[Federal Register Volume 77, Number 213 (Friday, November 2, 2012)]
[Notices]
[Pages 66216-66217]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-26880]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35679]


Union Railroad Company--Corporate Family Merger Exemption--
McKeesport Connecting Railroad Company

    Union Railroad Company (URR) and McKeesport Connecting Railroad 
Company (MCK) (collectively, applicants) have jointly filed a verified 
notice of exemption under 49 CFR 1180.2(d)(3) for a corporate family 
transaction pursuant to which MCK would be merged into URR.
    URR and MCK are both Delaware corporations and Class III rail 
carriers. United States Steel Corporation (USS), a noncarrier, owns all 
of the issued and outstanding stock of Transtar, Inc. (Transtar), a 
noncarrier holding company, which owns all of the issued and 
outstanding stock of six Class III rail carriers (collectively, the 
Transtar railroads), including URR and MCK.
    URR is a switching and terminal railroad that operates 
approximately 27.8 route miles, extending from an interchange with the 
Bessemer & Lake Erie Railroad at North Bessemer, PA, south to an 
interchange with Wheeling & Lake Erie Railway at Mifflin Junction, PA, 
with branches to Clairton, South Duquesne and Munhall, PA. URR connects 
at the intermediate point of Bessemer, PA, with CSX Transportation, 
Inc. (CSXT) and at Kenny and Clarion, PA, with Norfolk Southern 
Railway. MCK is a switching and terminal railroad that operates at 
McKeesport, PA. It connects with CSXT and serves USS' McKeesport 
Tubular Operations.
    Applicants state that, pursuant to the provisions of a Plan of 
Merger executed by the parties, MCK will be merged into URR upon the 
effective date of the merger, with URR as the surviving corporation. 
According to applicants, the corporate existence of the surviving 
corporation will continue unimpaired and unaffected by the merger.
    Unless stayed, the exemption will be effective on November 18, 
2012. Applicants state that the merger of MCK into URR is expected to 
become effective as of January 1, 2013, and that the transaction will 
be consummated as of that date.
    According to applicants, the purpose of the corporate transaction 
is to simplify the corporate structure of the Transtar railroads by 
reducing the number of subsidiary railroads controlled by Transtar to 
five which will reduce the administrative, accounting, reporting, and 
related burdens associated with the maintenance of the two separate 
corporate entities.
    This is a transaction within a corporate family of the type 
specifically exempted from prior review and approval under 49 CFR 
1180.2(d)(3). Applicants state that the transaction will not result in 
adverse changes in service levels, significant operational changes, or 
any changes in the competitive balance with carriers outside the 
corporate family. Applicants further state that the service presently 
provided by the involved carriers will be continued by URR and all 
current connections of the involved carriers will be continued.

[[Page 66217]]

    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 rail carriers.
    If the 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 no later than November 9, 2012 (at 
least seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 35679, 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 A. Vuono, Vuono & Gray, LLC, 310 Grant 
Street, Suite 2310, Pittsburgh, PA 15219.
    Board decisions and notices are available on our Web site at 
www.stb.dot.gov.

    Decided: October 29, 2012.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2012-26880 Filed 11-1-12; 8:45 am]
BILLING CODE 4915-01-P