[Federal Register Volume 73, Number 96 (Friday, May 16, 2008)]
[Notices]
[Page 28549]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-10848]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35138]


Patriot Rail, LLC, Patriot Rail Holdings LLC, and Patriot Rail 
Corp.--Control Exemption--The Louisiana and North West Railroad Company 
LLC

    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 The Louisiana and North West Railroad 
Company LLC (L&NW) through Patriot's acquisition of 100% of the 
membership interests and/or substantially all of the assets of L&NW, 
pursuant to a Letter of Intent dated April 8, 2008.\1\ Applicants state 
that a Purchase and Sale Agreement, as required by 49 CFR 
1180.6(a)(7)(ii), will be entered prior to closing.
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    \1\ A redacted version of the Letter of Intent was included with 
the notice. The full version of the Letter of Intent was 
concurrently filed under seal along with a motion for protective 
order. The motion for protective order is being addressed in a 
separate decision.
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    PRL is a noncarrier limited liability company that owns 51% of the 
equity interests in PRH, which, in turn, owns 100% of the stock of 
Patriot. Patriot is a noncarrier holding company that controls the 
following Class III railroads: (1) The Tennessee Southern Railroad 
Company, operating in Tennessee and Alabama; (2) Rarus Railway Company, 
operating in Montana; (3) Utah Central Railway Company, operating in 
Utah; and (4) Sacramento Valley Railroad, Inc., operating in 
California. LN&W, a Class III rail carrier, owns and operates an 
approximately 62.6-mile line of railroad between McNeil, AR, and 
Gibsland, LA, and leases a 6.5-mile line of railroad between McNeil and 
Magnolia, AR, from the Union Pacific Railroad Company. Pursuant to the 
transaction, Patriot will acquire direct control of L&NW. PRL and PRH, 
through their control of Patriot, will acquire indirect control of 
L&NW.
    The transaction is scheduled to be consummated on or after the date 
that this notice becomes effective (which will occur on May 30, 2008).
    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 L&NW 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 May 23, 2008 
(at least 7 days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35138, 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: May 8, 2008.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Anne K. Quinlan,
Acting Secretary.
[FR Doc. E8-10848 Filed 5-15-08; 8:45 am]
BILLING CODE 4915-01-P