[Federal Register Volume 68, Number 120 (Monday, June 23, 2003)]
[Notices]
[Pages 37201-37202]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-15779]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34360]


Sierra Railroad Company-Corporate Family Transaction Exemption--
Yolo Shortline Railroad Company

    Sierra Railroad Company (SRC)\1\ and Yolo Shortline Railroad 
Company (YSL), both Class III carriers, have jointly filed a verified 
notice of exemption for approval of a proposed intercorporate 
transaction by which SRC's common carrier rights and obligations will 
be transferred to its subsidiary YSL. As a result of the transaction, 
the operations of SRC and YSL will be combined within YSL and SRC will 
be a noncarrier entity in control of YSL.
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    \1\ This filing is related to STB Finance Docket No. 34351, 
Sierra Railroad Company-Acquisition of Control Exemption-Yolo 
Shortline Railroad Company, in which SRC and YSL jointly filed a 
verified notice of exemption on May 12, 2003, for SRC to acquire 
control of YSL through stock purchase of YSL's parent, Midland 
Railroad Enterprises Corporation. This notice was served and 
published on June 11, 2003.
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    The transaction is expected to be consummated by June 30, 2003.
    The purpose of the transaction is to allow SRC and YSL to combine 
their resources, to expand their business opportunities, and to develop 
other railroad and transportation related businesses.
    This is a transaction within a corporate family of the type 
specifically exempted from prior review and approval under 49 CFR 
1180.2(d)(3). The parties state that the transaction will not result in 
adverse changes in service levels, significant operational changes, or 
a change in the competitive balance with carriers outside the corporate 
family.
    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. Accordingly, the 
Board may not impose labor protective conditions here, because all of 
the carriers involved are Class III carriers.
    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

[[Page 37202]]

Docket No. 34360 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 Michael G. Hart, 220 Sierra Avenue, 
Oakdale, CA 95361 and David Magaw, 341 Industrial Way, Woodland, CA 
95776.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: June 13, 2003.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 03-15779 Filed 6-20-03; 8:45 am]
BILLING CODE 4915-00-P