[Federal Register Volume 68, Number 79 (Thursday, April 24, 2003)]
[Notices]
[Page 20222]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-10034]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34329]


Watco Companies, Inc.--Continuance in Control Exemption--
Pennsylvania Southwestern Railroad, Inc.

    Watco Companies, Inc. (Watco), a noncarrier, has filed a verified 
notice of exemption to continue in control of Pennsylvania Southwestern 
Railroad, Inc. (PSWR), upon PSWR's becoming a Class III railroad.
    The transaction was expected to be consummated on or after April 1, 
2003, the effective date of the exemption (7 days after the notice was 
filed).
    This transaction is related to the concurrently filed verified 
notice of exemption in STB Finance Docket No. 34328, Pennsylvania 
Southwestern Railroad, Inc.--Lease and Operation Exemption--Steel, LLC, 
wherein PSWR seeks to lease and operate approximately 10.5 miles of 
rail line currently owned by J&L Specialty Steel, LLC.
    At the time it filed this notice, Watco controlled six Class III 
railroads: the South Kansas and Oklahoma Railroad Company; Palouse 
River & Coulee City Railroad, Inc.; the Timber Rock Railroad, Inc.; the 
Stillwater Central Railroad; the Eastern Idaho Railroad, Inc.; and the 
Kansas & Oklahoma Railroad, Inc., operating in the states of Colorado, 
Idaho, Kansas, Louisiana, Missouri, Oklahoma, Oregon, Texas and 
Washington.
    Applicants state that: (1) The railroads do not connect with each 
other or any railroad in their corporate family; (2) the continuance in 
control is not part of a series of anticipated transactions that would 
connect the seven railroads with each other or any railroad in their 
corporate family; and (3) 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). The purpose 
of the transaction is to enable Watco to reduce overhead expenses; 
coordinate billing, maintenance, mechanical and personnel policies and 
practices of its rail carrier subsidiaries; and improve the overall 
efficiency of rail service provided by the seven railroads.
    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. Section 11326(c), however, does 
not provide for labor protection for transactions under sections 11324-
25 that involve only Class III rail carriers. Because this transaction 
involves Class III rail carriers only, the Board, under the statute, 
may not impose labor protective conditions for this transaction.
    If the verified 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. 34329, 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: Karl Morrell, Of Counsel, 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: April 16, 2003.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 03-10034 Filed 4-23-03; 8:45 am]
BILLING CODE 4915-00-P