[Federal Register Volume 68, Number 113 (Thursday, June 12, 2003)]
[Notices]
[Pages 35254-35255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14869]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34356]


Gregory B. Cundiff, Connie Cundiff, CGX, Inc., and Ironhorse 
Resources, Inc.--Continuance in Control Exemption--Mississippi 
Tennessee Holdings, LLC and Mississippi Tennessee Railroad, LLC

    Gregory B. Cundiff, Connie Cundiff, CGX, Inc. (CGX), and Ironhorse 
Resources, Inc. (Ironhorse) (collectively, applicants), noncarriers, 
have filed a verified notice of exemption to continue in control of 
Mississippi Tennessee Holdings, LLC (MTH) and Mississippi Tennessee 
Railroad, LLC (MTR), upon MTH and MTR becoming rail carriers.
    The transaction was expected to be consummated on or after May 27, 
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. 34355, Mississippi 
Tennessee Holdings, LLC and Mississippi Tennessee Railroad, LLC--
Acquisition and Operation Exemption--Rail Line of Mississippi & 
Tennessee Railnet, Inc., between Houston, MS, and Middleton, TN, in 
Chickasaw, Pontotoc, Union and Tippah Counties, MS, and Hardeman 
County, TN, wherein MTH and MTR seek to acquire and operate 87.7 miles 
of rail line currently owned by Mississippi Tennessee Railnet, Inc.
    MTH and MTR are currently owned by CGX, a noncarrier holding 
company, that owns three carriers: Crystal City Railroad, Inc., Lone 
Star Railroad, Inc., and Rio Valley Railroad, Inc. CGX also owns 
Ironhorse, a noncarrier holding company, that owns four carriers: 
Railroad Switching Service of Missouri, Texas Railroad Switching, Inc., 
Rio Valley Switching Company, and Southern Switching Company. CGX is 
owned by Mr. and Mrs. Cundiff, noncarrier individuals.
    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 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 MTH and MTR to improve operating 
efficiency.
    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. Accordingly, the Board 
may not impose labor protective conditions here, because all of the 
carriers involved are Class III carriers.
    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. 34356, 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 Thomas F. McFarland, 208 South 
LaSalle Street, Suite 1890, Chicago, IL 60604-1194.
    Board decisions and notices are available on our Web site at 
www.stb.dot.gov.

    Decided: June 5, 2003.


[[Page 35255]]


    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
 Secretary.
[FR Doc. 03-14869 Filed 6-11-03; 8:45 am]
BILLING CODE 4915-00-P