[Federal Register Volume 78, Number 81 (Friday, April 26, 2013)]
[Notices]
[Pages 24803-24804]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-09882]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35734]


Hilco SP Rail, LLC--Acquisition and Operation Exemption--RG Steel 
Railroad Holding, LLC

    Hilco SP Rail, LLC (Hilco), a noncarrier, has filed a verified 
notice of exemption under 49 CFR 1150.31 to acquire from RG Steel 
Railroad Holding, LLC, and operate as a common carrier over an 
approximately 12-mile line of railroad in Sparrows Point, Baltimore 
County, Md. (the Line). Hilco states that the operator of the Line will 
be MCM Rail Services LLC (MCM),\1\ and that MCM will interchange 
traffic with CSX Transportation, Inc. (CSXT), and Norfolk Southern 
Railway Company (NSR). Hilco also states that there are no mileposts on 
the Line. According to Hilco, the sale of railroad assets was pursuant 
to an Asset Purchase Agreement (APA) dated August 7, 2012, which was 
authorized and approved by United States Bankruptcy Judge Kevin J. 
Carey on August 21, 2012, and which closed on September 14, 2012.\2\ 
Hilco also states there are no interchange commitments in the agreement 
between MCM and Hilco, and that there will be no interchange agreements 
in the interchange agreement between Hilco and MCM and CSXT or between 
Hilco and MCM and NSR.
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    \1\ MCM filed a notice of exemption for operating authority over 
the Line on March 20, 2013, in MCM Rail Services LLC, d/b/a 
Baltimore Industrial Railroad--Operation Exemption--HRE Sparrows 
Point LLC, Docket No. FD 35725. Because MCM already had a petition 
for exemption for operating authority over the Line pending before 
the Board in MCM Rail Services LLC--Petition for Retroactive 
Exemption--in Sparrows Point, Md., Docket No. FD 35707, MCM's notice 
was held in abeyance by decision served April 5, 2013. MCM has since 
filed a motion to withdraw its petition for exemption. That motion 
is currently pending before the Board.
    \2\ Hilco recognizes that it should have sought Board approval 
sooner and requests that the Board confirm that it will not pursue 
an enforcement action against Hilco. The full Board has, in the 
past, confirmed that it will not pursue enforcement action where 
failure to file for Board licensing authority was inadvertent and no 
harm resulted. See, e.g., New Brunswick Ry.--Continuance in Control 
Exemption--Me. N. Ry., FD 35520 et al., slip op. at 3-4 & n.2 (STB 
served Sept. 26, 2011). However, such a confirmation would require 
evaluation by, and decision of, the entire Board, and is not 
appropriate for the abbreviated context of a notice of exemption 
proceeding.
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    Hilco states that it expects to consummate the proposed transaction 
on or after May 12, 2013. The earliest this transaction may be 
consummated is May 12, 2013, the effective date of the exemption (30 
days after the exemption was filed).
    Hilco certifies that its projected annual revenues as a result of 
this transaction will not exceed those that would qualify it as a Class 
III rail carrier and will not exceed $5 million.
    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 no later than May 3, 2013 
(at least seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 35734, must be filed with the Surface Transportation Board, 395 E 
Street SW., Washington, DC 20423-0001. In

[[Page 24804]]

addition, a copy of each pleading must be served on Louis E. Gitomer, 
Law Offices of Louis E. Gitomer LLC, 600 Baltimore Avenue, Suite 301, 
Towson, MD 21204.
    Board decisions and notices are available on our Web site at 
``www.stb.dot.gov.''

    Decided: April 22, 2013.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2013-09882 Filed 4-25-13; 8:45 am]
BILLING CODE 4915-01-P