[Federal Register Volume 67, Number 100 (Thursday, May 23, 2002)]
[Notices]
[Pages 36295-36296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12995]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34200]


PSAP Operating Company, Inc.--Acquisition and Operation 
Exemption--ParkSierra Corp.

    PSAP Operating Company, Inc. (PSAP), a noncarrier, has filed a 
notice of exemption under 49 CFR 1150.31 to acquire and operate 
approximately 153.3 miles of rail lines in Washington. Specifically, 
PSAP will acquire and operate: (1) 83.5 miles of rail lines of 
ParkSierra Corporation (ParkSierra) \1\ consisting of (a) the 
Centralia-Hoquiam Line, between milepost 0.6 at Centralia, and milepost 
74.1 at Hoquiam, including the Horn Spur Track, which connects to the 
Centralia-Hoquiam Line at milepost 72.5 and extends northward to the 
end of the track at approximately milepost 2.0, and (b) the Elma-
Shelton Line, between milepost 0.0 (connecting to the Centralia-Hoquiam 
Line at about milepost 46.7) at Elma, and milepost 25.1 at Shelton; (2) 
approximately 58.0 miles of ParkSierra's trackage rights (a) over Union 
Pacific Railroad Company's (UP) line between milepost 68.9 and milepost 
69.4, and milepost 70.3 and milepost 72.0, near Aberdeen, a distance of 
about 2.2 miles, (b) over The Burlington Northern and Santa Fe Railway 
Company's (BNSF) line between milepost 0.6 and milepost 0.4, at or near 
Centralia, a distance of about 0.2 miles, (c) under a December 11, 1994 
agreement with the United States of America, to provide service on a 
government-owned line from its connection with the Elma-Shelton Line to 
Bangor, a distance of approximately 44 miles, and a branch line to 
Bremerton Navy Yard, a distance of approximately 4.6 miles, and (d) 
over The City of Tacoma d/b/a Tacoma Rail's (TR) lines between Lakeside 
Siding near Blakeslee Junction, milepost 60.0, southwest six miles and 
the interchange with BNSF at Chehalis, milepost 66.0 (the TR/BNSF 
Interchange), and from the TR/BNSF Interchange one mile to milepost 
67.0, where TR's rail lines connect with rail line owned by the Port of 
Chehalis, for a total distance of approximately 7.0 miles; (3) 
approximately 1.8 miles of line under ParkSierra's lease with UP from 
UP milepost 53.83 to UP milepost 54.23, and from UP milepost 55.28 to 
UP milepost 56.70, in Aberdeen and Hoquiam Counties; and (4) a 10-mile 
line under a modified certificate of public convenience and necessity 
between milepost 0.0 at Chehalis, and milepost 10.0 at Curtis.
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    \1\ On January 8, 2002, RailAmerica, Inc. (RailAmerica), 
acquired control of ParkSierra. See RailAmerica, Inc.--Control 
Exemption--ParkSierra Acquisition Corp. and ParkSierra Corp., STB 
Finance Docket No. 34100 (STB served Dec. 20, 2001). ParkSierra has 
three operating divisions: Arizona & California Railroad Company 
Limited Partnership; California Northern Railroad Company, L.P.; and 
Puget Sound & Pacific Railroad. RailAmerica has determined that the 
three operating divisions of ParkSierra should be operated as 
separate corporations, eliminating the need for ParkSierra as a 
consolidated holding company. To accomplish that goal, this 
transaction and two other notices of exemption under 49 CFR 1150.31 
were filed on April 23, 2002, one for each of the operating 
divisions. The applicants are: ARZC Operating Company, Inc. (ARZC); 
CFNR Operating Company, Inc. (CFNR); and PSAP. The related 
proceedings are: STB Finance Docket No. 34198, ARZC Operating 
Company, Inc.--Acquisition and Operation Exemption--ParkSierra 
Corp., and STB Finance Docket No. 34199, CFNR Operating Company, 
Inc.--Acquisition and Operation Exemption--ParkSierra Corp. In 
addition, a notice of exemption under 49 CFR 1180.2(d)(3) was filed 
on April 23, 2002, in STB Finance Docket No. 34197, RailAmerica, 
Inc., et al.--Corporate Family Reorganization Exemption, wherein 
ParkSierra will be merged into CFNR, and ARZC, CFNR, and PSAP will 
become direct railroad subsidiaries of RailAmerica.

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[[Page 36296]]

    Once PSAP becomes a carrier, its revenues are expected to exceed $5 
million per year. ``If the projected annual revenue of the carrier to 
be created by a transaction under this exemption exceeds $5 million, 
applicant must, at least 60 days before the exemption becomes 
effective, post a notice of intent to undertake the proposed 
transaction at the workplace of the employees on the affected line(s) 
and serve a copy of the notice on the national offices of the labor 
unions with employees on the affected line(s), setting forth the types 
and numbers of jobs expected to be available, the terms of employment 
and principles of employee selection, and the lines that are to be 
transferred, and certify to the Board that it has done so.'' 49 CFR 
1150.32(e). PSAP filed a request on April 22, 2002, for waiver of the 
requirements of 49 CFR 1150.32(e) to permit the exemption to become 
effective without providing the 60-day advance notice. Finding no 
adverse impact on the personnel of ParkSierra, by decision served on 
May 14, 2002, the Board granted PSAP's request and waived the 
requirements of 49 CFR 1150.32(e). The transaction was expected to be 
consummated as of April 30, 2002, or the date the related waiver 
request was granted, whichever was later. The waiver decision had the 
effect of making the exemption in this proceeding effective on May 14, 
2002.
    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 revoke will not automatically stay the 
transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 34200 must be filed with the Surface Transportation 
Board, Case Control Unit, 1925 K Street, NW, Washington, DC 20423-0001. 
In addition, a copy of each pleading must be served on Louis E. 
Gitomer, Esq., Ball Janik LLP, 1455 F Street, NW, Suite 225, 
Washington, DC 20005.
    Board decisions and notices are available on our Web site at 
``WWW.STB.DOT.GOV.''

    Decided: May 16, 2002.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 02-12995 Filed 5-22-02; 8:45 am]
BILLING CODE 4915-00-P