[Federal Register Volume 77, Number 155 (Friday, August 10, 2012)]
[Notices]
[Page 47921]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-19651]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35637]


Watco Holdings, Inc.--Continuance in Control Exemption--Pecos 
Valley Permian Railroad, L.L.C. d/b/a Pecos Valley Southern Railway 
Company

    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 Pecos Valley Permian Railroad, L.L.C. d/b/a Pecos Valley 
Southern Railway Company (PVR), upon PVR's becoming a Class III rail 
carrier. Watco owns, indirectly, 100 percent of the issued and 
outstanding stock of PVR, a Texas limited liability company.
    This transaction is related to a concurrently filed verified notice 
of exemption in Pecos Valley Permian Railroad, L.L.C. d/b/a Pecos 
Valley Southern Railway--Lease Exemption--Pecos Valley Southern 
Railway, Docket No. FD 35636, wherein PVR seeks Board approval to lease 
and operate approximately 24 miles of rail line owned by Pecos Valley 
Southern Railway Company between Pecos, Tex., and a point north of 
Saragosa, Tex.
    The transaction may be consummated on or after August 26, 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 21 states.\1\ For a complete list of these 
rail carriers, and the states in which they operate, see Watco's notice 
of exemption filed on July 27, 2012. The notice is available on the 
Board's Web site at ``WWW.STB.DOT.GOV.''
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    \1\ Watco notes that it has filed for Board approval to continue 
in control of San Antonio Central Railroad (SAC) upon SAC's becoming 
a Class III railroad by leasing and operating a four-mile line of 
railroad in San Antonio, Tex. See Watco Holdings, Inc. --Continuance 
in Control Exemption--San Antonio Cent. R.R., FD 35604 (STB served 
June 15, 2012).
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    Watco represents that: (1) The rail lines to be operated by PVR do 
not connect with any of the rail lines operated by the carriers in the 
Watco corporate family; (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).
    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 August 17, 2012 (at 
least seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 35637, 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: August 6, 2012.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2012-19651 Filed 8-9-12; 8:45 am]
BILLING CODE 4915-01-P