[Federal Register Volume 68, Number 99 (Thursday, May 22, 2003)]
[Notices]
[Pages 28045-28046]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-12859]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34344]


ISG Railways, Inc.--Acquisition of Control Exemption--Assets of 
Keystone Railroad LLC d/b/a Philadelphia, Bethlehem and New England 
Railroad Company, Conemaugh & Black Lick Railroad Company LLC, Steelton 
& Highspire Railroad Company LLC, Lake Michigan & Indiana Railroad 
Company LLC, Brandywine Valley Railroad Company LLC, Upper Merion & 
Plymouth Railroad Company LLC, Patapsco & Back Rivers Railroad Company 
LLC, and Cambria and Indiana Railroad, Inc.

    ISG Railways, Inc. (ISG Railways),\1\ a noncarrier, has filed a 
verified notice of exemption to acquire, pursuant to an asset purchase 
agreement, the rail lines and substantially all other assets of 
Keystone Railroad LLC d/b/a Philadelphia, Bethlehem and New

[[Page 28046]]

England Railroad Company (Keystone), Conemaugh & Black Lick Railroad 
Company LLC (CBLR), Steelton & Highspire Railroad Company LLC (SHP), 
Lake Michigan & Indiana Railroad Company LLC (LMIC), Brandywine Valley 
Railroad Company LLC (BVRY), Upper Merion & Plymouth Railroad Company 
LLC (UMP), Patapsco & Back Rivers Railroad Company LLC (PBR), and 
Cambria and Indiana Railroad, Inc. (C&I), all Class III rail carrier 
subsidiaries of Bethlehem Steel Corporation (Bethlehem), operating in 
Delaware, Indiana Maryland, and Pennsylvania.\2\
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    \1\ ISG Railways is a wholly owned subsidiary of ISG 
Acquisition, Inc., which is a wholly owned subsidiary of 
International Steel Group Inc.
    \2\ ISG Railways states that Bethlehem is operating under 
bankruptcy protection, but Keystone, CBLR, SHP, LMIC, BVRY, UMP, PBR 
and C&I are not.
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    This transaction is related to a simultaneously filed verified 
notice of exemption in STB Finance Docket No. 34343, International 
Steel Group Inc.--Continuance in Control Exemption--ISG Railways, Inc., 
wherein International Steel Group Inc. seeks to continue in control of 
ISG Railways upon ISG Railways becoming a Class II rail carrier 
pursuant to this proceeding.
    The proposed transaction was scheduled to be consummated on or 
after April 29, 2003, the effective date of the exemption (7days after 
the exemption was filed).
    ISG Railways states that: (i) The railroads do not connect with 
each other or any railroad in their corporate family; (ii) the 
acquisition of control is not part of a series of anticipated 
transactions that would connect the 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. Section 11326(c), however, does 
not provide for labor protection for transactions under sections 11324 
and 11325 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 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. 34344, must be filed with the Surface Transportation 
Board, 1925 K Street, NW., Washington, DC 20423-0001. In addition, a 
copy of all pleadings must be served on Kevin M. Sheys, Kirkpatrick & 
Lockhart LLP, 1800 Massachusetts Avenue, NW.,--2nd Floor, Washington, 
DC 20036.
    Board decisions and notices are available on our Web site at 
www.stb.dot.gov.

    Decided: May 15, 2003.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 03-12859 Filed 5-21-03; 8:45 am]
BILLING CODE 4915-00-P