[Federal Register Volume 83, Number 235 (Friday, December 7, 2018)]
[Notices]
[Pages 63190-63191]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26581]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36246]


St. Paul & Pacific Northwest Railroad Company, LLC--Change in 
Operators Exemption--Kettle Falls International Railway, LLC

    St. Paul & Pacific Northwest Railroad Company, LLC (SPN), a 
noncarrier, has filed a verified notice of exemption under 49 CFR 
1150.31 to assume operations over approximately 83 miles of rail lines 
owned by BNSF Railway Company. The lines originate at milepost 60.5 in 
Chewelah, Wash., extending to milepost 0.0 at Kettle Falls, Wash., 
where the line diverges into two branches (the Lines). The West Branch 
continues northwest from Kettle Falls to milepost 4.7 at West Kettle 
Falls, Wash. The East Branch continues northeast to the United States-
Canada border at milepost 139.7 and across the border at milepost 139.7 
to Columbia Gardens,

[[Page 63191]]

B.C., Canada.\1\ The verified notice indicates that the Lines are 
currently operated by Kettle Falls International Railway LLC (KFR), and 
that as a result of this transaction, SPN will become a Class III 
carrier and replace KFR as the Line's exclusive lessee and operator.
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    \1\ SPN clarifies, for Board jurisdictional purposes, that the 
relevant distance of the East Branch from Chewelah to the 
international border is approximately 79 miles. It further states 
that the additional four miles of West Branch track it will lease 
makes the total to be leased by SPN approximately 83 miles of track.
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    This transaction is related to a concurrently filed verified notice 
of exemption in Progressive Rail Incorporated--Continuance in Control 
Exemption--St. Paul & Pacific Northwest Railroad Company, Docket No. FD 
36254, in which Progressive Rail Incorporated seeks to continue in 
control of SPN upon SPN's becoming a Class III rail carrier.
    SPN certifies that the underlying lease and operation agreement 
does not contain an interchange commitment. SPN also certifies that its 
projected revenues as a result of this proposed transaction will not 
exceed those that would result in the creation of a Class II or Class I 
rail carrier but notes that they will exceed $5 million. PGR filed the 
certification of notice to employees required under 49 CFR 1150.42(e) 
on November 1, 2018. Further, under 49 CFR 1150.32(b), a change in 
operator requires that notice be given to shippers. SPN certifies that 
notice of the change in operator was served on all known shippers on 
the Lines.
    The earliest this transaction may be consummated is December 31, 
2018, the effective date of the exemption (60 days after the Section 
1150.42(e) certification was filed). SPN states that it expects to 
consummate the underlying transaction on receipt of all regulatory 
approvals, anticipated to be no later than January 1, 2019.
    If the 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 December 24, 2018 (at 
least seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 36246, must be filed with the Surface Transportation Board, 395 E 
Street SW, Washington, DC 20423. In addition, one copy of each pleading 
must be served on Bradon J. Smith, Fletcher & Sippel LLC, 29 North 
Wacker Drive, Suite 800, Chicago, Ill. 60606.
    Board decisions and notices are available on our website at 
www.stb.gov.

    Decided: December 3, 2018.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.

Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2018-26581 Filed 12-6-18; 8:45 am]
BILLING CODE 4915-01-P