[Federal Register Volume 66, Number 179 (Friday, September 14, 2001)]
[Notices]
[Page 47933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-23022]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34074]


RailAmerica, Inc., RailAmerica Transportation Corporation, and 
Otter Tail Valley Railroad Company-Corporate Family Transaction 
Exemption

    RailAmerica, Inc. (RailAmerica),\1\ RailAmerica Transportation 
Corporation (RailAmerica Transportation), and Otter Tail Valley 
Railroad Company (OTVR), have jointly filed a verified notice of 
exemption. As part of a proposed corporate restructuring, the direct 
control of OTVR, a Class III rail carrier, will be transferred from 
Dakota Rail Inc. (Dakota) to RailAmerica Transportation, through the 
transfer of the stock of OTVR from Dakota to RailAmerica 
Transportation. See RailAmerica, Inc.--Acquisition of Control 
Exemption--Otter Tail Valley Company, Inc., STB Finance Docket No. 
33138 (STB served Oct. 25, 1996) and Dakota Rail, Inc.--Acquisition of 
Control Exemption--Otter Tail Valley Railroad Company, Inc., STB 
Finance Docket No. 33133 (STB served Oct. 25, 1996).\2\
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    \1\ RailAmerica is a noncarrier, which at time of filing, 
indirectly controlled 28 Class III railroads operating in 23 states.
    \2\ Dakota directly controls and owns 100 percent of the stock 
of OTVR. OTVR is one of RailAmerica's subsidiaries, which operates 
72 miles of railroad in Minnesota. RailAmerica Transportation is a 
wholly owned noncarrier subsidiary of RailAmerica and an affiliate 
of the 28 railroads based in the United States that are controlled 
by RailAmerica.
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    The transaction was scheduled to be consummated on or shortly after 
August 24, 2001, the effective date of the exemption.
    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 stated 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. The proposed transaction is a reorganization within 
the RailAmerica corporate family geared toward increasing equity and 
reducing long-term debt through asset rationalizations, sale/leasebacks 
and equity infusions.
    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. 34074 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 Louis E. Gitomer, 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: September 6, 2001.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 01-23022 Filed 9-13-01; 8:45 am]
BILLING CODE 4915-00-P