[Federal Register Volume 70, Number 210 (Tuesday, November 1, 2005)]
[Notices]
[Pages 65978-65979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-21613]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34767]


Transtar, Inc.--Continuance in Control Exemption--Delray 
Connecting Railroad Company

    Transtar, Inc. (Transtar), a noncarrier, has filed a verified 
notice of exemption to continue in control of Delray Connecting 
Railroad Company (Delray), a Class III rail carrier, upon Transtar's 
acquiring all of Delray's issued and outstanding stock from Transtar's 
parent, United States Steel Corporation (USS).
    The exemption became effective on October 18, 2005 (7 days after 
the date of filing). \1\
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    \1\ Transtar explains that this transaction was consummated on 
May 31, 2005, under the mistaken belief that it was an inter-
corporate transaction involving parties for which exemption 
authority had previously been secured, and that additional approval 
or exemption was not required.
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    USS, a noncarrier, owns all of the issued and outstanding stock of 
Transtar, which is a noncarrier holding company. Transtar in turn owns 
all of the issued and outstanding stock of five common carrier 
railroads: Elgin, Joliet and Eastern Railway Company (Class II); 
Birmingham Southern Railroad Company (Class III); The Lake Terminal 
Railroad Company (Class III); McKeesport Connecting Railroad Company 
(Class III); and Union Railroad Company (Class III) (collectively, the 
Transtar Railroads). The common control of the Transtar Railroads by 
USS (formerly USX Corporation) through Transtar was the subject of 
exemption proceedings before the agency in USX Corporation--Control 
Exemption--Transtar, Inc., STB Finance Docket No. 33942 (STB served 
Nov. 30, 2000) and Transtar Holdings, L.P.--Corporate Family 
Exemption--Transtar, Inc., Finance Docket No. 32411 (ICC served Dec. 
29, 1993). USS acquired through stock acquisition, and assumed control 
of, Delray pursuant to a notice of exemption in United States Steel 
Corporation--Acquisition of Control Exemption--Delray Connecting 
Railroad Company, STB Finance Docket

[[Page 65979]]

No. 34311 (STB served Feb. 19, 2003). Transtar now seeks to acquire all 
of the stock of Delray from USS to consolidate all of the USS railroad 
subsidiaries under the mantle of Transtar. Delray is a switching and 
terminal railroad that operates 15.46 miles of track, all of which are 
located in the downriver district of Detroit, MI.
    Transtar states that: (i) The Transtar Railroads and Delray do not 
connect with each other or any railroads in their corporate family; 
(ii) the continuance in control is not part of a series of anticipated 
transactions that would connect the railroads with each other or any 
other railroad in their corporate family; and (iii) the transaction 
does not involve a Class I railroad. Transtar also states that the 
transaction will not result in: (i) Any adverse changes in service 
levels to the public; (ii) significant operational changes; or (iii) 
changes in the competitive balance with carriers outside the corporate 
family. Therefore, the transaction is exempt from the prior approval 
requirements of 49 U.S.C. 11323. See 49 CFR 1180.2(d)(2) and (3).
    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. Because the transaction 
involves at least one Class II and one or more Class III rail carriers, 
the exemption is subject to labor protection requirements of 49 U.S.C. 
11326(b).
    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. 34767, 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 A. Vuono, Vuono & Gray, 
LLC, 2310 Grant Building, Pittsburgh, PA 15219.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov..

    Decided: October 25, 2005.
    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 05-21613 Filed 10-31-05; 8:45 am]
BILLING CODE 4915-01-P