[Federal Register Volume 67, Number 210 (Wednesday, October 30, 2002)]
[Notices]
[Pages 66194-66195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27584]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34256]


Carolina Rail Service, LLC--Acquisition and Operation Exemption--
North Carolina Ports Railway Commission and North Carolina State Ports 
Authority

    Carolina Rail Service, LLC (CRS), a Class III rail carrier, has 
filed a notice of

[[Page 66195]]

exemption under 49 CFR 1150.41 to acquire a permanent and exclusive 
easement over approximately 4.87 miles of rail line from the North 
Carolina Ports Railway Commission (PRC), and to operate over those 
lines pursuant to an operating agreement with the North Carolina State 
Ports Authority (SPA).\1\ The subject rail line extends from the 
connection with the Norfolk Southern Railway Company (Atlantic & East 
Carolina Railway) at milepost 0.0 in Morehead City, NC, to milepost 
0.87 at Gallants Channel near Morehead City, a distance of .87 miles in 
Carteret County, NC, serving the intermediate stations of Marsh Island 
and Radio Island, and includes all of the railroad tracks on the Port 
of Morehead City, whether denominated as spurs, side tracks, industrial 
tracks, or otherwise, together with all of PRC's yard and interchange 
tracks.\2\ The subject lines include approximately 4 miles of intra-
terminal track at the Morehead City terminal over which CRS currently 
operates a terminal switching railroad.
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    \1\ In a related matter, SPA filed a notice of exemption in STB 
Finance Docket No. 34258, North Carolina State Port Authority--
Acquisition Exemption--North Carolina Ports Railway Commission, 
wherein SPA seeks to acquire the right-of-way, trackage, and other 
rail assets of these rail lines. SPA also filed a motion to dismiss 
that notice on jurisdictional grounds.
    \2\ Our predecessor, the Interstate Commerce Commission, 
exempted PRC from regulation under the Interstate Commerce Act, but 
determined that PRC had a residual common carrier obligation over 
these lines. See North Carolina Ports Railway Commission--Petition 
for Declaratory Order or Prospective Abandonment Exemption, Finance 
Docket No. 31248 (ICC served Sept. 30, 1988).
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    CRS states that the impetus for this transaction is new legislation 
enacted by the State of North Carolina legislature, SB 1115, ratified 
September 20, 2002. This legislation, among other things, requires the 
transfer of PRC's assets and liabilities, except its common carrier 
obligation, to SPA, and abolishes PRC.
    On October 15, 2002, CRS filed a related notice of exemption in STB 
Finance Docket No. 34268, Carolina Rail Service, LLC--Acquisition and 
Operation Exemption--Beaufort & Morehead Railway, Inc., wherein CRS 
seeks to acquire the Beauford & Morehead Railway, Inc.'s operating 
authority over the .87 miles of rail line listed above in Carteret 
County, NC.
    CRS certifies that its projected revenues will not exceed those 
that would qualify it as a Class III rail carrier and that the annual 
revenues are not projected to exceed $5 million.
    CRS indicates that it expects to consummate the transaction by 
November 20, 2002, but not before the October 8, 2002 effective date of 
the exemption (7 days after the exemption was filed).
    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. The filing of a petition to 
revoke does not automatically stay the transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 34256, 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 Karl Morell, Ball Janik LLP, 
1455 F Street NW, Suite 225, Washington, DC 20005.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: October 24, 2002.
    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 02-27584 Filed 10-29-02; 8:45 am]
BILLING CODE 4915-00-P