[Federal Register Volume 70, Number 93 (Monday, May 16, 2005)]
[Notices]
[Page 25883]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-9684]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34687]


Patrick D. Broe and BNS Holdings, Inc.--Acquisition of Control 
Exemption--Nebraska, Kansas & Colorado RailNet, Inc., Illinois RailNet, 
Inc., and Georgia & Florida RailNet, Inc.

    Patrick D. Broe (Mr. Broe) and BNS Holdings, Inc. (BNS Holdings), 
(collectively, applicants) have filed a verified notice of exemption to 
acquire control of the Nebraska, Kansas & Colorado RailNet, Inc. 
(NKCR), Illinois RailNet, Inc. (IR), and Georgia & Florida RailNet, 
Inc. (G&FR), all Class III rail carriers, operating in Colorado, 
Florida, Georgia, Illinois, Kansas and Nebraska.\1\
    The proposed transaction was scheduled to be consummated on or 
shortly after May 2, 2005.
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    \1\ A redacted version of the Agreement and Plan of Merger was 
filed with the notice of exemption. The full version of the 
agreement, as required by 49 CFR 1180.6(a)(7)(ii), was concurrently 
filed under seal along with a motion for a protective order. A 
protective order was served on May 5, 2005.
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    Mr. Broe is a noncarrier individual who directly controls BNS 
Holdings, a noncarrier company that currently controls RN Rail 
Holdings, Inc. (RN Rail), also a noncarrier. North America RailNet, 
Inc. (NA RailNet), is a noncarrier holding company that currently 
controls rail carriers NKCR, IR and G&FR. According to applicants, RN 
Rail will be merged into NA RailNet whereupon RN Rail will cease to 
exist and NA RailNet will be the surviving subsidiary of BNS Holdings. 
Applicants state that once the transaction is consummated, Mr. Broe and 
BNS Holdings will indirectly control NKCR, IR and G&FR via NA 
RailNet.\2\
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    \2\ Applicants state that as soon as the transaction is closed 
NKCR will be renamed Nebraska, Kansas & Colorado Railway, Inc., IR 
will be renamed Illinois Railway, Inc., and G&FR will be renamed 
Georgia & Florida Railway, Inc.
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    Mr. Broe also directly controls OmniTRAX, Inc. (OmniTRAX), a 
noncarrier that currently controls 12 Class III rail carriers: Chicago 
Rail Link, LLC (CRL); Georgia Woodlands Railroad, LLC (GWRC); Great 
Western Railway of Colorado, LLC (GWR); Great Western Railway of Iowa 
LLC (GWRI); Manufacturers' Junction Railway, LLC (MJ); Newburgh and 
South Shore Railroad Limited (NSR); Northern Ohio & Western Railway, 
LLC (NOW); Panhandle Northern Railroad, LLC (PNR); Alliance Terminal 
Railroad, LLC (ATR); Fulton County Railway, LLC (FCR); Alabama & 
Tennessee River Railway, LLC (ATN); and Kettle Falls International 
Railway, LLC (KFR).
    Applicants state that: (i) The rail lines operated by CRL, GWRC, 
GWR, GWRI, MJ, NSR, NOW, PNR, ATR, FCR, ATN, and KFR do not connect 
with the rail lines operated by NKCR, IR and G&FR (ii) the transaction 
is not part of a series of anticipated transactions that would connect 
the rail lines operated by NKCR, IR and G&FR with any railroad in the 
OmniTRAX corporate family; and (iii) 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 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. 34687, must be filed with the Surface Transportation 
Board, 1925 K Street, NW., Washington, DC 20423-0001. In addition, a 
copy of all pleadings 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: May 9, 2005.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 05-9684 Filed 5-13-05; 8:45 am]
BILLING CODE 4915-01-P