Federal Register, Volume 72 Issue 152 (Wednesday, August 8, 2007)

[Federal Register Volume 72, Number 152 (Wednesday, August 8, 2007)]
[Notices]
[Page 44607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-15289]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35070]


Transtar, Inc.--Control Exemption--Texas and Northern Railway 
Company

    Transtar, Inc. (Transtar), a noncarrier, has filed a verified 
notice of exemption to control Texas & Northern Railway Company (T&NR), 
a Class III rail carrier, as a result of Transtar's acquisition of all 
of T&NR's issued and outstanding stock (except certain qualifying 
shares) \1\ from a subsidiary of Transtar's parent, United States Steel 
Corporation (USS).
---------------------------------------------------------------------------

    \1\ Transtar will acquire 99.9% of the issued and outstanding 
stock of T&NR, with the balance of the stock, one qualifying share 
held by each of two directors of T&NR, as required by Texas law.
---------------------------------------------------------------------------

    The transaction will be consummated on or after August 22, 2007.
    USS, a noncarrier, owns all of the issued and outstanding stock of 
Transtar, which is a noncarrier holding company. Transtar in turn owns 
all of the issued and outstanding stock of one Class II carrier, the 
Elgin, Joliet and Eastern Railway Company, and the following five Class 
III carriers: Birmingham Southern Railroad Company; Delray Connecting 
Railroad Company; The Lake Terminal Railroad Company; McKeesport 
Connecting Railroad Company; and Union Railroad Company (collectively, 
the Transtar Railroads). USS acquired control of T&NR pursuant to a 
notice of exemption in United States Steel Corporation--Acquisition of 
Control Exemption--Texas & Northern Railway Company, STB Finance Docket 
No. 35027 (STB served May 25, 2007).\2\ Transtar now seeks to acquire 
control of T&NR to consolidate all of the USS railroad subsidiaries 
under the mantle of Transtar. T&NR operates approximately 7.6 miles of 
main line track in Texas, extending from the former Lone Star Steel 
Company, LP facility at Lonestar, TX, and connecting with the Kansas 
City Southern Railway Company at the far north point of the Veals Yard. 
T&NR owns the Veals Yard and 32 miles of storage track. USS will cause 
its indirect subsidiary, LSS, to convey all of the issued and 
outstanding stock of T&NR, except the qualifying shares, to Transtar.
---------------------------------------------------------------------------

    \2\ USS entered into an agreement and plan of merger with Lone 
Star Technologies, Inc. (LST) pursuant to which USS would acquire 
certain of the subsidiaries of LST, including Lone Star Steel 
Company, LP (LSS). T&NR is a wholly owned subsidiary of LSS. The USS 
and LST transaction was consummated on June 14, 2007.
---------------------------------------------------------------------------

    Transtar represents and warrants that: (i) T&NR does not connect 
with any of the Transtar Railroads; (ii) the acquisition of control is 
not part of a series of anticipated transactions that would connect 
T&NR with any of the railroads in the Transtar corporate family; and 
(iii) the transaction does not involve a Class I carrier. Transtar also 
represents and warrants that the transaction will not result in: (i) 
Any adverse changes in service levels to the public; (ii) significant 
operational changes; or (iii) changes in the competitive balance with 
carriers outside the corporate family. Therefore, the transaction is 
exempt from the prior approval requirements of 49 U.S.C. 11323. See 49 
CFR 1180.2(d)(2) and (3).
    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 interest of its employees. Because the transaction involves 
the control of one Class II and one or more Class III carriers, the 
exemption is subject to the labor protection requirements of 49 U.S.C. 
11326(b).
    If the notice contains false or misleading information, the 
exemption is void ab initio. Petition 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. Any petition to 
revoke must be filed on or before August 15, 2007 (at least 7 days 
before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35070, must be filed with the Surface Transportation 
Board, 395 E Street, SW., Washington, DC 20423-0001. In addition, a 
copy of all pleadings must be served on A. Bradley Cramer, Jr., United 
States Steel Corporation, 600 Grant Street, Room 1500, Pittsburgh, PA 
15219-2800; and John A. Vuono, Vuono & Gray, LLC, 310 Grant Street, 
Suite 2310, Pittsburgh, PA 15219.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: August 1, 2007.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
 [FR Doc. E7-15289 Filed 8-7-07; 8:45 am]
BILLING CODE 4915-01-P