[Federal Register Volume 73, Number 193 (Friday, October 3, 2008)]
[Notices]
[Page 57728]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-23376]


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

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35174]


Watco Companies, Inc.--Continuance in Control Exemption--Pacific 
Sun Railroad, L.L.C.

    Watco Companies, Inc. (Watco), a noncarrier, has filed a verified 
notice of exemption to continue in control of Pacific Sun Railroad, 
L.L.C. (PSRR), upon PSRR's becoming a Class III rail carrier.\1\
---------------------------------------------------------------------------

    \1\ Watco owns 100% of the issued and outstanding stock of PSRR.
---------------------------------------------------------------------------

    This transaction is related to a concurrently filed verified notice 
of exemption in STB Finance Docket No. 35173, Pacific Sun Railroad, 
L.L.C.--Lease and Operation Exemption--BNSF Railway Company. In that 
proceeding, PSRR seeks an exemption under 49 CFR 1150.31 to lease from 
BNSF Railway Company (BNSF) and to operate approximately 21.5 miles of 
rail line and rail freight easement between specified points in 
California. In addition, PSRR will receive incidental trackage rights 
from BNSF to provide local service over an approximately 45.49-mile 
reserved rail freight service easement in California.
    The parties intend to consummate the transaction on or about 
October 24, 2008, and hence after the October 17, 2008 effective date 
of the exemption.
    Watco currently controls 18 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., Vicksburg Southern Railroad, Inc, 
Austin Western Railroad, Inc, and Baton Rouge Southern Railroad, LLC.
    Watco represents that: (1) The rail lines to be operated by PSRR 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.
    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. Stay petitions must be filed no later than October 10, 2008 
(at least 7 days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35174, 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 26, 2008.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Anne K. Quinlan,
Acting Secretary.
[FR Doc. E8-23376 Filed 10-2-08; 8:45 am]
BILLING CODE 4915-01-P