[Federal Register Volume 68, Number 33 (Wednesday, February 19, 2003)]
[Notices]
[Pages 8076-8077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-3948]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34311]


United States Steel Corporation--Acquisition of Control 
Exemption--Delray Connecting Railroad Company

    United States Steel Corporation (U.S. Steel), a noncarrier, has 
filed a notice of exemption to acquire control, through stock purchase, 
of Delray Connecting Railroad Company (Delray), a Class III railroad 
and a wholly owned subsidiary of National Steel Corporation (National 
Steel).\1\
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    \1\ On March 6, 2002, National Steel and several of its 
subsidiaries filed voluntary petitions for reorganization under 
Chapter 11 of the Bankruptcy Code in the United States Bankruptcy 
Court in the Northern District of Illinois (Case 02-08699). Delray 
did not file a bankruptcy petition and is not a party to the 
National Steel bankruptcy proceeding. On January 9, 2003, U.S. Steel 
announced execution of an Asset Purchase Agreement with National 
Steel and 12 subsidiaries involving U.S. Steel's acquisition of 
substantially all of their steelmaking and finishing assets.
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    U.S. Steel owns 100% of Transtar, Inc. (Transtar), a noncarrier 
holding company and, through that ownership, indirectly owns and 
controls one Class II and four Class III railroads.\2\
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    \2\ The ``Transtar Railroads'' are: Birmingham Southern Railroad 
Company, Elgin, Joliet and Eastern Railway Company (the Class II 
railroad), The Lake Terminal Railroad Company, McKeesport Connecting 
Railroad Company, and Union Railroad Company. Common control of 
these railroads by U.S. Steel (formerly USX Corporation) was 
authorized by the Board in USX Corporation--Control Exemption--
Transtar, Inc., STB Finance Docket No. 33942 (STB served Nov. 30, 
2000) and in Transtar Holdings, L.P.--Corporate Family Exemption--
Transtar, Inc., STB Finance Docket No. 32411 (STB served Dec. 29, 
1993).
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    The transaction is expected to be consummated early in the second 
quarter of 2003.
    U.S. Steel states that: (i) The railroads (Delray and the Transtar 
Railroads) do not connect; (ii) the transaction is not part of a series 
of anticipated transactions that would connect these railroads with 
each other or any railroad in their corporate family; and (iii) the 
transaction does not involve a Class I carrier. Therefore, the 
transaction is exempt from the prior approval requirements of 49 U.S.C. 
11323. See 49 CFR 1180.2(d)(2).
    Under 49 U.S.C. 10502(g), the Board may not use its exemption 
authority to relieve a rail carrier of its statutory obligation to 
protect the interests of its employees. Because U.S. Steel already 
controls one Class II and four Class III railroads by virtue of its 
control of Transtar, this grant will be made subject to the labor 
protection requirements of 49 U.S.C. 11326(b).
    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 will not automatically stay the transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 34311, must be filed with the Surface Transportation 
Board, 1925 K Street, NW., Washington, DC 20423-0001. In addition, a 
copy of each pleading must be served on Richard J.

[[Page 8077]]

Munsch, 600 Grant Street, Room 1500, Pittsburgh, PA 15219-2800 and 
Vincent P. Szeligo, 1450 Two Chatham Center, Pittsburgh, PA 15219-3427.
    Board decisions and notices are available on our Web site at 
WWW.STB.DOT.GOV.

    Decided: February 12, 2003.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 03-3948 Filed 2-18-03; 8:45 am]
BILLING CODE 4915-00-P