[Federal Register Volume 67, Number 116 (Monday, June 17, 2002)]
[Notices]
[Pages 41297-41298]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15202]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34177]


Iowa, Chicago & Eastern Railroad Corporation--Acquisition and 
Operation Exemption--Lines of I&M Rail Link, LLC

    Iowa, Chicago & Eastern Railroad Corporation (ICE)\1\ filed a 
notice of exemption under 49 CFR 1150.31 on June 7, 2002, to acquire 
and operate the following rail lines and assets owned by I&M Rail Link, 
LLC (IMRL), a Class II carrier: (1) IMRL's existing rail lines, which 
extend approximately 1,125 miles between Chicago, IL, Kansas City, MO, 
and Minneapolis/St. Paul, MN, and across Northern Iowa and Southern 
Minnesota; (2) approximately 275 miles of IMRL's incidental trackage 
rights over lines of other carriers; (3) IMRL's ownership and 
operational interests in The Kansas City Terminal Railway Company; (4) 
IMRL's ownership and operational interests in the so-called ``Joint 
Agency'' in Kansas City (jointly owned with The Kansas City Southern 
Railway Company); and (5) IMRL's interests in jointly owned and/or 
operated industry trackage in various locations, including South 
Beloit, IL, Beloit and Janesville, WI, and Clinton, IA.
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    \1\ ICE states that it is a noncarrier subsidiary of Cedar 
American Rail Holdings, Inc. (Holdings), which is a wholly owned 
subsidiary of Dakota, Minnesota & Eastern Railroad Corporation 
(DME).
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    ICE states that DME and Holdings expect to file an application in 
STB Finance Docket No. 34178, Dakota, Minnesota & Eastern Railroad 
Corporation and Cedar American Rail Holdings, Inc.-Control-Iowa, 
Chicago & Eastern Railroad Corporation, pursuant to 49 U.S.C. 
11323(a)(3) and 49 CFR 1180.2(c), to continue in control of ICE once 
ICE acquires the IMRL lines and becomes a rail carrier.
    Because the projected revenues of the rail lines to be operated 
exceed $5 million, ICE certified to the Board, on February 26, 2002, 
that the required notice of its rail line acquisition was posted at the 
workplace of the employees of IMRL and was served on the national 
offices of all labor unions with employees on the affected lines on 
February 25, 2002. See 49 CFR 1150.35(a), referring to 49 CFR 
1150.32(e).
    ICE reported that it intends to consummate the transaction on or 
after June 28, 2002.
    Prior to ICE's filing of the notice of exemption, the Board 
received a number of submissions from interested persons expressing 
concern about the transaction.\2\ These persons identified a number of 
potential issues, including financial, environmental, shipper, and 
labor-related matters in connection with ICE's anticipated acquisition. 
Given the passage of time since the Board received these submissions in 
this relatively large transaction, the lack of any response on the 
record from ICE to the submissions, and the uncertainty as to whether 
ICE has even received all of the submissions, this notice is being 
issued to advise interested parties of the process to be used for 
handling this matter.
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    \2\ The Board has received correspondence from the following 
persons raising concerns about, or opposing, ICE's proposed 
acquisition: Iowa Department of Transportation, municipality of 
Dubuque, IA, and Sethness Products Company (financial viability, 
environmental/community impacts, and shipper effects); East Central 
Intergovernmental Association (community and shipper impacts); Tyson 
Foods, Inc. (rail service); Iowa Traction Railroad Company 
(financial viability, rail service, and downgrading of IMRL's grain 
lines); municipalities of Marquette and Mason City, IA, and Winona, 
MN (community concerns); Dubuque County Board of Supervisors (grain 
and agricultural marketing); Brotherhood of Locomotive Engineers 
(labor protection for IMRL employees and financial viability); and 
Ronald D. Barczak and William G. Jungbauer (IMRL employee injury 
claims).
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    Under the Board's exemption rules, ICE's exemption to acquire and 
operate IMRL's lines is due to become effective on June 28, 2002 (21 
days after the notice was filed). See 49 CFR 1150.35(e). If the 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. A petition to revoke under 49 U.S.C. 10502(d) 
does not automatically stay the transaction. Stay petitions must be 
filed within 7 days of the filing of the notice of exemption (no later 
than June 14, 2002). Any comments on the notice of exemption that 
parties wish the Board to consider prior to the effective date of the 
exemption must be filed by June 19, 2002. Replies to stay petitions and 
other comments will be due by June 21, 2002. To be considered, stay 
petitions and all comments, regardless of when submitted to the Board, 
must be served on ICE's representative in a manner that ensures receipt 
by June 14, 2002 (for stay petitions) and by June 19, 2002 (for all 
other comments).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 34177, must be filed with the Surface Transportation 
Board, 1925 K Street, NW, Washington, DC 20423-0001. In addition, one 
copy of each pleading must be served on William C. Sippel, Fletcher & 
Sippel LLC, Two Prudential Plaza, Suite 3125, 180 North Stetson Avenue, 
Chicago, IL 60601-6721.

[[Page 41298]]

    Board decisions and notices are available on our Web site at 
``WWW.STB.DOT.GOV.''

    Decided: June 11, 2002.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 02-15202 Filed 6-14-02; 8:45 am]
BILLING CODE 4915-00-P