[Federal Register Volume 66, Number 113 (Tuesday, June 12, 2001)]
[Notices]
[Page 31750]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-14634]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34045]


Watco Companies, Inc.--Control Exemption--Eastern Idaho Railroad, 
Inc.

    Watco Companies, Inc. (Watco), a noncarrier, has filed a notice of 
exemption to acquire control through stock ownership of the Eastern 
Idaho Railroad, Inc., a Class III rail carrier.
    The transaction was scheduled to be consummated on or shortly after 
May 25, 2001, the effective date of the exemption.
    At the time it filed this notice, Watco controlled four Class III 
railroad subsidiaries: South Kansas and Oklahoma Railroad Company, 
operating in the States of Missouri, Kansas and Oklahoma; Palouse River 
& Coulee City Railroad, Inc., operating in the States of Washington, 
Oregon and Idaho; Timber Rock Railroad, Inc., operating in the States 
of Texas and Louisiana; and Stillwater Central Railroad operating in 
the State of Oklahoma.\1\ Watco is proposing to acquire all of the 
outstanding stock of EIRR, an Idaho corporation.
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    \1\ On May 25, 2001, Watco also filed a notice of exemption in 
STB Finance Docket No. 34042, Watco Companies, Inc.--Continuance in 
Control Exemption--Kansas & Oklahoma Railroad, Inc., to permit its 
control of Kansas & Oklahoma Railroad, Inc., when that entity 
becomes a rail carrier.
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    Watco states that: (1) The 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 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. 34045 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, 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: June 5, 2001.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 01-14634 Filed 6-11-01; 8:45 am]
BILLING CODE 4915-00-U