[Federal Register Volume 71, Number 162 (Tuesday, August 22, 2006)]
[Notices]
[Page 48973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-13753]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34872]


Dakota, Minnesota & Eastern Railroad Corporation and Cedar 
American Rail Holdings, Inc.--Intra-Corporate Family Transaction 
Exemption--Wyoming Dakota Railroad Properties, Inc.

    Dakota, Minnesota & Eastern Railroad Corporation (DM&E) and its 
subsidiary, Cedar American Rail Holdings, Inc, (CARH), have jointly 
filed a verified notice of exemption under 49 CFR 1180.2(d)(3) for a 
transaction within a corporate family. In a concurrently filed verified 
notice of exemption in STB Finance Docket No. 34871, Wyoming Dakota 
Railroad Properties, Inc. (WDR), a newly created subsidiary of CAHR, 
seeks authority to acquire DM&E's Board issued authority to construct 
and operate \1\ some 280 miles of rail line. The instant notice of 
exemption will allow DM&E and CARH to continue in control of WDR once 
the new entity acquires DM&E's construction authority and becomes a 
rail carrier.\2\
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    \1\ See Dakota, MN & Eastern R.--Construction--Powder River 
Basin, 3 S.T.B. 847 (1998), 6 S.T.B. 8 (2002), and Dakota, Minnesota 
& Eastern Railroad Corporation Construction into the Powder River 
Basin, STB Finance Docket No. 33407 (STB served Feb. 15, 2006).
    \2\ CAHR currently controls a rail carrier, Iowa, Chicago & 
Eastern Railroad Corporation.
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    The parties had intended to consummate the transaction on June 20, 
2006, the date the authority sought in STB Finance Docket No. 34871 was 
to became effective. However, in a decision served on June 19, 2006, 
the effective date of the two exemptions was stayed so that the Board 
could consider issues raised by various parties filing petitions to 
revoke/reject the exemption sought in STB Finance Docket No. 34871. The 
Board, among other things, lifted the stay and denied the petitions to 
reject/revoke the other exemption in a decision served on August 14, 
2006, and effective on August 24, 2006. As a result of that decision, 
the exemption will become effective on August 24, 2006. The transaction 
sought in this exemption will be consummated when the transaction 
sought in STB Finance Docket No. 34871 is consummated.
    The purpose of the substitution and continuance in control 
transactions is to create options to facilitate financing of the 
construction project and to insulate DM&E's shareholders from the risk 
associated with that project.
    This is a transaction within a corporate family of the type 
exempted from prior review and approval under 49 CFR 1180.2(d)(3). The 
parties state that the transaction will not result in adverse changes 
in service levels, significant operational changes, or any change in 
the competitive balance with carriers outside the corporate family.
    As a condition to use of this exemption, any employees adversely 
affected by the transaction will be protected by the conditions set 
forth in New York Dock Ry.--Control--Brooklyn Eastern Dist., 360 I.C.C. 
60 (1979).
    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. 34872, 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 William C. Sippel, 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: August 15, 2006.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. E6-13753 Filed 8-21-06; 8:45 am]
BILLING CODE 4915-01-P