[Federal Register Volume 67, Number 100 (Thursday, May 23, 2002)]
[Notices]
[Pages 36297-36298]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12996]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34197]


RailAmerica, Inc., ARZC Operating Company, Inc., CFNR Operating 
Company, Inc., and PSAP Operating Company, Inc.--Corporate Family 
Reorganization Exemption

    RailAmerica, Inc. (RailAmerica), and its subsidiaries, ARZC 
Operating Company, Inc. (ARZC), CFNR Operating Company, Inc. (CFNR), 
and PSAP Operating Company, Inc. (PSAP) (collectively, applicants), are 
making certain changes to their corporate structure and have filed a 
verified notice of the transaction under the Board's intracorporate 
family class exemption.\1\
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    \1\ On January 8, 2002, RailAmerica acquired control of 
ParkSierra Corporation (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 three 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, CFNR, and PSAP. The related proceedings 
are: STB Finance Docket No. 34198, ARZC Operating Company, Inc.--
Acquisition and Operation Exemption--ParkSierra Corp., STB Finance 
Docket No. 34199, CFNR Operating Company, Inc.--Acquisition and 
Operation Exemption--ParkSierra Corp., and STB Finance Docket No. 
34200, PSAP Operating Company, Inc.--Acquisition and Operation 
Exemption--ParkSierra Corp. Also, three separate requests for waiver 
of the 60-day labor notice requirements under 49 CFR 1150.32(e) were 
filed in those dockets on April 22, 2002.
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    RailAmerica directly controls Palm Beach Rail Holding, Inc. (Palm 
Beach), which directly controls RailAmerica Transportation Corp. (RTC), 
which directly controls ParkSierra. RailAmerica and Palm Beach will 
continue to control RTC, which in turn

[[Page 36298]]

will directly control ARZC, CFNR, and PSAP when they become Class III 
rail carriers. ParkSierra will be merged into CFNR.
    Consummation of this transaction was scheduled to occur on May 14, 
2002.\2\
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    \2\ Consummation was intended to occur on April 30, 2002, or the 
date the related waiver requests were granted, whichever was later. 
Because the waiver requests were granted after April 30, the date 
the waiver requests were granted, May 14, 2002, became the operative 
date.
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    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). Applicants state that, as a result of this transaction, 
there will not be substantial lessening of competition, creation of a 
monopoly, or restraint of trade in freight surface transportation in 
any region of the United States. 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.
    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. Although applicants do not 
expect any employees to be adversely affected by this transaction, 
under 49 U.S.C. 11326(b), the appropriate level of labor protection to 
be imposed is that set forth in Wisconsin Central Ltd.--Acquisition 
Exem.--Union Pac. RR, 2 S.T.B. 218 (1997).
    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. 34197 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. 02-12996 Filed 5-22-02; 8:45 am]
BILLING CODE 4915-00-P