[Federal Register Volume 83, Number 217 (Thursday, November 8, 2018)]
[Notices]
[Page 55926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24427]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36232]


Eyal Shapira--Continuance in Control Exemption--Iowa & Middletown 
Railway LLC and Wolf Creek Railroad LLC

    Eyal Shapira (Shapira), an individual, has filed a verified notice 
of exemption under 49 CFR 1180.2(d)(2) to continue in control of Iowa & 
Middletown Railway LLC (I&M) and Wolf Creek Railroad LLC (Wolf Creek) 
upon I&M's and Wolf Creek's becoming Class III rail carriers.
    This transaction is related to a verified notice of exemption filed 
concurrently in Wolf Creek Railroad--Lease & Operation Exemption--
American Ordnance LLC, Owner's Representative for U.S. Army Joint 
Munitions Command, Docket No. FD 36236, in which Wolf Creek seeks 
authority to lease from American Ordinance LLC (AO) and operate 
approximately ten miles of rail line in Tennessee, and a verified 
notice of exemption filed on October 12, 2018, in Iowa & Middletown 
Railway--Lease & Operation Exemption--American Ordnance LLC, Owner's 
Representative for US. Army Joint Munitions Command, Docket No. FD 
36231, in which I&M seeks authority to lease from AO and operate 
approximately four miles of rail line in Iowa.
    The earliest this transaction may be consummated is November 22, 
2018, the effective date of the exemption (30 days after the verified 
notice of exemption was filed).\1\
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    \1\ Although notice of I&M's lease and operation exemption in 
Docket No. FD 36231 was served and published in the Federal Register 
on October 26, 2018, the effective date was held in abeyance pending 
review of Shapira's verified notice here. Concurrently with this 
notice, a decision is being issued in Docket No. FD 36231 making 
I&M's exemption effective, unless stayed, on November 22, 2018, 
consistent with this one.
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    According to the verified notice of exemption, Shapira currently 
controls, through equity ownership, two Class III carriers 
(Pennsylvania & Southern Railway (PSRR) and Raritan Central Railway, 
LLC (Raritan Central)). Shapira is filing this verified notice to 
enable his continuance in control of I&M and Wolf Creek when they 
become carriers.
    Shapira represents that: (1) The rail lines to be operated by I&M 
and Wolf Creek do not connect with each other or with the other 
railroads currently controlled by Shapira; (2) the continuance in 
control is not part of a series of anticipated transactions that would 
connect I&M and Wolf Creek with each other or the rail lines of the 
other railroads currently controlled by Shapira; and (3) the 
transaction does not involve a Class I 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).
    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 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 November 15, 
2018 (at least seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 36232, 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 Eric M. Hocky, Clark Hill PLC, One Commerce 
Square, 2005 Market Street, Suite 1000, Philadelphia, PA 19103.
    According to Shapira, this action is categorically excluded from 
environmental review under 49 CFR 1105.6(c).
    Board decisions and notices are available on our website at 
www.stb.gov.

    Decided: November 2, 2018.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2018-24427 Filed 11-7-18; 8:45 am]
 BILLING CODE 4915-01-P