[Federal Register Volume 70, Number 47 (Friday, March 11, 2005)]
[Notices]
[Page 12267]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-4834]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34654]


Watco Companies, Inc.--Continuance in Control Exemption--
Appalachian & Ohio Railroad, Inc.

    Watco Companies, Inc. (Watco), has filed a verified notice of 
exemption to continue in control of Appalachian & Ohio Railroad, Inc. 
(AO), upon AO's becoming a Class III rail carrier.
    The transaction is scheduled to be consummated on or shortly after 
March 25, 2005.
    This transaction is related to a concurrently filed verified notice 
of exemption in STB Finance Docket No. 34653, Appalachian & Ohio 
Railroad, Inc.--Lease and Operation Exemption--CSX Transportation, 
Inc., wherein AO seeks to acquire by lease from CSX Transportation, 
Inc. (CSXT) and operate approximately 158.22 miles of rail lines in the 
State of West Virginia.\1\
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    \1\ The rail lines being leased are between: (1) Milepost BUC 
0.0, at Berkeley Run Jct., WV, and milepost BUC 119.0, at Cowen, WV; 
(2) milepost BUN 0.0, at Berryburg Jct., WV, and milepost BUN 4.0, 
at the Sentinel Mine near Berryburg Jct.; (3) milepost BUO 0.0, at 
Century Jct., WV, and milepost BUO 5.05, at the Century Mine, near 
Century Jct.; (4) milepost BUJ 0.0, at Buckhannon, WV, and milepost 
BUJ 1.65, near Buckhannon; (5) milepost BUF 0.0, at Burnsville, WV, 
and milepost BUF 6.2, at Gilmer, WV; (6) milepost BUR 0.0, at Cowen, 
and milepost BUR 1.0, near Cowen; (7) milepost BUH 0.0, at Hampton 
Jct., WV, and milepost BUH 17.0, at Alexander, WV; and (8) milepost 
BTF 0.0, at Island Creek Jct., WV, and milepost BTF 4.32, near 
Island Creek Jct.
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    Watco, a Kansas corporation, is a noncarrier that currently 
controls 10 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), Kaw River Railroad, Inc. (KRR), and Mission 
Mountain Railroad, Inc. (MMT).
    Applicant states that: (1) The rail lines operated by SKO, PRCC, 
TIBR, SLWC, EIRR, K&O, PSWR, GNR, KRR, and MMT do not connect with the 
rail lines being leased by AO; (2) the continuance in control is not 
part of a series of anticipated transactions that would connect the 
rail lines being acquired by AO with any railroad in the Watco 
corporate family; and (3) neither AO 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 applicant's rail carrier subsidiaries, 
thereby improving the overall efficiency of rail service provided by 
the 11 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. 34654, 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: March 7, 2005.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 05-4834 Filed 3-10-05; 8:45 am]
BILLING CODE 4915-01-P