[Federal Register Volume 81, Number 62 (Thursday, March 31, 2016)]
[Notices]
[Page 18681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-07320]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36012]


Finger Lakes Railway Corp.--Acquisition and Operation Exemption--
Cayuga County Industrial Development Agency, Onondaga County Industrial 
Development Agency, Ontario County Industrial Development Agency, 
Schuyler County Industrial Development Agency, and Yates County 
Industrial Development Agency

    Finger Lakes Railway Corp. (FGLK), a Class III rail carrier, has 
filed a verified notice of exemption under 49 CFR 1150.41 to acquire 
from Cayuga County Industrial Development Agency, Onondaga County 
Industrial Development Agency, Ontario County Industrial Development 
Agency, Schuyler County Industrial Development Agency, and Yates County 
Industrial Development Agency (collectively, Agencies), and operate, 
approximately 86.45 miles of rail lines located in New York, as 
follows: \1\ (1) Watkins Glen Industrial Track, located between 
milepost 41.35 at or near Penn Yan and milepost 16.55 at or near 
Watkins Glen, in Schuyler and Yates Counties, a distance of 24.8 miles; 
(2) Canandaigua Secondary, located between milepost 76.00 at or near 
Canandaigua and milepost 51.30 at or near Geneva, in Ontario County, a 
distance of 24.70 miles; (3) Auburn Secondary, located between milepost 
37.56 at the Seneca/Cayuga County line and milepost 3.61 at or near 
Solvay Yard, in Cayuga County, a distance of 33.95 miles; (4) Geneva 
Running Track, located between milepost 344.40 at or near Geneva and 
milepost 342.8 at the Ontario/Seneca County line, in Ontario County, a 
distance of 1.6 miles; (5) Lehigh & Northern Industrial Track, located 
between milepost 349.20 and milepost 348.70 at or near Auburn, in 
Cayuga County, a distance of 0.90 miles; and (6) Auburn & Ithaca 
Industrial Track, located between milepost 349.20 and milepost 348.70 
at or near Auburn, in Cayuga County, a distance of 0.50 miles. The 
Agencies and FGLK state that the Agencies currently own the rail lines 
but FGLK is responsible for all railroad operations over the rail 
lines.
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    \1\ FGLK and the Agencies jointly filed one notice for two 
related transactions under 49 CFR 1150.31 and 1150.41, one in this 
docket and one in Docket No. FD 36011, as described further below. A 
separate notice will be published for each exemption.
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    According to FGLK, the acquisition of the rail lines is part of a 
series of proposed transactions that will allow FGLK to continue to pay 
a negotiated ``payment in lieu of taxes'' (PILOT) rather than be 
subject to local and state taxes. FGLK states that it originally 
acquired the rail lines in 1995 and transferred title to the Agencies 
and then leased back the rail lines for purposes of the PILOT 
arrangement. FGLK states that to extend and restructure the PILOT 
arrangement, the Agencies will first transfer title to the rail lines 
to FGLK. This notice relates to that transaction. Then the Agencies 
will lease the rail lines from FGLK.\2\ Lastly, FGLK will sublease the 
rail lines back from the Agencies to continue operations over them, 
including all common carrier service and maintenance of the tracks.\3\
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    \2\ The Agencies filed a verified notice of exemption to acquire 
the rail lines by lease, in Cayuga County Industrial Development 
Agency, et al.--Acquisition Exemption--Finger Lakes Railway Corp., 
FD 36011. The Agencies also filed a motion to dismiss that notice of 
exemption on grounds that the transaction does not require 
authorization from the Board.
    \3\ FGLK and the Agencies requested authority for all three 
transactions but did not file a separate docket or filing fee for 
the sublease. This notice, therefore, does not address that 
transaction.
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    FGLK certifies that proposed transaction does not include an 
interchange commitment.
    FGLK states that its projected revenues as a result of this 
transaction would exceed $5 million. Accordingly, under 49 CFR 
1150.42(e), FGLK is required, at least 60 days before this exemption is 
to become effective, to send notice of the transaction to the national 
offices of the labor unions with employees on the affected lines, post 
a copy of the notice at the workplace of the employees on the affected 
lines, and certify to the Board that it has done so. FGLK, however, has 
filed a petition for waiver of this 60-day advance labor notice 
requirement, asserting that there will be no changes for employees 
working on the rail lines because FGLK already operates the rail lines 
and will continue to be the sole common carrier operator of the rail 
lines. FGLK's waiver request will be addressed in a separate decision.
    FGLK states that the parties intend to consummate the transaction 
no sooner than April 14, 2016, the effective date of the exemption (30 
days after the verified notice was filed), and only after the Board has 
ruled on the motion to dismiss in Docket No. FD 36011. The Board will 
establish in the decision on the waiver request the earliest date this 
transaction can be consummated.
    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 to stay must be filed no later than April 7, 2016 
(at least seven days before the exemption becomes effective).
    An original and ten copies of all pleadings, referring to Docket 
No. FD 36012, 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 Eric M. Hocky, Clark Hill PLC, 2005 Market 
Street, Suite 1000, Philadelphia, PA 19103.
    According to FGLK, this action is categorically excluded from 
environmental review under 49 CFR 1105.6(c).
    Board decisions and notices are available on our Web site at 
``WWW.STB.DOT.GOV.''

    Decided: March 28, 2016.

    By the Board, Joseph Dettmar, Acting Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2016-07320 Filed 3-30-16; 8:45 am]
 BILLING CODE 4915-01-P