[Federal Register Volume 70, Number 12 (Wednesday, January 19, 2005)]
[Notices]
[Pages 3098-3099]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-1005]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34635]


Watco Companies, Inc.--Continuance in Control Exemption--Mission 
Mountain Railroad, Inc.

    Watco Companies, Inc. (Watco) has filed a verified notice of 
exemption to continue in control of Mission Mountain Railroad, Inc. 
(MMT), upon MMT's becoming a Class III rail carrier.
    The transaction was expected to be consummated on or shortly after 
December 28, 2004.
    This transaction is related to a concurrently filed verified notice 
of exemption in STB Finance Docket No. 34634, Mission Mountain 
Railroad, Inc.--Acquisition Exemption--The Burlington Northern and 
Santa Fe Railway Company, wherein MMT seeks to acquire by purchase and 
lease from The Burlington Northern and Santa Fe Railway Company (BNSF) 
rail lines in the State of Montana. The line being purchased is between 
milepost 1249.35, near Stryker, and milepost 1272.22, near Eureka, in 
Lincoln County, MT, a distance of approximately 22.87 miles. The rail 
line being leased is between milepost 1211.86, near Columbia Falls, and 
milepost 1227.58, near Kalispell, in Flathead County, MT, a distance of 
approximately 15.72 miles.\1\ MMT will operate both lines.
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    \1\ BNSF is retaining the right to use the wye tracks at 
Columbia Falls.
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    Watco, a Kansas corporation, is a noncarrier that currently 
controls nine 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), 
Great Northwest Railroad, Inc. (GNR), and Kaw River Railroad, Inc. 
(KRR).
    Applicant states that: (1) The rail lines operated by SKO, PRCC, 
TIBR, SLWC, EIRR, K&O, PSWR, GNR, and KRR do not connect with the rail 
lines being purchased or leased by MMT; (2) the

[[Page 3099]]

continuance in control is not part of a series of anticipated 
transactions that would connect the rail lines being acquired by MMT 
with any railroad in the Watco corporate family; and (3) neither MMT 
nor any of the carriers controlled by Watco are Class I rail carriers. 
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 reduce overhead expenses, coordinate billing, 
maintenance, mechanical and personnel policies and practices of its 
rail carrier subsidiaries and thereby improve the overall efficiency of 
rail service provided by the ten railroads.
    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. 34635, 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, Of Counsel, Ball 
Janik LLP, 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: January 12, 2005.

    By the Board,
David M. Konschnik,
Director, Office of Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 05-1005 Filed 1-18-05; 8:45 am]
BILLING CODE 4915-01-P