[Federal Register Volume 74, Number 250 (Thursday, December 31, 2009)]
[Notices]
[Page 69373]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-31037]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35337]


Paul Didelius--Continuance in Control Exemption--YCR Corporation

    Paul Didelius (applicant), a noncarrier, has filed a verified 
notice of exemption to continue in control of YCR Corporation (YCR), 
upon YCR's becoming a Class III rail carrier.
    Currently, applicant owns 100 percent of noncarrier, LRY, LLC 
D.B.A. Lake Railway (LRY). LRY concurrently filed two notices of 
exemption to lease and operate: (1) 62.21 miles of railroad owned by 
Union Pacific Railroad Company, consisting of: (a) Part of the Modoc 
Subdivison, extending from milepost 445.6 near MacArthur, CA, to 
milepost 506.1, near Perez, CA, and (b) part of the Lakeview Branch, 
extending from milepost 456.89 to milepost 458.60 at Alturas, CA; and 
(2) 54.45 miles of railroad owned by Lake County, OR, extending from 
milepost 458.60 at Alturas, to milepost 513.05, at Lakeview, OR. Once 
consummation occurs, on or after January 1, 2010, LRY will become a 
Class III carrier.\1\
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    \1\ See STB Finance Docket No. 35250, LRY, LLC D.B.A. Lake 
Railway--Lease and Operation Exemption--Union Pacific Railroad 
Company and STB Finance Docket No. 35250 (Sub-No. 1), LRY LLC D.B.A. 
Lake Railway--Lease and Operation Exemption--Rail Line in Lake 
County, OR. The notices were served and published in the Federal 
Register on December 18, 2009 (74 FR 67304-5).
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    YCR, a new corporation owned in part by applicant (49%) \2\ and 
Stan Patterson (51%) has been established for the purpose of leasing 
and operating a line of railroad owned by Yakima County, WA. The 
subject line extends between Wesley Junction (Toppenish) and White 
Swan, WA, a distance of approximately 20.56 miles. The line was 
formerly operated by Washington Central Railroad Company (WCRC) and 
Yakima County acquired the line after WCRC was authorized to abandon 
it. On December 16, 2009, YCR filed an application for a modified 
certificate of public convenience and necessity in STB Finance Docket 
No. 35336, YCR Corporation--Modified Rail Certificate, wherein YCR 
seeks to lease and operate the line.
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    \2\ According to applicant, as President of YCR, he is in a 
position to control YCR.
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    This transaction cannot be consummated until January 17, 2010, the 
effective date of the exemption (30 days after the exemption is 
filed).\3\
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    \3\ Applicant states in the notice that he plans to consummate 
the transaction on or about January 16, 2010.
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    Applicant states that: (1) The rail line to be acquired by YCR 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; \4\ and (3) the transaction does not involve a Class I rail 
carrier.
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    \4\ YCR will operate a rail line in south central Oregon and LRY 
will operate rail lines in northeastern California and southwestern 
Oregon. According to applicant, YCR and LRY lines are 380 miles 
apart.
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    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 January 8, 2010 
(at least 7 days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35337, 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 John D. Heffner, 1750 K Street, 
NW., Suite 200, Washington, DC 20006.
    Board decisions and notices are available on our Web site at: 
``http://www.stb.dot.gov.''

    Decided: December 24, 2009.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Andrea Pope-Matheson,
Clearance Clerk.
[FR Doc. E9-31037 Filed 12-30-09; 8:45 am]
BILLING CODE 4915-01-P