[Federal Register Volume 73, Number 240 (Friday, December 12, 2008)]
[Notices]
[Pages 75809-75810]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-29314]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35204]


Watco Companies, Inc.--Continuance in Control Exemption--Alabama 
Warrior Railway, L.L.C.

    Watco Companies, Inc. (Watco), a noncarrier, has filed a verified 
notice of exemption to continue in control of Alabama Warrior Railway, 
L.L.C. (AWR), upon AWR's becoming a Class III rail carrier.\1\
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    \1\ Watco owns 100% of the issued and outstanding stock of AWR.
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    This transaction is related to a concurrently filed verified notice 
of exemption in STB Finance Docket No. 35203, Alabama Warrior Railway, 
L.L.C.--Operation Exemption--Sloss Industries Corporation and Jefferson 
Warrior Railroad Company, Inc. In that proceeding, AWR seeks an 
exemption under 49 CFR 1150.31 to operate approximately 24.575 miles of 
rail lines owned by Sloss Industries Corporation and Jefferson Warrior 
Railroad Company, Inc. (JWR) in Birmingham, AL. Also, JWR will assign 
its operating rights to AWR over approximately 1,532.1 feet of rail 
line owned by BNSF Railway Company in Birmingham.
    The parties intend to consummate the transaction on or shortly 
after December 26, 2008, the effective date of the exemption.

[[Page 75810]]

    Watco currently indirectly controls 19 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., Baton Rouge Southern 
Railroad, LLC, and Pacific Sun Railroad, L.L.C.\2\
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    \2\ Watco notes that it has recently filed a notice to control 
another new carrier, but indicates that the above transaction is 
expected to be consummated first. See Watco Companies--Continuance 
in Control Exemption--Grand Elk Railroad, LLC, STB Finance Docket 
No. 35188 (STB served Nov. 17, 2008).
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    Watco states that the purpose of the proposed transaction is to 
reduce overhead expenses, and coordinate billing, maintenance, 
mechanical and personnel policies and practices of its rail carrier 
subsidiaries, and thereby improve the overall efficiency of rail 
service provided by the railroads in its corporate family.
    Watco represents that: (1) The rail lines to be operated by AWR do 
not connect with any other railroads in the Watco corporate family; (2) 
the transaction is not part of a series of anticipated transactions 
that would connect the 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 December 19, 2008 
(at least 7 days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35204, 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, 1455 F Street, 
NW., Suite 225, Washington, DC 20005.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: December 5, 2008.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
 [FR Doc. E8-29314 Filed 12-11-08; 8:45 am]
BILLING CODE 4915-01-P