[Federal Register Volume 66, Number 56 (Thursday, March 22, 2001)]
[Notices]
[Pages 16094-16095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-6867]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 33984]


Borealis Infrastructure Trust Management Inc., Sole Trustee of 
the Borealis Transportation Infrastructure Trust--Acquisition 
Exemption--Detroit River Tunnel Company

    Borealis Infrastructure Trust Management Inc., sole trustee of the 
Borealis Transportation Infrastructure Trust (BTIT), a noncarrier, has 
filed a notice of exemption under 49 CFR 1150.37 \1\ to acquire, 
pursuant to a share and asset purchase agreement (agreement) with 
Canadian National Railway Company (CNR), CNR's undivided one-half 
interest in the Detroit River Tunnel Company (DRTC). The rail line of 
the DRTC extends for 3.24 miles between milepost 228.08 in Detroit, MI, 
and milepost 224.84 in Windsor, Ontario, CN, of which, according to 
BTIT, approximately 1.79 miles are located in the United States. The 
total area of DRTC's lands is approximately 27.894 acres, of which 
approximately 15.041 acres are located in Canada and approximately 
12.853 acres are in the United States. In addition to an undivided one-
half ownership interest in the DRTC, the agreement involves a long term 
lease of the Detroit River Tunnel property (the Tunnel), as well as 
CNR's undivided one-half ownership interest in certain improvements to 
the Tunnel. All shares of the stock of DRTC, a corporation of the State 
of Michigan and the Dominion of Canada, currently are held by CNCP 
Niagara-Detroit Partnership (N-D Partnership), which is equally owned 
by CNR and Canadian Pacific Railway Company (CPR).\2\ As part of the 
proposed transaction, the N-D

[[Page 16095]]

Partnership will be dissolved and its assets will be distributed to CNR 
and CPR, with CNR then transferring its undivided 50% interest in the 
Tunnel to BTIT. CPR and BTIT will form a new partnership, Detroit River 
Tunnel Partnership, which will be 50% owned by CPR and 50% owned by 
BTIT, and to which CPR and BTIT will contribute their undivided one-
half interests in DRTC and the related Tunnel assets. BTIT certifies 
that its annual revenues will not exceed those that would qualify it as 
a Class III rail carrier.\3\
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    \1\ BTIT simultaneously filed a motion to dismiss the notice of 
exemption on jurisdictional grounds. That motion will be addressed 
by the Board in a separate decision.
    \2\ See Canadian National Railway Company and Canadian Pacific 
Limited-Acquisition-Interests of Consolidated Rail Corporation in 
Canada Southern Railway Company and Detroit River Tunnel Company, 
Finance Docket No. 30387 and Canadian National Railway and Canadian 
Pacific Limited-Application for Trackage Rights Over Consolidated 
Rail Corporation Trackage in Detroit, MI, Finance Docket No. 30387 
(Sub-No. 1) (ICC served Sept. 4, 1984).
    \3\ This transaction is related to the following simultaneously 
filed verified notices of exemption: STB Finance Docket No. 34005, 
Canadian Pacific Railway Company--Corporate Family Transaction 
Exemption--Interests in Detroit River Tunnel and Niagara River 
Bridge; STB Finance Docket No. 34006, Canadian Pacific Railway 
Company--Trackage Rights ExemptioN-Detroit River Tunnel Company; STB 
Finance Docket No. 34007, Canadian National Railway Company-
Corporate Family Exemption--Interest in Detroit River Tunnel and 
Niagara River Bridge; and STB Finance Docket No. 34001, Canadian 
National Railway Company--Trackage Rights Exemption--Detroit River 
Tunnel Company.
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    The transaction was scheduled to be consummated on or shortly after 
March 6, 2001, the effective date of the exemption (7 days after the 
exemption was filed).
    Whether BTIT and its affiliates need an exemption for the 
acquisition described in this notice or need some other Board approval 
or exemption in connection with this transaction are matters that will 
be addressed by the Board in its consideration of BTIT's motion to 
dismiss.
    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. 33984, 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 each pleading must be 
served on Fritz R. Kahn, 1920 N Street, N.W., 8th Floor, Washington, DC 
20036-1601.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Dated: March 14, 2001.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 01-6867 Filed 3-21-01; 8:45 am]
BILLING CODE 4915-00-P