[Federal Register Volume 84, Number 158 (Thursday, August 15, 2019)]
[Notices]
[Page 41805]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17547]


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

SURFACE TRANSPORTATION BOARD

[Docket No. FD 36287]


Cleveland & Cuyahoga Railway, LLC--Change in Operator Exemption 
Containing Interchange Commitment--Cleveland Commercial Railroad 
Company, LLC

    Cleveland & Cuyahoga Railway, LLC (CCR), a noncarrier, has filed a 
verified notice of exemption under 49 CFR 1150.31 to acquire from 
Cleveland Commercial Railroad Company, LLC (Cleveland Commercial) two 
lease agreements and to operate approximately 35.7 miles of rail line 
as follows: (1) A 10.4-mile rail line located in Cuyahoga County, Ohio, 
between milepost 15.5 at Falls Junction in Glenwillow, and milepost 5.1 
in Cleveland (the W&LE Line); and (2) a 25.3-mile rail line located in 
Cuyahoga and Portage Counties, Ohio, between milepost RH 2.2+/- in 
Cleveland, and milepost RH 27.5+/- in Aurora (the NS Line) 
(collectively, the Lines).
    The verified notice states that Cleveland Commercial entered into 
an agreement with the Wheeling & Lake Erie Railway Company in 2004 to 
lease and operate the W&LE Line, see Cleveland Commercial R.R.--Change 
in Operators Exemption--Wheeling & Lake Erie Ry., FD 34521 (STB served 
Aug. 6, 2004), and an agreement with Norfolk Southern Railway Company 
in 2009 to lease and operate the NS Line, see Cleveland Commercial 
R.R.--Lease & Operation Exemption--Norfolk Southern Ry., FD 35251 (STB 
served May 29, 2009).
    According to CCR, Cleveland Commercial and CCR now have entered 
into an agreement under which Cleveland Commercial will assign both 
leases to CCR. As a result, CCR will replace Cleveland Commercial as 
the lessee and operator of the Lines.
    This transaction is related to a concurrently filed verified notice 
of exemption in OmniTRAX Holdings Combined, Inc.--Continuance in 
Control Exemption--Cleveland & Cuyahoga Railway, Docket No. FD 36288, 
in which OmniTRAX Holdings Combined, Inc., and HGS Railway Holdings, 
Inc., both noncarriers, seek Board approval to continue in control of 
CCR under 49 CFR 1180.2(d)(2) upon CCR's becoming a Class III rail 
carrier.\1\
---------------------------------------------------------------------------

    \1\ The verified notices in Docket Nos. FD 36287 and FD 36288 
were initially submitted on April 1, 2019. On April 15, 2019, CCR 
requested that the Board hold both dockets in abeyance until it 
could complete negotiations regarding the NS Line, and the request 
was granted. On July 16, 2019, CCR notified the Board that it had 
completed its negotiations and requested that the Board process the 
verified notices in both dockets. On July 31, 2019, CCR filed a 
supplement clarifying that Docket No. FD 36287 should be a change in 
operator exemption and providing the most recent version of the 
lease agreement.
---------------------------------------------------------------------------

    CCR certifies that its projected annual revenues as a result of the 
transaction will not result in the creation of a Class II or Class I 
carrier and will not exceed $5 million. As required under 49 CFR 
1150.33(h)(1), CCR has disclosed in its verified notice that the lease 
agreement governing the NS Line contains an interchange commitment in 
the form of lease credits.\2\ CCR has provided additional information 
regarding the interchange commitment as required by 49 CFR 1150.33(h).
---------------------------------------------------------------------------

    \2\ A copy of the lease agreement with the interchange 
commitment was submitted under seal. See 49 CFR 1150.33(h)(1).
---------------------------------------------------------------------------

    Under 49 CFR 1150.32(b), a change in operators requires that notice 
be given to shippers. In its July 31, 2019 supplement, CCR states that 
it has provided notice of the proposed transaction to all active 
shippers on the Lines in the last two years.
    The earliest this transaction may be consummated is August 30, 2019 
(30 days after the verified notice was filed).\3\ 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 August 23, 2019 (at least seven days 
before the exemption becomes effective).
---------------------------------------------------------------------------

    \3\ The date of CCR's supplement (July 31, 2019) will be 
considered the filing date for the purposes of calculating the 
effective date of the exemption.
---------------------------------------------------------------------------

    All pleadings, referring to Docket No. FD 36287, must be filed with 
the Surface Transportation Board either via e-filing or in writing 
addressed to 395 E Street SW, Washington, DC 20423-0001. In addition, a 
copy of each pleading must be served on CCR's representative, Karl 
Morell, Karl Morell and Associates, 440 1st Street NW, Suite 440, 
Washington, DC 20001.
    According to CCR, this action is excluded from environmental review 
under 49 CFR 1105.6(c) and from historic preservation reporting 
requirements under 49 CFR 1105.8(b)(1).
    Board decisions and notices are available at www.stb.gov.

    Decided: August 12, 2019.

    By the Board, Allison C. Davis, Director, Office of Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2019-17547 Filed 8-14-19; 8:45 am]
 BILLING CODE 4915-01-P