[Federal Register Volume 67, Number 210 (Wednesday, October 30, 2002)]
[Notices]
[Page 66194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27586]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34268]


Carolina Rail Service, LLC--Acquisition and Operation Exemption--
Beaufort & Morehead Railway, Inc.

    Carolina Rail Service, LLC (CRS), a Class III rail carrier, has 
filed a notice of exemption under 49 CFR 1150.41 to acquire by 
assignment any and all operating authority that the Beaufort & Morehead 
Railway, Inc. (BMRI) has over a specified rail line in North Carolina. 
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 trackage incidental thereto. CRS will operate over those 
lines pursuant to an operating agreement with the North Carolina State 
Ports Authority (SPA)\1\ and a permanent and exclusive easement granted 
by the North Carolina Ports Railway Commission (PRC).\2\
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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.
    CRS also filed a notice of exemption on October 1, 2002, in STB 
Finance Docket No. 34256, Carolina Rail Service, LLC--Acquisition and 
Operation Exemption--North Carolina Ports Railway Commission and North 
Carolina State Ports Authority, wherein CRS seeks to acquire a 
permanent and exclusive easement over this .87-mile line as well as 
over approximately 4 miles of intra-terminal track at the Morehead City 
terminal from PRC, and the right to operate over those rail lines 
pursuant to an operating agreement with SPA.
    CRS certifies that its projected revenues as a result of this 
transaction will not result in the creation of a Class II or Class I 
rail carrier and that its projected annual revenues will not exceed $5 
million.
    CRS indicates that it expects to consummate the transaction by 
November 20, 2002, but not before the October 22, 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. 34268, 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 
www.stb.dot.gov.

    Decided: October 24, 2002.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 02-27586 Filed 10-29-02; 8:45 am]
BILLING CODE 4915-00-P