[Federal Register Volume 77, Number 9 (Friday, January 13, 2012)]
[Notices]
[Page 2131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-565]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35579]


Watco Holdings, Inc.--Continuance in Control Exemption--
Birmingham Terminal Railway, L.L.C.

    Watco Holdings, Inc. (Watco), a noncarrier, has filed a verified 
notice of exemption pursuant to 49 CFR 1180.2(d)(2) to continue in 
control of Birmingham Terminal Railway, L.L.C. (BHRR), upon BHRR's 
becoming a Class III rail carrier.
    This transaction is related to a concurrently filed verified notice 
of exemption in Docket No. FD 35578, Birmingham Terminal Railway, 
L.L.C.--Acquisition and Operation Exemption--Birmingham Southern 
Railroad Company, wherein BHRR seeks Board approval to acquire from 
Birmingham Southern Railroad Company and operate approximately 75.59 
miles of rail line, including all sidings and yard tracks, in Ensley, 
East Thomas, Bessemer, Fairfield, and Birmingham, AL.
    The parties intend to consummate the transaction on or shortly 
after January 31, 2012.
    Watco is a Kansas corporation which currently controls, indirectly, 
24 Class III railroads and 1 Class II railroad, operating in 18 States. 
Watco also owns, indirectly, 100 percent of the issued and outstanding 
stock of BHRR, a Delaware limited liability company.
    Watco controls, through stock ownership and management, Class III 
railroads South Kansas and Oklahoma Railroad, Inc., Palouse River & 
Coulee City Railroad, L.L.C., Timber Rock Railroad, L.L.C., Stillwater 
Central Railroad, L.L.C., Eastern Idaho Railroad, L.L.C., Kansas & 
Oklahoma Railroad, L.L.C., Pennsylvania Southwestern Railroad, L.L.C., 
Great Northwest Railroad, L.L.C., Kaw River Railroad, L.L.C., Mission 
Mountain Railroad, L.L.C., Mississippi Southern Railroad, L.L.C., 
Yellowstone Valley Railroad, L.L.C., Louisiana Southern Railroad, 
L.L.C., Arkansas Southern Railroad, L.L.C., Alabama Southern Railroad, 
L.L.C., Vicksburg Southern Railroad, L.L.C., Austin Western Railroad, 
L.L.C., Baton Rouge Southern Railroad, L.L.C., Pacific Sun Railroad, 
L.L.C., Grand Elk Railroad, Inc., Alabama Warrior Railway, L.L.C., 
Boise Valley Railroad, L.L.C., Autauga Northern Railroad, L.L.C., Swan 
Ranch Railroad, L.L.C., and Class II railroad Wisconsin & Southern 
Railroad, L.L.C.
    Watco represents that: (1) The rail lines to be operated by BHRR do 
not connect with any other railroads in the corporate family; (2) the 
transaction is not part of a series of anticipated transactions that 
would connect the rail lines with any other railroads in the 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).
    Watco states that the purpose of the proposed transaction is to 
reduce overhead expenses, 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 the corporate family.
    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. Because the transaction 
involves the control of one or more Class III rail carriers and one 
Class II rail carrier, the transaction is subject to the labor 
protective requirements of 49 U.S.C. 11326(b) and Wisconsin Central 
Ltd.--Acquisition Exemption--Lines of Union Pacific Railroad, 2 S.T.B. 
218 (1997).
    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 20, 2012 
(at least 7 days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 35579, 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, 655 Fifteenth Street NW., Suite 
225, Washington, DC 20005.
    Board decisions and notices are available on our Web site at 
``WWW.STB.DOT.GOV.''

    Decided: January 10, 2012.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Raina S. White,
Clearance Clerk.
[FR Doc. 2012-565 Filed 1-12-12; 8:45 am]
BILLING CODE 4915-01-P