[Federal Register Volume 67, Number 100 (Thursday, May 23, 2002)]
[Notices]
[Page 36297]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12998]



[[Page 36297]]

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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34199]


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

    CFNR Operating Company, Inc. (CFNR), a noncarrier, has filed a 
notice of exemption under 49 CFR 1150.31 to acquire and operate 
approximately 248.5 miles of rail lines in California. Specifically, 
CFNR will: (1) Succeed to ParkSierra Corporation's (ParkSierra) \1\ 
lease rights and operate over the lines owned by Union Pacific Railroad 
Company (UP) consisting of (a) the Schellville Branch, between Suisun, 
milepost 48.97 at the east leg of the wye and milepost 48.93 at the 
west leg of the wye, and milepost 63.40 at Lombard, (b) the Napa 
Branch, between milepost 62.00 at Lombard and milepost 67.50 at 
Rocktram, (c) the Vallejo Branch, between milepost 61.80 at Napa Jct., 
and milepost 68.90 at Vallejo, (d) the West Valley Line, between Davis, 
milepost 75.66 at the east leg of the wye and milepost 75.58 at the 
west leg of the wye, and Tehema, milepost 186.37 at the east leg of the 
wye toward Portland and milepost 186.33 at the west leg of the wye 
toward Roseville, (e) the Hamilton Branch, between milepost 180.40 at 
Wyo, and milepost 169.00 at Hamilton, (f) the Los Banos Branch, between 
milepost 83.00 at Tracy, and milepost 140.07 at Los Banos, and (g) the 
Vineburg Lead, between milepost NWP 40.38 near Schellville and the end 
of the line, formerly NWP milepost 44.25, a distance of approximately 
210 miles; and (2) acquire ParkSierra's right to operate under trackage 
rights (a) over a portion of UP's (i) Sacramento Line between milepost 
75.4 at Davis, and milepost 47.8 at Suisun-Fairfield, (ii) West Valley 
Line between milepost 75.58 and milepost 75.4 at Davis, and (iii) 
Schellville Branch between milepost 48.97 and milepost 47.8, a distance 
of approximately 28 miles; and (b) over a line of the North Coast 
Railroad Authority from milepost 62.0, at or near Lombard to milepost 
72.5, near Schellville, a distance of approximately 10.5 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 Operating Company, Inc. (ARZC), 
CFNR; and PSAP Operating Company, Inc. (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. 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 CFNR 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). CFNR 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 CFNR'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. 34199 must be filed with the Surface Transportation 
Board, Case Control Unit, 1925 K Street, N.W., 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. 02-12998 Filed 5-22-02; 8:45 am]
BILLING CODE 4915-00-P