[Federal Register Volume 67, Number 7 (Thursday, January 10, 2002)]
[Notices]
[Pages 1400-1401]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-537]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34142]


Bethlehem Steel Corporation--Corporate Family Transaction 
Exemption

    Bethlehem Steel Corporation (BSC), a noncarrier holding company, 
has filed a verified notice of exemption. As part of an overall 
corporate restructuring, BSC is forming six new limited liability 
company subsidiaries (LLCs) to merge with and succeed to the rights of 
six of BSC's existing subsidiary Class III rail carriers. BSC will 
continue to control the LLCs.\1\
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    \1\ The six BSC subsidiary railroads are as follows: Brandywine 
Valley Railroad Company, operating in the States of Pennsylvania and 
Delaware; Upper Merion and Plymouth Railroad Company, operating in 
the State of Pennsylvania; Conemaugh & Black Lick Railroad Company, 
operating in the State of Pennsylvania; Keystone Railroad, Inc., 
operating in the State of Pennsylvania; Steelton & Highspire 
Railroad Company, operating in the State of Pennsylvania; and 
Patapsco & Back Rivers Railroad Company, operating in the State of 
Maryland. The instant corporate family transaction is related to six 
concurrently filed verified notices of exemption: STB Finance Docket 
No. 34154, Brandywine Valley Railroad Company LLC--Acquisition and 
Operation Exemption-Brandywine Valley Railroad Company; STB Finance 
Docket No. 34155, Upper Merion and Plymouth Railroad Company LLC--
Acquisition and Operation Exemption-Upper Merion and Plymouth 
Railroad Company; STB Finance Docket No. 34156, Conemaugh & Black 
Lick Railroad Company LLC--Acquisition and Operation Exemption-
Conemaugh & Black Lick Railroad Company; STB Finance Docket No. 
34157, Keystone Railroad LLC--Acquisition and Operation Exemption-
Keystone Railroad, Inc.; STB Finance Docket No. 34158, Steelton & 
Highspire Railroad Company LLC--Acquisition and Operation Exemption-
Steelton & Highspire Railroad Company; and STB Finance Docket No. 
34159, Patapsco & Back Rivers Railroad Company LLC--Acquisition and 
Operation Exemption-Patapsco & Back Rivers Railroad Company.
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    The transaction was to be consummated as of January 1, 2002. The 
earliest the transaction could have been consummated was December 26, 
2001, the effective date of the exemption (7 days after the notice of 
exemption was filed.) The corporate restructuring will provide tax 
benefits to BSC, eliminate the filing of certain tax returns, and 
provide other administrative benefits.
    BSC's control of the LLCs and the conversion of the six existing 
BSC rail carriers to LLCs through mergers are transactions within a 
corporate family of the type specifically exempted from prior review 
and approval under 49 CFR 1180.2(d)(3). BSC states that the transaction 
will not result in adverse changes in service levels, operational 
changes, or a change in the competitive balance with carriers outside 
the corporate family.

[[Page 1401]]

    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. 34142, 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 Eric M. Hockey, Esq., Gollatz, Griffin & Ewing, P.C., 213 
West Miner Street, P.O. Box 796, West Chester, PA 19381-0796.
    Board decisions and notices are available on our Web site at 
www.stb.dot.gov.

    Decided: January 2, 2002.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 02-537 Filed 1-9-02; 8:45 am]
BILLING CODE 4915-00-P