[Federal Register Volume 72, Number 178 (Friday, September 14, 2007)]
[Notices]
[Page 52612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-17978]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35075]


Watco Companies, Inc., and Watco Transportation Services, Inc.--
Continuance in Control Exemption--Austin Western Railroad, Inc.

    Watco Companies, Inc. (Watco Companies) and its wholly owned 
subsidiary, Watco Transportation Services, Inc. (Watco Transportation) 
(collectively, Watco), both noncarriers, jointly have filed a verified 
notice of exemption to continue in control of Austin Western Railroad, 
Inc. (AWRR), upon AWRR's becoming a Class III rail carrier.\1\
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    \1\ Watco owns 100% of the issued and outstanding stock of AWRR.
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    This transaction is related to a concurrently filed verified notice 
of exemption in STB Finance Docket No. 35072, Austin Western Railroad, 
Inc.--Operation Exemption--Capital Metropolitan Transportation 
Authority. In that proceeding, AWRR seeks an exemption under 49 CFR 
1150.31 to operate 164.83 miles of rail line owned by Capital 
Metropolitan Transportation Authority between specified points in 
Texas.
    The parties intend to consummate the transaction on or shortly 
after October 1, 2007.
    Watco currently controls 16 Class III rail carriers: South Kansas 
and Oklahoma Railroad Company, Palouse River & Coulee City Railroad, 
Inc., Timber Rock Railroad, Inc., Stillwater Central Railroad, Inc., 
Eastern Idaho Railroad, Inc., Kansas & Oklahoma Railroad, Inc., 
Pennsylvania Southwestern Railroad, Inc., Great Northwest Railroad, 
Inc., Kaw River Railroad, Inc., Mission Mountain Railroad, Inc., 
Mississippi Southern Railroad, Inc., Yellowstone Valley Railroad, Inc., 
Louisiana Southern Railroad, Inc., Arkansas Southern Railroad, Inc., 
Alabama Southern Railroad, Inc., and Vicksburg Southern Railroad, 
Inc.\2\
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    \2\ In Watco Companies, Inc., and Watco Transportation Services, 
Inc.--Continuance in Control Exemption--Michigan Central Railway, 
LLC, STB Finance Docket No. 35064, (STB served July 27, 2007), Watco 
was authorized to continue in control of Michigan Central Railway, 
LLC (Michigan Central), once Michigan Central becomes a Class III 
rail carrier. The effectiveness of the exemption was delayed by 
decision served August 8, 2007, to coincide with the effectiveness 
of any exemption that is granted by the Board in the related line 
acquisition proceeding in Michigan Central Railway, LLC--Acquisition 
and Operation Exemption--Lines of Norfolk Southern Railway Company, 
STB Finance Docket No. 35063, petition filed on July 13, 2007.
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    Watco represents that: (1) The rail lines to be operated by AWRR do 
not connect with any other railroads in the Watco corporate family; (2) 
the continuance in control is not part of a series of anticipated 
transactions that would connect these rail lines with any other 
railroad in the Watco 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).
    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 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.\3\
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    \3\ Watco notes that it will consummate this transaction before 
it consummates the transaction in STB Finance Docket No. 35064.
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    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 effectiveness of the exemption. 
Stay petitions must be filed no later than September 21, 2007 (at least 
7 days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35075, 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, Suite 225, 1455 F Street, NW., Washington, DC 20005.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: September 6, 2007.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
 [FR Doc. E7-17978 Filed 9-13-07; 8:45 am]
BILLING CODE 4915-01-P