[Federal Register Volume 74, Number 231 (Thursday, December 3, 2009)]
[Notices]
[Pages 63501-63502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-28802]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35307]


Kern W. Schumacher--Continuance in Control Exemption--Lassen 
Valley Railway LLC

    Kern W. Schumacher (Schumacher), a noncarrier, has filed a verified 
notice of exemption to continue in control of Lassen Valley Railway LLC 
(LVR) upon LVR's becoming a Class III rail carrier.
    This transaction is related to a concurrently filed verified notice 
of exemption in STB Finance Docket No. 35306, Lassen Valley Railway 
LLC--Acquisition and Operation Exemption--Union Pacific Railroad 
Company. In that proceeding, LVR seeks an exemption under 49 CFR 
1150.31 to acquire and operate approximately 22.34 miles of rail line 
between Flanigan, NV, and Wendel, CA, owned by Union Pacific Railroad 
Company.
    The parties intend to consummate the transaction on or after 
December 17, 2009, the effective date of the exemption.
    Mr. Schumacher currently controls six Class III rail carriers: 
Tulare Valley Railroad Company (TVR), Kern Valley Railroad Company 
(KVR), V&S Railway, Inc. (V&S), Gloster Southern Railroad Company LLC 
(GLSR), Grenada Railway LLC (GRYR), and Natchez Railway LLC (NTZR). TVR 
owns 5.9 miles of rail line in California; KVR owns 2 miles of rail 
line in Colorado; V&S owns 27 miles of rail line in Kansas and 122 
miles of rail line in Colorado; GLSR owns 34.8 miles of rail line in 
Mississippi and Louisiana; GRYR owns 186.82 miles of rail line in 
Mississippi; and NTZR owns 65.6 miles of rail line in Mississippi.
    As represented, Mr. Schumacher has many years of experience 
managing short line railroads. Mr. Schumacher anticipates that, with 
the substantial

[[Page 63502]]

resources at his disposal, he will be able to maintain, and where 
necessary, rehabilitate the lines of LVR, restore service on the lines, 
encourage shippers to locate their facilities along the lines, and 
create a financially viable railroad.
    Mr. Schumacher represents that: (1) The rail lines to be acquired 
by LVR do 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 lines 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 December 10, 2009 
(at least 7 days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35307, 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 Fritz R. Kahn, 1920 N Street, 
NW. (8th Floor), Washington, DC 20036.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: November 25, 2009.

    By the Board, Joseph H. Dettmar, Acting Director, Office of 
Proceedings.
Kulunie L. Cannon,
Clearance Clerk.
[FR Doc. E9-28802 Filed 12-2-09; 8:45 am]
BILLING CODE 4915-01-P