[Federal Register Volume 67, Number 100 (Thursday, May 23, 2002)]
[Notices]
[Page 36296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12997]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34198]


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

    ARZC Operating Company, Inc. (ARZC), a noncarrier, has filed a 
notice of exemption under 49 CFR 1150.31 to acquire and operate 
approximately 300 miles of rail lines in California and Arizona. 
Specifically, ARZC will acquire and operate: (1) Rail lines of 
ParkSierra Corporation (ParkSierra) \1\ (a) between, milepost 190.18 at 
Cadiz, CA, and milepost 105.8 at Parker, AZ, (b) between milepost 105.8 
at Parker and milepost 0.08 at Matthie, including ``Y'' Track Number 1 
near milepost 134.92 near Matthie, and (c) between milepost 0 at Rice, 
CA, and milepost 49.4 at Ripley, CA, at the end of the Ripley 
Subdivision, a distance of approximately 240 miles; and (2) 
ParkSierra's trackage rights over the lines of The Burlington Northern 
and Santa Fe Railway Company (BNSF) (a) between BNSF's Cadiz 
Subdivision milepost 190.18 and BNSF's Needles Subdivision milepost 
647.99 on Track Nos. 2 and 36 at Cadiz, and (b) between BNSF's Parker 
Subdivision milepost 0.08 (also Phoenix Subdivision milepost 135.03) 
and BNSF's Phoenix Subdivision milepost 191.91, including all yard 
track in the Mobest Yard in Phoenix, AZ, a distance of approximately 60 
miles.
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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; CFNR Operating Company, Inc. 
(CFNR); and PSAP Operating Company, Inc. (PSAP). The related 
proceedings are: 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. 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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    Once ARZC 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). ARZC 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 ARZC'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. 34198 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 website 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. 02-12997 Filed 5-22-02; 8:45 am]
BILLING CODE 4915-00-P