[Federal Register Volume 77, Number 116 (Friday, June 15, 2012)]
[Notices]
[Page 36040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-14663]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35604]


Watco Holdings, Inc.--Continuance in Control Exemption--San 
Antonio Central Railroad, L.L.C.

    Watco Holdings, Inc. (Watco), a noncarrier, has filed a verified 
notice of exemption pursuant to 49 CFR 1180.2(d)(2), for Watco to 
continue in control of San Antonio Central Railroad, L.L.C. (SAC), upon 
SAC's becoming a Class III rail carrier. Watco owns, indirectly, 100 
percent of the issued and outstanding stock of SAC, a Texas limited 
liability company.
    This transaction is related to a concurrently filed verified notice 
of exemption in San Antonio Central Railroad, L.L.C.--Lease Exemption--
Port Authority of San Antonio, Docket No. FD 35603, wherein SAC seeks 
Board approval to lease and operate approximately four miles of rail 
line owned by the Port Authority of San Antonio, in San Antonio, Tex.
    The transaction may be consummated on or after July 1, 2012, the 
effective date of the exemption (30 days after the notice of exemption 
was filed).
    Watco is a Kansas corporation that currently controls, indirectly, 
one Class II rail carrier, operating in two states, and 25 Class III 
rail carriers, operating in 19 states. For a complete list of these 
rail carriers, and the states in which they operate, see Watco's notice 
of exemption filed on June 1, 2012. The notice is available on the 
Board's Web site at www.stb.dot.gov.
    Watco represents that: (1) The rail lines to be operated by SAC do 
not connect with any of the rail lines operated by the carriers in the 
Watco corporate family \1\; (2) the continuance in control is not a 
part of a series of anticipated transactions that would result in such 
a connection; and (3) the transaction does not involve a Class I 
carrier. Therefore, the transaction is exempt from the prior approval 
requirements of 49 U.S.C. 11323. See 49 CFR 1180.2(d)(2).
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    \1\ According to the notice, the rail lines that will be 
operated by SAC are located in San Antonio, Tex., and no other Watco 
railroad operates rail lines in or near San Antonio.
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    Watco states that the purpose of the 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 Watco 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 Class II and one or more Class III rail 
carriers, the transaction is subject to the labor protection 
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. Petitions for stay must be filed by June 22, 2012 (at least 
seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 35604, must be filed with the Surface Transportation Board, 395 E 
Street SW., Washington, DC 20423-0001. In addition, a copy of each 
pleading must be served on Karl Morell, Ball Janik LLP, 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: June 12, 2012.

    By the Board.
Rachel D. Campbell,
Director, Office of Proceedings.
Derrick A. Gardner,
Clearance Clerk.
[FR Doc. 2012-14663 Filed 6-14-12; 8:45 am]
BILLING CODE 4915-01-P