[Federal Register Volume 66, Number 249 (Friday, December 28, 2001)]
[Notices]
[Page 67363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-32009]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34128]


RailAmerica, Inc.-Control Exemption-New StatesRail Holdings, Inc. 
and Alabama & Gulf Coast Railway L.L.C.\1\
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    \1\ On December 5, 2001, a protective order was issued in this 
proceeding. The title reflected the expected participation of West 
Texas and Lubbock Railroad Company, Inc. (West Texas). Because West 
Texas will not, in fact, be a party to the transaction, the above 
title has been revised to reflect that fact.
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    RailAmerica, Inc. (RailAmerica), a noncarrier, has filed a verified 
notice of exemption to acquire from StatesRail, L.L.C. (StatesRail) all 
of the outstanding stock of New StatesRail Holdings, Inc. (New 
StatesRail), and, through New StatesRail, to acquire control of its 
wholly owned subsidiary, the Alabama & Gulf Coast Railway, L.L.C. 
(Alabama & Gulf Coast), a Class III carrier.
    The transaction is scheduled to be consummated on or after January 
1, 2002.
    On November 15, 2001, RailAmerica also filed a motion for 
protective order under CFR 1104.14, and the motion was granted.\2\
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    \2\ See RailAmerica, Inc. and West Texas and Lubbock Railroad 
Company, Inc.-Control Exemption-New StatesRail Holdings, Inc. and 
Alabama & Gulf Coast Railway L.L.C., STB Finance Docket No. 34128 
(STB served Dec. 5, 2001).
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    RailAmerica states that, as of its filing of the notice of 
exemption, it controls one Class II and 23 Class III rail common 
carriers operating in 23 states.\3\ However, in ParkSierra, infra, 
RailAmerica is acquiring control of a second Class II carrier.
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    \3\ On December 7, 2001, RailAmerica also filed: (1) a notice of 
exemption in STB Finance Docket No. 34129, RailAmerica, Inc.-Control 
Exemption-StatesRail Acquisition Corp. and StatesRail, Inc., to 
continue in control of StatesRail Acquisition Corp. (Acquisition), 
and to obtain control of StatesRail, a holding company that controls 
Arizona Eastern Railway Company, Eastern Alabama Railway, Kyle 
Railroad Company, San Joaquin Valley Railroad Company, and SWKR 
Operating Co., all Class III railroads, upon the acquisition of all 
of the stock of StatesRail by Acquisition; and (2) a petition for 
exemption in STB Finance Docket No. 34130, RailAmerica, Inc.-Control 
Exemption-Kiamichi Holdings, Inc. and Kiamichi Railroad L.L.C., to 
acquire control of Kiamichi Holdings, Inc., and its subsidiary 
Kiamichi Railroad L.L.C.
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    RailAmerica also 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.\4\ Therefore, the 
transaction is exempt from the prior approval requirements of 49 U.S.C. 
11323. See 49 CFR 1180.2(d)(2).
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    \4\ RailAmerica has invoked the Board's class exemption 
procedures to acquire control of Class II rail carrier ParkSierra 
Corp. (ParkSierra) in RailAmerica, Inc.-Control Exemption-ParkSierra 
Acquisition Corp. and ParkSierra Corp., STB Finance Docket No. 34100 
(STB served Dec. 20, 2001) (ParkSierra). RailAmerica indicates that 
ParkSierra's rail properties do not connect with those of Alabama & 
Gulf Coast or those of RailAmerica's other rail subsidiaries.
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    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. Because RailAmerica will 
control more than one Class II rail carrier, the transaction will be 
made subject to the labor protection conditions described in New York 
Dock Ry.-Control-Brooklyn Eastern Dist., 360 I.C.C. 60 (1979).
    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. 34128, 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, one copy of each pleading must 
be served on (1) Gary A. Laakso, Esq., 5300 Broken Sound Blvd. NW., 
Second Floor, Boca Raton, FL 33487, and (2) Louis E. Gitomer, Esq., 
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: December 20, 2001.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 01-32009 Filed 12-27-01; 8:45 am]
BILLING CODE 4915-00-P