[Federal Register Volume 70, Number 194 (Friday, October 7, 2005)]
[Notices]
[Pages 58790-58791]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-20244]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34752]


Watco Companies, Inc.--Continuance in Control Exemption--
Louisiana Southern Railroad, Inc.

    Watco Companies, Inc. (Watco), has filed a verified notice of 
exemption to continue in control of the Louisiana Southern Railroad, 
Inc. (LSRR), upon LSRR's becoming a Class III rail carrier.\1\
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    \1\ Watco owns 100% of the issued and outstanding stock of LSRR.
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    The transaction was scheduled to be consummated on or shortly after 
September 25, 2005.
    This transaction is related to the concurrently filed verified 
notice of exemption in STB Finance Docket No. 34751, Louisiana Southern 
Railroad, Inc.--Lease and Operation Exemption--The Kansas City Southern 
Railway Company. In that proceeding, LSRR seeks to acquire by lease 
from The Kansas City Southern Railway Company and operate approximately 
165.8 miles of rail line extending between: (1) A point 1,600 feet 
south of LN&W milepost 62, near Gibsland, LA, and milepost B-192, near 
Pineville, LA; (2) milepost 148.8, at Winnfield, LA, and the end of the 
track, at Joyce, LA; (3) milepost 78.8, at Minden, LA, and milepost 
83.5, at Sibley, LA; and (4) milepost 48.48, south of Springhill, LA, 
and milepost B-102, east of Hinkle, LA.
    Watco, a Kansas corporation, is a noncarrier that currently 
controls 13 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, Inc. 
(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); 
Mission Mountain Railroad, Inc. (MMT); Appalachian & Ohio Railroad, 
Inc. (AO); Mississippi Southern Railroad, Inc. (MSRR); and Yellowstone 
Valley Railroad, Inc. (YVRR).
    Applicant states that: (1) The rail lines operated by SKO, PRCC, 
TIBR, SLWC, EIRR, K&O, PSWR, GNR, KRR, MMT, AO, MSRR, and YVRR do not 
connect

[[Page 58791]]

with the rail lines being leased by LSRR; (2) the continuance in 
control is not part of a series of anticipated transactions that would 
connect the rail lines being acquired by LSRR with any railroad in the 
Watco corporate family; and (3) neither LSRR nor any of the carriers 
controlled by Watco are Class I 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 and coordinate billing, maintenance, mechanical and personnel 
policies and practices of applicant's rail carrier subsidiaries and 
thereby improve the overall efficiency of rail service provided by the 
14 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. 34752, 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: October 3, 2005.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 05-20244 Filed 10-6-05; 8:45 am]
BILLING CODE 4915-01-P