[Federal Register Volume 73, Number 144 (Friday, July 25, 2008)]
[Notices]
[Pages 43485-43486]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-16743]


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

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35162]


Kern W. Schumacher, V&S Railway, Inc., and Louisiana & 
Mississippi Railway, LLC--Control Exemption--Gloster Southern Railroad 
Company LLC

    Kern W. Schumacher (applicant), a noncarrier, has filed a verified 
notice of exemption to acquire indirect control of Gloster Southern 
Railroad Company LLC (GLSR), which is currently wholly owned by 
Georgia-Pacific Wood Products LLC (GPWP). Applicant currently controls 
three Class III railroads: Tulare Valley Railroad Company (TVR), which 
operates in California; Kern Valley Railroad Company (KVR), which 
operates in Colorado; and V&S Railway, Inc. (V&S), which operates in 
Kansas and Colorado. Applicant states that he has organized Louisiana & 
Mississippi Railway, LLC, (L&M), in which V&S holds 100% of the 
membership interests, to acquire 100% of the membership interests in 
GLSR. As a result of the transaction, L&M will acquire direct control 
of GLSR, and applicant and V&S will acquire indirect control of GLSR 
through their control of L&M. Pursuant to 49 CFR 1180.6(a)(7)(ii), 
applicant has concurrently filed, under seal, a copy of the highly 
confidential Membership Interest Purchase Agreement between GPWP and 
the L&M.
    The transaction is scheduled to be consummated on or after the date 
that this notice becomes effective (which will occur on August 10, 
2008).
    Applicant states that: (i) The rail lines involved in this 
transaction do not connect with any rail lines of the TVR, KVR, V&S or 
any other railroad now controlled by applicant; (ii) the acquisition of 
indirect control of GLSR is not part of a series of anticipated 
transactions that would connect any of the railroads with each other or 
with any railroad in their corporate family; and (iii) this 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 the 
carriers involved are Class III rail carriers.
    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. 
Petitions for stay must be filed no later than August 1, 2008 (at least 
7 days before the exemption becomes effective).

[[Page 43486]]

    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35162, 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 Fritz R. Kahn, 1920 N Street, 
NW. 8th Floor, Washington, DC 20036.
    Board decisions and notices are available on our website at http://www.stb.dot.gov.

    Decided: July 16, 2008.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Anne K. Quinlan,
Acting Secretary.
[FR Doc. E8-16743 Filed 7-24-08; 8:45 am]
BILLING CODE 4915-01-P