[Federal Register Volume 72, Number 221 (Friday, November 16, 2007)]
[Notices]
[Page 64702]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-22423]



[[Page 64702]]

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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35098]


Genesee & Wyoming Inc.--Control Exemption--Maryland Midland 
Railway, Inc.

    Genesee & Wyoming Inc. (GWI), a noncarrier, has filed a verified 
notice of exemption \1\ to permit GWI to acquire indirect control of 
Maryland Midland Railway, Inc. (MMID), upon consummation of a merger 
agreement between GWI, MMID Holding Inc. (MMID Holding), MMID 
Acquisition Sub Inc. (MMID-ASI), and MMID.\2\ Pursuant to the merger 
agreement, MMID-ASI will merge with MMID and the surviving corporation 
will continue as MMID. MMID's sole shareholder will be MMID Holding and 
GWI will own a majority of shares of MMID Holding. Accordingly, MMID 
Holding will have direct control and GWI will have indirect control 
over MMID.\3\
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    \1\ The notice was initially filed on October 22, 2007. On 
October 29, 2007, a petition to reject the notice was filed by 
Patriot Rail Corp. (Patriot). On November 2, 2007, a response to 
Patriot's petition was filed by GWI (November 2 filing). Because the 
notice was supplemented by the November 2 filing, that date will be 
considered the filing date.
    \2\ The full version of the merger agreement, as required by 49 
CFR 1180.6(a)(7)(ii), was concurrently filed under seal along with a 
motion for protective order. A decision granting GWI's motion for 
protective order was issued on November 9, 2007.
    \3\ According to GWI, MMID Holding is not listed as an applicant 
in the verified notice of exemption because MMID Holding will obtain 
control of only one rail carrier (MMID) following consummation of 
the proposed merger transaction and therefore does not need to 
obtain an exemption under 49 U.S.C. 11323.
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    GWI is a noncarrier holding company that directly or indirectly 
controls one Class II carrier and 24 Class III carriers, as well as 
additional carriers with two of its wholly owned subsidiaries that are 
noncarrier holding companies (RP Acquisition Company One and RP 
Acquisition Company Two).\4\ MMID is a Class III rail carrier that owns 
lines of railroad located: Between approximately milepost 69.7 at or 
near Highfield, MD, and approximately milepost 19.9 at or near Emory 
Grove, MD; and between approximately milepost 60.1 at or near 
Walkersville, MD, and approximately milepost 39.6 at or near 
Littlestown, PA.\5\
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    \4\ The members of the GWI family of railroads own and/or 
operate rail property located in Alabama, Arkansas, Colorado, 
Florida, Georgia, Illinois, Kentucky, Louisiana, Maine, Mississippi, 
New Hampshire, New York, North Carolina, Oregon, Pennsylvania, 
Tennessee, Texas, Utah, Vermont, Virginia, and Wisconsin.
    \5\ Concurrent with this notice, MMID is seeking authority to 
acquire and operate three rail lines owned by the Maryland Transit 
Administration in STB Finance Docket No. 35099, Maryland Midland 
Railway, Inc.--Acquisition and Operation Exemption--Certain Assets 
of the Maryland Transit Administration.
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    The transaction is scheduled to be consummated on or after the date 
that exemption covered by this notice becomes effective (which will 
occur on December 2, 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 GWI; (ii) this transaction is not part of a series of 
anticipated transactions that would connect any of these rail lines 
with each other; and (iii) this transaction does not involve a Class I 
carrier.\6\ Therefore, this transaction is exempt from the prior 
approval requirements of 49 U.S.C. 11323. See 49 CFR 1180.2(d)(2).
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    \6\ The basis of Patriot's petition to reject this notice of 
exemption was its contention that GWI failed to comply with the 
second criterion. Patriot's petition has been denied by the Board in 
a separate decision in this docket.
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    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. Because the transaction 
involves at least one Class II and one or more Class III rail carriers, 
the exemption is subject to the labor protection requirements of 49 
U.S.C. 11326(b).
    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 23, 
2007 (at least 7 days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35098, 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 Kevin M. Sheys, Kirkpatrick & 
Lockhart Preston Gates Ellis LLP, 1601 K Street, NW., Washington, DC 
20006.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: November 13, 2007.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. E7-22423 Filed 11-15-07; 8:45 am]
BILLING CODE 4915-01-P