[Federal Register Volume 71, Number 9 (Friday, January 13, 2006)]
[Notices]
[Page 2295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-235]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34809]


Gregory B. Cundiff, Connie Cundiff, CGX, Inc., and Ironhorse 
Resources, Inc.--Control Exemption--Caney Fork and Western RR, Inc.

    Gregory B. Cundiff and Connie Cundiff (together, Cundiffs), CGX, 
Inc. (CGX), and Ironhorse Resources, Inc. (Ironhorse), noncarriers 
(together, Applicants), have filed a verified notice of exemption to 
acquire control of Caney Fork and Western RR, Inc. (CFWR), a Class III 
railroad.\1\ CFWR operates in Tennessee.
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    \1\ The Cundiffs will acquire CFWR pursuant to their acquiring a 
controlling interest in CFWR's stock.
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    The transaction was expected to be consummated on or after December 
23, 2005.
    The Cundiffs directly control CGX, which in turn directly controls 
Ironhorse. CGX directly controls three Class III rail carriers: 
Mississippi Tennessee Holdings, LLC; Lone Star Railroad, Inc.; and Rio 
Valley Railroad, Inc. Ironhorse directly controls four Class III rail 
carriers: Mississippi Tennessee Railroad, LLC; Railroad Switching 
Service of Missouri; Rio Valley Switching Company; and Southern 
Switching Company.
    Applicants state that: (1) The rail lines operated by CFWR, and by 
rail carriers controlled by CGX and Ironhorse 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).
    The purpose of this transaction is to make the efficiencies and 
economies of the Applicants' corporate structure available to CFWR.
    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. 34809, 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 Thomas F. McFarland, Thomas F. 
McFarland, P.C., 208 South LaSalle Street, Suite 1890, Chicago, IL 
60604-1112.
    Board decisions and notices are available on our Web site at http://www.stp.dot.gov.

    Decided: January 5, 2006.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 06-235 Filed 1-12-06; 8:45 am]
BILLING CODE 4915-01-P