[Federal Register Volume 74, Number 53 (Friday, March 20, 2009)]
[Notices]
[Page 11996]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-5781]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35228]


Regional Rail, LLC--Continuance in Control Exemption--Middletown 
and New Jersey Railroad, LLC

    Regional Rail, LLC (Regional), a noncarrier, has filed a verified 
notice of exemption to continue in control of Middletown and New Jersey 
Railroad, LLC (Middletown), upon Middletown's becoming a Class III rail 
carrier.\1\
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    \1\ Regional owns 100% of the issued and outstanding shares of 
Middletown.
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    This transaction is related to a concurrently filed verified notice 
of exemption in STB Finance Docket No. 35227, Middletown and New Jersey 
Railroad, LLC--Acquisition and Operation Exemption--Middletown & New 
Jersey Railway Co., Inc. In that proceeding, Middletown seeks an 
exemption under 49 CFR 1150.31 to acquire and operate 6.5 miles of rail 
line in New York owned by Middletown & New Jersey Railway Co., Inc.
    The parties intend to consummate the transaction on or shortly 
after April 5, 2009, the effective date of the exemption.
    Regional is a Delaware limited liability company that currently 
controls East Penn Railroad, LLC, a Class III rail carrier that 
operates rail lines in Pennsylvania and Delaware. Regional 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, thereby improving the 
overall efficiency of rail service provided by the two railroads.
    Regional represents that: (1) The rail line to be acquired by 
Middletown does not connect with any other railroad in its corporate 
family; (2) the transaction is not part of a series of anticipated 
transactions that would connect the rail line with any other railroad 
in its 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 March 27, 2009 
(at least 7 days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35228, 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: March 12, 2009.

    By the Board, Joseph H. Dettmar, Acting Director, Office of 
Proceedings.
Kulunie L. Cannon,
Clearance Clerk.
[FR Doc. E9-5781 Filed 3-19-09; 8:45 am]
BILLING CODE 4915-01-P