[Federal Register Volume 71, Number 162 (Tuesday, August 22, 2006)]
[Notices]
[Pages 48973-48974]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-13774]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34871]


Wyoming Dakota Railroad Properties, Inc.--Acquisition and 
Operation Exemption--Dakota, Minnesota & Eastern Railroad Corporation

    Wyoming Dakota Railroad Properties, Inc. (WDR), a noncarrier, has 
filed a verified notice of exemption under 49 CFR 1150.31 and 49 CFR 
1150.35 to acquire the authority granted to Dakota, Minnesota & Eastern 
Railroad Corporation (DM&E) to construct and operate some 280 miles of 
rail line.\1\ Specifically, the lines authorized for construction and 
operation include: (1) A 262.03-mile rail line extending from a point 
near Wasta, SD, to connect with 11 coal mines located south of 
Gillette, WY, in the Powder River Basin; (2) a 13.31-mile rail line in 
the Mankato, MN area; and (3) a 2.94-mile rail line near Owatonna, 
MN.\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\ WDR notes that once constructed, it or another rail carrier 
in the DM&E corporate family will operate the new lines. It states 
that in the latter circumstance, the operator will seek separate and 
appropriate Board authority prior to the commencement of rail 
service. WDR explains that, should WDR operate on the newly 
constructed lines, it and DM&E expect to exchange trains and change 
crews at Middle West Staging and Marshaling Yard at Wall, SD. The 
Mankato line and Owatonna line would likely be operated by DM&E 
pursuant to a separate lease or trackage rights arrangement with 
WDR.
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    WDR is a newly created subsidiary of Cedar American Rail Holdings, 
Inc. (CARH), a subsidiary of DM&E.\3\ WDR explains that utilizing a 
separate company from DM&E to build and operate the new rail lines will 
enhance financing options for the project and create options to limit 
the risk to DM&E's shareholders. The subsidiary further explains that 
substituting it for DM&E will not alter the nature, effect, or 
implementation of the construction project as previously considered and 
approved by the Board. Moreover, WDRPI claims that it will comply with 
all environmental conditions and other legal requirements pertaining to 
the construction.
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    \3\ Concurrently, CAHR and DM&E have jointly filed a verified 
notice of exemption pursuant to 49 CFR 1180.2(d)(3) in STB Finance 
Docket No. 34872 to continue in control of WDR once WDR becomes a 
rail carrier. CAHR currently controls a Class II rail carrier, Iowa, 
Chicago & Eastern Railroad Corporation.
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    Pursuant to 49 CFR 1150.35(a), a noncarrier must comply with the 
notice requirements of 49 CFR 1150.32(e). The Board granted WDR's 
petition for waiver of these requirements in a decision served on 
August 14, 2006, and effective on August 24, 2006. In that same 
decision, the Board denied petitions for revocation of this exemption 
and lifted a June 19, 2006 housekeeping stay of the effectiveness of 
the instant exemption and the exemption sought in STB Finance Docket 
No. 34872. Although the instant exemption will thus be effective on 
August 24, 2006, WDR expects to commence construction of the subject 
rail line upon finalization of financing arrangements, and to commence 
operations on the line during 2009.

[[Page 48974]]

    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. 34871, 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. E6-13774 Filed 8-21-06; 8:45 am]
BILLING CODE 4915-01-P