[Federal Register Volume 73, Number 222 (Monday, November 17, 2008)]
[Notices]
[Pages 67927-67928]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-27134]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35188]


Watco Companies, Inc.--Continuance in Control Exemption--Grand 
Elk Railroad, L.L.C.

    Watco Companies, Inc. (Watco), a noncarrier, has filed a verified 
notice of exemption to continue in control of Grand Elk Railroad, 
L.L.C. (GER), upon GER's becoming a Class III rail carrier.\1\
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    \1\ Watco owns 100% of the issued and outstanding stock of GER.
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    This transaction is related to a concurrently filed verified notice 
of exemption in STB Finance Docket No. 35187, Grand Elk Railroad, 
L.L.C.--Lease and Operation Exemption-Norfolk Southern Railway Company. 
In that proceeding, GER seeks an exemption under 49 CFR 1150.31 to 
lease from Norfolk Southern Railway Company (NS) and to operate 
approximately 122.9 miles of rail line between specified points in 
Michigan and Indiana. NS will also grant GER incidental trackage rights 
over approximately 0.43 miles of NS rail line located at Botsford Yard.
    The parties intend to consummate the transaction after the 
effective date of the exemption sought in the related filing in STB 
Finance Docket No. 35187.\2\
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    \2\ That exemption cannot become effective until GER has 
complied with the 60-day labor notice requirement at 49 CFR 
1150.32(e).
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    Watco currently controls 19 Class III rail carriers: South Kansas 
and Oklahoma Railroad Company, Palouse River & Coulee City Railroad, 
Inc.,

[[Page 67928]]

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, Baton Rouge Southern Railroad, LLC, and Pacific Sun 
Railroad L.L.C.
    Watco represents that: (1) The rail lines to be operated by GER 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 November 26, 2008 
(at least 7 days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35188, 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: November 10, 2008.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Kulunie L. Cannon,
Clearance Clerk.
[FR Doc. E8-27134 Filed 11-14-08; 8:45 am]
BILLING CODE 4915-01-P