[Federal Register Volume 67, Number 13 (Friday, January 18, 2002)]
[Notices]
[Page 2730]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-1404]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34144]


Georgia Southwestern Railroad, Inc.--Sale and Lease Exemption 
Within a Corporate Family Transaction--South Carolina Central Railroad, 
Inc.

    Georgia Southwestern Railroad Inc. (GSWR) and South Carolina 
Central Railroad, Inc. (SCCR), both Class III rail carriers, have 
jointly filed a notice of exemption under 49 CFR 1180.2(d)(3).\1\ The 
exemption transaction involves what GSWR describes as a corporate 
family transaction whereby GSWR will sell to SCCR, and SCCR will lease 
back to GSWR, 101.27 miles of rail lines (the Lines), located in 
Georgia: (1) Between milepost SLB 0.38 near Columbus and milepost SLB 
23 near Cusseta; (2) between Valuation Station 41+60 and Valuation 
Station 107+35 near Columbus; (3) between Valuation Station 0+00 and 
Valuation Station 41+61 near Columbus; (4) between milepost SLC 91.68 
near Bainbridge and milepost SLC 160.0 near Cuthbert; and (5) between 
milepost 63.55 near Dawson and milepost 72.88 near Sasser. In addition, 
GSWR will acquire the operating rights of SCCR for 13.62 miles of rail 
line between milepost 86.5 at Albany and milepost 72.88 at Sasser.\2\ 
The 13.62-mile line was converted to a trail, in accordance with an 
interim trail use arrangement, on October 16, 1997.
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    \1\ GWSR and SCCR are subsidiaries of RailAmerica, Inc., a 
noncarrier.
    \2\ See Georgia Great Southern Division, South Carolina Central 
Railroad Co., Inc.--Abandonment and Discontinuance Exemption--
Between Albany and Dawson, in Terrell, Lee and Dougherty Counties, 
GA, Docket No. AB-389 (Sub-No. 1X) (STB served Aug. 16, 1996).
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    The transaction was scheduled to be consummated on or shortly after 
December 28, 2001, the effective date of the exemption.
    This transaction is within a corporate family of the type 
specifically exempted from prior 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 of the corporation 
family.
    The purpose of the transaction is to simplify the arrangements for 
the operation of the Lines. SCCR will own the Lines and GSWR will 
operate the Lines. The proposed transaction will improve the financial 
viability of GSWR and SCCR and they will benefit from the purchase 
price and reduced operating costs, while still providing rail service.
    This transaction is related to a simultaneously filed notice of 
exemption in STB Finance Docket No. 34057, State of Georgia Department 
of Transportation--Acquisition Exemption--South Carolina Central 
Railroad, Inc., wherein the Georgia Department of Transportation (GDOT) 
\3\ is acquiring certain railroad assets of SCCR, including the above-
noted 101.27 miles of railroad lines, but not including the right to 
conduct common carrier freight operations over the Lines.\4\
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    \3\ GDOT 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.
    \4\ Concurrently with the closing of the transaction between 
SCCR and GSWR, SCCR will sell the Lines to GDOT, and GDOT will 
acquire only the physical assets. GDOT will not hold or perform 
common carrier service. GSWR will provide common carrier service and 
SCCR will retain a permanent easement to provide residual common 
carrier service if GSWR or an assignee of GSWR is unable to provide 
service over the Lines.
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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 obligation to protect the 
interests of its employees. Section 11326(c), however, does not provide 
for labor protection for transactions under section 11324 and 11325 
that involve 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 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 revoke will not automatically stay the 
transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 34144, 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 Gary A. Laakso, Vice President Regulatory Counsel, 
RailAmerica, Inc., 5300 Broken Sound Boulevard NW., Second Floor, Boca 
Raton, FL 33487; and 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: January 11, 2002.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
 Secretary.
[FR Doc. 02-1404 Filed 1-17-02; 8:45 am]
BILLING CODE 4915-00-P