[Federal Register Volume 69, Number 179 (Thursday, September 16, 2004)]
[Notices]
[Pages 55867-55868]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-20890]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34538]


Patrick D. Broe and OmniTRAX, Inc.--Continuance in Control 
Exemption--Alliance Terminal Railroad, LLC

    Patrick D. Broe (Mr. Broe) and OmniTRAX, Inc. (OmniTRAX) 
(collectively, applicants) have filed a verified notice of exemption to 
continue in control of Alliance Terminal Railroad, LLC (ATR) upon ATR's 
becoming a Class III rail carrier.
    The transaction was expected to be consummated on August 24, 2004, 
the effective date of the exemption.
    This transaction is related to the concurrently filed verified 
notice of exemption in STB Finance Docket No. 34537, Alliance Terminal 
Railroad, LLC--Lease and Operation Exemption--Quality Terminal 
Services, LLC, wherein ATR seeks to sublease from Quality Terminal 
Services, LLC, in Haslet, TX, and operate approximately 12.9 miles of 
rail line owned by The Burlington Northern and Santa Fe Railway Company 
(BNSF), and to acquire overhead incidental trackage rights over 11 
miles of BNSF's main line located between milepost 359.0, at Haslet, 
and milepost 370.0, at Saginaw, TX.
    Mr. Broe is a noncarrier individual who directly controls OmniTRAX, 
Inc., a non-carrier company. OmniTRAX currently controls eight Class 
III railroads operating in six states: Chicago Rail Line, LLC (CRL), 
Georgia Woodlands Railroad, LLC (GWRC), Great Western Railway of 
Colorado, LLC (GWR), Great Western Railway of Iowa, LLC (CBGR), 
Manufacturers' Junction Railway, LLC (MJ), Newburgh & South Shore 
Railroad Limited (NSR), Northern Ohio & Western Railway, LLC (NOW), and 
Panhandle Northern Railroad, LLC (PNR).\1\
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    \1\ CRL's lines are located in Illinois; GWRC's line is located 
in Georgia; GWR's lines are located in Colorado; CBGR's lines are 
located in Iowa; MJ's lines are located in Illinois; NSR's lines are 
located in Ohio; NOW's line is located in Ohio; and PNR's line is 
located in Texas.
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    The rail lines operated by CRL, GWRC, GWR, CBGR, MJ, NSR, NOW, and 
PNR do not connect with the rail lines being subleased by ATR. PNR's 
rail line, which is located in Broger, TX, is a substantial distance 
from the line being subleased by ATR.
    Under 49 CFR 1180.2(d)(2), a continuance in control transaction is 
exempt if: (i) The railroads do not connect with each other or any 
railroad in their corporate family; (ii) 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 (iii) the transaction does not involve a Class I carrier. There are 
no Class I carriers involved in this transaction and applicants state 
that the railroads do not connect with each other and there are no 
plans to acquire additional rail lines for the purpose of making such a 
connection. Therefore, the transaction is exempt from the prior 
approval requirements of 49 U.S.C. 11323.
    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 automatically stay the transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 34538, 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, 1455 F Street, 
NW., Suite 225, Washington, DC 20005.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: September 10, 2004.


[[Page 55868]]


    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 04-20890 Filed 9-15-04; 8:45 am]
BILLING CODE 4915-01-P