[Federal Register Volume 71, Number 8 (Thursday, January 12, 2006)]
[Notices]
[Page 2107]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-231]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34799]


Permian Basin Railways, Inc.--Acquisition of Control Exemption--
San Luis & Rio Grande Railroad Company, Inc.

    Permian Basin Railways, Inc. (Permian), a noncarrier,\1\ has filed 
a verified notice of exemption to acquire control of Class III carrier 
San Luis & Rio Grande Railroad Company, Inc. (SLRG).\2\ SLRG is 
currently owned by RailAmerica Transportation Corp. (RTC), a short line 
railroad holding company, indirectly controlled by RailAmerica, Inc.\3\
---------------------------------------------------------------------------

    \1\ Permian owns the stock of three existing Class III short 
line railroads: West Texas and Lubbock Railway Company, Inc., the 
Austin & Northwestern Railroad Company, Inc. d/b/a Texas New Mexico 
Railroad, and the Arizona Eastern Railway Company, Inc.
    \2\ A redacted version of the executed purchase and sale 
agreement and all supporting documents 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 
December 23, 2005.
    \3\ RTC and RailAmerica formed SLRG in 2003 for the purpose of 
acquiring the subject rail lines from the Union Pacific Railroad 
Company. The Board authorized SLRG's acquisition of the subject 
lines and RTC's and RailAmerica's control of SLRG in STB Finance 
Docket Nos. 34350 and 34352, respectively.
---------------------------------------------------------------------------

    The transaction was expected to be consummated on or after December 
22, 2005.
    Permian states that: (1) The railroads do not connect with each 
other or any railroad in their corporate family; (2) the 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 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. 34799, 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 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: January 5, 2006.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 06-231 Filed 1-11-06; 8:45 am]
BILLING CODE 4915-01-P