[Federal Register Volume 74, Number 102 (Friday, May 29, 2009)]
[Notices]
[Pages 25798-25799]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-12366]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35249]


Kern W. Schumacher--Continuance in Control Exemption--Granada 
Railway, LLC and Natchez Railway, LLC

    Kern W. Schumacher (Mr. Schumacher), a noncarrier, has filed a 
verified notice of exemption under 49 CFR 1180.2(d)(2) to continue in 
control of Grenada Railway, LLC (Grenada), and Natchez Railway, LLC 
(Natchez), upon Grenada's and Natchez's becoming Class III rail 
carriers.
    This transaction is related to a concurrently filed verified notice 
of exemption in STB Finance Docket No. 35247, Grenada Railway, LLC--
Acquisition and Operation Exemption--Illinois Central Railroad Company 
and Waterloo Railway Company, wherein Grenada seeks to acquire from the 
Illinois Central Railroad Company (ICR) and to operate an approximately 
175.4-mile rail line between milepost 403.0 at Southhaven, MS, and 
milepost 703.8 near Canton, MS, and to acquire from

[[Page 25799]]

Waterloo Railway Company (WLOO) approximately 11.42 miles of line 
between milepost 603.0 at Water Valley Junction, MS, and milepost 
614.42 at Bruce Junction, MS. This transaction is also related to STB 
Finance Docket No. 35248, Natchez Railway, LLC--Acquisition and 
Operation Exemption--Illinois Central Railroad Company, wherein Natchez 
seeks to acquire from ICR and to operate approximately 65.6 route miles 
of rail line between milepost 86.0 near Brookhaven, and milepost 148.34 
in Natchez, including the International Paper Spur in Natchez, all in 
Mississippi.
    The transactions are scheduled to be consummated on or after June 
12, 2009 (30 days after the notices of exemption were filed).
    Mr. Schumacher is a noncarrier that currently controls four rail 
carriers: the Tulare Valley Railroad Company; Kern Valley Railroad 
Company; V&S Railroad, Inc.; and Gloster Southern Railroad Company LLC. 
Mr. Schumacher states that Grenada and Natchez are two newly organized 
Class III rail carriers. Under the purchase agreement between Grenada, 
ICR, and WLOO, ICR granted Grenada the right to operate on its tracks 
to Memphis, TN, on the north, and to Canton on the south for the sole 
purpose of interchanging traffic with ICR. Also, ICR will retain 
overhead trackage rights on the line of railroad it is selling to 
Grenada.
    Mr. Schumacher states that: (1) The rail lines to be acquired do 
not connect with each other or with the lines of any other railroad 
controlled by Mr. Schumacher; (2) the continuance in control is not 
part of a series of anticipated transactions that would connect the 
rail lines with each other or with any railroads controlled by Mr. 
Schumacher; and (3) the transaction does not involve a Class I 
railroad. 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. Petitions for stay must be filed no later than June 5, 2009 
(at least 7 days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35249, must be filed with the Surface Transportation 
Board, 395 E Street, SW., Washington, DC 20423-0001. In addition, a 
copy must be served on Fritz R. Kahn, Fritz R. Kahn, P.C., 1920 N 
Street, NW., Eighth Floor, Washington, DC 20036.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: May 21, 2009.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Kulunie L. Cannon,
Clearance Clerk.
[FR Doc. E9-12366 Filed 5-28-09; 8:45 am]
BILLING CODE 4915-01-P