[Federal Register Volume 69, Number 170 (Thursday, September 2, 2004)]
[Notices]
[Page 53770]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-19927]



[[Page 53770]]

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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34525]


K. Earl Durden, Rail Management Corporation, and Rail Partners, 
L.P.--Continuance in Control Exemption--Riceboro Southern Railway, 
L.L.C.

    K. Earl Durden (Durden), Rail Management Corporation (RMC),\1\ and 
Rail Partners, L.P. (Partners) (collectively, applicants), have filed a 
verified notice of exemption to continue in control of Riceboro 
Southern Railway, L.L.C. (RSOR), upon RSOR's becoming a rail carrier.
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    \1\ RMC's former corporate name was Rail Management & Consulting 
Corporation.
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    The transaction was expected to be consummated on or after August 
25, 2004.
    This transaction is related to a simultaneously filed verified 
notice of exemption in STB Finance Docket No. 34524, Riceboro Southern 
Railway, L.L.C.--Acquisition and Operation Exemption--Rail Line of CSX 
Transportation, Inc., wherein: (1) RSOR seeks to acquire by purchase 
from CSX Transportation, Inc., (CSXT), and operate approximately 18.8 
route miles of rail line between milepost S512.2 at Ogeechee, GA (near 
Richmond Hill), in Bryan County, GA, and milepost S531.0 at Riceboro, 
GA, in Liberty County, GA; and (2) RSOR will obtain incidental trackage 
rights from CSXT over approximately 14 miles of CSXT's line from 
milepost S512.2 at Ogeechee to milepost S498.0 at CSXT's Southover Yard 
at Savannah, GA. Through these trackage rights, RSOR will access the 
Southover Yard for the purpose of interchanging with CSXT from the 
south.
    At the time applicants filed this notice, Durden, RMC, and Partners 
controlled 14 Class III rail carriers located in Alabama, Arizona, 
Arkansas, Florida, Georgia, Kentucky, Mississippi, North Carolina, 
Tennessee, Texas, and Wisconsin. They are: AN Railway, L.L.C.; Atlantic 
& Western Railway, L.P.; The Bay Line Railroad, L.L.C.; Copper Basin 
Railway, Inc.; East Tennessee Railway, L.P.; Galveston Railroad, L.P.; 
Georgia Central Railway, L.P. (GC); \2\ KWT Railway, Inc.; Little Rock 
& Western Railway, L.P.; M&B Railroad, L.L.C.; Tomahawk Railway, L.P.; 
Valdosta Railway, L.P.; Western Kentucky Railway, L.L.C., and 
Wilmington Terminal Railroad, L.P. (referred to as the RMC Rail Group).
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    \2\ Applicants note that GC connects with CSXT's Southover Yard 
from the north. Applicants state that there will be no connection 
between the lines of RSOR and GC. The point at which RSOR will 
access the Southover Yard and the point at which GC accesses the 
Southover Yard are entirely separated by CSXT yard track, thus 
precluding a direct interchange between RSOR and GC. Moreover, there 
are no plans to interchange traffic even indirectly among the RSOR, 
CSXT, and GC.
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    Applicants state that: (1) The railroads do not connect with any 
other rail lines in applicants' corporate family; (2) the continuance 
in control of RSOR is not part of a series of anticipated transactions 
that would connect applicants' rail lines; and (3) the transaction does 
not involve a Class I rail 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. 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 stay the transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 34525, 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 Andrew B. Kolesar III, Slover & 
Loftus, 1224 Seventeenth Street, NW., Washington, DC 20036.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: August 25, 2004.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 04-19927 Filed 9-1-04; 8:45 am]
BILLING CODE 4915-01-P