seal. A motion for protective 
order was filed on September 13, 2000. That motion was granted and a 
protective order in this proceeding was served on September 20, 
2000.
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    The transaction is/was expected to be consummated on or after 
September 20, 2000.
    The transaction is intended to simplify the organizational 
structure of ParkSierra, ARZC, and CFNR and to create administrative 
efficiencies.
    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. 33932, 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 Rose-Michele Weinryb, Esq., Weiner Brodsky Sidman Kider PC, 
1300 19th Street, NW., Fifth Floor, Washington, DC 20036-1609.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: September 20, 2000.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 00-24692 Filed 9-26-00; 8:45 am]
BILLING CODE 4915-00-P