[Federal Register Volume 71, Number 18 (Friday, January 27, 2006)]
[Notices]
[Pages 4635-4636]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-1033]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34817]


KBN, Inc.--Continuance in Control Exemption--Dakota Northern 
Railroad, Inc.

    KBN, Inc. (KBN), a noncarrier, has filed a verified notice of 
exemption under 49 CFR 1180.2(d)(2) to continue in control of Dakota 
Northern Railroad, Inc. (DN), upon DN's becoming a Class III rail 
carrier.

[[Page 4636]]

    The transaction was scheduled to be consummated on or after January 
18, 2006.\1\
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    \1\ Although KBN indicated that this transaction would be 
consummated no earlier than 7 days after the filing of its notice of 
exemption, DN, in STB Finance Docket No. 34816, indicated that the 
lease and operating agreement would not be consummated until January 
18, 2006 (7 days after DN filed a correction to its notice of 
exemption).
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    This transaction is related to a concurrently filed verified notice 
of exemption in STB Finance Docket No. 34816, Dakota Northern Railroad, 
Inc.--Lease and Operation Exemption--BNSF Railway Company. In that 
proceeding, DN seeks to acquire by lease from BNSF Railway Company 
(BNSF) and operate approximately 69.79 miles of rail line in Walsh and 
Pembina Counties, ND, specifically: (1) The entire BNSF Walhalla 
Subdivision, between milepost 0.0 near Grafton, ND, and the end of the 
line at milepost 48.38, near Walhalla, ND, a distance of approximately 
48.38 miles; and (2) a portion of BNSF's Glasston Subdivision, between 
the clearance point of the turnout located at milepost 38.79, near 
Grafton, ND, and the end of the line at milepost 60.20, near Glasston, 
ND, a distance of approximately 21.41 miles.\2\
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    \2\ By letter received on January 11, 2006, DN corrected its 
verified notice to reflect the mileposts listed herein.
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    KBN is a noncarrier that currently controls two Class III rail 
carriers: The Minnesota Northern Railroad, Inc. (MNR), and St. Croix 
Valley Railroad Company (SCVR). DN will operate wholly within North 
Dakota. MNR and SCVR presently operate wholly within Minnesota.
    KBN states that: (1) The rail lines operated by MNR and SCVR do not 
connect with the rail lines being leased by DN; (2) the continuance in 
control is not part of a series of anticipated transactions that would 
connect the rail lines of MNR, SCVR and DN with each other or with any 
railroads in their corporate family; and (3) neither DN nor any of the 
carriers controlled by KBN are Class I or Class II rail 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 achieve operating economies, to improve rail 
service to the public, and to improve the financial viability of the 
commonly controlled rail carriers.
    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. 34817, 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.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: January 23, 2006.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
 [FR Doc. E6-1033 Filed 1-26-06; 8:45 am]
BILLING CODE 4915-01-P