[Federal Register Volume 72, Number 144 (Friday, July 27, 2007)]
[Notices]
[Page 41387]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-14351]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35065]


Norfolk Southern Railway Company--Trackage Rights Exemption--
Michigan Central Railway, LLC

    Pursuant to a written trackage rights agreement, Michigan Central 
Railway, LLC (Michigan Central), a noncarrier, has agreed to grant 
limited local trackage rights to Norfolk Southern Railway Company 
(NSR), over certain lines to be acquired from NSR by Michigan Central 
extending between (a) Milepost KH 1.4 at Elkhart, IN, and milepost KH 
27.4 at Three Rivers, MI; (b) milepost FB 27.3 at Three Rivers, MI, and 
milepost FB 101.5 at Grand Rapids, MI; (c) milepost KY 0.0 at Gibson, 
MI, and milepost KY 0.3 at CP BO in Kalamazoo, MI; (d) milepost MH 
143.03 at CP BO in Kalamazoo, MI, and milepost MH28 at CP Ypsi; and (e) 
milepost LZ 0.0 at Jackson, MI, and milepost LZ 35.0 at Holt, MI.\1\
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    \1\ A redacted version of the proposed agreement between NSR and 
Michigan Central was filed with the notice of exemption. The full 
version was concurrently filed under seal along with a motion for 
protective order. As required by 49 CFR 1180.6(a)(7)(ii), the 
parties must file a copy of the executed agreement within 10 days of 
the date that the agreement is executed.
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    This transaction is related to a petition for exemption for the 
acquisition and operation of these and other rail lines concurrently 
filed in STB Finance Docket No. 35063, Michigan Central Railway, LLC--
Acquisition and Operation Exemption--Lines of Norfolk Southern Railway 
Company. In that proceeding, Michigan Central seeks an exemption under 
49 U.S.C. 10502 from the prior approval requirements of 49 U.S.C. 10901 
to acquire and operate some 299 miles of rail line owned and operated 
by NSR, and some 85.5 miles of trackage rights, in Michigan and 
Indiana.\2\ This transaction also is related to a concurrently filed 
verified notice of exemption in STB Finance Docket No. 35064, Watco 
Companies, Inc., and Watco Transportation Services, Inc.--Continuance 
in Control Exemption--Michigan Central Railway, LLC, wherein Watco 
Companies, Inc. and its wholly owned subsidiary, Watco Transportation 
Services, Inc., jointly have filed a verified notice of exemption to 
continue in control of Michigan Central upon its becoming a rail 
carrier.
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    \2\ In STB Finance Docket No. 35063, Michigan Central also has 
filed a petition to revoke the otherwise applicable class exemption 
at 49 CFR 1150.31 for the acquisition and operation of rail lines by 
a noncarrier and a proposed procedural schedule.
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    The parties intend to consummate the transaction after the Board 
has issued a final decision granting the petition for exemption in STB 
Finance Docket No. 35063.
    Under the trackage rights agreement, NSR will retain the right to 
serve, under certain specified conditions, the General Motors 
facilities at Grand Rapids and Lansing, MI, and the RSDC of Michigan 
LLC automotive steel processing facility at Holt, MI, as well as any 
subsequent occupant(s) of any of these facilities. The agreement will 
permit NSR to serve these facilities with its own trains, locomotives, 
cars and equipment, and with its own crews, only if Michigan Central 
fails to meet the specified service standards under the conditions and 
over the timeframes set forth in the agreement.
    As a condition to this exemption, any employees affected by the 
acquisition of the temporary trackage rights will be protected by the 
conditions imposed in Norfolk and Western Ry. Co.--Trackage Rights--BN, 
354 I.C.C. 605 (1978), as modified in Mendocino Coast Ry., Inc.--Lease 
and Operate, 360 I.C.C. 653 (1980).
    This notice is filed under 49 CFR 1180.2(d)(7). If it 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 effectiveness of the exemption. Stay petitions must be filed 
no later than August 3, 2007 (at lease 7 days before the exemption 
becomes effective).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35065, must be filed with the Surface Transportation 
Board, 395 E Street, SW., Washington, DC 20423-0001. In addition, a 
copy of each pleading must be served on G. Paul Moates, Sidley Austin 
LLP, 1501 K Street, NW., Washington, DC 20005.
    Board decisions and notices are available on our Web site at: 
http://www.stb.dot.gov.

    Decided: July 19, 2007.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. E7-14351 Filed 7-26-07; 8:45 am]
BILLING CODE 4915-01-P