[Federal Register Volume 72, Number 134 (Friday, July 13, 2007)]
[Notices]
[Pages 38655-38656]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-13355]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35056]


John C. Nolan, Penn Eastern Rail Lines, Inc., and East Penn 
Railways, Inc.-Corporate Family Transaction Exemption

    John C. Nolan, a noncarrier individual (Mr. Nolan), Penn Eastern 
Rail Lines, Inc. (PRL), and East Penn Railways, Inc. (EPRY), jointly 
have filed a verified notice of exemption under 49 CFR 1180.2(d)(3) for 
a transaction within a corporate family. Mr. Nolan currently controls 
PRL and EPRY, which are Class III rail carriers operating in 
Pennsylvania and Delaware.\1\ As part of the proposed transaction, Mr. 
Nolan will merge PRL and EPRY into East Penn Railroad, LLC (EPLLC), 
which he also controls, with EPLLC being the surviving corporation.
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    \1\ See John C. Nolan-Control Exemption-Penn Eastern Rail Lines, 
Inc., STB Finance Docket No 34322 (STB served July 22, 2002).
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    The transaction is scheduled to be consummated on or shortly after 
July 27, 2007, the effective date of the exemption.
    The purpose of the transaction is to simplify the corporate 
structure of Mr. Nolan's railroads and eliminate costs associated with 
separate accounting, tax, bookkeeping, and reporting functions.
    This is a transaction within a corporate family of the type 
specifically 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 
a change in the competitive balance with carriers outside the corporate 
family.
    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

[[Page 38656]]

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. Petitions for stay 
must be filed no later than July 20, 2007 (at least 7 days before the 
exemption becomes effective).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35056, must be filed with the Surface Transportation 
Board, 395 E Street, SW., Washington, DC 20423-0001. In addition, one 
copy of each pleading must be served on Karl Morell, Of Counsel, Ball 
Janik LLP, 1455 F Street, NW., Suite 225, Washington, DC 20005.
    Board decisions and notices are available on our Web site at: 
http://www.stb.dot.gov.

    Decided: July 3, 2007.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. E7-13355 Filed 7-12-07; 8:45 am]
BILLING CODE 4915-01-P