[Federal Register Volume 69, Number 121 (Thursday, June 24, 2004)]
[Notices]
[Pages 35423-35424]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-14327]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34510]


Watco Companies, Inc.--Continuance in Control Exemption--Kaw 
River Railroad, Inc.

    Watco Companies, Inc. (Watco), a noncarrier, has filed a verified 
notice of exemption to continue in control of Kaw River Railroad, Inc. 
(KRR), upon KRR's becoming a Class III rail carrier.
    The transaction was scheduled to be consummated on or shortly after 
June 1, 2004, the effective date of the exemption.
    The transaction is related to STB Finance Docket No. 34509, Kaw 
River Railroad, Inc.--Acquisition and Operation Exemption--The Kansas 
City Southern Railway Company, wherein KRR seeks to acquire by: (1) 
Lease from The Kansas City Southern Railway Company (KCS) and operate 
approximately 7.5 miles of rail lines in Kansas City, KS; (2) sublease 
from KCS and operate approximately 4.5 miles of rail lines in Kansas 
City, KS, and Kansas City, MO, that are owned by Kansas City Terminal 
Railway Company (KCT); and (3) assignment from KCS operating authority 
over approximately 6.2 miles of KCT rail lines in order to access the 
leased KCS and KCT trackage.
    Watco owns 100% of the issued and outstanding stock of KRR, and 
controls through stock ownership and management eight other Class III 
rail carriers: South Kansas and Oklahoma Railroad Company (SKO), 
Palouse River & Coulee City Railroad, Inc. (PRCC), Timber Rock 
Railroad, Inc. (TIBR), Stillwater Central Railroad (SLWC), Eastern 
Idaho Railroad, Inc. (EIRR), Kansas & Oklahoma Railroad, Inc. (K&O), 
Pennsylvania Southwestern Railroad, Inc. (PSWR), and Great Northwest 
Railroad, Inc. (GNR).\1\
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    \1\ SKO's lines are located in Missouri, Kansas, and Oklahoma; 
PRCC's lines are located in Washington, Oregon, and Idaho; TIBR's 
lines are located in Texas and Louisiana; SLWC's lines are located 
in Oklahoma; EIRR's lines are located in Idaho; K&O's lines are 
located in Kansas and Colorado; PSWR's line is located in 
Pennsylvania; and GNR's lines are located in Idaho and Washington.
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    As pertinent here, SKO's lines are located in the southeastern 
portion of Kansas and southwestern portion of Missouri, and are a 
substantial distance from the lines being leased by KRR. K&O's Kansas 
lines are located in the central and western portions of the State and 
also are a substantial distance from the lines being leased and 
subleased by KRR.
    Watco states that: (i) The rail lines of KRR will not connect with 
any of the lines of the railroads under its control or within its 
corporate family, (ii) the transaction is not a part of a series of 
anticipated transactions that would connect the rail lines being leased 
and subleased by KRR with any other railroad in its corporate family, 
and (iii) the transaction does not involve a Class I railroad. 
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. 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.

[[Page 35424]]

    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 34510, 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 Morell, Suite 225, 1455 F 
Street, NW., Washington, DC 20005.
    Board decisions and notices are available on our Web site at 
WWW.STB.DOT.GOV.

    Decided: June 18, 2004.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 04-14327 Filed 6-23-04; 8:45 am]
BILLING CODE 4915-01-P