[Federal Register Volume 83, Number 189 (Friday, September 28, 2018)]
[Notices]
[Page 49151]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21184]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36218; Docket No. FD 36219]


Gregory B. Cundiff, Connie Cundiff, CGX, Inc. and Ironhorse 
Resources, Inc.--Continuance in Control Exemption--San Pedro Valley 
Holdings, LLC in Cochise County, Ariz.; Gregory B. Cundiff, Connie 
Cundiff, CGX, Inc. and Ironhorse Resources, Inc.--Continuance in 
Control Exemption--San Pedro Valley Railroad, LLC in Cochise County, 
Ariz.

    In Docket No. FD 36218, Gregory B. Cundiff, Connie Cundiff, CGX, 
Inc. (CGX), and Ironhorse Resources, Inc. (IHR),\1\ (collectively, 
applicants) filed a verified notice of exemption under 49 CFR 
1180.2(d)(2) for CGX to continue in control of San Pedro Valley 
Holdings, LLC (SPVH), upon SPVH's becoming a Class III rail carrier.
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    \1\ CGX, a noncarrier holding company, owns IHR--also a 
noncarrier holding company. CGX is owned in equal parts by the 
Gregory B. Cundiff Trust and the Connie Cundiff Trust, both of which 
are noncarrier individual trusts.
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    This transaction is related to a concurrently filed verified notice 
of exemption in San Pedro Valley Holdings, LLC--Acquisition Exemption--
San Pedro & Southwestern Railroad in Cochise County, Ariz., Docket No. 
FD 36216. In that proceeding, SPVH seeks an exemption under 49 CFR 
1150.31 to acquire two rail lines owned by the San Pedro and 
Southwestern Railroad Company: (1) From point of connection to Union 
Pacific Railroad (UP) at milepost 1033.25 at or near Benson, to 
milepost 1040.15 at or near St. David, a distance of 6.9 miles in 
Cochise County, Ariz.; and (2) from point of connection to UP at 
milepost 1074 at or near Wilcox, to all tracks at Wilcox Yard, a total 
of 8,281 feet or 1.57 miles, in Cochise County (collectively, the 
Lines). The Lines total approximately 8.47 miles.
    In Docket No. FD 36219, applicants filed a verified notice of 
exemption under 49 CFR 1180.2(d)(2) for IHR to continue in control of 
San Pedro Valley Railroad, LLC (SPVR), upon SPVR's becoming a Class III 
rail carrier. This transaction is related to a concurrently filed 
verified notice of exemption in San Pedro Valley Railroad--Operator 
Exemption--San Pedro Valley Holdings, LLC in Cochise County, Ariz., 
Docket No. FD 36217, in which SPVR seeks an exemption under 49 CFR 
1150.31 to assume operations over the Lines.
    According to applicants, CGX will continue in control of SPVH upon 
SPVH's becoming a Class III rail carrier and will remain in control of 
the following Class III carriers: Crystal City Railroad, Inc; Lone Star 
Railroad, Inc.; Rio Valley Railroad, Inc.; and Mississippi Tennessee 
Holdings, Inc. Applicants state that IHR will continue in control of 
SPVR upon SPVR's becoming a Class III rail carrier and will remain in 
control of the following Class III carriers: Texas Railroad Switching, 
Inc.; Rio Valley Switching Company; Mississippi Tennessee Railroad, 
LLC; Southern Switching Company; Gardendale Railroad, Inc.; Caney Fork 
& Western Railroad; and Santa Teresa Southern Railroad.
    The earliest these transactions may be consummated is October 17, 
2018, the effective date of the exemptions (30 days after the verified 
notices were filed).\2\ CGX and IHR state that they intend to 
consummate the transactions no sooner than 30 days after the filing of 
the notices of exemption.
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    \2\ The verified notices of exemption in Docket Nos. FD 36218 
and FD 36219 originally were filed on August 30, 2018, but were 
supplemented on September 17, 2018, to clarify the common control of 
the entities involved in the transactions. Therefore, September 17 
is deemed the verified notices' filing date.
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    Applicants state that: (1) The properties to be acquired by SPVH 
and operated by SPVR, and the properties of the rail carriers 
controlled by CGX and IHR do not connect with each other; (2) the 
proposed continuances in control are not part of a series of 
anticipated transactions that would connect the carriers with each 
other or any railroad in their corporate families; and (3) the 
transactions do not involve a Class l rail carrier. Therefore, the 
transactions are 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 Sections 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 notices contain false or misleading information, the 
exemptions are void ab initio. Petitions to revoke the exemptions 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 
exemptions. Petitions for stay must be filed no later than October 10, 
2018 (at least seven days before the exemptions become effective).
    An original and 10 copies of all pleadings, referring to Docket 
Nos. FD 36218 and FD 36219, 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 the applicants' 
counsel, Thomas F. McFarland, Thomas F. McFarland, P.C., 208 South 
LaSalle Street, Suite 1666, Chicago, IL 60604-1228.
    According to applicants, these actions are categorically excluded 
from environmental review under 49 CFR 1105.6(c) and from historic 
reporting under 49 CFR 1105.8(b).
    Board decisions and notices are available on our website at 
www.stb.gov.

    Decided: September 25, 2018.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2018-21184 Filed 9-27-18; 8:45 am]
 BILLING CODE 4915-01-P