[Federal Register Volume 71, Number 55 (Wednesday, March 22, 2006)]
[Notices]
[Page 14577]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-2716]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34831]


Kansas City Terminal Railway Company--Intra-Corporate Exemption--
Kansas City Transportation Company LLC

    Kansas City Terminal Railway Company (KCT) has filed a verified 
notice of exemption under 49 CFR 1180.2(d)(3) for a transaction within 
a corporate family. The transaction involves KCT's continuance in 
control of its wholly owned subsidiary Kansas City Transportation 
Company LLC (KCTL), upon KCTL's becoming a Class III rail carrier.
    This transaction is related to STB Finance Docket No. 34830, Kansas 
City Transportation Company LLC--Lease and Assignment of Lease 
Exemption--Kansas City Terminal Railway Company and Kaw River Railroad, 
Inc.,\1\ wherein KCTL: (1) seeks to acquire by lease from KCT 
approximately 25.73 miles of rail line in the Kansas City Terminal 
District in Jackson County, MO, and Wyandotte County, KS; and (2) seeks 
to acquire by assignment from Kaw River Railroad, Inc. (KRR) the 
operating and lease rights over all tracks owned by KCT which are 
currently subleased to KRR, and over all tracks owned by The Kansas 
City Southern Railway Company which are leased to KRR.
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    \1\ On February 27, 2006, the Brotherhood of Locomotive 
Engineers and Trainmen, a Division of the Rail Conference, 
International Brotherhood of Teamsters, filed a petition for a stay 
of the transactions encompassed by both notices of exemption. The 
stay request was denied by decision served on February 28, 2006.
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    The transaction was expected to be consummated on March 1, 2006, 
the effective date of the exemption (7 days after the exemption was 
filed).
    KCT states that this is an intra-corporate family transaction that 
will not result in adverse changes in service levels, significant 
operational changes, or a change 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)(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. 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. 34831, 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, 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: March 14, 2006.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.

Vernon A. Williams,
 Secretary.
[FR Doc. 06-2716 Filed 3-21-06; 8:45 am]
BILLING CODE 4915-01-P