[Federal Register Volume 81, Number 135 (Thursday, July 14, 2016)]
[Notices]
[Pages 45596-45597]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16674]


-----------------------------------------------------------------------

SURFACE TRANSPORTATION BOARD

[Docket No. FD 36019]


OmniTRAX Holdings Combined, Inc.--Continuance in Control 
Exemption--Central Texas & Colorado River Railway, LLC

    OmniTRAX Holdings Combined, Inc. (OmniTRAX) has filed a verified 
notice of exemption pursuant to 49 CFR 1180.2(d)(2) to continue in 
control of Central Texas & Colorado River Railway, LLC (CTCR), a 
noncarrier, upon CTCR's becoming a Class III rail carrier. CTCR is a 
wholly owned subsidiary of OmniTRAX.
    This transaction is related to a concurrently filed verified notice 
of exemption in Central Texas & Colorado River Railway--Acquisition & 
Operation Exemption--Line of Heart of Texas Railroad, Docket No. FD 
36018, in which CTCR seeks Board approval under 49 CFR 1150.31 to 
acquire and operate a line of railroad extending 67.5 miles from 
Lometa, Tex., to the end of the track at Brady, Tex. (the Brady Line).
    OmniTRAX is a noncarrier holding company that controls 18 Class III 
rail carrier subsidiaries (the OmniTRAX Railroads) subject to the 
Board's jurisdiction.\1\ This transaction will

[[Page 45597]]

permit it to exercise common control of these entities and CTCR once 
CTCR acquires the Brady Line.
---------------------------------------------------------------------------

    \1\ In its verified notice, OmniTRAX explains that in preparing 
the two related class exemption filings, it was discovered that 
OmniTRAX had acquired direct and exclusive control of the 18 
OmniTRAX Railroads on December 31, 2015. It states that it 
inadvertently did not seek advanced authority to engage in the 
acquisition of control, ``in part because of the preexisting close 
association among all of the involved carriers and their largely 
common short line heritage.'' On May 5, 2016, OmniTRAX filed a 
petition for exemption in Docket No. FD 36032 to seek the requisite 
authority to acquire control of the OmniTRAX Railroads, and by 
decision served on May 26, 2016, the Board held the notice of 
exemption proceedings in abeyance pending a ruling on the petition. 
The Board granted the petition in a decision served July 14, 2016, 
and therefore is removing this proceeding from abeyance and 
publishing this notice.
---------------------------------------------------------------------------

    The exemption will become effective July 28, 2016.
    OmniTRAX represents that: (1) The rail line to be acquired and 
operated by CTCR does not connect with the lines of any of the OmniTRAX 
Railroads; (2) the continuance in control transaction is not part of a 
series of anticipated transactions that would result in such a 
connection; and (3) the proposed transaction does not involve a Class I 
carrier. Therefore, the transaction is exempt from the prior approval 
requirements of 49 U.S.C. 11323. See 49 CFR 1180.2(d)(2).
    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 21, 2016 
(at least seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 36019, 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 William C. Sippel, Fletcher & Sippel LLC, 29 
North Wacker Drive, Suite 920, Chicago, IL 60606. Board decisions and 
notices are available on our Web site at ``WWW.STB.DOT.GOV.''

    Decided: July 11, 2016.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Tia Delano,
Clearance Clerk.
[FR Doc. 2016-16674 Filed 7-13-16; 8:45 am]
BILLING CODE 4915-01-P