[Federal Register Volume 71, Number 23 (Friday, February 3, 2006)]
[Notices]
[Page 5906]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-1489]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34775]


Richard J. Corman and R.J. Corman Railroad Group, LLC--
Continuance in Control; Exemption--R.J. Corman Railroad Company/
Tennessee Terminal, LLC

    Richard J. Corman (Corman) and R.J. Corman Railroad Group, LLC 
(Group) (collectively applicants), have filed a verified notice of 
exemption to continue in control of R.J. Corman Railroad Company/
Tennessee Terminal, LLC (RJCK), upon RJCK's becoming a Class III rail 
carrier.\1\
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    \1\ Group, a noncarrier holding company, is owned by Corman and 
directly controls JCK.
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    The transaction was scheduled to be consummated on January 15, 
2006.
    This transaction is related to the concurrently filed verified 
notice of exemption in STB Finance Docket No. 34772, R.J. Corman 
Railroad Company/Tennessee Terminal, LLC--Lease and Operation 
Exemption--BNSF Railway Company. In that proceeding, RJCK seeks to 
acquire by lease from BNSF Railway Company (BNSF) and operate 
approximately 46.7 miles of rail lines in Shelby County, TN, and DeSoto 
County, MS.
    Group controls seven Class III rail carriers: R.J. Corman Railroad 
Company/Pennsylvania Lines Inc. (Pennsylvania Lines), R.J. Corman 
Railroad Company/Memphis Line (Memphis Line), R.J. Corman Railroad 
Company/Western Ohio Line (Western Ohio Line), R.J. Corman Railroad 
Company/Cleveland Line (Cleveland Line), R.J. Corman Railroad Company/
Bardstown Line (Bardstown Line), R.J. Corman Railroad Company/Allentown 
Lines, Inc. (Allentown Lines), and R.J. Corman Railroad Company/Central 
Kentucky Lines, LLC (Central Kentucky Lines). Corman also owns R.J. 
Corman Railroad Property, LLC (RJRP), a Class III non-operating rail 
carrier, and owns a controlling interest in the Clearfield & Mahoning 
Railway Company (CMRC), also a Class III rail carrier.
    Applicants state that: (1) The rail lines operated by Pennsylvania 
Lines, Memphis Line, Western Ohio Line, Cleveland Line, Bardstown Line, 
Allentown Lines, Central Kentucky Lines, RJRP, and CMRC do not connect 
with the rail line being leased by RJCK; (2) the continuance in control 
is not part of a series of anticipated transactions that would connect 
the rail line being leased by RJCK with any railroad in the Corman 
corporate family; and (3) the transaction does not involve a Class I 
rail 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 the transaction is to allow Corman and Group to continue in 
control of RJCK after RJCK becomes a Class III rail carrier.
    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 section 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. 34775, must be filed with the Surface Transportation 
Board, 1925 K Street, NW., Washington, DC 20423-0001. In addition, one 
copy of each pleading must be served on Ronald A. Lane, Fletcher & 
Sippel LLC, 29 North Wacker Drive, Suite 920, Chicago, IL 60606-2832.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: January 30, 2006.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. E6-1489 Filed 2-2-06; 8:45 am]
BILLING CODE 4915-01-P