[Federal Register Volume 71, Number 235 (Thursday, December 7, 2006)]
[Notices]
[Pages 71026-71027]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-20655]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34953]


Midtown TDR Ventures LLC--Acquisition Exemption--American Premier 
Underwriters, Inc., The Owasco River Railway, Inc., and American 
Financial Group, Inc.

    Midtown TDR Ventures LLC, a noncarrier, filed a notice of exemption 
under 49 CFR 1150.31 to acquire 156 miles of rail line and certain 
assets related to Grand Central Terminal in New York City 
(collectively, Properties) from American Premier Underwriters, Inc. 
(APU), a noncarrier, APU's wholly owned subsidiary, The Owasco River 
Railway, Inc., a noncarrier, and APU's parent, American Financial 
Group, Inc., a noncarrier, (collectively, Sellers). The acquired rail 
line, referred to as the ``Harlem-Hudson Line,'' extends from milepost 
0.0 at Grand Central Terminal in New York City to milepost 5.2 at Mott 
Junction, thereafter, diverging in two directions, with one line 
running north to milepost 75.7 at Poughkeepsie, NY, and a second line 
proceeding east to milepost 11.8 at Woodlawn Junction, then north to 
milepost 82.0 at Wassaic, NY.
    Midtown will acquire a fee simple interest in the Properties, 
subject to an existing long-term lease to Metropolitan Transportation 
Authority (MTA), which grants MTA exclusive control over the Harlem-
Hudson Line (MTA lease).\1\ Midtown indicates that it will not provide 
any transportation services or acquire a common carrier obligation to 
provide freight rail service on the Properties.\2\
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    \1\ The MTA lease term expires on February 28, 2274. MTA uses 
the Harlem-Hudson Line to provide commuter service through its 
subsidiary, Metro-North Commuter Railroad Company.
    \2\ Simultaneously with the filing of this notice, Midtown has 
filed a motion to dismiss the notice of exemption in this 
proceeding, arguing that the Board lacks jurisdiction over the 
proposal. The motion will be addressed in a subsequent Board 
decision.
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    Freight rail service over the Harlem-Hudson Line is provided 
pursuant to trackage rights agreements MTA has entered into with CSX 
Transportation, Inc. (CSXT), and the Delaware and Hudson Railway 
Company, Inc. (D&H). Midtown indicates that, like the MTA lease, the 
CSXT and D&H trackage rights agreements will remain in place following 
the consummation of the proposed transaction, and will be unaffected by 
this transaction.
    Midtown certifies that its projected annual freight revenues as a 
result of this transaction will not exceed $5 million, and will not 
result in the creation of a Class II or Class I rail carrier.
    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. 34953, must be filed with the Surface Transportation 
Board, 1925 K Street, NW., Washington, DC 20423-0001. In addition, a 
copy of each pleading must be served on George W. Mayo, Jr., Hogan & 
Hartson LLP, 555 Thirteenth Street, NW., Washington, DC 20004-1109.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: November 30, 2006.


[[Page 71027]]


    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
 [FR Doc. E6-20655 Filed 12-6-06; 8:45 am]
BILLING CODE 4915-01-P