[Federal Register Volume 71, Number 189 (Friday, September 29, 2006)]
[Notices]
[Pages 57599-57600]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-16037]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34929]


Jeffrey L. Sutch--Continuance in Control Exemption--SMS Rail 
Lines of New York, LLC

    Jeffrey L. Sutch (applicant) has filed a verified notice of 
exemption to continue in control of SMS Rail Lines of New York, LLC 
(SMSNY), upon SMSNY's becoming a Class III rail carrier.
    The transaction was scheduled to be consummated on or after 
September 8, 2006.
    This transaction is related to the concurrently filed verified 
notice of exemption in STB Finance Docket No. 34928, SMS Rail Lines of 
New York, LLC--Acquisition and Operation Exemption--Northeastern 
Industrial Park, Inc. In that proceeding, SMSNY seeks to acquire by 
lease from Northeastern Industrial Park, Inc., and to operate 
approximately 15 miles of rail line in Albany County, NY.
    Applicant is a noncarrier that currently controls SMS Rail Service, 
Inc. (SMSRS), a Class III rail carrier.
    Applicant states that: (1) The rail lines operated by SMSRS do not 
connect with the rail line being acquired by lease and operated by 
SMSNY; (2) the continuance in control is not part of a series of 
anticipated transactions that would connect the rail line being 
acquired by lease and operated by SMSNY with applicant's rail lines or 
with those of any other railroad within applicant's 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 applicant to continue in control of 
SMSNY after SMSNY 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

[[Page 57600]]

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. 34929, 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 Fritz R. Kahn, Fritz R. Kahn, 
PC, 1920 N St., NW., Eighth Floor, Washington, DC 20036-1601.
    Board decisions and notices are available on our Web site at 
WWW.STB.DOT.GOV.

    Decided: September 22, 2006.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
 [FR Doc. E6-16037 Filed 9-28-06; 8:45 am]
BILLING CODE 4915-01-P