[Federal Register Volume 84, Number 158 (Thursday, August 15, 2019)]
[Notices]
[Pages 41805-41806]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17551]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36337]


Watco Holdings, Inc.--Continuance in Control Exemption--Savannah 
& Old Fort Railroad, L.L.C.

    Watco Holdings, Inc. (Watco), a noncarrier, has filed a verified 
notice of exemption pursuant to 49 CFR 1180.2(d)(2) to continue in 
control of Savannah & Old Fort Railroad, L.L.C. (SOFR), upon SOFR's 
becoming a Class III carrier. Watco owns, indirectly, 100% of the 
issued and outstanding stock of SOFR.
    This transaction is related to a concurrently filed verified notice 
of exemption in Savannah & Old Fort Railroad--Change in Operator 
Exemption--Golden Isles Terminal Railroad, Docket No. 36336, in which 
SOFR seeks an exemption under 49 CFR 1150.31 to acquire from CSX 
Transportation, Inc., by assignment of lease, and to operate, 
approximately 6.45 miles of rail line between milepost ASO 493.3 at or 
near Staley Avenue and milepost ASO 499.75 at the end of the line, in 
Savannah, Ga. (the Line). Upon consummation of the transaction in 
Finance Docket No. 36336, SOFR would become a Class III carrier.

[[Page 41806]]

    The earliest this transaction may be consummated is August 29, 
2019, the effective date of the exemption (30 days after the verified 
notice was filed).
    Watco states that it currently controls, indirectly, 38 Class III 
rail carriers \1\ and one Class II rail carrier, collectively operating 
in 27 states.\2\ For a complete list of these rail carriers and the 
states in which they operate, see Watco's notice of exemption filed on 
July 30, 2019.\3\ The notice is available at www.stb.gov.
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    \1\ In its verified notice, Watco states that it currently 
controls 39 Class III railroads, but this appears to be a 
misstatement, as the number of Class III carriers listed elsewhere 
in the notice adds to 38.
    \2\ Although Watco's verified notice indicates that the carriers 
it controls operate in 25 states, the notice lists 27 different 
states.
    \3\ The list of carriers on pages 4-5 of the verified notice 
does not include Ithaca Central Railroad, LLC, though that carrier 
is listed as one of the applicants on page 9.
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    Watco represents that: (1) The rail line to be operated by SOFR 
does not connect with any lines of any other Watco-controlled rail 
carriers; (2) the proposed continuance in control of SOFR is not part 
of a series of anticipated transactions that would connect the Line 
with the rail lines of any other railroad in the Watco corporate 
family; and (3) the transaction does not involve a Class I rail 
carrier. The proposed transaction is, therefore, 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. Because the transaction 
involves control of one Class II and one or more Class III rail 
carriers, the transaction is subject to the labor protection 
requirements of 49 U.S.C. 11326(b) and Wisconsin Central, Ltd.--
Acquisition Exemption--Lines of Union Pacific Railroad, 2 S.T.B. 218 
(1997).
    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. 
Stay petitions must be filed no later than August 22, 2019 (at least 
seven days before the exemption becomes effective).
    All pleadings, referring to Docket No. FD 36337, 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 Watco's representative, Karl 
Morell, Karl Morell & Associates, 440 1st Street NW, Suite 440, 
Washington, DC 20001.
    According to Watco, 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. 2019-17551 Filed 8-14-19; 8:45 am]
 BILLING CODE 4915-01-P