[Federal Register Volume 72, Number 220 (Thursday, November 15, 2007)]
[Notices]
[Page 64276]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-22212]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35102]


Patriot Rail, LLC, Patriot Rail Holdings, LLC, and Patriot Rail 
Corp.--Control Exemption--Utah Central Railway Company

    Patriot Rail, LLC (PRL) and its subsidiaries, Patriot Rail 
Holdings, LLC (PRH) and Patriot Rail Corp. (Patriot) (collectively, 
applicants), jointly have filed a verified notice of exemption to 
permit PRL, PRH, and Patriot to acquire control of Utah Central Railway 
Company (Utah Central) through Patriot's acquisition of 100% of the 
outstanding stock of Utah Central, pursuant to a Stock Purchase 
Agreement dated October 29, 2007 (Agreement).\1\
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    \1\ The full version of the stock purchase agreement, as 
required by 49 CFR 1180.6(a)(7)(ii), concurrently was filed under 
seal along with a motion for protective order. A decision on the 
motion for protective order will be issued separately from this 
decision.
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    PRL is a noncarrier limited liability company that owns 51% of the 
stock of PRH. PRH is a noncarrier limited liability company that owns 
100% of the stock of Patriot. Patriot is a noncarrier holding company 
that owns 100% of the stock of the Tennessee Southern Railroad Company, 
a Class III rail carrier, operating in Tennessee and Alabama, and 100% 
of the stock of Patriot Rarus Acquisition Corp., which owns 100% of the 
outstanding stock of Rarus Railway Company, a Class III rail carrier, 
operating in Montana.\2\ Pursuant to the Agreement, Patriot will 
acquire direct control of Utah Central. PRL, through its control of 
PRH, and PRH, through its control of Patriot, will acquire indirect 
control of Utah Central. Utah Central is a Class III rail carrier that 
leases and operates a line of railroad from Union Pacific Railroad 
Company in the Ogden, UT area.\3\ The trackage encompasses the former 
Denver, Rio Grande & Western Railroad main line trackage and 
appurtenances. Utah Central also acquired approximately 15 miles of 
trackage in the Ogden area.\4\
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    \2\ Patriot Rail, LLC and Patriot Rail Corp.--Control 
Exemption--Rarus Railway Company, STB Finance Docket No. 35013 (STB 
served Apr. 11, 2007).
    \3\ Utah Central Railway Company--Lease and Operation 
Exemption--Union Pacific Railroad Company, STB Finance Docket No. 
34051 (STB served Aug. 22, 2001).
    \4\ Utah Central Railway Company--Acquisition and Operation 
Exemption--Boyer BDO, L.C. and City of Ogden, UT, STB Finance Docket 
No. 34457 (STB served Feb. 6, 2004). By letter filed on November 7, 
2007, counsel for applicants clarified that the location of the 
trackage is in the Ogden area.
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    The transaction is scheduled to be consummated on or after the date 
that this notice becomes effective (which will occur on November 29, 
2007).
    Applicants state that: (i) The rail lines involved in this 
transaction do not connect with any rail lines now controlled, directly 
or indirectly, by PRL, PRH, or Patriot; (ii) the acquisition of control 
of Utah Central by PRL, PRH, and Patriot is not part of a series of 
anticipated transactions that would connect any of these railroads with 
each other or any railroad in their corporate family; and (iii) this 
transaction does not involve a Class I carrier. Therefore, this 
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 rail carriers.
    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 effectiveness of the 
exemption. Petitions for stay must be filed no later than November 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. 35102, 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 Louis E. Gitomer, Esq., Law 
Offices of Louis E. Gitomer, 600 Baltimore Avenue, Suite 301, Towson, 
MD 21204.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: November 8, 2007.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
 [FR Doc. E7-22212 Filed 11-14-07; 8:45 am]
BILLING CODE 4915-01-P