[Federal Register Volume 77, Number 180 (Monday, September 17, 2012)]
[Notices]
[Page 57188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-22841]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35668]


Iowa Pacific Holdings, LLC and Permian Basin Railways--
Continuance in Control Exemption--Rusk, Palestine & Pacific Railroad, 
LLC

    Iowa Pacific Holdings, LLC (IPH) and its wholly owned subsidiary, 
Permian Basin Railways (PBR), have filed a verified notice of exemption 
pursuant to 49 CFR 1180.2(d)(2) to continue in control of Rusk, 
Palestine & Pacific Railroad, LLC (RP&P),\1\ formerly American Heritage 
Railways of Texas, LLC (American), upon RP&P's becoming a Class III 
rail carrier. IPH and PBR filed a corrected copy of that notice on 
September 7, 2012.
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    \1\ RP&P is a wholly owned subsidiary of IPH.
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    In a concurrently filed verified notice of exemption, RP&P seeks 
Board approval to operate as a common carrier approximately 27 miles of 
railroad (the Line) between Rusk and Palestine, Tex.\2\ The Line has no 
mileposts. It is currently owned by the Texas Parks and Wildlife 
Authority and it is leased to the Texas State Railroad Authority, which 
has entered into an operating agreement with American/RP&P. American 
had been operating a noncommon carrier intrastate excursion passenger 
railroad over the Line using the name Texas State Railroad. RP&P plans 
to continue that service using the name Texas State Railroad and plans 
to restore common carrier freight service over the Line using the name 
``Rusk, Palestine & Pacific Railroad''. Rusk, Palestine & Pacific 
R.R.--Operation Exemption--Tex. State R.R. Auth., Docket No. FD 35669.
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    \2\ RP&P also seeks incidental trackage rights for the purpose 
of interchange over approximately 1.3 miles of track owned and 
operated by the Union Pacific Railroad Company (UP) that connects to 
UP's rail yard in Palestine, Tex.
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    The transaction may be consummated on or after September 29, 2012 
(the effective date of the exemption).
    IPH and PBR subsidiary railroads include: (1) Chicago Terminal 
Railroad, located in and around Chicago, Ill.; (2) Mount Hood Railroad, 
located in Oregon; (3) San Luis & Rio Grande Railroad, located in 
Colorado; (4) Saratoga & North Creek Railway, located in New York; (5) 
Texas-New Mexico Railroad, located in New Mexico and Texas; and (6) 
West Texas & Lubbock Railway, located in Texas. IPH and PBR recently 
have obtained Board authority to continue in control of a new 
noncarrier subsidiary in California, the Santa Cruz and Monterey Bay 
Railway Company, upon its becoming a Class III rail carrier. Iowa Pac. 
Holdings, LLC and Permian Basin Rys.--Continuance in Control 
Exemption--Santa Cruz and Monterey Bay Ry., FD 35632 (STB served Aug. 
17, 2012).
    IPH and PBR represent that: (1) The Line does 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 
Line 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).
    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 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 September 21, 
2012 (at least seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 35668, 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, Strasburger & Price, LLP, 
1700 K Street NW., Suite 640, Washington, DC 20006.
    Board decisions and notices are available on our Web site at 
www.stb.dot.gov.

    Decided: September 12, 2012.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Clearance Clerk,
Derrick A. Gardner.
[FR Doc. 2012-22841 Filed 9-14-12; 8:45 am]
BILLING CODE 4915-01-P