[Federal Register Volume 78, Number 133 (Thursday, July 11, 2013)]
[Notices]
[Pages 41831-41832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-16632]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35744]


Charles Barenfanger, Jr.--Acquisition of Control Exemption--
Vandalia Railroad Company \1\
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    \1\ In the verified notice of exemption initially filed on June 
20, 2013, this proceeding was captioned as a ``continuance in 
control'' exemption, with Charles Barenfanger, Jr. and Agracel, Inc. 
(Agracel) as co-applicants. On June 25, 2013, however, Barenfanger 
filed a letter supplementing and clarifying the verified notice of 
exemption. As clarified, Barenfanger is the only party to whom the 
exemption will apply, and the described transaction involves an 
acquisition of control rather than continuance in control. See Class 
Exemption for Acquis. or Operation of Rail Lines by Class III Rail 
Carriers Under 49 U.S.C. 10902, EP 529, slip op. at 2 (STB served 
Nov. 29, 1996); Nev. 5, Inc.--Control Exemption--GTR Leasing LLC, FD 
35635, slip op. at 1 n.1 (STB served June 15, 2012). The proceeding 
has been re-captioned accordingly.
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    Charles Barenfanger, Jr., a noncarrier, has filed a verified notice 
of exemption under 49 CFR 1180.2(d)(2) to acquire control of Vandalia 
Railroad Company (Vandalia), a Class III rail carrier.
    Under the proposed transaction, Barenfanger would acquire 51 
percent of Vandalia.\2\ According to Barenfanger, he currently controls 
Effingham Railroad Company (EFR), a Class III rail carrier in Illinois, 
and Illinois Western Railroad Company (IWR).\3\
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    \2\ Agracel, a company in which Barenfanger has no ownership 
interest, would acquire 49 percent of Vandalia.
    \3\ See Ill. W. R.R.--Change in Operator Exemption--City of 
Greenville, Ill., FD 32853 (STB served Jan. 30, 1996). But see 
Effingham R.R.--Pet. for Declaratory Order--Constr. at Effingham, 
Ill., 2 S.T.B. 606 (1997), reconsideration denied (STB served Sept. 
18, 1998), aff'd sub nom. United Transp. Union v. STB, 183 F.3d 606 
(7th Cir. 1999). Barenfanger indicates that he owns 51 percent of 
EFR and IWR and that Agracel owns 49 percent of these companies.
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    Barenfanger states that the proposed transaction is scheduled to be 
consummated no sooner than the effective date of the notice of 
exemption, but no later than 30 days after the filing of the verified 
notice of exemption. The earliest this transaction can be consummated 
is July 25, 2013, the effective date of the exemption (30 days after 
the verified notice of exemption was filed).\4\
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    \4\ Barenfanger's verified notice of exemption is deemed to have 
been filed on June 25, 2013, the date Barenfanger filed his 
supplemental information.
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    Barenfanger represents that: (1) The properties to be operated by 
Vandalia and the properties operated by EFR and IWR do not connect with 
each other; \5\ (2) the proposed transaction is not part of a series of 
anticipated transactions

[[Page 41832]]

that would connect the carriers with each other or any railroad in 
their corporate family; and (3) the transaction does not involve a 
Class I rail carrier. The proposed transaction is therefore exempt from 
the prior approval requirements of 49 U.S.C. 11323 pursuant to 49 CFR 
1180.2(d)(2). Barenfanger states that the purpose of the transaction is 
the achievement of operating efficiency and improved rail service in 
Vandalia, Ill.
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    \5\ In his June 25 letter, Barenfanger states that Vandalia 
operates in Vandalia, Ill.; EFR operates in Effingham, Ill.; and IWR 
operates in Greenville, Ill.
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    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. Petitions for stay must be filed no later than July 18, 2013 
(at least seven days before the exemption becomes effective).
    An original and ten copies of all pleadings, referring to Docket 
No. FD 35744, 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 John M. Robinson, Vinson & Elkins LLP, 2200 
Pennsylvania Avenue NW., Suite 500 West, Washington, DC 20037-1701.
    Board decisions and notices are available on our Web site at 
``www.stb.dot.gov.''

    Decided: July 5, 2013.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Derrick A. Gardner,
Clearance Clerk.
[FR Doc. 2013-16632 Filed 7-10-13; 8:45 am]
BILLING CODE 4915-01-P