[Federal Register Volume 81, Number 83 (Friday, April 29, 2016)]
[Notices]
[Pages 25750-25751]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-10092]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36024]


Finger Lakes Railway Corp.--Sublease and Operation Exemption--
Seneca 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 sublease 
from Seneca County Industrial Development Agency (Agency), and operate, 
approximately 26.44 miles of railroad located in New York as follows: 
(1) Auburn Secondary, between milepost 37.56 at the Seneca/Cayuga 
County line and milepost 50.50 at or near Geneva, a distance of 12.94 
miles; and (2) Geneva Running Track,

[[Page 25751]]

between milepost 342.80 at the Ontario/Seneca County line and milepost 
329.30 at or near Kendaia, a distance of 13.50 miles.\1\ The Agency and 
FGLK state that the Agency currently owns the rail lines but FGLK is 
responsible for all railroad operations over the rail lines.
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    \1\ The Agency and FGLK jointly filed one notice for three 
related transactions under 49 CFR 1150.31 and 1150.41, one in this 
docket, one in Docket No. FD 36022, and one in Docket No. FD 36023, 
as described further below. A separate notice will be published for 
each exemption.
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    According to FGLK, the sublease 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) while maintaining the 
benefits of being exempt from local and state taxes. FGLK states that 
it originally acquired the rail lines in 1995 and transferred title to 
the Agency and then leased back the rail lines for purposes of the 
PILOT arrangement. FGLK states that to extend and restructure the PILOT 
arrangement, the Agency will first transfer title to the rail lines to 
FGLK.\2\ Then the Agency will lease the rail lines from FGLK.\3\ 
Lastly, FGLK will sublease the rail lines back from the Agency to 
continue operations over them, including all common carrier service and 
maintenance of the tracks--the transaction at issue in this docket.
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    \2\ FGLK filed a verified notice of exemption to acquire the 
rail lines in Finger Lakes Railway--Acquisition & Operation 
Exemption--Seneca County Industrial Development Agency, Docket No. 
FD 36022.
    \3\ The Agency filed a verified notice of exemption to acquire 
the rail lines by lease, in Seneca County Industrial Development 
Agency--Lease Exemption--Finger Lakes Railway, Docket No. FD 36023. 
The Agency also filed a motion to dismiss that notice of exemption 
on grounds that the transaction does not require authorization from 
the Board. That motion will be addressed in a separate decision.
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    FGLK certifies that the proposed transaction does not include an 
interchange commitment.
    FGLK states the transaction will not result in the creation of a 
Class II or Class I rail carrier, but 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 May 13, 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 36023. 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 May 6, 2016 
(at least seven days before the exemption becomes effective).
    An original and ten copies of all pleadings, referring to Docket 
No. FD 36024, 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: April 26, 2016.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2016-10092 Filed 4-28-16; 8:45 am]
BILLING CODE 4915-01-P