[Federal Register Volume 70, Number 87 (Friday, May 6, 2005)]
[Notices]
[Pages 24163-24164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-8955]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34676]


Penn Eastern Holdings, Inc.--Control Exemption--East Penn 
Railways, Inc. and Penn Eastern Rail Lines, Inc.

    Penn Eastern Holdings, Inc. (PEH), a newly established noncarrier 
holding company, has filed a verified notice of exemption to acquire 
control through stock ownership of East Penn Railways, Inc. (East Penn) 
and Penn Eastern Rail Lines, Inc. (Penn Eastern), both Class III rail 
carriers. East Penn and Penn Eastern

[[Page 24164]]

are currently controlled by John C. Nolan, a noncarrier individual.\1\ 
As a result of this transaction, John C. Nolan and Mark Rosner will 
control East Penn and Penn Eastern through PEH.\2\
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    \1\ See John C. Nolan--Control Exemption-Penn Eastern Rail 
Lines, Inc., STB Finance Docket No. 34223 (STB served July 22, 
2002).
    \2\ By facsimile filed on April 15, 2005, PEH informed the Board 
that John C. Nolan will own 80% of the stock of PEH and Mark Rosner 
will own the remaining 20% of PEH's stock.
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    PEH states that it proposes to consummate the transaction on or 
after April 20, 2005.
    Concurrently, East Penn has filed verified notices of exemption: 
(1) In STB Finance Docket No. 34677, East Penn Railways, Inc. 
Acquisition Exemption--Southeastern Pennsylvania Transportation 
Authority, wherein East Penn seeks to acquire a segment of track, 
currently owned by the Southeastern Pennsylvania Transportation 
Authority and operated by East Penn pursuant to a modified rail 
certificate, known as the Octoraro Branch (or Line 142), extended 
approximately 27.51 miles between milepost 26.98 at Chadds Ford 
Junction, PA, and milepost 54.49 at the Pennsylvania/Maryland state 
line near Sylmar, MD; \3\ (2) in STB Finance Docket No. 34678, East 
Penn Railways, Inc.--Acquisition and Operation Exemption--ISG Railways, 
Inc., wherein East Penn seeks to acquire from ISG Railways, Inc. and 
operate a line of railroad known as Line 907, extending between 
approximately milepost 12.66  at the Delaware/Pennsylvania 
state line and milepost 29.72 at Modena, PA, a distance of 17.02 miles; 
and (3) in STB Finance Docket No. 34679, East Penn Railways, Inc.--
Acquisition and Operation Exemption--Reading Company, wherein East Penn 
seeks to acquire from the Reading Company and operate a line of 
railroad known as Line 939, extending from the Pennsylvania/Delaware 
state line at approximately milepost 12.66  to milepost 
1.89, near Elsmere Junction, DE, a distance of approximately 10.77 
miles.\4\ According to PEH and East Penn, these lines connect with each 
other but not with the lines of Penn Eastern.
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    \3\ See East Penn Railways, Inc.--Modified Rail Certificate, STB 
Finance Docket No. 34618 (STB served Dec. 21, 2004).
    \4\ See Certificate of Designated Operator, Delaware Valley 
Railway Co., D-OP 59 (USRA Line No. 907/939) (ICC served Oct. 14, 
1994).
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    PEH states that: (1) The railroads will not connect with each other 
or any railroad in their corporate family; (2) the control transaction 
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 (3) the transaction does not involve a Class I carrier. 
Therefore, the transaction is exempt from the prior approval of 
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 section 
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. 34676, 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 John D. Heffner, 1920 N Street, NW., 
Suite 800, Washington, DC 20036.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: April 26, 2005.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 05-8955 Filed 5-5-05; 8:45 am]
BILLING CODE 4915-01-P